Data mining is the technology of analyzing data and unearthing its value from a company’s data ware house.Some companies may not have realized its importance and it may adversely affect their market trend.It’s used side by side with data ware housing,which entails electronic storage of companies information and databases. Data mining entails using different models such as the decision trees which is the main model used in data mining and several steps to achieve the desired objectives,the steps include; -problem definition here the company states the objective of data mining or the in need to carry out the process -Data gathering various methods of acquiring information are used example questionnaires,interviews,observation and secondary data -model and evaluation different models are created and run through the system to determine the most appropriate and effective.
The one chosen is evaluated and applied. -Implementation of the outcome of the entire process. Data mining can be used in different sectors, *Banking industry to determine credit worthiness of clients before issuing loans *credit card companies in evaluating whether to introduce a new product in the industry *pharmaceutical companies,transportation companies and in governments Data mining is important in that; – it helps companies in predicting future behavior and trends hence helping in decision making -it enhances the various existing information resources -helps governments in analyzing usage of funds and possible embezzlement of finances -improves operation standards -increases revenues and profit margins in companies Data mining is facilitated by efficient data collection,ware housing and computer processing,bearing in mind that data that is mined is only that which can be computerized. Data mining has a lot of advantages but we cannot manage to overlook its disadvantages as well, -Given it’s an emerging trend and involves technology it is expensive to implement,new companies that are not well established may not not afford the technology as a result they may be forced to outsource an this will leak their information -Lack of privacy -security issues such as hacking and industrial espionage.
In conclusion,data mining is more advantageous to companies as it is disadvantageous lets not look at the negative side but lets aim at improving working of our companies for a better tomorrow lets all uphold data mining tomorrow will be brighter. Technology is changing each passing day.Times are changing,lets move with time n uphold this changes in technology so they are able to change our life too and make the world a better place for all of us.