Classification and Prediction in Data Mining: How to Build a Model?

What is Data Mining?

Data mining is the method of extracting valuable information from a large data set. In other words, it is the process of deduction to get relevant data from a vast database. We can use data mining in relational databases, data warehouses, object-oriented databases, and structured-unstructured databases.

What is Data Analysis?

Data analysis is the cleaning, transforming, and modeling of data into identifiable valuable data for business related decision-making. The objective of data analysis is to derive necessary information from data and use it to make decisions based on the data analysis. To gain expertise in data mining and other data related concepts, check out our data science courses.

How to Build a Model in Classification and Prediction with Data Mining?

The data analytics method utilizes the algorithms to extract, transform, load, and produce meaningful data models and experiment in data.

  • The first level of the data analytics method involves solving complex problems by the data analytics process.
  • The second level of the method is choosing a proper dataset based on a particular domain.
  • In the third level, we can convert the particular dataset into a certain format and apply it in analytics algorithms.
  • In the fourth level, we can convert the data from various sources into a common format for analysis.
  • The final level is the evaluation of outcomes and visualization produced by the data mining algorithms.

What is Classification and Prediction in Data Mining?

We use classification and prediction to extract a model, representing the data classes to predict future data trends. This analysis provides us the best understanding of the data at a large scale. Classification predicts the categorical labels of data with the prediction models.

Data Mining Techniques

Many important data mining techniques have been developed and applied in data mining projects, particularly classification, association, clustering, prediction, sequential models, and decision trees.

Read: Data Mining vs Machine Learning

Traditional Data Mining Tools

Traditional data mining tools and techniques operate with existing databases stored on enterprise servers and local hard drives.

  • It translates the data stored with pre-defined algorithms and queries written out in a database specified programming language.
  • For Example, a sales figures database can easily present monthly sales trends based on accessing the database’s built-in query and table system. A data mining tool built to the server can then analyze those huge numbers to analyze the features affecting monthly sales.

What is the Classification in Data Mining?

Classification is about discovering a model that defines the data classes and concepts. The idea is to use this model to predict the class of objects. The derived model is dependent on the examination of sets of training data.

The derived model we can define in the following methods.

  1.  Classification (IF-THEN) Rules
  2.  Decision Trees
  3.  Mathematical Formulae
  4.  Neural Networks

Classification Algorithms in Machine Learning

The classification algorithm is a supervised learning method with a  machine program, which reads it from the input data and then implements this in learning to classify it in observations. Some practical models of classification problems are speech recognition, handwriting identification, biometric classification, document classification, etc.

Examples of classification algorithms in machine learning algorithms

  • Linear Classifiers with Logistic Regression
  • Prediction analytics
  • Decision and Boosted Trees
  • Neural Networks

Check out: Difference between Data Science and Data Mining

What is the Data Classification Lifecycle?

The data classification life-cycle produces an excellent structure for controlling the flow of data to an enterprise. Businesses need to account for data security and compliance at each level. With the help of data classification, we can perform it at every stage — from origin to deletion.

The data life-cycle covers these six stages:

  1. Origin: It produces sensitive data in various formats, with emails, Excel, Word and Google documents, social media, and websites.
  2. Role-based practice: Role-based security restrictions apply to all delicate data by tagging based on in-house protection policies and agreement rules.
  3. Storage: Here, we have the data which is obtained, including access controls and encryption.
  4. Sharing: Data signifies continually being distributed among agents, consumers, and co-workers from various devices and platforms.
  5. Archive: Here, data is eventually archived within an industry’s storage systems.
  6. Publication: Through the publication of data, it can reach the customers. They can then view and download in the form of the dashboards.

Read: Data Mining Projects in India

How Does Classification Work?

For understanding and building the data classification systems, here we have three types of prospects techniques:

  • Manual — Common data classifications require human interference and implementation.
  • Automated — Technology-driven solutions exclude the risks of human intervention, including unnecessary time and data errors, while continuing persistence (around-the-clock classification of all data).
  • Hybrid — Human interference contributes context for data classification, while tools facilitate efficiency and policy enforcement.

