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Data Mining
Data Mining
DEFINITION
Data mining, the extraction of hidden predictive
information from large databases, is a powerful
new technology with great potential to help
companies focus on the most important
information in their data warehouses.
EVOLUTIONARY STEP
Data Collection (1960s)
Data Access (1980s)
Data Warehousing & Decision Support(1990s)
Data Mining (Emerging Today)
GOALS OF DATA MINING
Prediction
How certain attributes within the data behave in future.
Identification
Data patterns used to identify the existence of an item, an event
or an activity.
Classification
Data partition to identify different classes or patterns based on
combination of parameters.
Optimization
Optimize the use of limited resources like time, space, money or
material and maximize sale & profit under given constraints.
PREDICTION
Marketing
Consumer behavior based on buying pattern
Determination of market strategy
Targeted mailing
Advertisement campaigns
Design of catalogue
Store layout
APPLICATIONS OF DATA MINING CONT..
Finance
Analysis of trustworthiness of a client
Segmentation of account receivables
Performance analysis of financial investments like
stocks, bonds & mutual funds
Evaluation of financing options
Fraud detection
APPLICATIONS OF DATA MINING CONT..
Manufacturing
Optimization of resources like machine, manpower &
material
Optimal design of manufacturing processes
Shop floor layout
Product design
Packaging design
APPLICATIONS OF DATA MINING CONT..
Healthcare
Discovery pattern in radiological images
Analysis of micro array to relate to diseases
Analysis of side effects of drugs.
Effectiveness of certain treatments.
Optimizing processes within hospitals.
Relating patients wellness data with doctor’s
qualification.
APPLICATIONS OF DATA MINING CONT..
Web site personalization
Credit card fraud detection
SAS lie detector
Market based analysis