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Running head: DATA MINING

Data Mining and Applications

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Abstract

Data mining concepts are very important in the current world. Many organizations have

embraced this kind of concept and this implies that the organization is actually benefiting from

this concept. Data mining comes with many applications and that is why this concept is relevant

in almost every area in the organization. The main aim of the data mining process is to extract

useful information from data and make it more understandable so that it can be used in various

applications within the organization. Therefore, addressing data mining applications is very

important since it gives any reader information about various data mining applications.

Additionally, it also makes the reader appreciate the various applications and be able to introduce

it in the organization where one is based.

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Data Mining and Applications

Data mining is a process whereby organizations ate able to turn raw data into useful

information. Therefore, by using software to know the patterns of large batches of data,

businesses can be able to learn and note their customers to come up with a more effective way

that will benefit the organization (Tan, Steinbach & Kumar, 2016). One of the ways is simply by

increasing sales and decreasing costs. Data mining mainly relies on three components, which

include effective data collection, warehousing, and computer processing.

Data mining is not an easy process as some may think. It involves analyzing and

exploring huge data blocks to get useful patterns and trends. Additionally, it can be used in

different ways some of the areas where this concept is used is credit risks marketing, fraud

detection, spam email filtering, and database marketing (ElAtia, Ipperciel & Zaïane,

2016). There are various processes used in data mining. The first process involves the collection

of data and loading it to the data warehouses. After this is done, the warehouse will store and

manage data depending on the location. The location may be servers or clouds. The business

analysts and management teams will now come, access data, and find how they can organize.

After which the application software will sort the data based on the user results. Finally, the

presentation of the data easy way so that it can be understandable. Some of the presentation

techniques involve graph and table presentations.

In addition to data mining, various techniques are used in this concept. One of the

techniques is known as a distance measure. This simply a method that deals with a problem. For

example when one wants to examine data if similar items, this method is the one that will be

suitable for such a task. Looking at a collection of web pages and getting to know the duplicate

pages (Hofmann & Klinkenberg, 2016).The pages may contain illegal data popularly known as
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plagiarism. An example is how organizations would like to find customers that purchase similar

products or also getting images that have similar features. Another technique is referred to as

data streaming. In this method, the number of streams can enter the system and each system is

required to provide its elements at its own time. Therefore, this method will apply to such a

situation.

There are various areas where data mining is used. The major areas where data mining is

widely used include the retail industry, telecommunication industry, intrusion detection,

biological data analysis, and financial analysis. In the telecommunication industry, data mining

has been widely used and this has seen many companies under telecommunications embrace data

mining techniques (Tan, Steinbach & Kumar, 2016). The telecommunication industry is one of

the fast-growing industry. Initially, this industry was using fax, pager internet messenger, and

images to pass out information. However, with the development of new technologies, this

industry is undoubtedly growing fast that is why data mining is very important in this sector.

Data mining in this industry is useful especially when it comes to identifying

telecommunications patterns. Furthermore, it is also useful especially when it comes to noting

the fraudulent pattern analysis that may use by hackers to hack the network and disrupt

communication. The telecommunication industry involves data in various operations. In this

case, the visualization tools will be very important in telecommunication data analysis.

Another area of concern is intrusion detection. Data mining concepts have been used in

this area in so many ways. Intrusion is any action that will affect the confidentiality and

availability of network resources. Many organizations are victims of security issues (Dewa &

Maglaras, 2016). This is mainly because in the current world internet is a necessity. Hackers are

using this advantage to launch attacks that will attack the systems within organizations.
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However, with the concepts from data mining, this issue is now manageable hence used in

intrusion detection. Therefore, data mining is used in the creation of a data-mining algorithm that

is useful when it comes to intrusion detection. Data mining is widely used in marketing

(Hofmann & Klinkenberg, 2016). It is a perfect way of getting to know more about the

customer’s preferences. This is done by collecting data from the customers and analyzing what

they prefer hence being very useful in predicting the services and products that the customers

prefer. An example of a company that uses this kind of technique in marketing known as Adidas.

This company uses this method by collecting gender information on customers. After thus they

segment their email list and data steps to send new man collection to the males and women

collection to the female. This is done by the use of the Customer Relation Management Tool.

In conclusion, data mining has already affected many organizations. This implies that at

the end of the day it is not a bad technology all along. It is here to stay and that is why it has

brought a lot of change within organizations on how they carry out their operations. Many

organizations need to embrace these techniques and they will be able to improve in terms of

productivity and sales. Furthermore, this technology also plays a huge role when it comes to

competitive advantage.
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References

Dewa, Z., & Maglaras, L. A. (2016). Data mining and intrusion detection systems. International

Journal of Advanced Computer Science and Applications, 7(1), 62-71.

ElAtia, S., Ipperciel, D., & Zaïane, O. R. (Eds.). (2016). Data mining and learning analytics:

Applications in educational research. John Wiley & Sons.

Hofmann, M., & Klinkenberg, R. (Eds.). (2016). RapidMiner: Data mining use cases and

business analytics applications. CRC Press.

Tan, P. N., Steinbach, M., & Kumar, V. (2016). Introduction to data mining. Pearson Education

India.