The Ethics of Data Mining

For many years companies have been aware of the risks of neglecting proper data management. And data loss was just one of them. The opposite, making data available to unintended audiences could have equally devastating consequences as a database crash without a backup in place.

In the age of global real-time communication, such acts of neglect or malfeasance can have far reaching consequences, beyond even the original stake holders in the data affected.

But today I want to strike on another point: the ethic imperative of Data Mining Social Activity.

Ethics always seems a welcome topic for broad and controversial debate. The question for a business is how do ethics map to tangible business objectives and results?

In this age of real-time propagation of opinions, reputation spreads fast, and damage control seems to be more expensive than prevention. The broader masses out there seem to have a general consensus as to what's ethical. All you have to do is listen and adjust.

You will want to weigh the cost versus the benefits of indiscriminately pushing for data mining social activity.
Does your immediate gain on the bottom line justify the strategic risk to your reputation?

Consider that in dealing with people you affect what you measure. You are not counting beans anymore, you are dealing with conscious humans, who can and often will alter their behavior if they are observed.

It is tempting to get driven by what's technologically possible. And in recent years, data mining tools have matured quite nicely to be usable by more generic business audiences instead of highly trained scientists. Let's not forget, that just because something is possible that it doesn't always make good sense. Think ahead, mine not just your customer's behavior, but mine the trajectory of your company's actions. Apply predictive modeling to your organizational handling of the business and the resulting outcome.

The fact that you are interested in data mining leads to conclude that you have a sense about what you do today is having an impact on the results of tomorrow. So to you it should be easy to weigh the impact of your data mining efforts on your target audience. After all, data mining is the means to an end. And there is no point with the means jeopardizing the end, now is there?

Do not wait for privacy laws to mature, forcing you into a reactive mode adjusting your legal practices, and company culture in dealing with your market's sensitivities. Be a thought leader, a role model to the industry. It may very well be one of your competitive advantages. The trust of your customers itself becomes a vital factor of your business' success!