The document defines data mining and knowledge discovery in databases (KDD). It states that data mining involves sorting through large datasets to identify patterns and relationships. The goal is extraction of knowledge from data, not just extraction of data itself. Data mining is part of the KDD process. KDD discovers useful knowledge from data through preparation, cleansing, interpretation and prior knowledge. Major KDD areas include marketing, fraud detection and manufacturing. The KDD process has improved over the last 10 years using different discovery approaches like statistics and machine learning. The overall KDD process involves domain understanding, data selection, cleaning, reduction, choosing a task/algorithm, mining patterns, and interpreting results.