Data Mining:

Concepts and Techniques

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 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

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 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

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 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
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 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

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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)
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Why Data Mining?—Potential Applications

 Other Applications
 Text mining (news group, email, documents) and Web
mining
 Stream data mining
 Bioinformatics and bio-data analysis

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 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

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 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

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 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
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 Other Applications

 Internet Web Surf-Aid

 IBM Surf-Aid applies data mining algorithms to Web
access logs for market-related pages to discover
customer preference and behavior pages, analyzing
effectiveness of Web marketing, improving Web site
organization, etc.

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 Data Mining: A KDD Process

 Data mining—core of Pattern Evaluation

knowledge discovery
process
Data Mining

Task-relevant Data

Data Warehouse Selection

Data Cleaning

Data Integration

Databases
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 Steps of a KDD Process

 Learning the application domain

 Relevant prior knowledge and goals of application
 Creating a target data set: data selection
 Data cleaning and preprocessing: (may take 60% of effort!)
 Data reduction and transformation
 Find useful features, dimensionality/variable reduction.
 Choosing functions of data mining
 Summarization, classification, regression, association, clustering.
 Choosing the mining algorithm(s)
 Data mining: search for patterns of interest
 Pattern evaluation and knowledge presentation
 Visualization, transformation, removing redundant patterns, etc.
 Use of discovered knowledge

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Architecture: Typical Data Mining System

Graphical user interface

Pattern evaluation

Data mining engine

Knowledge-base
Database or data
warehouse server
Data cleaning & data integration Filtering

Data
Databases Warehouse

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 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

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 Data Mining Functionalities
 Concept description: Characterization and discrimination
 Generalize, summarize, and contrast data characteristics
 Association (correlation and causality)
 Diaper  Beer [0.5%, 75%]
 Classification and Prediction
 Construct models (functions) that describe and distinguish classes
or concepts for future prediction
 Presentation: decision-tree, classification rule, neural network

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 Data Mining Functionalities
 Cluster analysis
 Class label is unknown: Group data to form new classes, e.g.,

cluster houses to find distribution patterns

 Maximizing intra-class similarity & minimizing interclass similarity

 Outlier analysis
 Outlier: a data object that does not comply with the general

behavior of the data

 Useful in fraud detection, rare events analysis

 Trend and evolution analysis

 Trend and deviation: regression analysis

 Sequential pattern mining, periodicity analysis

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Are All the “Discovered” Patterns Interesting?

 Data mining may generate thousands of patterns: Not all of them

are interesting
 Suggested approach: Human-centered, query-based, focused mining
 Interestingness measures
 A pattern is interesting if it is easily understood by humans, valid on new
or test data with some degree of certainty, potentially useful, novel, or
validates some hypothesis that a user seeks to confirm
 Objective vs. subjective interestingness measures
 Objective: based on statistics and structures of patterns, e.g., support,
confidence, etc.
 Subjective: based on user’s belief in the data, e.g., unexpectedness,
novelty.

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Data Mining: Confluence of Multiple Disciplines

Database
Statistics
Systems

Machine
Learning
Data Mining Visualization

Algorithm Other
Disciplines

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 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

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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 multiple
levels

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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.

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OLAP Mining: Integration of Data Mining and Data Warehousing

 Data mining systems, DBMS, Data warehouse systems

coupling
 On-line analytical mining data
 Integration of mining and OLAP technologies

 Interactive mining multi-level knowledge

 Necessity of mining knowledge and patterns at different levels of
abstraction.

 Integration of multiple mining functions

 Characterized classification, first clustering and then association

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 Major Issues in Data Mining
 Mining methodology
 Mining different kinds of knowledge from diverse data
types, e.g., bio, stream, Web
 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

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 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

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 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

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 Where to Find References?
 More conferences on data mining
 PAKDD (1997), PKDD (1997), SIAM-Data Mining (2001), (IEEE) ICDM (2001), etc.
 Data mining and KDD
 Conferences: ACM-SIGKDD, IEEE-ICDM, SIAM-DM, PKDD, PAKDD, etc.
 Journal: Data Mining and Knowledge Discovery, KDD Explorations
 Database systems
 Conferences: ACM-SIGMOD, ACM-PODS, VLDB, IEEE-ICDE, EDBT, ICDT, DASFAA
 Journals: ACM-TODS, IEEE-TKDE, JIIS, J. ACM, etc.
 AI & Machine Learning
 Conferences: Machine learning (ML), AAAI, IJCAI, COLT (Learning Theory), etc.
 Journals: Machine Learning, Artificial Intelligence, etc.
 Statistics
 Conferences: Joint Stat. Meeting, etc.
 Journals: Annals of statistics, etc.
 Visualization
 Conference proceedings: CHI, ACM-SIGGraph, etc.
 Journals: IEEE Trans. visualization and computer graphics, etc.
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