Data Mining advantages | Data Mining disadvantages

This page covers advantages and disadvantages of Data Mining. It mentions Data Mining advantages and Data Mining disadvantages.

data mining architecture working

Refer data mining tutorial>> which describes data mining applications, data mining working with architecture, data mining advantages etc. It has become popular due to growing data volume and limitations of analysis made by humans.

Data Mining advantages

Following are the data mining advantages:
➨The data mining helps financial institutions and banks to identify probable defaulters and hence will help them whether to issue credit card, loan etc. or not. This is done based on past transactions, user behaviour and data patterns.
➨It helps advertizers push right advertisements to the internet surfer on web pages based on machine learning algorithms. This way data mining benefit both possible buyers as well as sellers of the various products.
➨The retail malls and grocery stores arrange and keep most sellable items in the most attentive positions. It has become possible due to inputs obtained from data mining softwares. This way data mining helps in increasing revenue.
➨It helps in obtaining desired search results of queries posed to e-commerce websites (e.g. amazon, Taobao, Alibaba, snapdeal, Walmart, flipkart, BestBuy, ebay etc.) , search engines (google, yahoo, bing, Ask.com DuckDuckGo etc.)
➨The data mining based methods are cost effective and efficient compare to other statistical data applications.
➨It has been used in many different areas or domains viz. bio-informatics, medicine, genetics, education, agricultural, law enforcement, e-marketing, electrical power engineering etc. For example, in genetics it helps in predicting risk of diseases based on DNA sequence of individuals.
➨It helps in identifying criminal suspects by law enforcement agencies as mentioned above.

Data Mining disadvantages

Following are the data mining disadvantages:
Privacy: There are chances of companies selling useful information of their customers to different companies for money. For example, American Express has sold credit card purchases made by their customers to the other company.
Security: Many e-commerce companies are aware during which time period various users come online based on historical data patterns. They do not have security systems in place to protect us.
➨Some of the data mining analytics software are difficult to operate and requires user to have knowledge based training.
➨Different data mining tools work in different manners due to different algorithms employed in their design. Hence the selection of right data mining tool is a tedious and cumbersome task as one need to obtain knowledge of algorithms, features etc. of various available tools.
➨The information obtained based on data mining by companies can be misused against group of people.
➨The data mining techniques are not 100% accurate and may cause serious consequences in certain conditions.

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