o Data Mining (knowledge discovery from data)
- Extraction of interesting (non-trivial, implicit, previously unknown and potentially useful)
patterns or knowledge from huge amount of data.Advanced algorithms,
multiprocessor computers,
massive databases
Pilot, Lockheed,
IBM, SGI,
numerous startups
(nascent industry)
Prospective,
proactive
information
delivery
DATA MINING: THEORY AND PRACTICE
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Potential Applications
o Data analysis and decision support
- Market analysis and management
o Target marketing, customer relationship management (CRM), market
basket analysis, cross selling, market segmentation
- Risk analysis and management
o Forecasting, customer retention, improved underwriting, quality
control, competitive analysis
- Fraud detection and detection money laundering.On-line analytic processing
(OLAP), multidimensional
databases, data
warehouses
Pilot, Comshare,
Arbor, Cognos,
Microstrategy
Retrospective,
dynamic data
delivery at
multiple levels
Data Mining
(Emerging Today)
"What's likely to happen to
Boston unit sales next month? Why?"Relational databases
(RDBMS), Structured
Query Language (SQL),
ODBC
Oracle, Sybase,
Informix, IBM,
Microsoft
Retrospective,
dynamic data
delivery at
record level
Data Warehousing &
Decision Support
(1990s)
"What were unit sales in New
England last March? Drill down
to Boston."- Model selection criteria
9 Sanad AL-Maskari-Data Mining
Database Vs Data Mining
o Query
- Well defined
- SQL
o Data
- Operational data
o Output
- Precise
- Subset of database
?o Origins of Data Mining
- Statistics: more theory-based, focused on testing hypotheses
- Database system: information retrieval, deductive query
answering
- Data Mining: focuses on the algorithms to extract patterns from
data
3
Why Data Mining?8
8 Sanad AL-Maskari-Data Mining
Data Mining Algorithm
o Purpose is to fit data to a model
- Descriptive (Clustering, association, summarization, etc )
- Predictive (Classification, regression , etc.)
o Model selection
- Which model is the best ?- Knowledge discovery through data mining (rules, regularities,
patterns, constraints)
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7 Sanad AL-Maskari-Data Mining
Potential Applications
o Data analysis and decision support
- Market analysis and management
o Target marketing, customer relationship management (CRM), market
basket analysis, cross selling, market segmentation.o Other Applications
- Text mining (news group, email, documents) and Web mining
- Medical applications (Cancer detection)
- DNA and bio-data analysis
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Market Basket Analysis Example
Bread,
Coke,
Milk
Juice, Coke,
Diapers, Milk
Juice, Bread,
Milk
Juice, Bread,
Diapers, Milk
Anything interesting?Diapers, Milk
Bread Milk (100%)
Diapers Juice(66%)
Diapers Milk (100%)
Customers who buy diapers also tend to buy Juice
Indentify potential cross-selling opportunities among related items
13 Sanad AL-Maskari-Data Mining
Bank Loan Risk Example
salary
loan
k
IF salary