Definition - 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.
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.