Data Mining:

Concepts and Techniques

— Slides for Textbook —
— Chapter 10 —

©Jiawei Han and Micheline Kamber

Department of Computer Science
University of Illinois at Urbana-Champaign
www.cs.uiuc.edu/~hanj
February 18, 2022 Data Mining: Concepts and Techniques 1
 Chapter 10: Applications and
Trends in Data Mining

◼ Data mining applications

◼ Data mining system products and research
prototypes
◼ Additional themes on data mining
◼ Social impacts of data mining
◼ Trends in data mining
◼ Summary
February 18, 2022 Data Mining: Concepts and Techniques 2
 Data Mining Applications

◼ Data mining is a young discipline with wide and diverse

applications
◼ There is still a nontrivial gap between general

principles of data mining and domain-specific,

effective data mining tools for particular applications
◼ Some application domains (covered in this chapter)
◼ Biomedical and DNA data analysis

◼ Financial data analysis

◼ Retail industry

◼ Telecommunication industry

February 18, 2022 Data Mining: Concepts and Techniques 3

 Biomedical and DNA Data Analysis

◼ DNA sequences: 4 basic building blocks (nucleotides):

adenine (A), cytosine (C), guanine (G), and thymine (T).
◼ Gene: a sequence of hundreds of individual nucleotides
arranged in a particular order
◼ Humans have around 30,000 genes
◼ Tremendous number of ways that the nucleotides can be
ordered and sequenced to form distinct genes
◼ Semantic integration of heterogeneous, distributed
genome databases
◼ Current: highly distributed, uncontrolled generation
and use of a wide variety of DNA data
◼ Data cleaning and data integration methods developed
in data mining will help
February 18, 2022 Data Mining: Concepts and Techniques 4
 DNA Analysis: Examples

◼ Similarity search and comparison among DNA sequences

◼ Compare the frequently occurring patterns of each class (e.g.,
diseased and healthy)
◼ Identify gene sequence patterns that play roles in various diseases

◼ Association analysis: identification of co-occurring gene sequences

◼ Most diseases are not triggered by a single gene but by a
combination of genes acting together
◼ Association analysis may help determine the kinds of genes that
are likely to co-occur together in target samples
◼ Path analysis: linking genes to different disease development stages
◼ Different genes may become active at different stages of the
disease
◼ Develop pharmaceutical interventions that target the different
stages separately
◼ Visualization tools and genetic data analysis

February 18, 2022 Data Mining: Concepts and Techniques 5

 Data Mining for Financial Data Analysis

◼ Financial data collected in banks and financial institutions

are often relatively complete, reliable, and of high quality
◼ Design and construction of data warehouses for
multidimensional data analysis and data mining
◼ View the debt and revenue changes by month, by

region, by sector, and by other factors

◼ Access statistical information such as max, min, total,

average, trend, etc.

◼ Loan payment prediction/consumer credit policy analysis
◼ feature selection and attribute relevance ranking

◼ Loan payment performance

◼ Consumer credit rating

February 18, 2022 Data Mining: Concepts and Techniques 6

 Financial Data Mining

◼ Classification and clustering of customers for targeted

marketing
◼ multidimensional segmentation by nearest-neighbor,
classification, decision trees, etc. to identify customer
groups or associate a new customer to an appropriate
customer group
◼ Detection of money laundering and other financial crimes
◼ integration of from multiple DBs (e.g., bank
transactions, federal/state crime history DBs)
◼ Tools: data visualization, linkage analysis,
classification, clustering tools, outlier analysis, and
sequential pattern analysis tools (find unusual access
sequences)

February 18, 2022 Data Mining: Concepts and Techniques 7

 Data Mining for Retail Industry

◼ Retail industry: huge amounts of data on sales, customer

shopping history, etc.
◼ Applications of retail data mining
◼ Identify customer buying behaviors
◼ Discover customer shopping patterns and trends
◼ Improve the quality of customer service
◼ Achieve better customer retention and satisfaction
◼ Enhance goods consumption ratios
◼ Design more effective goods transportation and
distribution policies
February 18, 2022 Data Mining: Concepts and Techniques 8
 Data Mining in Retail Industry: Examples

◼ Design and construction of data warehouses based on the

benefits of data mining
◼ Multidimensional analysis of sales, customers,
products, time, and region
◼ Analysis of the effectiveness of sales campaigns
◼ Customer retention: Analysis of customer loyalty
◼ Use customer loyalty card information to register
sequences of purchases of particular customers
◼ Use sequential pattern mining to investigate changes
in customer consumption or loyalty
◼ Suggest adjustments on the pricing and variety of
goods
◼ Purchase recommendation and cross-reference of items
February 18, 2022 Data Mining: Concepts and Techniques 9
 Data Mining for Telecomm. Industry (1)

◼ A rapidly expanding and highly competitive industry and

a great demand for data mining
◼ Understand the business involved
◼ Identify telecommunication patterns
◼ Catch fraudulent activities
◼ Make better use of resources
◼ Improve the quality of service
◼ Multidimensional analysis of telecommunication data
◼ Intrinsically multidimensional: calling-time, duration,
location of caller, location of callee, type of call, etc.

