Data mining is the process of examining a data set to extract certain patterns. Companies use this process to determine the outcome of their existing goals. They summarize this information into useful methods to generate income and/or reduce costs. When search engines are accessed, they start building link lists from the first page you access. It continues this process throughout the site until it reaches the root page. This data includes not only text, but also numbers and facts.

Data mining focuses on consumers in relation to “internal” (price, product positioning) and “external” (competition, demographics) factors that help determine consumer price, customer satisfaction, and corporate profits . It also provides a link between separate transactions and analytical systems. Data mining looks for four types of relationships:

o Classes: information used to increase traffic
o Clusters: grouped together to determine consumer preferences or logical relationships
o Combinations – used to group items that are normally purchased together (i.e. bacon, eggs, milk, bread)
o Patterns – used to anticipate behavioral trends

This process brings numerous benefits to companies, governments, society and, especially, to people as a whole. It starts with a cleanup process that eliminates errors and ensures consistency. Algorithms are then used to “mine” the data to establish patterns. With any new technology, there are positives and negatives. A negative issue that arises from the process is privacy. Although illegal, the sale of personal information over the Internet has occurred. Companies need to obtain certain personal information in order to properly conduct their business. The problem is that existing security systems do not adequately protect this information.

From the customer’s point of view, data mining benefits companies more than their interests. Your personal information is out there, possibly unprotected, and there is nothing they can do until a negative issue arises. On the other hand, from a business standpoint, it helps improve overall operations and helps improve customer satisfaction. When it comes to government, they use personal data to strengthen security systems and protect the public from terrorism; however, they also want to protect people’s privacy rights. With numerous servers, databases, and websites, it becomes increasingly difficult to enforce stricter laws. The more information we enter on the web, the greater the chances of someone hacking this data.

Better security systems must be developed before data mining can truly benefit all parties involved. Invasion of privacy can ruin people’s lives. It can take months, even years, to regain a level of confidence that our personal information will be protected. Benefits aside, the safety and well-being of any human being should be the top priority.