Dynamic Data Mining (DDM) combines modern data mining techniques with modern time series analysis techniques. Standard time series analysis deals with the type of temporal sequences of data points and forecasting of future data points that can be used for forecasting data. But it is usually not able to take into account or handle in the best way large amounts of data and large numbers of input variables. Standard data mining, on the other hand, incorporates many methods to handle large numbers of input variables, but it is typically not suitable for time series data. The Dynamic Data Mining technology developed by Adapticon combines the best of both worlds: it uses state of the art nonlinear time series analysis and prediction techniques with state of the art data mining techniques for handling and analyzing large amounts of input data.

DDM is based on learning to predict based on historical data. Learning consists of analyzing and iteratively processing the data in what can be characterized as a "trial and error" process. Forecasts are generated by the learning system, and forecasting inaccuracies ("errors") are fed back to the learning system which adapts its forecasts to correct the errors. This iterative process gradually improves the forecasting accuracy of the learning system.

DDM technology leads to high forecasting accuracy, as shown in multiple business cases. Additionally, an important benefit of Dynamic Data Mining technology is provided by its analysis capabilities. These consist of methods to analyze the patterns in the data and the strengths and weaknesses of the current forecasts. They allow the user to "look inside the black box" to learn more about the data and the forecasting difficulties which a customer faces.

It is important to note that DDM does not consist of one single algorithm or one single step of data processing; rather, it consists of several components, each of which is important in obtaining good prediction results, and it is the combination of multiple processing components that gives DDM its power.