It is said that in the future the term predictive analysis may even replace the term data mining. This is because these terms are mainly used by the commercial enterprises and business communities who are at present using data mining techniques like analysis of data; market reports analysis etc to improve their business. This area has today further evolved into a new arena called predictive analysis that is capable of using data to predict the future.
Actually the community’s interest and the focus of attention have already moved from classical data mining and data warehousing to predictive analytics. Though basically the term predictive analysis evolved from data mining, today it is predictive analysis that is all set for creative evolution and is an area of intense research. One can say that it is like the case of the child becoming more successful than the father.
Some of the basic differences between data mining and predictive analytics are,
- While data mining uses the statistical analysis method predictive analysis uses prescriptive algorithms while handling of data.
- Data Mining concerns with only the continuous changes in the data while predictive analytics is about both continuous and discontinuous changes.
- Data Mining predicts the past and predictive analytics predicts the future.
- Data mining validates hypothesis but predictive analytics both invents and validates hypothesis.
One should however not forget that the terms, data mining, data warehousing, OLAP (On Line Analytical Programming) and predictive analytics are some times complementary and can support each other.
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