What is the difference between Data Mining and Data WareHousing?
Data warehousing is the storage of data, typically summarized and prepared for analytical purposes, in contrast to “operational” databases, which are used in the real-time operation of a business or other organization. Data mining is a sophisticated statistical analysis of data, most often predictive modeling. As an example, consider a bank: operational databases record transactions and other changes to accounts in real-time. One or more data warehouses may be constructed which contain specialized summaries of the data in the operational database. For instance, one data warehouse might be used for the marketing department, another for fraud detection, and yet another to assess credit risk. Although data mining doesn’t have to use a data warehouse as its source, in this case, data mining might be used, for instance, to analyze the credit risk of customers.
