Data Mining in 21st Century

Data Mining in Economic Crisis

In this time of economic turmoil the whole world is slowly plunging into recession. We have seen bailouts from governments worth billions of dollars for giant companies in US, Europe and Asia. The businesses are finding hard times to operate and so ability to make smarter and intelligent business decisions are imperative to overcome in such harsh conditions.

Businesses who have already invested in business intelligence solutions will be in a better position to undertake right measures to survive and continue its growth. However, many may argue that most of the giant companies were using Data mining and BI solutions but still could not avoid the collapse. The important thing to note here is that data mining solutions provides an analytical perspective into the performance of an organization based on historical data but the economic impact on an organization is linked to many issues and in many cases to external forces and unscrupulous activities. The failure to predict this does not undermine the role of data mining for organizations but on the contrary makes it more important especially for regulatory bodies of governments to predict and identify such practices in advance and take necessary measures to avoid such circumstances in future.


Application of Data Mining

Data Mining has been able to grasp the attention of many in the field of scientific research, businesses, banking sector, intelligence agencies and many others from the early days of its inception. However its use was not as easy as it is now. The rapid growth of various tools and software during the past few years enable it to be used more widely than ever before. The ease with which one can carry out complex data mining techniques using these tools is simply outstanding.

Data Mining is used by businesses to do improve its marketing and to understand the buying patterns of its clients. Attrition Analysis, Customer Segmentation and Cross Selling are the most important ways through which data mining is showing the new ways in which businesses can multiply its revenue.

Data Mining is now used in the banking sector for credit card fraud detection by identifying the patterns involved in fraudulent transactions. It is also used to reduce credit risk by classifying a potential client and predicting bad loans.

Data Mining is used by intelligence agencies like FBI and CIA to identify threats of terrorism. After the 9/11 incident it has become one of the prime means to uncover terrorist plots. However this led to concerns among the people as data collected for such works undermines the privacy of a large number of people.



Posted By Piyush Patel
Software Engineer