Introduction to Data Mining

a.j.m.m. (ton) weijters

(slides are partially based on an introduction of Gregory
Piatetsky-Shapiro)

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Overview
• Why data mining (data cascade)
• Application examples
• Data Mining & Knowledge Discovering
• Data Mining versus Process Mining

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Why Data Mining
• Cascade of data
– Different growth rates, but about 30% each year is a
low growth rate estimation
• The possibility to use computers to analyze data
– 1975 computer for the whole university (main frame)
with 1MB working memory, now a PC with 512 MB
working memory

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Cascade of data
 Business and government systems (transactions
system, ERP systems, Workflow systems, ...)
 Scientific data: astronomy, biology, etc
 Web, text, and e-commerce (new regularities, about
data storage to prevent attempts)
 Hospitals, internal revenue service
 ...

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Examples large data bases
• AT&T handles billions of calls per day
– so much data, it cannot be all stored -- analysis has to
be done “on the fly”
• Europe's Very Long Baseline Interferometry
(VLBI) has 16 telescopes, each of which
produces 1 Gigabit/second of astronomical
data over a 25-day observation session
• Google

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First conclusion

• Very little data will ever be looked at by a human

• Data Mining algorithms and computers are
NEEDED to make sense and use of data.

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Overview

• Why data mining (data cascade)

• Application examples
• Data Mining & Knowledge Discovering
• Data Mining versus Process Mining

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Application examples I
• Customer Relationship Management (CRM)
– Based on a data base with client information and
behavior try to select other potential consumers of a
product.
– Euro miles.
• Profiling tax cheaters
– Based on the profile of the tax payer and some figures
from the tax (electronic) form try to product tax
cheating.

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Application examples II
• Health care
– Given the patient profile and the diagnoses try to
predict the number of hospital days. Information is
used in planning system.
• Industry
– Job shop planning. Based on already accepted jobs,
try to product the delivery time of a new offered job.

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Type of applications
• Classification (supervised)
– Credit risk: result of data mining are rules that can be used
to classify new clients as: high, normal, low
• Estimation (supervised)
– Credit risk: output is not a classification but a number
between -1 and 1 to indicate risk (-1.0 very low, 0.0 normal,
+1.0 very high)
• Clustering (unsupervised)
• Associations: e.g. Bier & Chips & Peanuts occur
frequently in a shopping list of one person
• Visualization: to facilitate human discovery

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Supervised verses unsupervised

• Supervised (Credit risk)

– Starting point is a historical data base with client
information and his/her financial data including credit
history (classification). This data base is used to
induce credit risk rules.
• Unsupervised (Clustering)
– Try to cluster customers into similar groups (how
many groups, in which sense similar)

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E-commerce – Case Study

• A person buys a book (product) at Amazon.com.

• Task: Recommend other books (products) this
person is likely to buy
• Amazon does clustering based on books bought:
– customers who bought “Advances in Knowledge Discovery and
Data Mining”, also bought “Data Mining: Practical Machine
Learning Tools and Techniques with Java Implementations”
• Recommendation program is quite successful

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Hands-on-project I
• Historical consumer data
– Age, education, sex, relationship,
etc.
– Income
• Model to predict income above
50K
• Use the model to select
consumers for direct mailing

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Problems Suitable for Data-Mining

• have sub-optimal current methods

• have accessible, sufficient, and relevant data
• provides high payoff for the right decisions!
• (have a changing environment)

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Overview

• Why data mining (data cascade)

• Application examples
• Data Mining & Knowledge Discovering
• Data Mining versus Process Mining

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Knowledge Discovery Definition
Knowledge Discovery in Data is the
non-trivial process of identifying
– valid
– novel
– potentially useful
– and ultimately understandable patterns in data.
from Advances in Knowledge Discovery and Data
Mining, Fayyad, Piatetsky-Shapiro, Smyth, and
Uthurusamy, (Chapter 1), AAAI/MIT Press 1996

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Related Fields

Machine Visualization
Learning
Data Mining and
Knowledge Discovery

Statistics Databases

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Statistics, Machine Learning and
Data Mining

• Statistics:
– more theory-based
– more focused on testing hypotheses
• Machine Learning
– more heuristics then theory-based
– focused on improving performance of a learning algorithms
• Data Mining and Knowledge Discovery
– Data Mining one step in the Knowledge Discovery process (applying
the Machine Learning algorithm)
– Knowledge Discovery, the whole process including data cleaning,
learning, and integration and visualization of results
• Distinctions are fuzzy

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Knowledge Discovery Process
flow, according to CRISP-DM

Business
Monitoring Understanding
+ Data
Understanding
+ Data
Preparation
80% of the time

Modeling
(applying mining
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 Phases and Tasks

Business Data Data

Modeling Evaluation Deployment
Understanding Understanding Preparation

Determine Collect Initial Data Data Set Select Modeling Evaluate Results Plan Deployment
Business Objectives Initial Data Collection Data Set Description Technique Assessment of Data Deployment Plan
Background Report Modeling Technique Mining Results w.r.t.
Business Objectives Select Data Modeling Assumptions Business Success Plan Monitoring and
Business Success Describe Data Rationale for Inclusion / Criteria Maintenance
Criteria Data Description Report Exclusion Generate Test Design Approved Models Monitoring and
Test Design Maintenance Plan
Situation Assessment Explore Data Clean Data Review Process
Inventory of Resources Data Exploration Report Data Cleaning Report Build Model Review of Process Produce Final Report
Requirements, Parameter Settings Final Report
Assumptions, and Verify Data Quality Construct Data Models Determine Next Steps Final Presentation
Constraints Data Quality Report Derived Attributes Model Description List of Possible Actions
Risks and Contingencies Generated Records Decision Review Project
Terminology Assess Model Experience
Costs and Benefits Integrate Data Model Assessment Documentation
Merged Data Revised Parameter
Determine Settings
Data Mining Goal Format Data
Data Mining Goals Reformatted Data
Data Mining Success
Criteria

Produce Project Plan

Project Plan
Initial Asessment of
Tools and Techniques

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Other related fields
• Data warehouse
– A data warehouse thus not contain simply accumulated
data at a central point, but the data is carefully assembled
from a variety of information sources around the
organization, cleaned u, quality assured, and then released
(published).
• Business Intelligence (BI)
– The use of data in the data ware house to support the
managers with important information

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Overview
• Why data mining (data cascade)
• Application examples
• Data Mining & Knowledge Discovering
• Data Mining versus Process Mining

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Data Mining versus Process Mining

• Process Mining is data mining but with a strong

business process view.
• Some of the more traditional data mining
techniques can be used in the context of
process mining.
• Some new techniques are developed to perform
process mining (mining of process models).

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Why Process Mining
• Traditional As-Is analysis of business processes strongly
based on the opinion of process expert. The basic idea
is to assemble an appropriate team and to organize
modeling sessions in which the knowledge of the team
members is used to build an adequate As-Is process
model.
• The surplus values of process mining in the As-Is
analysis are:
– information based on the real performance of the process
(objective)
– more details

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