Data Mining Data mining is the process of extracting knowledge or insights from large amounts of data using various statistical and computational techniques. other terms - knowledge mining from data, knowledge extraction, data/pattern analysis, data archaeology, and data dredging. Manypeopletreatdataminingasasynonymforanotherpopularlyusedterm , Knowledge Discovery from Data, or KDD. The data can be structured, semi-structured or unstructured, and can be stored in various forms such as databases, data warehouses, and data lakes.
Big Data includes huge volume, high velocity, and extensible variety of data. There are 3 types: Structured data, Semi-structured data, and Unstructured data. Structured data: Structured data refers to data that is organized and formatted in a specific way to make it easily readable and understandable by both humans and machines. Structured data is typically found in databases and spreadsheets, and is characterized by its organized nature.
Semi-structured data : I s a type of data that is not purely structured, but also not completely unstructured. It contains some level of organization or structure, but does not conform to a rigid schema or data model, and may contain elements that are not easily categorized or classified. Eg : XML document, E-mails Unstructured data – Unstructured data is a data which is not organized in a predefined manner . Eg : text document, images, video etc
The primary goal of data mining is to discover hidden patterns and relationships in the data that can be used to make informed decisions or predictions . This involves exploring the data using various techniques such as clustering, classification , regression analysis, association rule mining, and anomaly detection.
1. Business & Marketing Customer Segmentation – Identifying groups of customers with similar behaviors (purchasing behavior, interests, and preferences.) for targeted marketing. Market Basket Analysis – Finding product associations (e.g., Amazon’s "Customers who bought this also bought..."). Churn Prediction – Predicting customers likely to leave a service (e.g., cancel subscriptions, close accounts). Fraud Detection – identifies fraudulent activities in financial transactions, insurance claims, and online activities.
2. Healthcare & Medicine Disease Prediction & Diagnosis – Using historical medical data to predict diseases (e.g., cancer detection). Drug Discovery – Analysing drug interactions and predicting new drug formulations. Personalized Medicine – Recommending treatments based on patient data.
3. Finance & Banking Credit Scoring & Risk Assessment – Evaluating loan applications based on past data. Algorithmic Trading – Predicting stock market trends using historical data. Money Laundering Detection – Identifying suspicious financial activities. 4. Manufacturing & Industry Predictive Maintenance – Predicting machine failures before they occur. Supply Chain Optimization – Enhancing logistics and inventory management. Quality Control – Detecting defects in manufacturing.
5. Education Student Performance Prediction – Identifying students at risk of failing. Personalized Learning – Recommending learning materials based on student progress. Dropout Prediction – Understanding factors that lead to student dropouts. 6. Social Media & Web Sentiment Analysis – Understanding public opinions from social media. Recommendation Systems – Suggesting movies, music, or books (e.g., Netflix, Spotify). Fake News Detection – Identifying misinformation and fake news.
7. Cybersecurity Intrusion Detection – Detecting cyber attacks on networks. Malware Analysis – Identifying patterns in malicious software. 8. Agriculture Crop Yield Prediction – Forecasting agricultural output using weather and soil data. Pest Detection – Identifying pests using image data.
What data can be mined ? Data mining can be applied to structured, semi-structured, and unstructured data across multiple domains. The choice of data type depends on the problem being solved, the available tools, and the computational resources.
It records the "who," "what," "when," and "where" of each transaction. Examples include the products purchased, the customer, the date and time, total spent, applied discounts, and payment method. Transactional Data
1. Structured Data (Traditional Databases) Relational Databases (RDBMS) : Data stored in structured formats such as tables with rows and columns (e.g., MySQL, PostgreSQL, Oracle). Data Warehouses : Integrated data from multiple sources optimized for analytics. Transactional Data : Data from online transaction processing (OLTP) systems such as banking records, purchase transactions, and financial statements. Example Customer purchase records in a retail store database. Banking transaction logs for fraud detection.
2. Semi-Structured Data XML and JSON Data : Data stored in hierarchical or nested formats. Logs and Event Data : Web server logs, application logs, or system monitoring data. Emails and Messages : Textual data with some structure (headers, timestamps). Example Mining email logs to detect phishing attempts. Analyzing JSON-formatted IoT device data for predictive maintenance. What data can be mined ?
