Data mining applications
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Topics
Data mining applications
Data mining system products and research
prototypes
Additional themes on data mining
Social impacts of data mining
Trends in data mining
Summary
3
Data Mining Applications
Data mining is a young discipline with wide and
diverse applications
There is still a nontrivial gap between general
principles of data mining and domain-specific,
effective data mining tools for particular
applications
Some application domains (covered in this chapter)
Biomedical and DNA data analysis
Financial data analysis
Retail industry
Telecommunication industry
4
Biomedical and DNA Data Analysis
DNA sequences: 4 basic building blocks (nucleotides):
adenine (A), cytosine (C), guanine (G), and thymine (T).
Gene: a sequence of hundreds of individual nucleotides
arranged in a particular order
Humans have around 30,000 genes
Tremendous number of ways that the nucleotides can be
ordered and sequenced to form distinct genes
Semantic integration of heterogeneous, distributed
genome databases
Current: highly distributed, uncontrolled generation and
use of a wide variety of DNA data
Data cleaning and data integration methods developed
in data mining will help
5
DNA Analysis: Examples
Similarity search and comparison among DNA sequences
Compare the frequently occurring patterns of each class (e.g.,
diseased and healthy)
Identify gene sequence patterns that play roles in various diseases
Association analysis: identification of co-occurring gene sequences
Most diseases are not triggered by a single gene but by a
combination of genes acting together
Association analysis may help determine the kinds of genes that
are likely to co-occur together in target samples
Path analysis: linking genes to different disease development stages
Different genes may become active at different stages of the
disease
Develop pharmaceutical interventions that target the different
stages separately
Visualization tools and genetic data analysis
6
Data Mining for Financial Data Analysis
Financial data collected in banks and financial institutions
are often relatively complete, reliable, and of high quality
Design and construction of data warehouses for
multidimensional data analysis and data mining
View the debt and revenue changes by month, by
region, by sector, and by other factors
Access statistical information such as max, min, total,
average, trend, etc.
Loan payment prediction/consumer credit policy analysis
feature selection and attribute relevance ranking
Loan payment performance
Consumer credit rating
7
Financial Data Mining
Classification and clustering of customers for targeted
marketing
multidimensional segmentation by nearest-neighbor,
classification, decision trees, etc. to identify customer
groups or associate a new customer to an appropriate
customer group
Detection of money laundering and other financial crimes
integration of from multiple DBs (e.g., bank
transactions, federal/state crime history DBs)
Tools: data visualization, linkage analysis,
classification, clustering tools, outlier analysis, and
sequential pattern analysis tools (find unusual access
sequences)
8
Data Mining for Retail Industry
Retail industry: huge amounts of data on sales, customer
shopping history, etc.
Applications of retail data mining
Identify customer buying behaviors
Discover customer shopping patterns and trends
Improve the quality of customer service
Achieve better customer retention and satisfaction
Enhance goods consumption ratios
Design more effective goods transportation and
distribution policies
9
Data Mining in Retail Industry: Examples
Design and construction of data warehouses based on the
benefits of data mining
Multidimensional analysis of sales, customers, products,
time, and region
Analysis of the effectiveness of sales campaigns
Customer retention: Analysis of customer loyalty
Use customer loyalty card information to register
sequences of purchases of particular customers
Use sequential pattern mining to investigate changes in
customer consumption or loyalty
Suggest adjustments on the pricing and variety of goods
Purchase recommendation and cross-reference of items
10
Data Mining for Telecomm. Industry (1)
A rapidly expanding and highly competitive industry
and a great demand for data mining
Understand the business involved
Identify telecommunication patterns
Catch fraudulent activities
Make better use of resources
Improve the quality of service
Multidimensional analysis of telecommunication data
Intrinsically multidimensional: calling-time, duration,
location of caller, location of callee, type of call, etc.
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Data Mining for Telecomm. Industry (2)
Fraudulent pattern analysis and the identification of unusual patterns
Identify potentially fraudulent users and their atypical usage
patterns
Detect attempts to gain fraudulent entry to customer accounts
Discover unusual patterns which may need special attention
Multidimensional association and sequential pattern analysis
Find usage patterns for a set of communication services by
customer group, by month, etc.
