Data Mining
What is data mining?
- In A Level Computer Science, data mining is when large quantities of data are turned into useful information so that patterns can be found
- It can be used to search for relationships and facts that are probably not immediately obvious to people
- It will extract valuable insights from large sets of data using algorithms and statistical methods
- Data mining is used in many fields, including retail, healthcare, and finance, to make informed decisions
- The diagram below shows useful business insights that can be gained from data collected by an online grocery business
How data mining can be used to generate insights
| Benefits | Drawbacks |
|---|---|
| Data mining can be used to identify patterns and trends that may not be immediately obvious to humans. | It requires very powerful computers with a lot of processing power. |
| It can help organisations make better future predictions. | Inaccurate data can produce inaccurate results. |
| Organisations can ensure demand is met during busy periods to stay ahead of local competition. | Although it may spot patterns and trends, it may not explain the reasons why these exist. |
Example uses of data mining
Retail industry
- Data mining algorithms can be used to analyse purchase history and browsing behaviour to provide customised product suggestions
- Online retailers like Amazon use purchase data to suggest items for customers based on past activity
Healthcare industry
- Data from healthcare records and other sources can be analysed to predict disease outbreaks or patient admissions
- Hospitals use data mining to anticipate flu cases in the coming winter, enabling better resource allocation
Finance and banking
- Machine learning models trained on historical data can be used to identify suspicious activities among millions of transactions
- Credit card companies use data mining algorithms to flag potentially fraudulent transactions in real-time
Automotive industry
- Data collected from vehicle sensors can be used to predict when a part is likely to fail, enabling more proactive maintenance
- Manufacturers like Tesla collect data from electric cars to anticipate when a battery or other components may fail
Entertainment and media
- Data mining helps understand viewer preferences and behaviour, enabling better content recommendations
- Streaming services like Netflix use data mining to target new shows and movies to specific audiences based on their previous viewing history
Complexities in data mining
- Data mining requires knowledge of complex algorithms for data sorting, pattern recognition, and anomaly detection
- Running data mining algorithms within a company requires significant maintenance and expertise
- Companies must be careful with customer data and must ensure all mining follows the General Data Protection Regulation (GDPR)
- Specialist data engineers and data scientists are in short supply in industry