Friday, February 11, 2005

Successful Applications of Data Mining

Rather than post an enormous essay like last time, I thought i'd just give you the conclusion, forgive the references. This stuff is quite interesting, it's allowing huge advances in the usefulness of data:

Data mining has found many different applications through necessity, because almost every organisation in the world is undergoing a data storage crisis. The amount of data in the world doubles every year and our capacity to analyse that data is simply not keeping up. Data warehousing provides a solution to the storage problem, but it is useless without analysis. Data mining can solve this issue, making the data warehouse not only justifiable but indispensible to the large modern corporation. Data mining is still a very young technology, there are three main type of data mining, clustering, predictive modeling and frequent pattern extraction, and these models are basically the same whatever use they are put to. The innovation and advancement is coming from programmers and analysts who are finding ever more intelligent ways to use them to extract meaningful information from data. [Apte 97] Companies are making use of this new technology and it’s use is increasing, the worldwide spending on data mining is currently estimated at $539 million and if current growth continues it will reach $1.85 billion by 2006, this proves that there is a demand for fast and efficient analysis of vast amounts of data. Companies and organisations have been collecting information for decades and now it seems that they can finally start to use it productively rather than file it all away for occasional reference. [Leavitt 02] It may however, have negative connotations for the consumer, it raises privacy issues surrounding maintaining records of customer/citizen activity and companies must ensure that in trying to become more efficient they do not cross ethical and moral boundaries about what data they collect and how they use that information. [Nascio 04]


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