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Assignment:

Data mining is becoming increasingly common in both the private and public sectors.

Discuss.

1. What do you understand by DATA MINING?

Ans:-

DATA MINING OR KNOWLEDGE DISCOVERY:

As we know that Data mining or knowledge discovery is the process of

analyzing data from different perspectives & summarizing it into useful information. This

information can be used to increase revenue & cut cost or both. We know that data mining

software is one of a number of analytical tools for analyzing data. It allows users to analyze datafrom many angels & categories it. It also summarizes the relationship identified.

Technically speaking data mining is the process of correlations among dozens of fields in large

rational database.

In other words it is the process of sorting through large amount of data & picking out important

information. It is often use by business intelligence organizations & financial analysts. It is also

used in the sciences to extract information from the data set generated by modern experiment &

observational methods.

Data mining in relation to Enterprise Resource Planning is the statistical & logical analysis oflarge sets of transaction data looking for patterns that can aid decision making.

Although data mining is a new term but technology is not. Companies have used powerful

computers to shift through volumes of supermarket scanner data & analyze market research

report for year.

However, continuous innovations in computer processing power, disk storage etc is increasing

the accuracy of analyzing while driving down the cost.

There are also human rights & privacy related concerns with data mining, specifically regarding

the source of the data analyzed. Data mining provides information that would not be providingotherwise. It must be interpreted to be useful. When individual people involves in data collection,

there are many questions related privacy, ethics & legality. Data mining government or

commercial data sets for national security or law enforcement purposes has raised privacy

concerns. Data mining has also become an important part of customer relationship management.

Data mining have five major elements.

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Extract, transform & load transactions data onto data warehouse system.

Store & manage the data in a multi dimensional database system.

Provide data access to business analysts & information technology professionals.

Analyze the data by application software.

Present the data in a useful format, such as table or graph.

2. Study and discuss where and how DM can be used?

Ans:-

Data mining is using in Terrorism, games, business & science & engineering etc.

We know that data mining is using in terrorism now-a-days. It is the method through which U.S

Army unit identified the leader of Al Qaeda, who was involved in 11th September attack & three

other hijackers.

CIA & CSIS have put this method of interpreting data to work for them as well.

Previous data mining that is used to stop terrorist programs under the U.S government include

the Terrorism Information Awareness program, computer-Assisted passenger prescreening

system, Analysis, Dissemination, visualization, insight & semantic enhancement, MATRIX &

the secure flight program.

Now these programs are discontinued because they violate the U.S constitutions 4th amendment.

Data mining is also used in customer relationship management (CRM). DM in CRM

applications can contribute significantly to the bottom line. Rather than contacting a customer

through a call center or through a mail, only customers that are predicted to have a high

likelihood of responding to an offer are contacted. In cases where many people will take an

action without an offer, uplift modeling can be used to determine which people will have the

greatest increase in responding if given an offer. Data clustering can also be used for

automatically discovering the segments or groups within a customer data set.

We can identity groups that are less profitable to companies by using data mining, which could

lead to discrimination against certain customers. Many companies will learn which consumers

make them the most profit & will start to direct all of their effects into making products for only

target market. This technique is very beneficial to the company because they are maximizing

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