Data Warehousing

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Data Warehousing
Virtual University of Pakistan

• Lecture-29
• Brief Intro. to Data Mining

Ahsan Abdullah Assoc. Prof. Head Center for
Agro-Informatics Research www.nu.edu.pk/cairindex.
asp National University of Computers Emerging
Sciences, Islamabad Email ahsan101_at_yahoo.com
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What is Data Mining? Non technical view

• There are things that we know that we know
• there are things that we know that we dont
  know
• there are things that we dont know we dont
  know.
• Donald Rumsfield
• US Secretary of Defence

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What is Data Mining? Slightly formal
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What is Data Mining? Formal view

• Data mining digs out valuable non-trivial
  information from large multidimensional
  apparently unrelated data bases(sets).

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Why Data Mining? Huge volume
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Claude Shannon's info. theory
More volume means less information
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Value vs. Volume
Decision (Y/N) Decision Support
Knowledge Information

Indexed Data Raw Data
Value of Data
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Why Data Mining? Supply Demand
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Data Mining is HOT!

• 10 Hottest Jobs of year 2025
• Time Magazine, 22 May, 2000
• 10 emerging areas of technology
• MITs Magazine of Technology Review, Jan/Feb,
  2001

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How Data Mining is different? Traditionally

• Knowledge Discovery (KDD)

• Data Mining (Knowledge-driven exploration)

• Data Warehouses (Data-driven exploration)

• Traditional Database (Transactions)

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Data Mining Vs Statistics
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Data Mining Vs. Statistics
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Knowledge extraction using statistics
Q What will be the stock increase when inflation
is 6? A Model non-linear relationship using a
line y mx c. Hence answer is 13
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Failure of regression models
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Data Mining is

• Decision Trees
• Neural Networks
• Rule Induction
• Clustering
• Genetic Algorithms

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Data Mining is NOT ...

• Data warehousing
• Ad Hoc Query / Reporting
• Online Analytical Processing (OLAP)
• Data Visualization
• Software Agents

?
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Data Mining Business Perspective

• knowledge is worth knowing if it can be used to
  increase profit by lowering cost or it can be
  used to increase profit by raising revenue.
• Business questions
• Profiling/Segmentation
• Cross-Service
• Employee retention