Promote the sales of specific services
Improve the availability of particular services in a region
Use of visualization tools in telecommunication data analysis
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DATA MINING SYSTEM
PRODUCTS AND RESEARCH
PROTOTYPES
13
How to Choose a Data Mining System?
Commercial data mining systems have little in common
Different data mining functionality or methodology
May even work with completely different kinds of data
sets
Need multiple dimensional view in selection
Data types: relational, transactional, text, time sequence,
spatial?
System issues
running on only one or on several operating systems?
a client/server architecture?
Provide Web-based interfaces and allow XML data as
input and/or output?
14
How to Choose a Data Mining System? (2)
Data sources
ASCII text files, multiple relational data sources
support ODBC connections (OLE DB, JDBC)?
Data mining functions and methodologies
One vs. multiple data mining functions
One vs. variety of methods per function
More data mining functions and methods per function provide
the user with greater flexibility and analysis power
Coupling with DB and/or data warehouse systems
Four forms of coupling: no coupling, loose coupling,
semitight coupling, and tight coupling
Ideally, a data mining system should be tightly coupled with a
database system
15
How to Choose a Data Mining System? (3)
Scalability
Row (or database size) scalability
Column (or dimension) scalability
Curse of dimensionality: it is much more challenging to
make a system column scalable that row scalable
Visualization tools
“A picture is worth a thousand words”
Visualization categories: data visualization, mining
result visualization, mining process visualization, and
visual data mining
Data mining query language and graphical user interface
Easy-to-use and high-quality graphical user interface
Essential for user-guided, highly interactive data
mining
16
Examples of Data Mining Systems (1)
IBM Intelligent Miner
A wide range of data mining algorithms
Scalable mining algorithms
Toolkits: neural network algorithms, statistical
methods, data preparation, and data visualization tools
Tight integration with IBM’s DB2 relational database
system
SAS Enterprise Miner
A variety of statistical analysis tools
Data warehouse tools and multiple data mining
algorithms
Mirosoft SQLServer 2000
Integrate DB and OLAP with mining
Support OLEDB for DM standard
17
Examples of Data Mining Systems (2)
SGI MineSet
Multiple data mining algorithms and advanced statistics
Advanced visualization tools
Clementine (SPSS)
An integrated data mining development environment for
end-users and developers
Multiple data mining algorithms and visualization tools
DBMiner (DBMiner Technology Inc.)
Multiple data mining modules: discovery-driven OLAP
analysis, association, classification, and clustering
Efficient, association and sequential-pattern mining
functions, and visual classification tool
Mining both relational databases and data warehouses
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ADDITIONAL THEMES ON
DATA MINING
19
Visual Data Mining
Visualization: use of computer graphics to create visual
images which aid in the understanding of complex, often
massive representations of data
Visual Data Mining: the process of discovering implicit but
useful knowledge from large data sets using visualization
techniques
Computer
Graphics
High
Performance
Computing
Pattern
Recognition
Human
Computer
Interfaces
Multimedia
Systems
20
Visualization
Purpose of Visualization
Gain insight into an information space by mapping
data onto graphical primitives
Provide qualitative overview of large data sets
Search for patterns, trends, structure, irregularities,
relationships among data.
Help find interesting regions and suitable parameters
for further quantitative analysis.
