Dec 15, 2008

Applications 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.