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Knowledge Discovery in Databases: Tools and Techniques Presented by Wing-Yeung (Paul) Chong Agenda Concept of knowledge discovery in databases (KDD) KDD process Major KDD techniques Benefits from KDD Applications of KDD Conclusion Concept of Knowledge Discovery in Database Basic concept: conversion of raw data into previously unknown knowledge for business advantage knowledge discovery should be done with the technology of data mining Concept of knowledge discovery in database (cont’d) What is data mining then? An artificial intelligence tool provides the capability to discover new and meaningful information by using existing data exceeds the human capacity to analyze large data sets KDD Process What is KDD process? Transforming the raw data into patterns or trends Including several major processes, hundreds of minor processes, and many techniques. KDD Process (cont’d) Major KDD techniques Statistical Approach uses rule discovery and is based on data relationships. E.g. Linear regression Classification Approach groups data according to similarities or classes. E.g. data cleaning, decision tree approach Major KDD techniques (cont’d) Deviation and Trend Analysis involves pattern detection by filtering important trends. E.g. analysis of traffic on large telecommunications networks KDD benefits Seek and retain most profitable customers of a company Market segmentation for a targeted approach Predict the future and identify factors to secure a desired effect Summarize historical data Applications of KDD WalMart allows more than 3,500 suppliers, to access data on their products and perform data analysis. suppliers use this data to identify customer buying patterns at the store display level. In 1995, WalMart computers processed over 1 million complex data queries. Applications of KDD (Cont’d) American Express has half a terabyte of information about its customers charges on its 35 million cards. finds patterns that predict what product categori
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