DATA MINING:

LECTURE 1
There is an inherent meaning in everything. “Signs for people who
can see.”
 agenda
Course Introduction

Course Details

What is Data Mining?

Course Details
• Course Description: The course of
Data Mining teaches the students
• Basic principles, techniques, tools and
applications of Data Mining.
• Science of data mining as the automatic
extraction of patterns representing
knowledge stored in large databases, data
warehouses, and other massive
information repositories
• About the overlap that exists with areas
such as machine learning and pattern
recognition.
• The concepts of data pre-processing,
cluster analysis, classification and
prediction, frequent pattern mining and
Course Resources

• Text book:
• Data Mining: Concepts and Techniques (2 nd Edition)
by Jiawei Han and Micheline Kamber
• Reference book:
• M. Kantardzic, Data Mining Concepts, Models,
Methods and Algorithms, IEEE Press, 2003
• M.H. Dunham, S. Sridhar, Data Mining Introductory
and Advanced Topics, Pearson Education, 2006
• Website:
• Some useful resources may be found at Jiawei
Han’s website (the lectures are inspired from him)
• www.cs.uiuc.edu/hanj/bk2
• www.mkp.com/datamining2e
Course Requirement

• You should have some knowledge of the

concepts and terminology associated with
• database systems,
• statistics,
• You should have some programming
experience. In particular, you should be
able to read pseudo-code and understand
simple data structures such as
multidimensional arrays.
WHAT IS DATA
MINING?
How Data Mining?

• It evolved in to being as the science of databases

evolved

• Database  Datawarehouses  Data Mining

• Process similar to how science evolved

• Data Mining and Data Analytics is the fastest

growing discipline worldwide with plenty of jobs
Evolution of Sciences
• Before 1600, empirical science
• 1600-1950s, theoretical science
• Each discipline has grown a theoretical component. Theoretical models often
motivate experiments and generalize our understanding.
• 1950s-1990s, computational science
• Over the last 50 years, most disciplines have grown a third, computational branch
(e.g. empirical, theoretical, and computational ecology, or physics, or linguistics.)
• Computational Science traditionally meant simulation. It grew out of our inability
to find closed-form solutions for complex mathematical models.
• 1990-now, data science
• The flood of data from new scientific instruments and simulations
• The ability to economically store and manage petabytes of data online
• The Internet and computing Grid that makes all these archives universally
accessible
• Scientific info. management, acquisition, organization, query, and visualization
tasks scale almost linearly with data volumes. Data mining is a major new
challenge!
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
Data Mining Definition
• 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
• Data mining: a misnomer?
• Alternative names
• Knowledge discovery (mining) in databases (KDD),
knowledge extraction, data/pattern analysis, data
archeology, data dredging, information harvesting,
business intelligence, etc.
• Watch out: Is everything “data mining”?
• Simple search and query processing
• (Deductive) expert systems
Why Data Mining?
• Huge volumes of Data available: from terabytes to petabytes
• Data collection and data availability
• Automated data collection tools, database systems, Web, computerized
society
• Cameras, publication tools, scanned text and images

• Major sources of abundant data

• Business: Web, e-commerce, transactions, stocks, …
• Science: Remote sensing, bioinformatics, scientific simulation, …
• Society and everyone: news, digital cameras, YouTube
• Medical data, demographic data, financial data and marketing data

• We are drowning in data, but starving for knowledge!

• “Necessity is the mother of invention”—Data mining—Automated

analysis of massive data sets
Why Data Mining?—Potential Applications

• Data analysis and decision support

• Market analysis and management
• Target marketing, customer relationship management (CRM),
market basket analysis, cross selling, market segmentation
• Risk analysis and management
• Forecasting, customer retention, improved underwriting, quality
control, competitive analysis
• Fraud detection and detection of unusual patterns (outliers)

• Other Applications
• Text mining (news group, email, documents) and Web mining
• Stream data mining
• Bioinformatics and bio-data analysis
Ex. 1: Market Analysis and Management

• Where does the data come from?—Credit card transactions, loyalty cards,
discount coupons, customer complaint calls, plus (public) lifestyle studies
• Target marketing
• Find clusters of “model” customers who share the same characteristics: interest,
income level, spending habits, etc.
• Determine customer purchasing patterns over time

• Cross-market analysis—Find associations/co-relations between product sales,

& predict based on such association
• Customer profiling—What types of customers buy what products (clustering or
classification)
• Customer requirement analysis
• Identify the best products for different groups of customers
• Predict what factors will attract new customers

• Provision of summary information

• Multidimensional summary reports
• Statistical summary information (data central tendency and variation)
 Ex. 2: Fraud Detection & Mining Unusual Pattern

• Approaches: Clustering & model construction for frauds, outlier

analysis

• Applications: Health care, retail, credit card service, telecomm.

• Auto insurance: ring of collisions
• Money laundering: suspicious monetary transactions
• Medical insurance
• Professional patients, ring of doctors, and ring of references
• Unnecessary or correlated screening tests
• Telecommunications: phone-call fraud
• 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
• Anti-terrorism
Ex.4: Biomedical
Applications
• Approaches: Clustering &
Classification
• Applications:
• Automated diagnosis
• Discovery of disease trends
• Prediction of epidemics
• Discovering causes for certain conditions
• Patient data retrieval
Data Mining: Confluence of Multiple Disciplines

Database
Technology Statistics

Machine Visualization
Learning Data Mining

Pattern
Recognition Artificial
Algorithm Intelligence
 Knowledge Discovery (KDD) Process

– Data mining—core of
knowledge discovery Pattern Evaluation
process

Data Mining

Task-relevant Data

Data Warehouse Selection

Data Cleaning

Data Integration

Databases
KDD Process: Several Key Steps
• 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, invariant
representation
• 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