Scribd
Upload
37 views

Module 8 Data Mining

This document discusses privacy issues related to data mining and information technology. It provides an overview of data mining, which involves searching databases for patterns by combining information from multiple records. Examples given include credit reports, targeted direct mail, microtargeting of voters, and price customization. The document also discusses ownership of transaction information and debates the opt-in versus opt-out policies for sharing consumer data. The objectives are to understand the impact of privacy on security policies and ethical issues around genetic data in databases.

Uploaded by

Anonymous DTdeag3SP7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
37 views

Module 8 Data Mining

This document discusses privacy issues related to data mining and information technology. It provides an overview of data mining, which involves searching databases for patterns by combining information from multiple records. Examples given include credit reports, targeted direct mail, microtargeting of voters, and price customization. The document also discusses ownership of transaction information and debates the opt-in versus opt-out policies for sharing consumer data. The objectives are to understand the impact of privacy on security policies and ethical issues around genetic data in databases.

Uploaded by

Anonymous DTdeag3SP7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Republic of the Philippines

CAVITE STATE UNIVERSITY


Silang Campus
Biga I, Silang, Cavite
 046 513-5706  046 513-3965
✉ [email protected]

DCIT 65-Social and Professional Issues


Module 8
Data Mining

Overview

This module will discuss privacy issues brought to the forefront by the introduction of information
technology.

Objectives

After working on this module, you will be able to:


 determine the impact of the privacy on information security policies
 understand the ethical issues associated with gathering, storing and accessing genetic
information in databases

Data Mining

A record in a database records a single transaction, such as a particular item you purchased at
the grocery store. A database record is like a single snapshot of a person. It tells you something
about the person, but in isolation its value is limited. Data mining is the process of searching
through many records in one or more databases looking for patterns or relationships. Data
mining is a way to generate new information by combining facts found in multiple transactions,
and it can also be a way to predict future events. By drawing upon large numbers of records,
data mining allows an organization to build an accurate profile of an individual from a myriad of
snapshots.

Google’s personalized search and collaborative filtering are two examples of how companies
are using data mining to create more personal relationships with their customers.

Ownership of Transaction Information

What rules should govern the sharing of information collected by organizations selling products
or services? Two fundamentally different policies are called opt-in and opt-out.

The opt-in policy requires the consumer to explicitly give permission for the organization to
share the information with another organization. Opt-in policies are preferred by privacy
advocates. The opt-out policy requires the consumer to explicitly forbid an organization from
sharing information with other organizations. Direct marketing associations prefer the opt-out
policy because opt-in is a barrier for new businesses. New businesses do not have the
resources to go out and collect all the information they need to target their mailings to the
correct individuals.

Examples of Data Mining

1. Credit Reports-Credit reports are a great example of how information about customers has
itself become a commodity. A credit bureau is a company that keeps track of an individual’s
assets, debts, and history of paying bills and repaying loans, using this information to determine
the creditworthiness of that person. Credit bureaus sell credit reports to banks, credit card
companies, and other potential lenders.

2. Targeted Direct Mail-Years ago direct mail marketing meant mass mailings of
advertisements. Today the trend is toward targeted direct mail, in which businesses mail their
advertisements only to the leads most likely to be interested in purchasing their products.
Customized mailing lists are available from a variety of sources.

3. Microtargeting-In a technique called microtargeting, a campaign combines data about voter


registration, voting frequency, and contributions with consumer data and information available
from a geographic information system to gain insights into which candidate the voter is likely to
favor. The campaign then uses direct mailings, email, text messages, or home visits to
encourage likely supporters to vote.

4. Price Customization-Retailers are using information gathered about their customers to offer
different prices to different people. You read about this practice earlier in the chapter in the
description of grocery store loyalty cards.
References

Quinn, M (2015). Ethics for the Information Age, 6th ed. Pearson Education Inc

Baase, S (2013). A Gift of Fire: Social, Legal, and Ethical Issues for Computing Technology, 4th
ed. Pearson Education Inc

You might also like