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Outline 
 Data Mining 
 Data Warehousing
Historical Perspective 
 1960s: 
 Data collection, database creation, IMS 
and network DBMS 
 1970s: 
 Relational data model, relational DBMS 
implementation 
 1980s: 
 RDBMS, advanced data models (extended-relational, 
OO, deductive, etc.) and 
application-oriented DBMS (spatial, 
scientific, engineering, etc.) 
 1990s—2000s: 
 Data mining and data warehousing, 
multimedia databases, and Web databases
Data Mining
Definition 
 Data mining automates the process of locating and 
extracting the hidden patterns and knowledge 
 In simple words 
 Searching for new knowledge
Why we need data mining 
 Data explosion problem 
 Automated data collection tools and mature database technology 
lead to tremendous amounts of data stored in databases, data 
warehouses and other information repositories 
 We are drowning in data, but starving for knowledge! 
 Solution: Data mining 
 Data warehousing and on-line analytical processing 
 Extraction of interesting knowledge (rules, regularities, patterns, 
constraints) from data in large databases
Data Mining Models 
 Predictive Model 
 Descriptive Model
Predictive Model 
 Prediction 
 determining how certain attributes will behave in the future 
 Regression 
 mapping of data item to real valued prediction variable 
 Classification 
 categorization of data based on combinations of attributes 
 Time Series analysis 
 examining values of attributes with respect to time
Descriptive Model 
 Clustering 
 most closely data clubbed together into clusters 
 Data Summarization 
 extracting representative information about database 
 Association Rules 
 associativity defined between data items to form relationship 
 Sequence Discovery 
 it is used to determine sequential patterns in data based on 
time sequence of action
Data mining process 
Problem Definition 
Creating Database 
Exploring database 
Preparation for creating a data mining model 
Building Data Mining Model 
Evaluation Phase 
Deploying the Data Mining model 
Fig. General Phases of Data Mining Process
Who needs data mining? 
 Whoever has information fastest and uses it wins 
 Don McKeough former president of Coke Cola 
 Businesses are looking for new ways to let end users 
find the data they need to: 
 make decisions 
 Serve customers 
 Gain the competitive edge
Applications 
 Business analysis and management 
 Computer security 
 Customer relationships analysis and management 
 Telecommunication analysis and management 
 News and entertainment 
 Bioinformatics and Healthcare analysis
Summary 
 Need of data mining 
 Data mining models 
 Process of data mining 
 Some applications
Data Warehousing
Data Warehousing 
 Data Warehouse 
 What is Data Warehouse? 
 Database & Data Warehouse. 
 How to distinguish? 
 Purpose 
 Database : Transactional 
 Data Warehouse :Intended for Decision Supporting 
Applications. 
 Functionality 
 Optimized for data retrieval, not routine transaction 
processing. 
 Structure 
 Performance
Data Warehousing 
 Modern Organization’s needs ? 
 Companies spread world wide. 
 Have 
 So many Data Sources 
 Different Operational Systems 
 Different Schemas 
 Need Data for 
 Complex Analysis 
 Knowledge Discovery 
 Decision Making. 
Solution ???
Data Warehousing 
 Solution…Data Warehouse. 
 Data Warehouse . Definition ?? 
 No single definition…. 
 Data Warehouse 
 Collection of Information gathered from multiple sources, 
stored under unified schema, at a single site & mainly 
intended for decision support applications. 
 A subject oriented, integrated, nonvolatile, time-variant, 
collection of data in support of management’s decision. 
~ W.H. Inmon
Warehouses are Very Large 
Databases 
35% 
30% 
25% 
20% 
15% 
10% 
5% 
0% 
5GB 
10-19GB 50-99GB 250-499GB 
5-9GB 
20-49GB 100-249GB 500GB-1TB 
Initial 
Projected 2Q96 
Source: META Group, Inc. 
Respondents
Data Warehousing 
 Data Warehouse - Architecture
Data Warehousing 
 Data Warehouse building 
 When & how to gather data 
 Source-driven architecture 
 Destination-driven architecture 
 What schema to use 
 Data Cleansing 
 Task of correcting and processing data 
 How to propagate updates 
 What data to summarize 
 And many more……
Summary 
 What is Data Warehousing? 
 Data Warehouse. 
 Data Warehouse – Architecture 
 Data Warehouse vs. Data Mining
Conclusion 
 Your data is full of undiscovered gems; 
start digging!
