1. 6/22/2006 DATA MINING I. Definition & Business-Related Examples Mohammad Monakes Fouad Alibrahim

2. Outline What is Data Mining? OLAP vs. Data Mining Data Mining Applications

3. What is Data Mining? Science of extracting useful information from large data sets or databases

4. What is Data Mining? Early File- Based Systems Basic Accounting Data No Decision Support Database Systems Operational Systems Data Primitive Decision Support Special Reports Data Warehouses Data for Decision Support True Decision Support Queries and Reports OLAP Systems Data for multi-dimensional Analysis Complex Analysis & Calculations Ad Hoc Queries / Analysis Data Mining Application Selected and extracted data Knowledge Discovery Discovered Patterns / Relationships USER-DRIVENDATA-DRIVEN

5. OLAP vs. Data Mining Present – Future Summary – Detailed data User-driven – Data-driven Widely used – Still emerging

6. Data Mining Applications Customer Segmentation Market Basket Analysis Risk Management Fraud Detection Delinquency Tracking Demand Prediction

7. DATA MINING