Generally, data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both.
Data mining software analyzes relationships and patterns in stored transaction data based on open-ended user queries.
Four types of relationships in data mining:
- Classes: Stored data is used to locate data in predetermined groups.
- Clusters: Data items are grouped according to logical relationships or consumer preferences.
- Associations: Data can be mined to identify associations.
- Sequential patterns: Data is mined to anticipate behavior patterns and trends.
- Artificial neural networks: Non-linear predictive models that learn through training and resemble biological neural networks in structure.
- Decision trees: Tree-shaped structures that represent sets of decisions. These decisions generate rules for the classification of a dataset. Specific decision tree methods include Classification and Regression Trees (CART) and Chi Square Automatic Interaction Detection (CHAID) .
- Genetic algorithms: Optimization techniques that use processes such as genetic combination, mutation, and natural selection in a design based on the concepts of evolution.
- Nearest neighbor method: A technique that classifies each record in a dataset based on a combination of the classes of the k record(s) most similar to it in a historical dataset (where k ³ 1). Sometimes called the k-nearest neighbor technique.
- Rule induction: The extraction of useful if-then rules from data based on statistical significance.
http://www.thearling.com/index.htm#wps - Information about data mining and analytic technologies
http://www.statsoft.com/textbook/stdatmin.html - white papers about data mining, etc.