3. Unstructured Data Text Data : Documents, articles, social media posts, customer reviews. Multimedia Data : Images, audio, and video files. Sensor and IoT Data : Data collected from sensors, smart devices, and industrial equipment. Example Analyzing tweets to detect trending topics. Mining CCTV footage for facial recognition in security applications. What data can be mined ?
4. Spatial Data Geospatial Data : Maps, GPS data, satellite images, and geographic information system (GIS) datasets. Location-Based Data : User location logs from mobile apps. Example Identifying crime hotspots based on GPS data. Mining traffic patterns to optimize city road networks. 5. Time-Series Data Stock Market Data : Historical stock prices, trading volumes. Weather Data : Temperature, humidity. IoT Sensor Readings : Continuous data streams from smart meters. Example Predicting stock price movements using historical trading data. A security camera capturing video footage.
6. Web and Social Media Data Clickstream Data : User navigation patterns on websites. Social Network Data : Relationships, interactions, and sentiment analysis. Search Engine Logs : Queries, user behavior , and recommendation insights. Example Recommending products based on browsing history. Detecting fake news using social media analysis
Types of data mining : 1 . Descriptive Data Mining: 2. Predictive Data Mining:
1. Descriptive Data Mining This type focuses on identifying patterns, trends, and relationships in historical data without making predictions. Techniques Association Rule Mining : Identifies relationships between items in large datasets (e.g., Market Basket Analysis). Clustering : Groups similar data points together (e.g., customer segmentation). Summarization : Provides concise representations of datasets (e.g., data aggregation in reports). Example Discovering that customers who buy bread often buy butter. Segmenting customers into different groups based on purchasing behavior.
2. Predictive Data Mining This type focuses on making predictions based on past data using machine learning and statistical methods. Techniques Classification : Assigns labels to data points (e.g., spam vs. non-spam emails). Regression Analysis : Predicts continuous values (e.g., house prices, stock prices). Time-Series Analysis : Forecasts future trends based on historical data. Example Predicting customer churn in a telecom company. Forecasting stock prices based on historical trends.
Functionalities of data mining 1 . Class ification (predictive ) 2. Clustering (Descriptive) 3. Association Rule mining (Descriptive) 4. Prediction (predictive) 5. Anomaly Detection (predictive) 6. Regression Analysis (predictive) 7. Summarization (descriptive)
Classification Classification is a supervised learning technique used to assign predefined labels (categories) to data based on learned patterns . How Classification Works: Training Phase – A model learns from labeled training data. Testing Phase – The model predicts labels for new, unseen data. Evaluation – Accuracy, precision, recall, and F1-score measure performance. Common Classification Algorithms: SVM, KNN,DT,RF
Example Use Cases: ✅ Spam Detection – Classify emails as spam or not spam. ✅ Disease Diagnosis – Predict if a patient has a disease based on symptoms. ✅ Sentiment Analysis – Determine if a review is positive or negative. Eg. Very interesting movie, Disgusting product ✅ Fraud Detection – Identify fraudulent transactions.
2. Clustering Clustering is an unsupervised learning technique used in data mining to group similar data points together based on their characteristics. It helps in discovering patterns and structures in large datasets without predefined labels. Clustering Techniques : K-means, Hierarchical
Example Use Cases: ✅ Customer Segmentation – Grouping customers based on shopping behavior . ✅ Image Segmentation – Dividing an image into different regions. Eg. Autonomous Vehicles Lane detection for self-driving cars Pedestrian and obstacle recognition Traffic sign and signal identification ✅ Anomaly Detection – Identifying outliers in financial transactions. Eg. Intrusion detection in cybersecurity, Defect detection in manufacturing ✅ Document Clustering – Grouping similar articles or documents. Eg News recommendation – Groups articles by topic (e.g., politics, sports, technology).
