As the word represents it's mining the required information from a ocean of data. Data mining is the process of analyzing the data from different perspectives and summarizing it into useful information can be used to increase revenue or to cut down or both.
Data mining is primarily used by companies with a strong consumer focus especially the retail, financial, communication, and marketing organizations. It enables the companies to determine relationships among the "internal" factors like price, product positioning, or staff skills, and other "external" factors such as economic indicators, competition, and customer demographics. This enables them to determine its impact on sales, customer satisfaction, and on corporate profits. By data mining companies can understand about historical patterns and future trends. For example, summary information on retail supermarket sales can be analyzed in the light of promotional efforts to provide knowledge of consumer buying behavior.
For example, restaurants could mine customer purchase data to determine when customers visit and what they order. This information could be used to increase the number of customers by highlighting daily specials in the menu. Data can be mined to identify market segments or consumer tastes and preferences etc.
Data mining includes the main five elements