When can be used to increase revenue, cuts

When it comes to data mining, some
people might not know what data mining is exactly. Data mining might not be
common for some people, yet it has considerable importance in many areas, such
as, hospitals, companies, insurance companies, weather, and government. Data
mining is defined as, “The process of analyzing data from different
perspectives and summarizing it into useful information – information that can
be used to increase revenue, cuts costs, or both”. The areas that deem data
mining as important, depend on the success of data mining. Data mining is very
important within these certain areas, however, there are some controversies. Two
issues that can cause dispute for data mining are the privacy and security of
an individual. In regards to collecting data, there is controversy within
collecting data for an individual or in a certain area. Since data mining is
viewed as very important in many areas, and also cause controversy, there are
of course advantages and disadvantages.

The usage of the internet can lead
to one of these disadvantages within data mining. Throughout the world, there
are companies that receive personal information of individuals. These companies
can receive information on an individual if they agree to certain terms and
conditions on social media websites, gaming websites, and other websites. There
is an industry for companies to sell personal information, which can cause
controversy. Since these companies that attain individual’s personal
information can sell their information, this makes this industry worth billions
of dollars. As stated in a Time Magazine article, “This large scale aggregation
of the personal information of hundreds of millions of American citizens raises
a number of serious privacy concerns” (Big Data). The people that are getting
their personal information taken away from them are concerned with the privacy
of their lives because they do not know how someone got ahold of their personal
information. They are also concerned because they do not know exactly what
information they do have and what they are going to do with this information. This
issue of privacy within the public is not ethical and can cause dispute within
data mining.

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On the other hand, an advantage of data
mining is the weather and how forecasters can predict the weather. Predicting the
weather is a very challenging every day task for these weather forecasters
since the weather is never the same of course and it is also different in
differing parts of the world. Data mining aids in predicting the weather for
weather forecasters. “Mining the simulations is also challenging. At the
resolutions McGovern is simulating, each simulation generates over 1 terabyte
(TB) of data” (McGovern). Weather forecasters benefit from data mining by the
collection of scientific data, yet attaining this data is usually challenging.

Data mining assists in the safeness of the public because the data can alert
people if there is a bad storm coming. Data mining is significant in the area
of weather since citizens will know exactly what type of weather is ahead and
as a result, they can plan for anything.

One area that benefits highly from
data mining is retail companies. These retail companies that use data mining as
an advantage, use the collection of data that they have attained over a period
of time to make a representation of how their customers have purchased their
products. They often view their own company’s past data leading to consumers
purchasing their products more frequently. “Electronic commerce is changing the
face of business. It allows better customer management, new strategies for
marketing, an expanded range of products and more efficient operations. A key
enabler of this change is the widespread use of increasingly sophisticated data
mining tools” (Banks & Said). The aspects of data mining towards retail
companies are so important because this gives them an edge on competition and
will lead to the consumption of more money from their advancements in
technology.

Finally, there are controversies
throughout the disadvantages and beneficial factors for many people throughout
the advantages of data mining. Hospitals, companies, insurance companies,
weather, and government rely on data mining so they can continue to be successful
in their endeavors. Individuals can be affected by data mining by having their
personal information taken from them. Retail companies can benefit from data
mining as well.