Reasons for Usage of Data Mining in the Business
Data mining is considered to be an important for the business process which helps to study the pattern about the customer behavior towards its company. With the help of data mining an unknown credible pattern can be explored which is helpful in business processing.
Data mining has wide application in various businesses some of them are listed:
To establish a good relationship with the customer data mining can be used by the company to analyze the customer data through which a certain pattern can be decoded (Wu, 2014). The decoded pattern can be used to retain, acquire customers and can also be used to make strategies which is focuses on the customers.
With the help of data mining a meaningful pattern is programmed and if any pattern which is not valid is termed as a fraud, thus detecting it as a lie or fraud.
In the education field the data mining is used for predicting the leaning behavior of the student which is helpful for the institution to approximate the results of the student (Siemen & d Baker, 2012).
In bank a huge amount of data is recorded every second who includes account number, customer name, balance amount and many other things. In order to maintain such huge amount of data and decode them to study the pattern of the customer way of doing banking, data mining is used.
Healthcare business
Data mining helps to analyze data like best medicine practices, cost, volume of patients in each category related data can be find out.
Data mining start up enigma to expand commercial-business
The following article discusses about the death of five people due to the raging fire in the New Orleans the fire was so intense that it engulfed the whole house the deputy mayor Andy Kopplin condemned the news as the real tragedy but he also said that it as preventable if the each houses in its neighborhood contained fire alarms. The officials decided to install fire alarms in the houses which are at major risk of fire (Lohr, 2017). In order to select the house to install fire alarms which is at most risk, they took the help of a startup company Enigma which is working in the field of open data that involves collecting and mining public government information to find the house which is at most risk.
The news article discusses that the officials in New Orleans are taking the help of the technology in order to find the house which is at the most risk of the fire to install the fire alarm in them. The technology used here is data mining through the data mining enigma will analyze the public records to gain insight to find the target houses.
Conclusion
From the article it can be concluded that data mining is not only limited for the business purpose. If analyzed the importance of the data mining, it can be used in any field which is shown in the above article that the data mining is used by New Orleans government to find the house which is at most risk of fire to install the fire detectors (Miner, 2012). Big data is simply the collection of huge amount of the data to derive a useful pattern which can be used as information. Therefore it is applicable in the entire field which can be imagined.
Various Sectors Where Data Mining Can Be Used
References
Lohr, S. (2017). Data Mining Start-Up Enigma to Expand Commercial Business. Nytimes.com. Retrieved 10 August 2017, from https://www.nytimes.com/2015/06/23/technology/data-mining-start-up-enigma-to-expand-commercial-business.html
Wu, X., Zhu, X., Wu, G. Q., & Ding, W. (2014). Data mining with big data. IEEE transactions on knowledge and data engineering, 26(1), 97-107.
Siemens, G., & d Baker, R. S. (2012, April). Learning analytics and educational data mining: towards communication and collaboration. In Proceedings of the 2nd international conference on learning analytics and knowledge (pp. 252-254). ACM.
Miner, G. (2012). Practical text mining and statistical analysis for non-structured text data applications. Academic Press.
The report discusses the concept data mining and the major security problems in data mining, privacy problems related to the data mining, the ethical implication related to the data mining. It further discusses about the importance of this implication in the business and finally concludes how effectively the company should use the data mining in keeping the mind the privacy of its customer.
Nowadays every operation is performed through the computer therefore it store the huge amount of the data which can be misused if gets in the wrong hand (“Big data security problems threaten consumers’ privacy”, 2017). The application of the big data is huge like predicting the result before two to three days of its occurrence or studying the customer behavior (Aggarwal, 2013). The biggest challenge which is faced in this field to prevent the misuse of the data which can compromise its privacy. Here is some of the threat which is related to the big data.
The amount of the data present in the big data is itself is the huge challenge to protect these data from wrong hands to protect the customer’s privacy. A single breach can put thousands of customer data at risk. A report in 2014 of the breaching of the Arkansas University has compromised around fifty thousand student private data and in the same year e-commerce giant e-bay has compromised over two hundred million customer’s data (Sagiroglu & Sinanc,2013). The Amazon, in order to protect the data it distributing its data to twelve of its data centers in the world to minimize the effect.
In order to protect the information it is recommended to have single access point, but it is not possible in the case of the big data as it is the storage of huge amount of data and it is not possible to have single access point for the big data, which make its vulnerable to breaching. The software company does not take security as its high priority as it can cost them time and money (Malik, Ghazi & Ali, 2012). An example can be software company Hardtop, a software has a very basic security features but many big companies uses Hardtop as their corporate data platform, despite its limitation
Privacy in place of security
In order to provide extra security to the customer data on the customer’s demand the company uses access control, encryption, intrusion detection or backups. In order to apply the extra security the company demands more private information of the customer to make the data more secure (Davis, 2012). To update the security of the data the company treats every person as a potential hacker who can pose threat to their security, even though the agency has sufficient information that a particular customer is not the terrorist it still makes more decrypted version of his data.
