Data Mining: Security, Privacy, and Ethical Implications Report

This report delves into the practical applications of data mining within the business sector, analyzing its techniques and implications. It begins by outlining the core uses of data mining, such as identifying market trends, enhancing marketing campaigns, and improving customer loyalty through techniques like market segmentation and fraud detection. The report then addresses crucial aspects of data mining, including security, privacy, and ethical considerations. It examines how companies like Walmart and IBM handle data, focusing on data access, privacy preservation, and the ethical implications of data collection and usage. Furthermore, it discusses potential security threats and the importance of ethical guidelines in data mining practices, emphasizing the need for responsible data handling to protect individual privacy and prevent unethical applications. Finally, the report explores the technical aspects of securing data through intrusion detection and encryption.

Report

Contents
Task 1:.............................................................................................................................................2
Question 1:...................................................................................................................................2
Question 2:...................................................................................................................................3
Task 2:.............................................................................................................................................4
Question 1:...................................................................................................................................4
Question 2:...................................................................................................................................5
Question 3:...................................................................................................................................6
Reference.........................................................................................................................................7

Task 1:
Question 1:
The data mining is used in the business mainly for the discovering of the different patterns and
the relationship of the data to handle and easily make better decisions for the business. There are
certain kind of help with the spot sales trends to handle the development with the smarter
marketing campaigns and accurately handling the customer loyalty as well. (Delen et al., 2017).
It includes the techniques where there is:
a. The market segmentation to identify how the customers are able to buy the same products
from the company.
b. It is easy that the customer churning could be done with predicting about which customer
is likely directing towards leaving the company and then going to its competitor.
c. The fraud detection is for identification of different transactions which are going to take
place.
d. The direct marketing is to apply and identify all the prospects based on how the mailing
list is administered for a better and a higher rate of response.
e. There is a possibility with interactive marketing which predicts about how the individual
is able to access the website with the interested factor, likely to be seen in it.
f. The market based analysis is to understand about the products and the services which are
for the different products and the purchases that are done, e.g. beer and diapers.
g. The trend analysis is mainly to reveal about how there is a possibility of work on
differences when set with the customers this month or the last month. (Rouger et al.,
2017).

The data mining works with the automated systems and the setup of the trends and behaviours. It
includes the automation process with finding different perspectives that are related to the
information stored in the database. The questions are about how there are hands-on analysis
which could be used for answering from the data. the example for this is the targeted marketing
with the promotional mailings to identify the different returns on the investments. The data
mining is through the identification of the hidden patterns as well.
Question 2:
Wang, F., Li, X. L., Wang, J. T., & Ng, S. K. (2017). Guest Editorial: Special Section on Biological Data
Mining and Its Applications in Healthcare. IEEE/ACM Transactions on Computational Biology and
Bioinformatics, 14(3), 501-502.
The article related to the biological processes and how it is able to improve the healthcare. The
data mining techniques are used for the knowledge discovery and then deriving the data which
includes the driven insights from the different sources of data. They are important for the biology
and healthcare. (Ryoo, 2016). The major focus is on how the researchers able to work on the
bioinformatics, healthcare information, data mining to handle and share the research. The
Electronic Health Records with determining the healthcare systems is coupled with the linking to
EHR for a proper research in the different large-scale precision medicine research.

Task 2:
Question 1:
Security: The data mining is the process which includes the sequence that is for the queries and
for extracting the information that comes from the larger amount of the data. through this, there
is a growth of development with data mining techniques that cause the security problems. The
security needs to be checked with the build-up of certain accuracy models and for the data
analysis without any right to make use for the specific customer records. The development of the
such models is major concern with large amount of information that could be accessed. The data
warehouse works on monitoring of data access with allowing the restricted access to data
warehouse for data mining purpose like Walmart. (Marinakos et al., 2016). The company holds
the extensive database of the stock, stores where there is a need to mine the data for selling the
products.
Privacy: The privacy is considered as an important factor for handling the information about the
customers with storing the data in warehouse. For this, the access is based on the information and
how to use the data for the data extraction from warehouses. It includes the finding of different
information and the relationship about the customers and then making important connections
which will help in setting the privacy at risks. The data mining also includes data arrangement so
that it is easy to cover customer’s information with necessitating confidentiality and privacy.
IBM works on mining methods which allow the individual privacy and creating model data
accuracy. (Tasioulas, 2016). The Privacy is preserved with data mining method where the
company can easily gather the information with impeding forms on customer right privacy.

Ethical implications: The use of the data mining has major ethical implications. It has been seen
that the different companies are facing issues about deciding which company should make the
person aware of the information to be stored with the proper future data mining. The person also
gives the option for opting out for the data collection where the company can also affect the
competitive advantage in the market place. The company need to decide about the ethical
concern which will lead to the loss in the good will from the consumers. One needs to make use
of the data mining techniques that will be for the particular applications along with considering
the wisdom. (Witten et al., 2016). The example is the data mining can be for the discrimination
of the people which is set in regard to the racial and the sexual orientations. The use of the data
mining is the way that is important and found to be illegal. The individuals need to be completely
protects with any form of the unethical use about the personal information with the major focus
on the ethical themes which relate to the privacy and the individuality. The importance is based
on the value with the protection to make sure of the people who are being treated. With this, the
people should also discuss about the major significance of the threats and the dangers that are
consistent to discuss about the different kinds of the ethical issues. The data mining is neutral
with the way that could be used for the questions and the concerns about the ethics. This will
help in making the people safe.
Question 2:
For the business sector, the security is important for the company like Walmart who focus on
handling the extensive database with the different details about the stores, stocks and the other
collected data. (Shmueli et al., 2016). It also includes about how they are able to handle the
information which is set in conjugation to the database of Walmart and the sales of the products.
The restrictions are based on the accessibility with the products that are being offered related to

the security and the privacy concern. The major concern is about how the products are being
offered by the companies and how Walmart works on the different concerns of security and
privacy as well.
In the company like IBM, there is a need to create and work on accuracy of models. This
depends on the randomisation of the personal information of the customer where there is a use of
the privacy preserving data with company trying to gather the information and handling the
privacy rights as well.(Shumeli et al., 2017).
In the ethical concern, the companies need to focus on how the data is being provided and
whether it falls under the unethical issues or not. For this, there is a need to maintain the privacy
and confidentiality of the system with better individuality that could easily be valued and
protected depending upon how the people are going to treat. With this, the experts also consider
the data about how to handle the mining with the neutral way to use and work with different
questions and the concerns about ethics.
Question 3:
Here, the potential is based on working over the control and accessing to the information with
the physical space to handle the access points. They are found in the big data records to store the
information with the check over the size and the distribution that holds the broad range of access
as well. The software works on the components where the security is enough for the company to
handle the potential attack. The Hadoop is the collection with the software components and to
handle the corporate data platform based on large scale adoption process. The consumer
demands the security and the privacy where the countermeasures are mainly related to the
encryption and then accessing the control and the intrusion detection. (Ryoo, 2016). This will

help in handling the information where the authorities and the companies like Apple, Google and
Amazon would require providing intelligence with the decrypted data version.