The data classification process incorporates two steps:

  1. Developing the classifier
  2. Applying classifier for classification

Developing the Classifier

  • This step is the initial step or the training phase.
  • In this step, the classification algorithms develop the classifier.
  • It develops the classifier from the training set made up of database tuples and their connected class labels.
  • It associates each tuple that aggregates the training set with a category or class. We can also apply these tuples to a sample object or data points.

Applying Classifier for Classification

  • Sentiment Analysis
  • Document Classification
  • Image Classification
  • Machine Learning Classification

Sentiment Analysis

Sentiment analysis is highly helpful in social media monitoring; we can use it to extract social media insights.

With advanced machine learning algorithms, we can build the sentiment analysis models to read and analyze the misspelled words. The accurate trained models provide consistently accurate outcomes and result in a fraction of the time.

Document Classification

We can use the document classification to organize the documents into sections according to the content. And with the help of machine learning classification algorithms, we can execute it automatically.

Document classification refers to the text classification; here, we can classify the words in the entire document. Here we can have the best example of the search engines for online searching records on any relevant search topic.

Image Classification

Image classification is used for the trained categories to an image. These could be the caption of the image, a statistical value, a theme. By applying supervised learning algorithms, you can tag images to train your model for relevant categories.

Machine Learning Classification 

It uses the statistically demonstrable algorithm rules to execute analytical tasks that would take humans hundreds of more hours to perform.

Data Classification Process

We can divide the data classification into five steps:

  • Build data classification objectives, policy, workflows, data classification design.
  • Classify the sensitive data you store.
  • Use labels by tagging data.
  • Use effects to enhance security and docility.
  • Data is dynamic, and classification is a continuous process.


Hopefully, this article helped you with understanding the classification and prediction in data mining. The article has described all the fundamental details about the data mining concepts.

If you are curious to learn about data science, check out IIIT-B & upGrad’s Executive PG Programme in Data Science which is created for working professionals and offers 10+ case studies & projects, practical hands-on workshops, mentorship with industry experts, 1-on-1 with industry mentors, 400+ hours of learning and job assistance with top firms.

What are the jobs we can get by learning data mining?

With a rise in data volume and consciousness among companies to make the most of the assets accessible to them, there has been a surge in the number of job opportunities for data mining professionals. Most data mining learners become Data analysts who analyze and assist their employers in better investment decisions, risk assessment and consumer targeting, and the determination of capital allocations. With incentives and profit-sharing, a data mining analyst in India may expect to make about ₹5,02,999 annually. This number can go up with a better level of expertise, skills, and workplace.

Is it necessary to learn data mining algorithms while learning data science?

Yes, it is necessary to learn data mining along with data science because both topics go hand in hand. To every data science professional, data mining is an important topic that deals with analyzing vast volumes of dispersed data that is segregated to make sense of it and convert it into something meaningful for an organization. So learning data mining along with the interdisciplinary subject called data science can be beneficial for data science learners, and it will also increase their chances of getting hired.

What are the real-life use cases of data mining?

Data mining's predictive capability has altered the formulation of corporate strategy. Some of the real-life use cases of data mining are:

1. Marketing: Data mining is used to analyze ever-larger databases and enhance market segmentation. It can perform customized loyalty programs by analyzing the correlations between characteristics such as client age, gender, tastes, etc.

2. Banking: Data mining is used by banks to better assess market risks. It is generally used to examine credit ratings and smart anti-fraud systems, card transactions, purchasing trends, and consumer financial data.

3. Medicine: Data mining allows for more precise diagnoses. Hospitals can provide more effective therapies with access to all patients' information, such as medical records, physical tests, and treatment patterns.

4. Retail: Data mining can help determine which deals are most popular with customers and improve sales at the checkout queue.

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