Recent Article/News Item Relating to Data Mining Business
The usage of the big data also raises the great concern. Various companies are using the big data to track the online move of the customer to study their choices and the big data companies are helping them to achieve their target by providing the private data to these company (Jensen, Jensen, & Brunak, 2012). The big data can claim that they are doing this in order to make online experience friendlier but the same information can be used against the customer.
It is truly the digital age for the world as almost all the operations are implemented with the help of computers. There has been great revolution in the digital age. The online data which is amassed can be analyzed to yield knowledge (“Big Data, Human Rights and the Ethics of Scientific Research – Opinion – ABC Religion & Ethics (Australian Broadcasting Corporation)”, 2017). On one hand the big data has proved to be a potential application in the entire sector like banking, healthcare sector, finance; it is also used for the research purpose in area of biomedical, public health. It has also helped in the early detection of the disease outbreaks thus treating with the possible solution, but on other hand through Snowden revelations the public came to know about the amount government surveillance on the people thus misusing the power of big data which has not only compromised the privacy but also failed the trust in them (Kitchin, 2013). The cybercrime and hacking news has created the fears among people and made the digital world more vulnerable to hacking.
The primary goal behind the usage of data mining is to analyze the huge and UN meaningful data and derive some information or pattern which can be used in healthcare, marketing, education and other various sectors. Data mining are used in these sectors to study the customer behavior and follow according to it this it can in enhancing a company’s revenue or profits. Ethical implication is much different from the legal implication (Davis, 2012). To steal the data and using it illegally comes under the legal implications but to develop the mindset and carry out the business according to it comes under unethical business. The whole concept of data mining is not bad as it has many useful advantages, and it is not going to stop despite its limitations. The well known problem with data mining is when the private data of the individual is used to market the products in order to target others (Poldrack & Gorgolewski, 2014). Though companies appear to focus on the idea that more the data mining the more will be the sales of their products. This might be acceptable with them but there will be disagreement with customers.
The above described is the major issue with the data mining and it should be avoided by the company. If a customer feel his privacy has been compromised by the company for the sake of his own benefits. Then he has every right to take legal action against the company (Torgo, 2016). It is the duty of the company to maintain the transparency in the usage of the big data and if there is any breach in its data then it should take the responsibility for the loss.
Conclusion
From the report it can be concluded that the data mining has revolutionized the way of doing business it has the application in every sector be it a health or finance or marketing. It is also used as a security purpose for detecting fraud and lies by studying the customer behavioral pattern. The data mining business is going to expand in coming age. The company has to maintain transparency while using the big data should take the responsibility if there is any breach in its data
References
Aggarwal, C. C. (Ed.). (2013). Managing and mining sensor data. Springer Science & Business Media.
Davis, K. (2012). Ethics of Big Data: Balancing risk and innovation. ” O’Reilly Media, Inc.”.
Jensen, P. B., Jensen, L. J., & Brunak, S. (2012). Mining electronic health records: towards better research applications and clinical care. Nature reviews. Genetics, 13(6), 395.
Kitchin, R. (2013). Big data and human geography: Opportunities, challenges and risks. Dialogues in human geography, 3(3), 262-267.
Malik, M. B., Ghazi, M. A., & Ali, R. (2012, November). Privacy preserving data mining techniques: current scenario and future prospects. In Computer and Communication Technology (ICCCT), 2012 Third International Conference on (pp. 26-32). IEEE.
Poldrack, R. A., & Gorgolewski, K. J. (2014). Making big data open: data sharing in neuroimaging. Nature neuroscience, 17(11), 1510-1517.
Sagiroglu, S., & Sinanc, D. (2013, May). Big data: A review. In Collaboration Technologies and Systems (CTS), 2013 International Conference on (pp. 42-47). IEEE.
Torgo, L. (2016). Data mining with R: learning with case studies. CRC press.
Big data security problems threaten consumers’ privacy. (2017). The Conversation. Retrieved 12 August 2017, from https://theconversation.com/big-data-security-problems-threaten-consumers-privacy-54798
Big Data, Human Rights and the Ethics of Scientific Research – Opinion – ABC Religion & Ethics (Australian Broadcasting Corporation). (2017). Abc.net.au. Retrieved 12 August 2017, from https://www.abc.net.au/religion/articles/2016/11/30/4584324.htm
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
