Data Warehouse and Data Mining Techniques

S1 Teknik Informatika
Fakultas Teknologi Informasi

Universitas Kristen Maranatha
DM-MA/S1IF/FTI/UKM/2012 1
Materi Perkuliahan
Review Basis Data
Data Warehouse
Data Mining
What is Data Warehouse?
Defined in many different ways, but not rigorously.
A decision support database that is maintained

separately from the organization’s operational
database
Support information processing by providing a solid
platform of consolidated, historical data for analysis.
“A data warehouse is a subject-oriented, integrated, time-
variant, and nonvolatile collection of data in support of
management’s decision-making process.”—W. H. Inmon
An example
JC Penney store :
A high level manager (Mr. X) wants to
know
What types (style, dress material, color, and
size) of women clothing move faster during the
months of October to December for Northeast
region?
Type Oktober November Desember Total
Casual 1.500.000 1.700.000 3.500.000 6.700.000

Formal 2.300.000 2.500.000 2.200.000 7.000.000
Party 1.500.000 2.000.000 5.000.000 8.500.000
Total 5.300.000 6.200.000 10.700.000 22.200.000
Never Ending….
– After two days -- Mr. X wants the query to be re-
done by each week during Oct – Dec
– Next day Mr. X wants it by each city in Northeast
region
Mr. X is back again - Is it possible to get it by

each store in a city?
• By age group, if possible

• By income groups, if data are available
• By charging method (check, cash, credit-card..)
…..IS Manager is tired …

Arsitektur Data Warehouse
Why Data Mining?
The Explosive Growth of Data: from terabytes to
petabytes
Data collection and data availability
Automated data collection tools, database systems, Web,
computerized society
Major sources of abundant data
Business: Web, e-commerce, transactions, stocks, …
Science: Remote sensing, bioinformatics, scientific
simulation…
Society and everyone: news, digital cameras,
We are drowning in data, but starving for knowledge!
“Necessity is the mother of invention”—Data mining—
Automated analysis of massive data sets
Evolution of Database Technology
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.)
Application-oriented DBMS (spatial, scientific, engineering, etc.)
1990s:
Data mining, data warehousing, multimedia databases, and Web databases
2000s
Stream data management and mining
Data mining and its applications
Web technology (XML, data integration) and global information systems
Evolution of Sciences
Before 1600, empirical science
1600-1950s, theoretical science
Each discipline has grown a theoretical component. Theoretical models often motivate
experiments and generalize our understanding.
1950s-1990s, computational science
Over the last 50 years, most disciplines have grown a third, computational branch (e.g.
empirical, theoretical, and computational ecology, or physics, or linguistics.)
Computational Science traditionally meant simulation. It grew out of our inability to
find closed-form solutions for complex mathematical models.
1990-now, data science
The flood of data from new scientific instruments and simulations
The ability to economically store and manage petabytes of data online
The Internet and computing Grid that makes all these archives universally accessible
Scientific info. management, acquisition, organization, query, and visualization tasks
scale almost linearly with data volumes. Data mining is a major new challenge!
Jim Gray and Alex Szalay, The World Wide Telescope: An Archetype for Online Science, Comm. ACM, 45(11): 50-54, Nov. 2002
Knowledge Discovery (KDD) Process
Data mining—core of
Pattern Evaluation
knowledge discovery
process
Data Mining
Task-relevant Data
Data Warehouse Selection
Data Cleaning
Data Integration
Databases
What Is Data Mining?
Data mining (knowledge discovery from data)

Extraction of interesting (non-trivial, implicit, previously unknown
and potentially useful) patterns or knowledge from huge amount

of data
Data mining: a misnomer?
Alternative names
Knowledge discovery (mining) in databases (KDD), knowledge
extraction, data/pattern analysis, data archeology, data dredging,
information harvesting, business intelligence, etc.
Watch out: Is everything “data mining”?
Simple search and query processing
(Deductive) expert systems
Data Mining and Business Intelligence
Increasing potential
to support
business decisions End User
Decision
Making
Data Presentation Business

Analyst
Visualization Techniques
Data Mining Data
Information Discovery Analyst
Data Exploration
Statistical Summary, Querying, and Reporting
Data Preprocessing/Integration, Data Warehouses

DBA
Data Sources
Paper, Files, Web documents, Scientific experiments, Database Systems
KDD Process: A Typical View from
Machine Learning and Statistics
Input Data Data Pre- Data Post-

Processing Mining Processing
Data integration Pattern discovery Pattern evaluation

Normalization Association & correlation Pattern selection
Feature selection Classification Pattern interpretation
Clustering
Dimension reduction Pattern visualization
Outlier analysis
…………
This is a view from typical machine learning and statistics communities
Data mining applications
Amazon.com uses data mining to provide customers
with purchase suggestions:
Customers who bought this book also bought:
Seven Methods for Transforming Corporate Data Into Business
Intelligence by Vasant Dhar, Roger Stein
Building Data Mining Applications for CRM by Alex Berson, et al
Data Preparation for Data Mining by Dorian Pyle Kellogg on
Integrated Marketing by Dawn Iacobucci (Editor), et al Multivariate
Data Analysis (5th Edition) by Joseph F. Hair (Editor), et al
Explore similar items
DM Applications: Retail
Performing basket analysis
Which items customers tend to purchase together.
This knowledge can improve stocking, store layout strategies, and
promotions.
Sales forecasting
Examining time-based patterns helps retailers make stocking
decisions.
If a customer purchases an item today, when are they likely to
purchase a complementary item?
Database marketing
Retailers can develop profiles of customers with certain behaviors,
for example, those who purchase designer labels clothing or those
who attend sales.
This information can be used to focus cost–effective promotions.
DM in CRM: Customer Life Cycle
Customer Life Cycle
The stages in the relationship between a customer and a
business
Key stages in the customer lifecycle
Prospects:
people who are not yet customers but are in the target market
Responders:
prospects who show an interest in a product or service
Active Customers:
people who are currently using the product or service
Former Customers:
may be “bad” customers who did not pay their bills or who incurred
high costs

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S1 Teknik Informatika

Fakultas Teknologi Informasi

A decision support database that is maintained

Casual 1.500.000 1.700.000 3.500.000 6.700.000

Mr. X is back again - Is it possible to get it by

• By age group, if possible

…..IS Manager is tired …

Data Warehouse Selection

Data mining (knowledge discovery from data)

and potentially useful) patterns or knowledge from huge amount

Data Presentation Business

Data Preprocessing/Integration, Data Warehouses

Input Data Data Pre- Data Post-

Data integration Pattern discovery Pattern evaluation

This is a view from typical machine learning and statistics communities

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