Applications and Trends in Data

Mining
ICS 2408 Selected Advanced Topics in
Computer Science

February 19, 2024

 Data Mining Applications
Data mining is an interdisciplinary field with wide and
diverse applications

Some application domains

Financial data analysis
Retail industry
Telecommunication industry
Biological data analysis

February 19, 2024

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 19, 2024

 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 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 19, 2024
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 19, 2024
Data Mining for Telecomm. Industry
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 19, 2024

Biomedical 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 19, 2024
 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 19, 2024
 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 19, 2024

 How to Choose a Data Mining System
 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 19, 2024
 How to Choose a Data Mining System
Scalability
Row (or database size) scalability
Column (or dimension) scalability
Curse of dimensionality: it is much more challenging to
make a system column scalable than 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 19, 2024

 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 Performance
Pattern
Computing
Recognition

February 19, 2024

 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 19, 2024

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 19, 2024

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 19, 2024

Trends in Data Mining
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 19, 2024

 Trends in Data Mining
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 19, 2024