Pros and Cons of Data Mining

Pros and Cons of Data Mining

The most significant part of human knowledge in the discovery process is data mining. With this, it enables us to analyze enormous data and unveil something that is useful and valuable information in it.

In the new generation wherein technology is on the go, data mining is used in many things not just in business but also in some fields like medicine, transportation, weather forecast, insurance, government, healthcare … etc. Meaning data mining has its advantage when used properly and effectively.

Data Mining Pros

  • With data mining, it helps every marketing company to create innovative models that is based on data for them to respond the market demands.

  • Data mining can bring benefits to companies that are operating in retail, this is done through a market analysis basket, and the store can supply the needed product the way market demands. It also enables companies to give discounts on products to attract customers.

  • In finance and banking, data mining enables the financial institution to analysis the information about loan and credit movement. With the data, it enables them to determine bad and good loans. With data mining it also helps the financial institution like bank for them to detect fraud transactions to protect the owner.

  • In manufacturing, data mining is used in the operational engineering so that manufacturers detect a faulty machine and determine control parameters.

  • In government, data mining enables the government authorities to dig and analyze records on all of its financial transaction in order to build patterns that detect money laundering or illegal activities.

Data Mining Cons

  • In privacy issues, personal privacy concerns have been rising enormously. Especially when internet booms and with the creation of social platforms, ecommerce, blogs, forums, etc… Because of this privacy issues, people are now afraid to share personal information in the digital world or when it is collected, because there are chances that these information are used without permission causing trouble to owners. Businesses collect these customers information in ways for them to effectively understand the behavior of their customers in terms of purchasing. But business don’t last long, some of them might be acquired or gone. With these reason, the information gathered from client might be sold or leak.

  • Security issues, this is a critical issue. All businesses have its information from all of their customers and employees, example birthday, social security number, Tin, payroll, and many more. However the way the information is being kept remains questionable. The chances of digital attacks and enables hackers to steal those critical data’s and it become a problem.

  • Information misuse, the collected information through data mining is basically done for ethical purpose. But the information can be exploited by those people who have personal motives for them to take the benefits.

  • Data mining is not that perfect. This means that if the inaccurate data is used as basis for making decision, the possibility of causing trouble in it.


Pros and cons of data mining bring in benefits to every business, government, society and individuals. But, the misuse of this critical information can cause a problem if not resolved properly.

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