How Data Mining can help a business
Data mining can help business strike gold when preparing products for a consumer. However, what is data mining? The University of California, Los Angeles (UCLA) defines data mining as “the process of finding correlations or patterns among dozens of fields in large relational databases” (N.D.). Oracle helps refine this definition, as this method “provides a way to get at the information buried in the data” (Oracle, N.D.). Oracle goes on to state how data mining helps find “patterns that sometimes elude traditional statistical approaches to analysis because of the large number of attributes, the complexity of patterns, or the difficulty in performing ...view middle of the document...
This allows the program to identify the time of day and locations of where a crime is likely to occur, allowing police forces to reduce crime (2009).
Other companies use database programs like Oracle software to gather data. A Midwest grocery store chain used this to help them understand local buying patterns. They found that males are more likely to buy diapers on Thursday’s and Saturday’s along with beer. They also found that the same shoppers were more likely to complete their weekly shopping on Saturday’s, while Thursday’s, they only picked up a few items. This allowed them to adjust a few of store’s patterns such as moving diapers closer to the beer and ensuring that neither product was on sale on Thursday’s.
Companies like Google and Amazon also use the internet to target consumers with advertisements. Amazon uses browsing data on their servers to help target consumers with advertisements. They also use complex algorithms to help identify which advertisements to put on your browser while searching their website and others. Because of their success, many companies are looking to either develop their own method of doing this or acquire the data from Amazon. Contrast this method to Google, they gather data via scanning Gmail e-mails to target advertisements. They also gather data based upon searches, YouTube, which phone numbers that are called using an Android phone, and even the physical location of the user. Many users also feel that they have no control over how Google collects their data.
As the Midwest grocery store, Amazon, many police forces, and even Google, the data produced by data mining is generally accurate. In regards to Amazon however, if you have several users that use the same computer or even using the same internet connection, advertisements for a wife who was searching for cooking pots could appear on the husband’s browsing as he looks for a Camelbak for when he runs. Also, if habits change, it might take a few weeks before a store can adapt to the new pattern.