Data Mining: Facts, Ethical Concerns, and Resources

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What is Data Mining?

Data mining, also called data acquisition, is the extraction of information and/or patterns from large data sets. It is used in profiling information for marketing, fraud prevention, national security and scientific research. This can be done on a wide range of data stores such as the internet, customer databases, employee databases, pdf documents, data warehouses and internal legacy systems.

People have analyzed data for patterns for hundreds of years. But the volume of information today has created the need for a more automated method. The number of computer users and universality of computers has made data collection from computer sources the primary method of data mining. Because of the increasing complexity of computers and the large amount of data being collected from them, automated data processing has replaced manual analysis.

How do Businesses Use Data Mining?

Businesses can use data mining to search through scanner data of retail and grocery stores in order to compile market research information. For example a store can compile a data base of customers who prefer soy products over dairy and send them coupons for soy products. Data mining can be used in customer relationship management applications. A business is able to target prospects that are likely to be interested in their product. Customer relationship management applications can be fine-tuned to predict which specific offer a potential customer is most likely to respond to and which customers are the most profitable for the business. This can mean a significant cost-savings to a business because it can eliminate unnecessary marketing.

Data mining can also be used by businesses for internal purposes. Human resource departments can identify the traits of the most productive and successful employees. Data such as universities attended, companies worked for and length of employment can be used to direct recruitment towards candidates that are statistically likely to be successful. This has raised ethical questions about stereotyping of individuals based on factors that may not be specifically true for them.

Using Data Mining to Combat Terrorism

In combating terrorism, the U.S. government has used two data mining techniques: pattern mining and subject-based data mining. Pattern mining looks for existing patterns in a data set. In counter-terrorism, patterns are identified of potential terrorist activity and these patterns are searched. There are often association rules that are also searched, such as a person likely to do A is also likely to do B. Subject-based data mining searches for relationships in data. It is used when there is a person (or other object) of interest to identify other persons, transactions, movements, etc. related to them. Some of the data mining programs that the U.S. government operated are no longer used because of controversy over whether they violate the Constitution’s Fourth Amendment protection against unreasonable searches.

Ethical Issues with Data Mining

Data mining by businesses and government has raised ethical concerns related to privacy, legality and stereotyping. Because data mining involves the use of computer programs and not people, it is for the most part ethically neutral. It is the way in which the information gathered from data mining is used that is a source of concern. Data mining for national security purposes has raised questions regarding privacy and constitutional rights.

In order to perform data mining, information must be gathered to enter into the system. This information can contain private or confidential information that an individual did not release to a third party. The data can also contain identifying information about the individual that once the data mine is performed is no longer anonymous.

To prevent ethical questions from being raised in data mining, the National Association of State Chief Information Officers suggests providing individuals with information before collecting data. The disclosure would include the purpose of the data mining, what the data will be used for, who will have access to the data, security methods used to protect the data and how the data will be updated, if at will be.

What is NASCIO?

Founded in 1969, the National Association of State Chief Information Officers (NASCIO) represents state chief information officers and information technology executives and managers from the states, territories, and the District of Columbia. State officials who are involved in agency level information technology management may participate as associate members. Representatives from federal, municipal, international government and non-profit organizations may also participate as members. Private-sector firms join as corporate members and participate in the Corporate Leadership Council.

NASCIO provides state CIOs and state members with products and services designed to support the challenging role of the state CIO, stimulate the exchange of information and promote the adoption of IT best practices and innovations. From national conferences, peer networking, research and publications, briefings and government affairs, NASCIO is the premier network and resource for state CIOs.

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Congress has taken note of privacy concerns and has passed regulatory acts to protect and inform people of their rights. One example is the Health Insurance Portability and Accountability Act which requires patients be given “informed consent” before any data acquired from them can be used for any purposes in the future.

Data Mining Resources

What is data mining?

Doug Alexander talks about data mining that includes topics such as Data Rich, Information Poor, Data Warehouses, What is Data Mining?, What Can Data Mining Do?, The Evolution of Data Mining, How Data Mining Works, Data Mining Technologies, Real-World Examples, The Future of Data Mining, Privacy Concerns, Explore Further on the Internet

SAS software solutions. Predictive Analytics and Data Mining, Derive useful insights to make evidence-based decisions

Resource by T.Price

I am a mom of 2 boys who loves to spend time with them doing fun things outdoors. In my spare time I have my own things I enjoy doing such as gardening, reading old books, and being a closet history buff.

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