References 
 Data Mining Introductory and advanced Topics 
Margaret H. Dunham 
 Modern Data Warehousing, Mining, and visualization 
George M. Marakas 
 Data Mining 
BPB Publications 
 Database System Concepts 
Silbershatz, Korth, 
Sudarshan 
 www.statoo.info/ 
 www.crm2day.com/ 
 www.trilliumsoftware.com/

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Data Warehouse and Data Mining

  • 1. Outline  Data Mining  Data Warehousing
  • 2. Historical Perspective  1960s:  Data collection, database creation, IMS and network DBMS  1970s:  Relational data model, relational DBMS implementation  1980s:  RDBMS, advanced data models (extended-relational, OO, deductive, etc.) and application-oriented DBMS (spatial, scientific, engineering, etc.)  1990s—2000s:  Data mining and data warehousing, multimedia databases, and Web databases
  • 4. Definition  Data mining automates the process of locating and extracting the hidden patterns and knowledge  In simple words  Searching for new knowledge
  • 5. Why we need data mining  Data explosion problem  Automated data collection tools and mature database technology lead to tremendous amounts of data stored in databases, data warehouses and other information repositories  We are drowning in data, but starving for knowledge!  Solution: Data mining  Data warehousing and on-line analytical processing  Extraction of interesting knowledge (rules, regularities, patterns, constraints) from data in large databases
  • 6. Data Mining Models  Predictive Model  Descriptive Model
  • 7. Predictive Model  Prediction  determining how certain attributes will behave in the future  Regression  mapping of data item to real valued prediction variable  Classification  categorization of data based on combinations of attributes  Time Series analysis  examining values of attributes with respect to time
  • 8. Descriptive Model  Clustering  most closely data clubbed together into clusters  Data Summarization  extracting representative information about database  Association Rules  associativity defined between data items to form relationship  Sequence Discovery  it is used to determine sequential patterns in data based on time sequence of action
  • 9. Data mining process Problem Definition Creating Database Exploring database Preparation for creating a data mining model Building Data Mining Model Evaluation Phase Deploying the Data Mining model Fig. General Phases of Data Mining Process
  • 10. Who needs data mining?  Whoever has information fastest and uses it wins  Don McKeough former president of Coke Cola  Businesses are looking for new ways to let end users find the data they need to:  make decisions  Serve customers  Gain the competitive edge
  • 11. Applications  Business analysis and management  Computer security  Customer relationships analysis and management  Telecommunication analysis and management  News and entertainment  Bioinformatics and Healthcare analysis
  • 12. Summary  Need of data mining  Data mining models  Process of data mining  Some applications
  • 14. Data Warehousing  Data Warehouse  What is Data Warehouse?  Database & Data Warehouse.  How to distinguish?  Purpose  Database : Transactional  Data Warehouse :Intended for Decision Supporting Applications.  Functionality  Optimized for data retrieval, not routine transaction processing.  Structure  Performance
  • 15. Data Warehousing  Modern Organization’s needs ?  Companies spread world wide.  Have  So many Data Sources  Different Operational Systems  Different Schemas  Need Data for  Complex Analysis  Knowledge Discovery  Decision Making. Solution ???
  • 16. Data Warehousing  Solution…Data Warehouse.  Data Warehouse . Definition ??  No single definition….  Data Warehouse  Collection of Information gathered from multiple sources, stored under unified schema, at a single site & mainly intended for decision support applications.  A subject oriented, integrated, nonvolatile, time-variant, collection of data in support of management’s decision. ~ W.H. Inmon
  • 17. Warehouses are Very Large Databases 35% 30% 25% 20% 15% 10% 5% 0% 5GB 10-19GB 50-99GB 250-499GB 5-9GB 20-49GB 100-249GB 500GB-1TB Initial Projected 2Q96 Source: META Group, Inc. Respondents
  • 18. Data Warehousing  Data Warehouse - Architecture
  • 19. Data Warehousing  Data Warehouse building  When & how to gather data  Source-driven architecture  Destination-driven architecture  What schema to use  Data Cleansing  Task of correcting and processing data  How to propagate updates  What data to summarize  And many more……
  • 20. Summary  What is Data Warehousing?  Data Warehouse.  Data Warehouse – Architecture  Data Warehouse vs. Data Mining
  • 21. Conclusion  Your data is full of undiscovered gems; start digging!
  • 22. References  Data Mining Introductory and advanced Topics Margaret H. Dunham  Modern Data Warehousing, Mining, and visualization George M. Marakas  Data Mining BPB Publications  Database System Concepts Silbershatz, Korth, Sudarshan  www.statoo.info/  www.crm2day.com/  www.trilliumsoftware.com/