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Chapter 2 Full Detailed Data Mining KFUPM

Chapter 2 discusses the importance of data mining and analytics in business, highlighting its role in extracting patterns from large datasets for applications like fraud detection and marketing. It outlines the data mining process, including exploration, pattern recognition, and deployment, as well as various techniques such as clustering and classification. Additionally, the chapter presents real-world applications and a case study of Nestlé's use of big data to enhance logistics and customer satisfaction.

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9 views11 pages

Chapter 2 Full Detailed Data Mining KFUPM

Chapter 2 discusses the importance of data mining and analytics in business, highlighting its role in extracting patterns from large datasets for applications like fraud detection and marketing. It outlines the data mining process, including exploration, pattern recognition, and deployment, as well as various techniques such as clustering and classification. Additionally, the chapter presents real-world applications and a case study of Nestlé's use of big data to enhance logistics and customer satisfaction.

Uploaded by

dramirzaibabbasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 2: Data Mining and

Analytics
Data Analytics for Business
KFUPM – Dr. Amir Zaib Abbasi
Learning Objectives
• • Assess the role of data mining in businesses
• • Understand the data mining process
• • Evaluate data mining techniques (e.g.,
clustering, classification)
• • Understand text mining methods and
applications
What is Data Mining?
• • Data mining = knowledge discovery, pattern
analysis, data dredging
• • Extracts patterns and correlations in large
data volumes
• • Used in business, science, and government
(e.g., fraud detection, marketing)
• • Relies on statistics, AI (e.g., neural
networks), and database systems
Features of Data Mining
• • Predict trends and behaviors
• • Generate actionable insights
• • Focus on large, complex datasets
• • Clustering, classification, and pattern
recognition
Business Applications
• • Credit scoring and fraud detection (banking)
• • Consumer behavior and trend analysis
(retail)
• • ROI and campaign effectiveness (marketing)
• • Health risk prediction and prevention
(healthcare)
Data Mining Process
• 1. Exploration – Analyze data structure and
detect anomalies
• 2. Pattern Recognition – Use ML algorithms to
identify insights
• 3. Deployment – Apply insights to support
business decisions
Pattern Recognition Techniques
• • Supervised Learning – Classification using
labeled data
• • Unsupervised Learning – Clustering based on
similarities
• • Data inputs: text, images, emotions, sensor
data
• • Real-time applications in marketing,
medicine, security
Top 10 Data Mining Techniques
• 1. Tracking Patterns
• 2. Classification
• 3. Association
• 4. Outlier Detection
• 5. Clustering
• 6. Regression
• 7. Prediction
• 8. Sequential Patterns
• 9. Statistical Techniques
Example: Classification in Business
• • Is this credit card transaction fraudulent?
• • Which customer should receive premium
offers?
• • Which classification methods: Decision
trees, Bayesian networks, KNN
Text Mining
• • Converts unstructured text into structured
format using NLP
• • Steps: Text preprocessing, information
retrieval, NLP, info extraction
• • Applications: Email filtering, sentiment
analysis, customer feedback
Case Study: Nestlé Uses Big Data
• • Optimized delivery and logistics with real-
time data analytics
• • Improved customer satisfaction and reduced
spoilage
• • Big Data used to detect trends and guide
product innovation

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