6/22/2006

DATA MINING

I. Definition & Business-Related Examples

Mohammad MonakesFouad Alibrahim

Outline

• What is Data Mining?

• OLAP vs. Data Mining

• Data Mining Applications

What is Data Mining?

Science of extracting useful information

from large data sets or databases

What is Data Mining?Early File-

Based Systems

BasicAccounting

Data

No DecisionSupport

DatabaseSystems

OperationalSystems

Data

PrimitiveDecisionSupport

SpecialReports

DataWarehouses

Data forDecisionSupport

TrueDecisionSupport

Queriesand

Reports

OLAPSystems

Data formulti-dimensional

Analysis

ComplexAnalysis &

Calculations

Ad HocQueries /Analysis

Data MiningApplication

Selectedand extracted

data

KnowledgeDiscovery

DiscoveredPatterns /

Relationships

DiscoveredPatterns /

Relationships

USER-DRIVEN DATA-DRIVEN

OLAP vs. Data Mining

• Present – Future

• Summary – Detailed data

• User-driven – Data-driven

• Widely used – Still emerging

Data Mining Applications

• Customer Segmentation

• Market Basket Analysis

• Risk Management

• Fraud Detection

• Delinquency Tracking

• Demand Prediction

DATA MINING