Association Rule Mining is a data mining technique used to find relationships or patterns between different items in a dataset. It is commonly applied in market basket analysis, recommendation systems, and fraud detection. Algorithms: Apriori , FP-Growth. Example: Market Basket Analysis Rule: {Bread} → {Butter} Meaning: Customers who buy bread are likely to buy butter. Rule: {Milk, Cereal} → {Banana} Meaning: If someone buys milk and cereal, they often buy bananas. 3. Association Rule Mining
Applications of Association Rule Mining: Retail & Market Basket Analysis – Finding frequently purchased product combinations. E-commerce & Recommendations – Suggesting products based on previous purchases. Healthcare – Finding correlations between symptoms and diseases. Eg. Example: Diabetes → Hypertension (Patients with diabetes are more likely to have hypertension). Obesity + Smoking → Increased Heart Disease Risk .
Anomaly detection identifies unusual patterns in data that do not conform to expected behavior. It is used in fraud detection, cybersecurity, healthcare, and predictive maintenance . 4. Anomaly Detection Applications of Anomaly Detection: ✅ Fraud detection (Credit card transactions, insurance fraud) ✅ Cybersecurity (Intrusion detection, DDoS attack detection) ✅ Healthcare (Detecting anomalies in medical scans or ECG signals) ✅ Manufacturing (Predictive maintenance for machinery failures)
5. Prediction Prediction involves using historical data to forecast future values. Applications of Prediction Models: ✅ Stock Market Forecasting (Predicting stock prices) ✅ Sales Forecasting (Estimating future sales based on past data) ✅ Weather Prediction (Forecasting temperature & rainfall) ✅ Disease Prediction (Predicting heart disease risk) ✅ Energy Consumption Forecasting (Predicting electricity demand)
6. Regression Regression analysis is a predictive modeling technique used to analyze relationships between a dependent variable (target) and one or more independent variables (features) . It is widely used in finance, economics, healthcare, and machine learning . Types of Regression Analysis Linear Regression – Relationship between variables using a straight line. Example: House price prediction based on square footage. Multiple Linear Regression – Uses multiple independent variables. Example: Salary prediction based on experience, education, and skills.
7. Summarization (Descriptive) Summarization in data mining refers to the process of extracting key information from large datasets to create a compact, high-level representation. This helps in quick decision-making, pattern recognition, and data exploration Applications of Summarization in Data Mining ✅ Business Intelligence – Summarizing sales trends, customer behavior . ✅ Healthcare – Summarizing patient records and medical reports. ✅ Text Mining – Extracting summaries from legal documents, news articles. ✅ Cybersecurity – Summarizing network activity logs to detect threats. ✅ Social Media Analytics – Summarizing trends from tweets, posts, and reviews.
Knowledge Discovery in Databases ( KDD) KDD (Knowledge Discovery in Databases) is the process of discovering useful knowledge from large datasets . It is a broad concept that includes data mining as one of its key steps. The KDD process consists of several stages that transform raw data into meaningful patterns or knowledge .
1. Data Integration Data integration is the process of storing the data from different sources in common place called DataWarehouse .
2. Data Cleaning This involves identifying and correcting errors or inconsistencies in the data, such as missing values, outliers, and duplicates. Missing Data: This situation arises when some data is missing in the data. It can be handled in various ways. Some of them are: Ignore the tuples: This approach is suitable only when the dataset we have is quite large and multiple values are missing within a tuple. Fill the Missing values: Filling missing values manually, by attribute mean or the most probable value.
5.Data Mining : This is the core step of the KDD process, where various data mining techniques are applied to discover patterns, associations, trends, or anomalies in the data. Common data mining techniques include classification, clustering, regression, association rule mining, and anomaly detection. 6.Pattern Evaluation : Once patterns are discovered, they need to be evaluated for their usefulness and reliability. This step involves assessing the quality and significance of the discovered patterns using metrics such as accuracy, support, confidence, and lift .
7.Knowledge Presentation : The final step involves presenting the discovered knowledge to the users in a format that is understandable and actionable. This may involve visualization techniques, reports, or interactive tools to help users interpret and utilize the discovered knowledge
Relation Between KDD and Data Mining: KDD is the overall process , whereas data mining is a step within it. Data mining involves techniques like clustering, classification, regression, and association rule mining. The success of KDD depends on proper data preparation, cleaning, and result evaluation.