Data Mining in the Pharmaceutical Industry

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A Look at Data Mining in the Pharmaceutical Industry
Topics Covered: 1) What is Data Mining and why is it used? 2) How is Data Mining used in the Pharmaceutical Industry? 3) Recent debate in the legality of Data Mining and the Pharmaceutical Industry

Pharmaceutical companies are taking advantage of the growing use of technology in the healthcare arena by using data to enhance their marketing efforts and increase the quality of research and development. The process of data mining allows companies to extract useful information from large sets of individual data. This process provides a knowledge that is vital to a pharmaceutical company’s competitive position and organizational decision-making. “Data Mining enables firms
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As stated above, data mining is often used to solve business decision problems, “it provides ways to quantitatively measure what business users should already know qualitatively” (Linoff, 2004). A growing number of industries are using data mining to become more competitive in their market by primarily focusing on the customers; increasing their customer relationships and increasing customer acquisition.

2) How is Data Mining Used in the Pharmaceutical Industry?

The pharmaceutical industry has copious uses for data mining which include increasing the efficiency of research and development, contributing to drug safety information and to increasing the effectiveness of their marketing efforts. Understanding that the benefit of data mining is allowing for the extraction of useful information from large sets of individual data, it is evident that the pharmaceutical industry has a need for this process. The abundance of diseases prevalent in the world, the multitude of drugs available for each disease, and the variety of patients that take the products, produces massive amounts of information available in the industry. Pharmaceutical companies have
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