Provide a visual proof of computer representations
derived
21
Visual Data Mining & Data Visualization
Integration of visualization and data mining
data visualization
data mining result visualization
data mining process visualization
interactive visual data mining
Data visualization
Data in a database or data warehouse can be viewed
at different levels of abstraction
as different combinations of attributes or
dimensions
Data can be presented in various visual forms
22
Data Mining Result Visualization
Presentation of the results or knowledge obtained from
data mining in visual forms
Examples
Scatter plots and boxplots (obtained from descriptive
data mining)
Decision trees
Association rules
Clusters
Outliers
Generalized rules
23
Boxplots from Statsoft: Multiple
Variable Combinations
24
Visualization of Data Mining Results in
SAS Enterprise Miner: Scatter Plots
25
Visualization of Association Rules in
SGI/MineSet 3.0
26
Visualization of a Decision Tree in
SGI/MineSet 3.0
27
Visualization of Cluster Grouping in IBM
Intelligent Miner
28
Data Mining Process Visualization
Presentation of the various processes of data mining in
visual forms so that users can see
Data extraction process
Where the data is extracted
How the data is cleaned, integrated, preprocessed,
and mined
Method selected for data mining
Where the results are stored
How they may be viewed
29
Visualization of Data Mining
Processes by Clementine
Understand
variations with
visualized data
See your solution
discovery
process clearly
30
Interactive Visual Data Mining
Using visualization tools in the data mining process to
help users make smart data mining decisions
Example
Display the data distribution in a set of attributes
using colored sectors or columns (depending on
whether the whole space is represented by either a
circle or a set of columns)
Use the display to which sector should first be
selected for classification and where a good split point
for this sector may be
31
Interactive Visual Mining by
Perception-Based Classification (PBC)
32
Audio Data Mining
Uses audio signals to indicate the patterns of data or the
features of data mining results
An interesting alternative to visual mining
An inverse task of mining audio (such as music)
databases which is to find patterns from audio data
Visual data mining may disclose interesting patterns
using graphical displays, but requires users to
concentrate on watching patterns
Instead, transform patterns into sound and music and
listen to pitches, rhythms, tune, and melody in order to
identify anything interesting or unusual
33
Scientific and Statistical Data Mining (1)
There are many well-established statistical techniques for data
analysis, particularly for numeric data
applied extensively to data from scientific experiments and data
from economics and the social sciences
Regression
predict the value of a response
(dependent) variable from one or
more predictor (independent) variables
where the variables are numeric
forms of regression: linear, multiple,
weighted, polynomial, nonparametric,
and robust
34
Scientific and Statistical Data Mining (2)
Generalized linear models
allow a categorical response variable (or
some transformation of it) to be related
to a set of predictor variables
similar to the modeling of a numeric
response variable using linear regression
include logistic regression and Poisson
regression
Mixed-effect models
For analyzing grouped data, i.e. data that can be classified
according to one or more grouping variables
Typically describe relationships between a response variable and
some covariates in data grouped according to one or more factors
35
Scientific and Statistical Data Mining (3)
Regression trees
Binary trees used for classification
and prediction
Similar to decision trees:Tests are
performed at the internal nodes
In a regression tree the mean of the
objective attribute is computed and
used as the predicted value
Analysis of variance
Analyze experimental data for two or
more populations described by a
numeric response variable and one or
more categorical variables (factors)
36
Scientific and Statistical Data Mining (4)
Factor analysis
determine which variables are
combined to generate a given factor
e.g., for many psychiatric data, one
can indirectly measure other
quantities (such as test scores) that
reflect the factor of interest
Discriminant analysis
predict a categorical response
variable, commonly used in social
science
Attempts to determine several
discriminant functions (linear
combinations of the independent
variables) that discriminate among the
groups defined by the response
variable
http://www.spss.com/datamine/factor.htm
37
Scientific and Statistical Data Mining (5)
Time series: many methods such as autoregression,
ARIMA (Autoregressive integrated moving-average
modeling), long memory time-series modeling
Quality control: displays group summary charts
Survival analysis
predicts the
probability that a
patient undergoing
a medical
treatment would
survive at least to
time t (life span
prediction)
38
Theoretical Foundations of Data Mining (1)
Data reduction
The basis of data mining is to reduce the data
representation
Trades accuracy for speed in response
Data compression
The basis of data mining is to compress the given
data by encoding in terms of bits, association rules,
decision trees, clusters, etc.
Pattern discovery
The basis of data mining is to discover patterns
occurring in the database, such as associations,
classification models, sequential patterns, etc.
