Predictive Data Mining

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What Does Predictive Data Mining Mean?

Predictive data mining is data mining that is done for the purpose of using business intelligence or other data to forecast or predict trends. This type of data mining can help business leaders make better decisions and can add value to the efforts of the analytics team.

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Techopedia Explains Predictive Data Mining

IT professionals may often talk about predictive data mining in conjunction with predictive analytics or say that predictive data mining supports predictive analytics. Predictive analytics is the use of data to forecast results. Data mining is the process of going through the system databases and finding relevant data to analyze.

For example, the predictive data mining process may use algorithm-based tools to go through a customer database to look at past transactions in order to support theories about possible future volumes of transactions. In other words, the data may help to project what will happen later on in the business, allowing business leaders to plan accordingly.

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Margaret Rouse
Technology Expert
Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.