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Introduction to Data Mining Techniques and Applications

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24th Jun, 2022
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Introduction to Data Mining Techniques and Applications

Data mining is a unique process used to search large sets of data to look out for patterns and trends that are hard to find. The modern technological era is the age that is increasingly getting dependent on data and databases. To ensure the proper use of databases, data mining is extensively used, thereby making data science one of the best career prospects for IT aspirants because it is valuable to the IT industry for discovering dataset patterns and extracting them.

Robust organisations and companies deal with large volumes of datasets daily. This is where the role of data scientists comes in. They predict and acknowledge events and forecast later occurrences by examining large data sets. The process used for extracting valuable data from datasets and finding said patterns requires data mining tools or software and statistical methodologies.

This further helps them to detect anomalies to predict future outcomes, which aid to the profitability of companies by minimising risks leading to the loss and wastage of resources. The mined data is further transformed, filtered out from datasets from which usable information is extracted.

Data mining is a technique that organisations and individuals use to transform raw and unmined data into usable and equally valuable information. The process of data mining is mainly involved with the usage of many methodologies and tools. It further helps to look for trends and patterns that can be extracted from large chunks and batches of data. 

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The data mining process boosts the profitability of the users and organisations by decreasing the risk through prediction. It allows the user to make more effective and profitable business decisions and better combat challenges by avoiding risks. Data mining is integral to any company or business and helps in many sectors such as resource management, customer and employee management.

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Data Mining Techniques

Data mining is the combination of many techniques and tools that allow data mining to extract useful data from massive datasets. Here are some data mining techniques to help you understand the technicalities relevant to data mining. 

  • Tracking patterns – This is one of the crucial techniques of data mining which relies on recognising patterns found in large datasets. In this phase, any abnormality or aberration in data is found and is later used to formulate patterns extracted from data trends.
  • Classification – This is more of a complex but integral data mining technique involving the collection of multiple attributes in one go and segregating them into different classifications. This further helps to focus on targeted or singular classifications to extract more information.
  • Association – Association is a data mining technique that involves connecting elements and variables to one another via data-centric conclusions. This process uses different attributes and events related in nature or are proportional and then draws the conclusion relying on that information. 
  • Outlier detection – This technique focuses on reorganising any anomalies found for a more effective understanding of the datasets. This aids in predicting future events to acquire maximum profit in companies because they will be armed with predictive data.
  • Clustering – This technique primarily involves assimilating large datasets based on what’s common between them and is similar to the Association data mining technique. Clustering combines large chunks of different elements or demographics based on their attributes, thereby creating targets.
  • Regression – This is a technique in data mining that is highly crucial because it primarily involves planning and modelling. These are mainly based on the various variables and the forecasted events determined from the extracted data. In companies, they are generally used in important economic factors such as sales projection, price, demand, and competition. This helps to uncover the relationship between more than one variable belonging to one particular dataset. 
  • Prediction – Prediction is a crucial technique in data mining that determines a company’s success in the market. It mainly involves the future projection of data and forecasts events to help assess risk factors. The act of prediction is primarily done by analysing historical trends and patterns to deliver precise conclusions and determine future occurrences like the future expenditure of a company.

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Applications of data mining

Data mining has several applications in countless fields and many projects in this era. Amongst the myriad applications that data mining is used for, here are the most significant real-world applications of data mining that are usually observed in daily industrial and commercial applications. 

Engineering And Manufacturing Sectors

Data mining tools are handy for discovering the patterns in both manufacturing and production, which are crucial to any robust business. This is where data mining proves its worth as it enables users, especially data scientists and analysts, to utilise data mining tools to find relevant connections between product architecture and production. Data mining also additionally aids in extracting information that can be potentially used in system-level designs. Data mining also allows us to predict the values and cost of other variables and product development duration.

Customer Classification And Segmentation

Data mining helps classify customers based on demographics or potential buying behaviours, which aids in allowing businesses to target a particular set of customers to boost saleability with much more effectiveness. It helps reduce the wastage of unnecessary resources and cut down on costs. Data mining aids in the classification of customers into different segments to help companies tend to them independently. 

Banking And Financial Services 

In recent times, a large population of the masses use digitised financial services. These are hosted on the cloud and are computerised, where the digitised financial information is generated and stored. Data mining also helps maintain a plethora of financial services such as loans, financial records and market investments.

Research and Analysis

Data mining is crucial during pre-processing data, data cleaning and database integration. Several data mining tools and aspects of data mining can be well utilised to host any research and analytics with precision based on the data available, the elements of the data mined and generated or extracted data from various sources such as data warehouses or historical records.

Criminal Investigation

Criminology is one of the most integral fields aimed at identifying crimes. Crime analytics and criminal analysis via data mining are extremely valuable as it helps to determine the characteristics of the crime and the historical records to find the patterns, make predictions based on the criminal activity and solve crimes. 

With the growing demands in the industrial sector, there is a dire need for experts in data-centric predictive forecasting. Data mining is a career field that will be in the spotlight in the coming years because of the promising prospects, especially in data science and computer science. Data mining and data science are the leading career choices in this digital era where valuable data is akin to the value of gold. A well-made career in data science will take you places when it comes to job prospects. 

If you are curious to learn about Python, 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.

If you are already considering making a career out of data processing, analysing, data mining and the like, you can check out upGrad mentorship, where you will find some of the best mentors who are trained professionals in your field to guide you in your next step. 


Rohit Sharma

Blog Author
Rohit Sharma is the Program Director for the UpGrad-IIIT Bangalore, PG Diploma Data Analytics Program.

Frequently Asked Questions (FAQs)

1What are data mining tools and software?

Data mining tools are software used to power data mining processes along with data mining and statistical techniques. Some highly effective data mining tools are SAS Data mining, R-Programming, BOARD and Teradata. Software such as KNIME, Rapid Miner, Orange, Xplenty, Sisense, Apache Mahout, and SSDT are extensively used for data mining.

2Which techniques in data mining give the best performance?

Association Rule Technique gives the best performance in data mining because it can discover hidden patterns in various data sets. It can also point out the frequent occurrences of the variables successfully.

3What are the disadvantages of data mining?

The disadvantages of data mining are security, privacy, and misuse of information. As businesses are becoming overly dependent on personal data as health conditions or mortgage defaults, there is an increasing threat of egregious privacy violations. Data mining also leads to irrelevant information and inaccurate data at times as well.

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