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Unit 11: Data Mining
Another example of automatic prediction is to use data mining to look at your past marketing Notes
schemes. Which one worked the best? Why did it work the best? Who were the customers that
answered most favourably to it? Data mining will allow you to answer these queries, and once
you have the responses, you will be able to avoid making any errors that you made in your
previous trade.
Data mining can allow you to become better at what you do. A financial organisation such as a
bank can predict the number of defaults that will happen among their customers inside a given
time, and they can also forecast the amount of deception that will occur as well based on the past
records overview.
Another useful application of data mining is the self-acting recognition of patterns that are not
discovered before.
Example: If you have a tool that can automatically search your database to look for
patterns which are created. If you have access to this technology, you will be able to find
relationships that could allow you to make strategic conclusions.
This can lead to growth of organization based on reasoning.
Notes While data mining is a very important tool, it is important to note that it is not a full
proof thing. It cannot guarantee the success of you or your business but, it will tilt the odds
in your favour.
Self Assessment
Fill in the blanks:
10. .......................... can be utilised to find patterns and associations that would else be difficult
to find.
11. With ............................, you will be able to find behaviours that are common among your
customers.
11.6 Limitations of Data Mining
Privacy Issues
The concerns about the individual privacy have been increasing enormously recently particularly
when internet is booming with social networks, e-commerce, forums, blogs etc. Because of
privacy issues, persons are afraid that their personal information is collected and utilised in
unethical way that possibly make them face a lot of problems. Businesses collect data about their
customers in numerous ways for understanding their buying behaviours trends. A stage may
come when the organization may be acquired by other organization or is vanished. At that time
the individual data they own likely is be sold to other party or may be leaked.
Security Matters
Security is a large-scale issue. Companies own data about their workers and customers including
social security number (like in US), anniversary, payroll etc. although how properly this
information is taken care is still doubtful. There have been situation that hackers accessed and
robbed big database of customers from large companies.
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