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Seminar
On
Data Mining

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Content
 Data Mining
 Data Mining Definition
 Data Mining – Two Main Components
 Data Mining vs. Data Analysis
 What is (not) Data Mining?
 Related Fields
 Data Mining Process
 Major Data Mining Tasks
 Uses of Data Mining
 Sources of Data for Mining
 Challenges of Data Mining
 Advantages
 Conclusion
 Reference
Data Mining
 New buzzword, old idea.
 Inferring new information from already collected
data.
 Traditionally job of Data Analysts
 Computers have changed this.
Far more efficient to comb through data using a
machine than eyeballing statistical data.
Data Mining Definition
Data mining in Data is the
non-trivial process of identifying
 valid
 novel
 potentially useful
 and ultimately understandable patterns in data.
Data Mining vs. Data Analysis
 In terms of software and the marketing thereof
Data Mining != Data Analysis
 Data Mining implies software uses some intelligence
over simple grouping and partitioning of data to infer
new information.
 Data Analysis is more in line with standard statistical
software (ie: web stats). These usually present
information about subsets and relations within the
recorded data set (ie: browser/search engine usage,
average visit time, etc. )
 What is (not) Data Mining?

What is not Data Mining? What is Data Mining?

Look up phone number •Certain names are more

prevalent in certain US
in phone directory locations (O’Brien,
O’Rurke, O’Reilly… in
Boston area)
Query a Web search • Group together similar
engine for information documents returned by
about “Amazon” search engine according to
their context (e.g. Amazon
rainforest, Amazon.com,)
Data Mining Techniques
 Classification
 Clustering
 Regression
 Association Rules
 Why Mine Data? Scientific Viewpoint
 Data collected and stored at
enormous speeds (GB/hour)
o remote sensors on a satellite
o telescopes scanning the skies
o microarrays generating gene
expression data
o scientific simulations
generating terabytes of data
 Traditional techniques infeasible for raw data
 Data mining may help scientists
o in classifying and segmenting data
o in Hypothesis Formation
Data Mining Architecture
Related Fields

Machine Visualization
Learning
Data Mining and
Knowledge Discovery

Statistics Databases
 Data Mining Process
Integration

Interpretation Knowledge
& Evaluation

Knowledge
Raw
Data __ __ __
Patterns
__ __ __

Understanding
__ __ __ and
Rules
Transformed
Target Data
DATA
Ware Data
house
Major Data Mining Tasks
 Classification: predicting an item class
 Associations: e.g. A & B & C occur frequently
 Visualization: to facilitate human discovery
 Estimation: predicting a continuous value
 Deviation Detection: finding changes
 Link Analysis: finding relationships...
Uses of Data Mining
 AI/Machine Learning
Combinatorial/Game Data Mining
Good for analyzing winning strategies to games, and thus
developing intelligent AI opponents. (ie: Chess)

 Business Strategies
Market Basket Analysis
Identify customer demographics, preferences, and
purchasing patterns.

 Risk Analysis
Product Defect Analysis
Analyze product defect rates for given plants and predict
possible complications (read: lawsuits) down the line.
Uses of Data Mining (Cont..)
 User Behavior Validation
Fraud Detection
In the realm of cell phones
Comparing phone activity to calling records. Can
help detect calls made on cloned phones.

Similarly, with credit cards, comparing purchases

with historical purchases. Can detect activity with
stolen cards.
Uses of Data Mining (Cont..)
 Health and Science
Protein Folding
Predicting protein interactions and functionality
within biological cells. Applications of this research
include determining causes and possible cures for
Alzheimers, Parkinson's, and some cancers (caused
by protein "misfolds")
Extra-Terrestrial Intelligence
Scanning Satellite receptions for possible
transmissions from other planets.
 For more information see Stanford’s Folding@home
and SETI@home projects. Both involve participation
in a widely distributed computer application.
Sources of Data for Mining
 Databases (most obvious)
 Text Documents
 Computer Simulations
 Social Networks
Advantages of Data Mining
 Marketing / Retail
 Finance / Banking
 Manufacturing
 Governments
Challenges of Data Mining
 Scalability
 Dimensionality
 Complex and Heterogeneous Data
 Data Quality
 Data Ownership and Distribution
 Privacy Preservation
 Streaming Data
Conclusion

 Comprehensive data warehouses that integrate operational

data with customer, supplier, and market information have
resulted in an explosion of information.
 Competition requires timely and sophisticated analysis on an
integrated view of the data.
 However, there is a growing gap between more powerful
storage and retrieval systems and the users’ ability to
effectively analyze and act on the information they contain.
Reference

 www.google.com
 www.wikipedia.com
 www.studymafia.org
Thanks
Queries?