13BA451 - SEMINAR ON MANAGING CUSTOMERS

DATA MINING
TECHNIQUES

R.JEYA SRI
13MBA033

INTRODUCTION TO
DATA MINING
An analytic process designed to explore large
amounts of (typically business or market related)
data in search for consistent patterns and/or
systematic relationships between variables, and
then to validate the findings by applying the
detected patterns to new subsets of data.

DATA MINING TECHNIQUES

1. Statistics
A study of the collection, analysis, interpretation,
presentation, and organization of data.
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Null hypothesis & P-Value

Histogram
Time series
Standardized values
Variance and standard deviation
Chi- square test etc.

DATA MINING TECHNIQUES

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Decision Tree
Cluster Analysis
Artificial Neural Network
Business Intelligence
Data Stream Mining
Fuzzy Logic
Relational Data Mining
Pattern Recognitiom
Nearest Neighbour Algorithm
Statistics

DATA MINING TECHNIQUES

1. Statistics
Example:

DATA MINING TECHNIQUES

2. Decision trees
A decision tree is a structure that can be used to
divide up a large collection of records into
successively smaller sets of records by applying a
sequence of simple decision rules.

DATA MINING TECHNIQUES

2. Decision trees
Example: Purchase decision making

DATA MINING TECHNIQUES

3. Neural Networks
The processes of learning through cognitive
system and capable of predicting new
observations from other observations after
executing a process of so-called learning from
existing data.

DATA MINING TECHNIQUES

3. Neural Networks
Example: Purchase intention determination

DATA MINING TECHNIQUES

4. Nearest Neighbor Algorithm
An approximate algorithm for finding a (possibly)
sub-optimal solution to the Traveling salesman
problem.
The algorithm is as follows
o Start at node 1
o Next node will be the closest as-yet-unvisited
one (if there are two or more at the same
closest distance, just pick any one of them)
o Go there and repeat 2. and 3. until no more
unvisited nodes
o Go home

DATA MINING TECHNIQUES

4. Nearest Neighbor Algorithm
Example:

DATA MINING TECHNIQUES

5. Link Analysis
Link analysis is a data-analysis technique used to
evaluate relationships (connections) between
nodes.
Key areas of usage:
Investigation of criminal activity computer
security analysis, search engine optimization,
market research and medical research.

DATA MINING TECHNIQUES

5. Link Analysis

Example: Friend suggestion in Facebook

DATA MINING TECHNIQUES

6. Relational Data mining
Relational data mining algorithms look for
patterns among multiple tables (relational
patterns).

DATA MINING TECHNIQUES

6. Relational Data Mining
Example: Search engines

DATA MINING TECHNIQUES

7. Cluster Analysis
Clustering is the task of grouping a set of objects
in such a way that objects in the same group are
more similar.

DATA MINING TECHNIQUES

7. Cluster Analysis

Example: Website viewers analysis

DATA MINING TECHNIQUES

8. Business Intelligence
Set of techniques and tools for the
transformation of raw data into meaningful and
useful information for business analysis purposes.

DATA MINING TECHNIQUES

8. Business Intelligence

Example: Information in dashboard

CONCLUSION
It no longer makes sense to build the "perfect"
model on the historical data since whatever was
known in the past cannot adequately predict the
future because the future is so unlike what has gone
before.

REFERENCES

Data Mining Techniques For Marketing, Sales, and Customer Relationship

Management, Second Edition, Michael J.A. Berry & Gordon S. Linof
Managing Customer Relationships: A Strategic Framework, 2nd Edition,
Don Peppers and Martha Rogers
http://www.idi.ntnu.no/~dingsoyr/diploma/
http://www.wisegeek.com/what-is-a-data-mining-agent.htm
http://ieeexplore.ieee.org/stamp/stamp.jsp?arnumber=4983377
http://www.mis.boun.edu.tr/gulser/index_files/DM%20Techniques
%20%26%20CRM_1.pdf
http://www.zentut.com/data-mining/data-mining-techniques/
http://www.sciencedirect.com/science/article/pii/S0160791X02000386#gr
2
http://www.thearling.com/text/dmtechniques/dmtechniques.htm

THANK YOU