WK9 Data Mining
WK9 Data Mining
Ervin Franklin
December 7, 2014
Data Mining
DATA MINING
DATA MINING
resources to gather useful information which allows a company to help understand market
dynamics. The collected information instills more knowledge to the businessman hence enables
them to carry out predictions regarding customer preference. This aspect not only serves the
interests of consumers but also predicting the right organizational departments decisions. The
information collected helps to develop more advanced protective measures to be undertaken to
prevent fraudulent business transactions ("Web data mining," n.d.).
Clustering in data mining is the task of discovering groups and structures in the data that
are somehow similar. In addition, it is applied in segmenting customer and market share as well
as the pattern and categorizing hierarchical density based business models. After understanding
the business categories the businessman is able to summarize and make positive assumption of
the market segment. Another benefit is that one is able to eliminate outliers in the collected data
(Rocco, 2011, pp. 3-4).
The reliability of data mining is an important requirement in deriving and extracting
meaningful information. The success of data mining depends on certain skills and knowledge
and ingenuity of the business researcher. The data collected by a business entity enhances
services rendered, as well as product life cycle. Improving the products lifecycle the businesses
are confident for high reliability (Rocco, 2011, pp. 3-4). There are five major elements for a
reliable data mining process. These elements include:
1.
2.
3.
4.
5.
Extracting, transforming and loading transaction data onto a data warehouse system.
Storing and managing the data in the database system.
Provide the data access to business analysts and IT professionals
Analyze the data with the appropriate application software
Present the data in a useful format
In addition to these elements, there are basic modeling principles that control how business
researchers use data mining (Rocco, 2011, pp. 3-4). These models provide purpose and helps in
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predicting consumer behavior. However, there are problems associated with data mining. Data
mining can be trusted since it has been used with an intention to uncover hidden patterns
(Amooee, Minaei-Bidgoli & Bagheri-Dehnavi, 2011, pp. 425-431). For many years businesses,
scientist engineers and governments have used data mining to sift through large volumes of data
in order to predict upcoming trends. The data mining algorithm allows the researcher to make
comparison between variables in a phenomenon (Rocco, 2011, pp. 3-4). The main problem is
determining a mathematical model for an unknown input or output of data. Typically the
algorithms are aimed to reduce failures and minimize consequences associated with such. The
failures are noted when there is an interruption or the system stops functioning. Fault detection is
determined through two approaches; the model based approach and the data based approach.
These techniques are popular in solving such faults and failures within the system (Amooee,
Minaei-Bidgoli & Bagheri-Dehnavi, 2011, pp. 425-431).
Data mining process raises concerns among consumer privacy. The privacy infringement is
associated with liberty, autonomy solitude and secrecy (Tavani, 1999). The main concern raised
by most consumers is information privacy. This concern intrudes and interferes with personal
information that is regarded as confidential. This results to breach of psychological privacy or
associative privacy. This violation is contributed by:
1.
2.
Consumers have the knowledge that their private information is being used by
business researchers but they have no say on how the information is being disclosed.
3.
There are no laws protecting consumers from the breach of confidential data
especially in the World Wide Web (Tavani, 1999).
All the concerns raised are valid. Data mining programs and technology are designed to
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reveal information that is extremely difficult for data users to obtain without personal consent.
The consumers transacting their e-business are required to enter information that they have no
idea how the business person will use them. Crucial information that consumers enter when
logged in to online shops risks the bank accounts. Most consumers have complained that the
privacy act in the international law of trade have not covered privacy information for consumers.
For instance US privacy Act of 1974 and data protection guidelines have not covered privacy
information collected from consumers (Tavani, 1999). The privacy and security of user
information is a delicate issue and business persons are taking into consideration the sensitivity
of the matter. Business persons have vowed to keep the confidential information a secret in order
to win the confidence of the consumers (Dileep & Swaroop, 2013).
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References
Amooee, G., Minaei-Bidgoli, B., & Bagheri-Dehnavi, M. (2011, November 1). A comparison
between data mining prediction algorithms for fault detection (case study: Ahanpishegan
co.). International Journal of Computer Science Issues, 8(6, number 3). Retrieved August
24, 2013, from http://connection.ebscohost.com/c/case-studies/73204506/comparisonbetween-data-mining-prediction-algorithms-fault-detection-case-study-ahanpishegan-co
Data is a game changer. (n.d.). Retrieved August 24, 2013, from www.ibm.com:
http://www.ibm.com/smarterplanet/us/en/smarter-enterprise/case-studies/us-open.html?
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Data mining and predictive analytics in long-term care. (2012). Retrieved from
www.fuzionanalytics.com:
http://www.fuzionanalytics.com/FuzionAnalytics/media/Fuzion_Library/documents/121964_Fuzion_Whitepaper.pdf
Demery, P. (2013, June 10). Wal-Mart buys a 'predictive analytics' firm. Retrieved August 24,
2013, from www.internetretailer.com: http://www.internetretailer.com/2013/06/10/walmart-buys-predictive-analytics-firm
Rocco, C. M. (2011, January 1). Guest editorial: Data mining in reliability and risk assessment.
International Journal of Performability Engineering, 7(1). Retrieved August 24, 2013,
from http://www.ijpe-online.com/guest-editorial-data-mining-in-reliability-and-riskassessment.html#axzz2dg8lsTwC
Schultz, B. (2011, November 3). How predictive analytics turns banks into fortune tellers.
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