February 18, 2022 Data Mining: Concepts and Techniques 10

 Data Mining for Telecomm. Industry (2)

◼ Fraudulent pattern analysis and the identification of unusual patterns

◼ Identify potentially fraudulent users and their atypical usage
patterns
◼ Detect attempts to gain fraudulent entry to customer accounts
◼ Discover unusual patterns which may need special attention
◼ Multidimensional association and sequential pattern analysis
◼ Find usage patterns for a set of communication services by
customer group, by month, etc.
◼ Promote the sales of specific services
◼ Improve the availability of particular services in a region
◼ Use of visualization tools in telecommunication data analysis

February 18, 2022 Data Mining: Concepts and Techniques 11

 Chapter 10: Applications and
Trends in Data Mining

◼ Data mining applications

◼ Data mining system products and research
prototypes
◼ Additional themes on data mining
◼ Social impact of data mining
◼ Trends in data mining
◼ Summary
February 18, 2022 Data Mining: Concepts and Techniques 12
 How to Choose a Data Mining System?

◼ Commercial data mining systems have little in common

◼ Different data mining functionality or methodology

◼ May even work with completely different kinds of data

sets
◼ Need multiple dimensional view in selection
◼ Data types: relational, transactional, text, time sequence,
spatial?
◼ System issues
◼ running on only one or on several operating systems?

◼ a client/server architecture?

◼ Provide Web-based interfaces and allow XML data as

input and/or output?

February 18, 2022 Data Mining: Concepts and Techniques 13
 How to Choose a Data Mining System? (2)

◼ Data sources
◼ ASCII text files, multiple relational data sources

◼ support ODBC connections (OLE DB, JDBC)?

◼ Data mining functions and methodologies

◼ One vs. multiple data mining functions

◼ One vs. variety of methods per function

◼ More data mining functions and methods per function provide

the user with greater flexibility and analysis power
◼ Coupling with DB and/or data warehouse systems
◼ Four forms of coupling: no coupling, loose coupling,
semitight coupling, and tight coupling
◼ Ideally, a data mining system should be tightly coupled with a
database system
February 18, 2022 Data Mining: Concepts and Techniques 14
 How to Choose a Data Mining System? (3)

◼ Scalability
◼ Row (or database size) scalability

◼ Column (or dimension) scalability

◼ Curse of dimensionality: it is much more challenging to

make a system column scalable that row scalable
◼ Visualization tools
◼ “A picture is worth a thousand words”

◼ Visualization categories: data visualization, mining

result visualization, mining process visualization, and
visual data mining
◼ Data mining query language and graphical user interface
◼ Easy-to-use and high-quality graphical user interface

◼ Essential for user-guided, highly interactive data

mining
February 18, 2022 Data Mining: Concepts and Techniques 15
 Examples of Data Mining Systems (1)

◼ IBM Intelligent Miner

◼ A wide range of data mining algorithms

◼ Scalable mining algorithms

◼ Toolkits: neural network algorithms, statistical

methods, data preparation, and data visualization tools
◼ Tight integration with IBM's DB2 relational database
system
◼ SAS Enterprise Miner
◼ A variety of statistical analysis tools

◼ Data warehouse tools and multiple data mining

algorithms
◼ Mirosoft SQLServer 2000
◼ Integrate DB and OLAP with mining

◼ Support OLEDB for DM standard

February 18, 2022 Data Mining: Concepts and Techniques 16

 Examples of Data Mining Systems (2)

◼ SGI MineSet
◼ Multiple data mining algorithms and advanced statistics

◼ Advanced visualization tools

◼ Clementine (SPSS)
◼ An integrated data mining development environment
for end-users and developers
◼ Multiple data mining algorithms and visualization tools

◼ DBMiner (DBMiner Technology Inc.)

