Data Mining:
Concepts and Techniques
1
Introduction
Motivation: Why data mining?
What is data mining?
Data Mining: On what kind of data?
Data mining functionality
Are all the patterns interesting?
Classification of data mining systems
Major issues in data mining
2
Why Data Mining?
The Explosive Growth of Data: from terabytes to petabytes
Data collection and data availability
Automated data collection tools, database systems, Web,
computerized society
Major sources of abundant data
Business: Web, e-commerce, transactions, stocks, …
Science: Remote sensing, bioinformatics, scientific simulation, …
Society and everyone: news, digital cameras,
We are drowning in data, but starving for knowledge!
“Necessity is the mother of invention”—Data mining—Automated analysis of
massive data sets
3
Evolution of Database Technology
1960s:
Data collection, database creation, IMS and network DBMS
1970s:
Relational data model, relational DBMS implementation
1980s:
RDBMS, advanced data models (extended-relational, OO, deductive, etc.)
Application-oriented DBMS (spatial, scientific, engineering, etc.)
1990s:
Data mining, data warehousing, multimedia databases, and Web
databases
2000s
Stream data management and mining
Data mining and its applications
Web technology (XML, data integration) and global information systems 4
What Is Data Mining?
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
Alternative name
Knowledge discovery in databases (KDD)
Watch out: Is everything “data mining”?
Query processing
Expert systems or statistical programs
5
Why Data Mining?—Potential Applications
Data analysis and decision support
Market analysis and management
Target marketing, customer relationship management
(CRM), market basket analysis, market segmentation
Risk analysis and management
Forecasting, customer retention, quality control,
competitive analysis
Fraud detection and detection of unusual
patterns (outliers) 6
Why Data Mining?—Potential Applications
Other Applications
Text mining (news group, email, documents)
and Web mining
Stream data mining
Bioinformatics and bio-data analysis
7
Market Analysis and Management
Where does the data come from?
Credit card transactions, discount coupons,
customer complaint calls
Target marketing
Find clusters of “model” customers who share
the same characteristics: interest, income level,
spending habits, etc.
Determine customer purchasing patterns over
time
8
Market Analysis and Management
Cross-market analysis
Associations/co-relations between product sales,
& prediction based on such association
Customer profiling
What types of customers buy what products
Customer requirement analysis
Identifying the best products for different
customers
Predict what factors will attract new customers 9
Fraud Detection & Mining Unusual Patterns
Approaches: Clustering & model construction for frauds, outlier
analysis
Applications: Health care, retail, credit card service,
telecomm.
Medical insurance
Professional patients, and ring of doctors
Unnecessary or correlated screening tests
Telecommunications:
Phone call model: destination of the call, duration, time of day
or week. Analyze patterns that deviate from an expected norm
Retail industry
Analysts estimate that 38% of retail shrink is due to dishonest
employees 10
Data Mining: A KDD Process
Data mining—core of Pattern Evaluation
knowledge discovery
process
Data Mining
Task-relevant Data
Data Selection
Warehouse
Data Cleaning
Data Integration
11
Databases
Architecture: Typical Data Mining System
Graphical user interface
Pattern evaluation
Data mining engine
Knowledge-
Database or
data warehouse base
server
Data cleaning & data integration Filtering
Data
Databases Warehouse
12
Data Mining: On What Kinds of Data?
Relational database
Data warehouse
Transactional database
Advanced database and information repository
Spatial and temporal data
Time-series data
Stream data
Multimedia database
Text databases & WWW
13
Data Mining: Confluence of Multiple
Disciplines
Database
Statistics
Systems
Machine
Learning
Data Mining Visualization
Algorithm Other
Disciplines
14
Data Mining: Classification
Schemes
Different views, different classifications
Kinds of data to be mined
Kinds of knowledge to be discovered
Kinds of techniques utilized
Kinds of applications adapted
15
Multi-Dimensional View of Data Mining
Data to be mined
Relational, data warehouse, transactional,
stream, object-oriented/relational, active,
spatial, time-series, text, multi-media,
heterogeneous, WWW
Knowledge to be mined
Characterization, discrimination, association,
classification, clustering, trend/deviation, outlier
analysis, etc.
Multiple/integrated functions and mining at
16
multiple levels
Multi-Dimensional View of Data Mining
Techniques utilized
Database-oriented, data warehouse (OLAP),
machine learning, statistics, visualization, etc.
Applications adapted
Retail, telecommunication, banking, fraud
analysis, bio-data mining, stock market
analysis, Web mining, etc.
17
Major Issues in Data Mining
Mining methodology
Performance: efficiency, effectiveness, and
scalability
Pattern evaluation: the interestingness problem
Incorporation of background knowledge
Handling noise and incomplete data
Parallel, distributed and incremental mining
methods
Integration of the discovered knowledge with
existing one: knowledge fusion 18
Major Issues in Data Mining
User interaction
Data mining query languages and ad-hoc mining
Expression and visualization of data mining results
Interactive mining of knowledge at multiple levels
of abstraction
Applications and social impacts
Domain-specific data mining & invisible data
mining
Protection of data security, integrity, and privacy
19
Summary
Data mining: discovering interesting patterns from large amounts of
data
A natural evolution of database technology, in great demand, with
wide applications
A KDD process includes data cleaning, data integration, data
selection, transformation, data mining, pattern evaluation, and
knowledge presentation
Mining can be performed in a variety of information repositories
Data mining functionalities: characterization, discrimination,
association, classification, clustering, outlier and trend analysis, etc.
Data mining systems and architectures
Major issues in data mining
20