39
Theoretical Foundations of Data Mining (2)
Probability theory
The basis of data mining is to discover joint probability
distributions of random variables
Microeconomic view
A view of utility: the task of data mining is finding patterns
that are interesting only to the extent in that they can be
used in the decision-making process of some enterprise
Inductive databases
Data mining is the problem of performing inductive logic on
databases,
The task is to query the data and the theory (i.e., patterns)
of the database
Popular among many researchers in database systems
40
Data Mining and Intelligent Query Answering
A general framework for the integration of data mining
and intelligent query answering
Data query: finds concrete data stored in a database;
returns exactly what is being asked
Knowledge query: finds rules, patterns, and other
kinds of knowledge in a database
Intelligent (or cooperative) query answering:
analyzes the intent of the query and provides
generalized, neighborhood or associated
information relevant to the query
41
SOCIAL IMPACTS OF DATA MINING
42
Is Data Mining a Hype or Will It Be Persistent?
Data mining is a technology
Technological life cycle
Innovators
Early adopters
Chasm
Early majority
Late majority
Laggards
43
Life Cycle of Technology Adoption
Data mining is at Chasm!?
Existing data mining systems are too generic
Need business-specific data mining solutions and
smooth integration of business logic with data mining
functions
44
Data Mining: Merely Managers’
Business or Everyone’s?
Data mining will surely be an important tool for managers’
decision making
Bill Gates: “Business @ the speed of thought”
The amount of the available data is increasing, and data
mining systems will be more affordable
Multiple personal uses
Mine your family’s medical history to identify geneticallyrelated
medical conditions
Mine the records of the companies you deal with
Mine data on stocks and company performance, etc.
Invisible data mining
Build data mining functions into many intelligent tools
45
Social Impacts: Threat to Privacy and
Data Security?
Is data mining a threat to privacy and data security?
“Big Brother”, “Big Banker”, and “Big Business” are
carefully watching you
Profiling information is collected every time
credit card, debit card, supermarket loyalty card, or frequent flyer
card, or apply for any of the above
You surf the Web, rent a video, fill out a contest entry form,
You pay for prescription drugs, or present you medical care
number when visiting the doctor
Collection of personal data may be beneficial for companies
and consumers, there is also potential for misuse
Medical Records, Employee Evaluations, Etc.
46
Protect Privacy and Data Security
Fair information practices
International guidelines for data privacy protection
Cover aspects relating to data collection, purpose, use,
quality, openness, individual participation, and
accountability
Purpose specification and use limitation
Openness: Individuals have the right to know what
information is collected about them, who has access to
the data, and how the data are being used
Develop and use data security-enhancing techniques
Blind signatures
Biometric encryption
Anonymous databases
47
TRENDS IN DATA MINING
48
Trends in Data Mining (1)
Application exploration
development of application-specific data mining
system
Invisible data mining (mining as built-in function)
Scalable data mining methods
Constraint-based mining: use of constraints to guide
data mining systems in their search for interesting
patterns
Integration of data mining with database systems, data
warehouse systems, and Web database systems
Invisible data mining
49
Trends in Data Mining (2)
Standardization of data mining language
A standard will facilitate systematic development,
improve interoperability, and promote the education
and use of data mining systems in industry and society
Visual data mining
New methods for mining complex types of data
More research is required towards the integration of
data mining methods with existing data analysis
techniques for the complex types of data
Web mining
Privacy protection and information security in data mining
50
Summary
Domain-specific applications include biomedicine (DNA), finance, retail
and telecommunication data mining
There exist some data mining systems and it is important to know their
power and limitations
Visual data mining include data visualization, mining result
visualization, mining process visualization and interactive visual mining
There are many other scientific and statistical data mining methods
developed but not covered in this book
Also, it is important to study theoretical foundations of data mining
Intelligent query answering can be integrated with mining
It is important to watch privacy and security issues in data mining
51
Thank you !!!
Question:
52
Based on the link given
https://www.egon.com/blog/666-techniques-data-mining-m
arketing
, identify one technique that applies to your organization.
Develop a system using any of the open source application
that will satisfy the needs of your organization.
Requirements in Submitting your project:
Abstract
Introduction
Manual of your System
References
Soft copy of the System
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