◼ Multiple data mining modules: discovery-driven OLAP
analysis, association, classification, and clustering
◼ Efficient, association and sequential-pattern mining
functions, and visual classification tool
◼ Mining both relational databases and data warehouses
February 18, 2022 Data Mining: Concepts and Techniques 17
 Chapter 10: Applications and
Trends in Data Mining

◼ Data mining applications

◼ Data mining system products and research
prototypes
◼ Additional themes on data mining
◼ Social impact of data mining
◼ Trends in data mining
◼ Summary
February 18, 2022 Data Mining: Concepts and Techniques 18
 Visual Data Mining

◼ Visualization: use of computer graphics to create visual

images which aid in the understanding of complex, often
massive representations of data
◼ Visual Data Mining: the process of discovering implicit but
useful knowledge from large data sets using visualization
techniques
Human
Computer Multimedia
Computer
Graphics Systems
Interfaces
High
Pattern
Performance Recognition
Computing

February 18, 2022 Data Mining: Concepts and Techniques 19

 Visualization

◼ Purpose of Visualization
◼ Gain insight into an information space by mapping
data onto graphical primitives
◼ Provide qualitative overview of large data sets
◼ Search for patterns, trends, structure, irregularities,
relationships among data.
◼ Help find interesting regions and suitable parameters
for further quantitative analysis.
◼ Provide a visual proof of computer representations
derived

February 18, 2022 Data Mining: Concepts and Techniques 20

 Visual Data Mining & Data Visualization

◼ Integration of visualization and data mining

◼ data visualization

◼ data mining result visualization

◼ data mining process visualization

◼ interactive visual data mining

◼ Data visualization
◼ Data in a database or data warehouse can be viewed

◼ at different levels of abstraction

◼ as different combinations of attributes or

dimensions
◼ Data can be presented in various visual forms

February 18, 2022 Data Mining: Concepts and Techniques 21

 Data Mining Result Visualization

◼ Presentation of the results or knowledge obtained from

data mining in visual forms
◼ Examples
◼ Scatter plots and boxplots (obtained from descriptive
data mining)
◼ Decision trees
◼ Association rules
◼ Clusters
◼ Outliers
◼ Generalized rules
February 18, 2022 Data Mining: Concepts and Techniques 22
 Boxplots from Statsoft: Multiple
Variable Combinations

February 18, 2022 Data Mining: Concepts and Techniques 23

 Visualization of Data Mining Results in
SAS Enterprise Miner: Scatter Plots

February 18, 2022 Data Mining: Concepts and Techniques 24

 Visualization of Association Rules in
SGI/MineSet 3.0

February 18, 2022 Data Mining: Concepts and Techniques 25

 Visualization of a Decision Tree in
SGI/MineSet 3.0

February 18, 2022 Data Mining: Concepts and Techniques 26

 Visualization of Cluster Grouping in IBM
Intelligent Miner

February 18, 2022 Data Mining: Concepts and Techniques 27

 Data Mining Process Visualization

◼ Presentation of the various processes of data mining in

visual forms so that users can see
◼ Data extraction process
◼ Where the data is extracted
◼ How the data is cleaned, integrated, preprocessed,
and mined
◼ Method selected for data mining
◼ Where the results are stored
◼ How they may be viewed
February 18, 2022 Data Mining: Concepts and Techniques 28
 Visualization of Data Mining
Processes by Clementine

See your solution

discovery
process clearly

Understand
variations with
visualized data

February 18, 2022 Data Mining: Concepts and Techniques 29

 Interactive Visual Data Mining

◼ Using visualization tools in the data mining process to

help users make smart data mining decisions
◼ Example
◼ Display the data distribution in a set of attributes
using colored sectors or columns (depending on
whether the whole space is represented by either a
circle or a set of columns)
◼ Use the display to which sector should first be
selected for classification and where a good split point
for this sector may be

February 18, 2022 Data Mining: Concepts and Techniques 30

 Interactive Visual Mining by
Perception-Based Classification (PBC)

February 18, 2022 Data Mining: Concepts and Techniques 31

 Audio Data Mining

◼ Uses audio signals to indicate the patterns of data or the

features of data mining results
◼ An interesting alternative to visual mining
◼ An inverse task of mining audio (such as music)
databases which is to find patterns from audio data
◼ Visual data mining may disclose interesting patterns
using graphical displays, but requires users to
concentrate on watching patterns
◼ Instead, transform patterns into sound and music and
listen to pitches, rhythms, tune, and melody in order to
identify anything interesting or unusual

