The idea of Data Mining is growing in popularity overall in business activities. We are living in a data-driven age and we have been producing more and more data in every area that you might think about. Each time you make a purchase, there’s data being transferred to a database, and there’s some sort of data download in most transactions you perform. With the increasing amount of available data, it is necessary to make use of this huge resource.
Data Mining is the practice of collecting real, new, comprehensible, and meaningful information from large databases and making important business decisions with it. Data Mining applies across all industries and fields. Generally speaking, wherever there are processes and wherever there is data, the application of the powerful mathematical techniques that make data mining possible remains applicable to make data usable for the processes.
But there always is a downside to the story. Data mining, no matter how useful it is, poses some real issues in its application. In this article, we will compare the pros and cons of this field and see how the Benefits outweigh the Limitations which ultimately makes the field successful.
Benefits of Data Mining
We can only make sense of the benefits of some fields when we look at their applications in real life. So here we will discuss the benefits of data mining in different professions of daily life.
Manufacturing is the field that runs our world. Without this process, we can’t experience the true beauty of life. Manufacturers can identify faulty equipment and evaluate optimal control parameters by introducing data mining in operational data. Data mining has been applied to determine the control parameter ranges that lead to quality control in industries. They also help to ensure that similar products are produced according to the demand at all branches of that business.
Data mining can assist researchers by speeding up their analysis of the process. It helps to identify different patterns in the data available. Most of the time while designing some strategies or systems, one might experience some sort of unexpected issues. Then they can use data mining to extract and process-related data to resolve these issues.
Data mining provides information about loans and credit reporting to financial institutions like banks and insurance firms. By building a model from the data of regular clients, these financial institutions can assess both good and bad investing. Additionally, data mining helps banks identify fraudulent credit card transactions to protect the owner’s privacy.
Similar to researchers, Data mining helps marketing firms create historical data-based models to predict who will respond to new marketing campaigns and what will be the right medium such as direct mail, online marketing campaigns, etc. Using the results, advertisers can come up with a suitable strategy for selling profitable products to targeted clients.
Above all the aforementioned fields comes education. Thus applying data mining in the education industry will have long-lasting effects on the growth of our world. In the academic industry, data mining methods can be used to evaluate student learning behavior, success during the academic year, and even predict how the student will do during a test. It can also be used to design a better curriculum according to specific needs.
Limitations of Data Mining
Security is a big issue attached to every data-oriented technology. Organizations own their employee and customer information including social security number, birthday, payroll and much more. But how well this knowledge is being taken care of is still questionable. There have been a lot of cases where hackers have accessed and abused large amounts of customer data from big corporations with so much personal and financial information available.
As data mining gathers information about individuals who use certain market-based approaches and information technology. And those processes of data mining include several factors. But while these factors are involved this process breaches the user’s privacy. That’s why its users are deficient in safety and security matters. Ultimately, it causes miscommunication among people.
Data mining offers many advantages for businesses, society, governments and individuals alike. Nevertheless, if they are not properly addressed and resolved, privacy, protection, and abuse of information will be the big problems. We need to regulate the use of data mining for businesses and implement proper security measures in these applications. Otherwise, they will become useless as customers will no longer trust the companies with their data.