data-mining
What is data-mining and which industries employ the tactics?

Who uses the Data Mining?

The digital environment is much like an architectural masterpiece in the real world. 500 billion gigabytes of data forming one coherent structure that can be easily understood by people around the world.

The Internet as a digital space forms a world of endless amounts of data. There are more than one billion websites on the Internet. Each containing some form of valuable information. This online storage contains all kinds of information. It is a valuable data-mining tool for enterprises seeking to improve their business and overrun the competition. Throughout the vast space of data, which information we leave behind is valuable?

“Hi there. How can I help?” – The Cortana chimes in. Everyday usage of computers and the oppressive real world of waiting in line makes you wish for a teleporter. Since that is not possible yet, you might give in and spill to Cortana all your sorrows. An appointment, reminders, the restaurants you like, and the locations you use. Anything that will make your life easier. The technology in its core is engineered to do just that. But using it we have grown lazy and even negligent.

A software like the Cortana can be found all over the Internet, even on the mobile devices. It was designed to help and to collect the information on user behavior. The creators of the software have given a user opportunity to personalize their devices. By doing so it makes the experience a lot more satisfying.

The Privacy Crawler

The downfall of it all is that the majority of that information never actually stays private. The pieces of the data are eventually collected and sorted. That process is called the data-mining.

The data-mining is extracting and sorting a vast volume of data sets. Meaning, constructing a collection of relevant data into groups. Data-mining has been a valuable tool for the various scientific disciplines. Since the 90’s data mining has been used in the marketing and sales departments to build a prediction model. These models are based on the user behavior, according to the data collected, their satisfaction will determine a future sale and a new product.

A customer relationship management department uses the same data-mining techniques only to employ them as a web-mining tool. The Web-mining has the same principle only to collect the data through the World Wide Web. This technique is employed to evaluate customer satisfaction and enhance the future profit. Their software contains a so-called “Spider”. The spider “crawls” the internet website, or read the entire website and other information including hyperlinks to create the data for search engines. The Spider or Crawler will index the read information for later review. Which means the user can continue to extract information.

Who Benefits from the Data-Mining?

Much like the Microsoft uses Cortana for the Windows 10, companies use data-mining as a segment of their marketing. In the past few years, retail stores have decided to use the modern technologies to enhance the customer experience. So, which industries have the most benefit from the data-mining?

Travel – Travel companies and organizations have always used some data for analyzing and predicting the arrangements. In today’s digital era, they can use all the previous history of travels of the customer to win them a leading place over the competitors. Searching for an airplane ticket new offers will appear the longer the search continues.

Retail – Retail shops have possibly won the majority of benefits using data-mining. Retailers sort customers into recency, frequency, and monetary groups. Thus, differentiating people who purchase often but little, and groups who purchase less but more expensive. The social media platforms offer a vast amount of valuable data for retailers. Comments and reviews of products are so freely spread. Their usage of the data-mining is also employed into customer experience, meaning combining digital with a physical store. This lets the customer interact with the digital world. For example, Ikea offers an application that allows placing a product virtually into customers home.

Insurance – Insurance companies can connect with potential customers through the risks of cybercrime activities. Meaning any possible risk to the person is a profit for insurance. Not to mention the vast amount of the personal data, which is possibly used to target a new customer.

Healthcare – Healthcare companies are using the data to distinct differences between patient’s needs. Thus offering more personalized treatments.

Telecoms and Internet Providers – This industry holds the biggest amount of personal data. They are using it to the maximum, to offer clients a better deal or custom package according to the client’s needs. Unfortunately, lately, this sector has been prone to leak information.

A Storage Bucket

Recently there have been controversial stories about major companies using Simple Storage Service to store data. This service offers a virtual space named “bucket” for the user to store information. The bucket can be locked or left open to the public. Some of these companies have left their links to the storage buckets open to the public. Which means anyone with a link can access the data and collect it. This has been reported as a data breach although the companies’ could store that data in a safer way. Research shows that 38% of all buckets have no encryption and 7% no protection at all. The data extraction is harmless by itself, but people using it have shown negligence to the personal information of others.

Legally Approved or Not?

Privacy is a very sensitive topic, and companies have to tread carefully regarding personal information. The law regarding privacy has been set a few decades ago when computer technology was much different. Privacy act declares that no machine can abuse personal privacy and rights. The Public Records act allows collecting, storing and even distribution of the information. Data may consist of photos, videos, information and other media. Act also implies that there is a retention time for the data stored. Thus, every company has Privacy Policy, that consumer has to abide by. But, what hasn’t been said in straightforward language is for what purpose is the data used. Many of the Attorney offices declare that many concerned people have visited them. According to them, there is no solid ground to start prosecution. The client has been informed, that is the fact. Attorneys are inclined to engage in such trial when certain fundamentals comply. On the end, the user still has no right to choose to consent.

Privacy in the Wrong Hands

Seems like personal privacy online is anything but. In addition to data-mining agencies and brokers, there are even the hackers. Hackers are making their own business through crime. Walking on and off the grid allows them a multitude of ways they can abuse someone’s privacy. The recent statistics show that webcam included crimes are on the rise comparing to last year. When you add a microphone listening to you and all the devices connected to your home network… Seems like there is little or none left of privacy.

More than half of US population believes they have no power over it. Maybe not on a global level, but the micro world of their homes is where they have the right to decide. Employing any means possible including security and privacy protection software is one step ahead. The marketing companies are collecting the data to enhance the experience, they make the profit using your personal information. It would be the same if it was a survey in the middle of the street. Hackers are doing the same, only you never would consent to something that could harm you or your family. So why don’t we make a change in the micro space of home network? Perhaps because the machine outsmarts us, or we are just don’t believe the fight can be won. Trusting technology has got us deep enough that our online footprints can never be erased. But making a change is never too late.