February 18, 2022 Data Mining: Concepts and Techniques 32

 Scientific and Statistical Data Mining (1)

◼ There are many well-established statistical techniques for data

analysis, particularly for numeric data
◼ applied extensively to data from scientific experiments and data

from economics and the social sciences

◼ Regression
◼ predict the value of a response
(dependent) variable from one or
more predictor (independent) variables
where the variables are numeric
◼forms of regression: linear, multiple,
weighted, polynomial, nonparametric,
and robust

February 18, 2022 Data Mining: Concepts and Techniques 33

 Scientific and Statistical Data Mining (2)

◼ Generalized linear models

◼ allow a categorical response variable (or

some transformation of it) to be related

to a set of predictor variables
◼ similar to the modeling of a numeric

response variable using linear regression

◼ include logistic regression and Poisson

regression
◼ Mixed-effect models
◼ For analyzing grouped data, i.e. data that can be classified
according to one or more grouping variables
◼ Typically describe relationships between a response variable and
some covariates in data grouped according to one or more factors

February 18, 2022 Data Mining: Concepts and Techniques 34

 Scientific and Statistical Data Mining (3)

◼ Regression trees
◼ Binary trees used for classification

and prediction
◼ Similar to decision trees:Tests are
performed at the internal nodes
◼ In a regression tree the mean of the
objective attribute is computed and
used as the predicted value
◼ Analysis of variance
◼ Analyze experimental data for two or

more populations described by a

numeric response variable and one or
more categorical variables (factors)
February 18, 2022 Data Mining: Concepts and Techniques 35
 Scientific and Statistical Data Mining (4)
http://www.spss.com/datamine/factor.htm

◼ Factor analysis
◼ determine which variables are
combined to generate a given factor
◼ e.g., for many psychiatric data, one
can indirectly measure other
quantities (such as test scores) that
reflect the factor of interest
◼ Discriminant analysis
◼ predict a categorical response
variable, commonly used in social
science
◼ Attempts to determine several
discriminant functions (linear
combinations of the independent
variables) that discriminate among
the groups defined by the response
variable
February 18, 2022 Data Mining: Concepts and Techniques 36
 Scientific and Statistical Data Mining (5)

◼ Time series: many methods such as autoregression,

ARIMA (Autoregressive integrated moving-average
modeling), long memory time-series modeling
◼ Quality control: displays group summary charts

◼ Survival analysis
◼ predicts the
probability that a
patient undergoing
a medical
treatment would
survive at least to
time t (life span
prediction)
February 18, 2022 Data Mining: Concepts and Techniques 37
 Theoretical Foundations of Data Mining (1)

◼ Data reduction
◼ The basis of data mining is to reduce the data
representation
◼ Trades accuracy for speed in response

◼ Data compression
◼ The basis of data mining is to compress the given
data by encoding in terms of bits, association rules,
decision trees, clusters, etc.
◼ Pattern discovery
◼ The basis of data mining is to discover patterns
occurring in the database, such as associations,
classification models, sequential patterns, etc.

February 18, 2022 Data Mining: Concepts and Techniques 38

 Theoretical Foundations of Data Mining (2)

◼ Probability theory
◼ The basis of data mining is to discover joint probability

distributions of random variables

◼ Microeconomic view
◼ A view of utility: the task of data mining is finding patterns

that are interesting only to the extent in that they can be

used in the decision-making process of some enterprise
◼ Inductive databases
◼ Data mining is the problem of performing inductive logic on

databases,
◼ The task is to query the data and the theory (i.e., patterns)

of the database
◼ Popular among many researchers in database systems

February 18, 2022 Data Mining: Concepts and Techniques 39

 Data Mining and Intelligent Query Answering

◼ A general framework for the integration of data mining

and intelligent query answering
◼ Data query: finds concrete data stored in a database;
returns exactly what is being asked
◼ Knowledge query: finds rules, patterns, and other
kinds of knowledge in a database
◼ Intelligent (or cooperative) query answering:
analyzes the intent of the query and provides
generalized, neighborhood or associated information
relevant to the query

February 18, 2022 Data Mining: Concepts and Techniques 40

 Chapter 10: Applications and Trends in
Data Mining

◼ Data mining applications

◼ Data mining system products and research
prototypes
◼ Additional themes on data mining
◼ Social impacts of data mining
◼ Trends in data mining
◼ Summary
February 18, 2022 Data Mining: Concepts and Techniques 41
 Is Data Mining a Hype or Will It Be Persistent?

