The Benefits Of Data Mining In The Automobile Industry

2098 Words 9 Pages
Introduction (Group)

Data mining is discovering the methods and patterns in large databases to guide decisions about future activities and the use of automated data analysis techniques to uncover previously undetected relationships among data items (Witten & Frank, 2005). Many suggest that the intentional acquisition of the data is an invasion of privacy. Data mining and collection, like many technologies, is a constantly evolving practice, as are the laws and regulations that govern it. Currently, there is vague and sometimes non-existent disclosure about what happens to data once it is collected such as how it is used and how (and to whom) it is distributed. Data collected from car computers, GPS information, browsing history and web activity - among others - are increasingly being used to build customer profiles and analyze data for predictive analysis, business decision-making, increasing market intelligence, and of course the growing industry of marketing and advertising. However, as the trend of collecting data grows, research suggests that the accuracy and integrity of the data may be questionable, raising concerns about whether the perceived benefits of the practice outweigh the privacy concerns.
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There are many privacy concerns that are being addressed as cars become more sophisticated to include features such as in-dash navigation and even wireless routers embedded to provide a mobile wireless hotspot. Manufacturers are increasingly collecting data in the name of "improving the customer experience", and insurance companies are offering usage-based insurance that offers discounts for allowing a device to monitor daily driving habits. As technology and the collection of data become larger influences in business decision-making, where is the appropriate balance between improving the customer experience and protecting customer

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