◼ Data mining is a technology

◼ Technological life cycle
◼ Innovators
◼ Early adopters
◼ Chasm
◼ Early majority
◼ Late majority
◼ Laggards

February 18, 2022 Data Mining: Concepts and Techniques 42

 Life Cycle of Technology Adoption

◼ Data mining is at Chasm!?

◼ Existing data mining systems are too generic

◼ Need business-specific data mining solutions and

smooth integration of business logic with data mining
functions
February 18, 2022 Data Mining: Concepts and Techniques 43
 Data Mining: Merely Managers'
Business or Everyone's?

◼ Data mining will surely be an important tool for managers’

decision making
◼ Bill Gates: “Business @ the speed of thought”

◼ The amount of the available data is increasing, and data

mining systems will be more affordable
◼ Multiple personal uses
◼ Mine your family's medical history to identify
genetically-related medical conditions
◼ Mine the records of the companies you deal with

◼ Mine data on stocks and company performance, etc.

◼ Invisible data mining

◼ Build data mining functions into many intelligent tools

February 18, 2022 Data Mining: Concepts and Techniques 44

 Social Impacts: Threat to Privacy and
Data Security?
◼ Is data mining a threat to privacy and data security?
◼ “Big Brother”, “Big Banker”, and “Big Business” are

carefully watching you

◼ Profiling information is collected every time

◼ credit card, debit card, supermarket loyalty card, or frequent flyer

card, or apply for any of the above
◼ You surf the Web, rent a video, fill out a contest entry form,
◼ You pay for prescription drugs, or present you medical care
number when visiting the doctor
◼ Collection of personal data may be beneficial for
companies and consumers, there is also potential for
misuse
◼ Medical Records, Employee Evaluations, Etc.
February 18, 2022 Data Mining: Concepts and Techniques 45
 Protect Privacy and Data Security
◼ Fair information practices
◼ International guidelines for data privacy protection

◼ Cover aspects relating to data collection, purpose, use,

quality, openness, individual participation, and
accountability
◼ Purpose specification and use limitation

◼ Openness: Individuals have the right to know what

information is collected about them, who has access to
the data, and how the data are being used
◼ Develop and use data security-enhancing techniques
◼ Blind signatures

◼ Biometric encryption

◼ Anonymous databases

February 18, 2022 Data Mining: Concepts and Techniques 46

 Chapter 10: Applications and
Trends in Data Mining

◼ Data mining applications

◼ Data mining system products and research
prototypes
◼ Additional themes on data mining
◼ Social impact of data mining
◼ Trends in data mining
◼ Summary
February 18, 2022 Data Mining: Concepts and Techniques 47
 Trends in Data Mining (1)

◼ Application exploration
◼ development of application-specific data mining

system
◼ Invisible data mining (mining as built-in function)

◼ Scalable data mining methods

◼ Constraint-based mining: use of constraints to guide

data mining systems in their search for interesting

patterns
◼ Integration of data mining with database systems, data
warehouse systems, and Web database systems
◼ Invisible data mining

February 18, 2022 Data Mining: Concepts and Techniques 48

 Trends in Data Mining (2)

◼ Standardization of data mining language

◼ A standard will facilitate systematic development,

improve interoperability, and promote the education

and use of data mining systems in industry and society
◼ Visual data mining
◼ New methods for mining complex types of data
◼ More research is required towards the integration of

data mining methods with existing data analysis

techniques for the complex types of data
◼ Web mining
◼ Privacy protection and information security in data mining

February 18, 2022 Data Mining: Concepts and Techniques 49

 Chapter 10: Applications and
Trends in Data Mining

◼ Data mining applications

◼ Data mining system products and research
prototypes
◼ Additional themes on data mining
◼ Social impact of data mining
◼ Trends in data mining
◼ Summary
February 18, 2022 Data Mining: Concepts and Techniques 50
 Summary

◼ Domain-specific applications include biomedicine (DNA), finance, retail

and telecommunication data mining
◼ There exist some data mining systems and it is important to know their
power and limitations
◼ Visual data mining include data visualization, mining result
visualization, mining process visualization and interactive visual mining
◼ There are many other scientific and statistical data mining methods
developed but not covered in this book
◼ Also, it is important to study theoretical foundations of data mining
◼ Intelligent query answering can be integrated with mining
◼ It is important to watch privacy and security issues in data mining
February 18, 2022 Data Mining: Concepts and Techniques 51
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 www.cs.uiuc.edu/~hanj

Thank you !!!

February 18, 2022 Data Mining: Concepts and Techniques 55