Technincal Report

TECHNICAL REPORT WRITING:DATA MINING
PRESENTED BY SIDDHARTH KUMAR

CONTENTS :
1. What is Data Mining?
2. Benefits of data mining
3. How data mining operates
4. Different types of data mining
5. Data mining examples
1. What is Data Mining?
Data mining is used to identify patterns, correlations and anomalies in large data sets for data analysis. This helps turn raw
data into actionable information to make informed business decisions, predict outcomes and develop business strategies.
Although the term “data mining” wasn’t coined until the 1990s, data mining techniques were used long before that. As the
quality and complexity of data increased, software applications were used for data mining. The potential of data mining
continues to increase with technological advancements in computing power and the enormous potential of big data.
2.BENEFITS OF DATA MINING
Data mining helps organizations analyze a large amount of data, deriving useful insights that allow an organization to become more efficient or profitable. With
increases in data complexity and the volumes of data that are available to an organization, data mining provides a semi-automated way to process large data sets .
MORE BENEFITS:
1. Marketing/Retails
To create models, marketing companies use data mining. This was based on history to forecast who will respond to new marketing campaigns such as direct mail, online marketing, etc. This means that marketers can sell profitable products to targeted customers.
2. Finance/Banking
Since data extraction provides financial institutions information on loans and credit reports, data can determine good or bad credits by creating a model for historical customers. It also helps banks detect fraudulent transactions by credit cards that protect a credit card owner.
3. Researchers
Data mining can motivate researchers to accelerate when the method analysis the data. Therefore they can work more time on other projects. Shopping behaviours can be detected. Most of the time, you may experience new problems while designing specific shopping patterns. Therefore data mining is used to solve these
problems. Mining methods can find all the information on these shopping patterns. This process also creates an area where all the unexpected shopping patterns are calculated. This data extraction can be beneficial when shopping patterns are identified.
4. Determining Customer Groups
We are using data mining to respond from marketing campaigns to customers. It also provides information during the identification of customer groups. Some surveys can be used to begin these new customer groups. And these investigations are one of the forms of data mining.
5. Increases Brand Loyalty
In marketing campaigns, mining techniques are used. This is to understand their own customers ‘ needs and habits. And from that, customers can also choose their brand’s clothes. Thus, you can definitely be self-reliant with the help of this technique. However, it provides possible information when it comes to decisions.
6. Helps in Decision Making
People use these data mining techniques to help them make some decisions in marketing or business. Today, with the use of this technology, all information can be determined. Also, using such technology, one can decide precisely what is unknown and
unexpected.
7. Increase Company Revenue
Data mining is a process in which some kind of technology is involved. One must collect information on goods sold online; this eventually reduces product costs and services, which is one of data mining benefits.
8. To Predict Future Trends
All information factors are part of the working nature of the system. The data mining systems can also be obtained from these. They can help you predict future trends, and with the help of this technology, this is entirely possible. And people also adopt
behavioural changes.
9. Increases Website Optimization
We use data mining to find all kinds of unseen element information. And adding data mining helps you to optimize your website. Similarly, this data mining provides information that may use the technology of data mining.
3.HOW DATA MINING OPERATES
Data mining works by exploring and analyzing large volumes of data to derive meaningful trends, relationships and patterns. Data mining
software solutions are versatile tools that can be used for different objectives and functions like fraud detection, customer sentiment analysis
and credit risk management.
Although data mining can be used in various

ways, the process includes a few common
steps. The first step is to gather and load the
data. This step is followed by preparing the
data through methods such as data cleansing
or data transformation.
Once the data is prepared, it is ready to be
mined. Computer applications with data
mining algorithms are most frequently used to
perform data mining. From there, data mining
results are often translated into visual or
statistical representations for further analysis.
4.DIFFERENT TYPES OF DATA MINING
There are several types of data mining techniques that businesses can apply to their big data. The right data mining technique to use depends on
several factors, including the type of data and the objective of the data mining project. Here are some of the most common types of data mining:
Affinity grouping
Data elements that share the same characteristics are grouped. For example,
customers that have the same buyer intent, interests or goals can be grouped.
This type of data mining is also known as clustering.
Regression
Predicting data values based on a set of variables. This type of data mining is
often used to find relationships between data sets.
Neural networks
Computing systems that are inspired by biological neural networks, such as the
human brain. The algorithms in neural networks are useful for recognizing
complex patterns in data.
Association rule
Association rules are established to determine the relationship between data
elements. This includes determining co-occurrences and patterns in data.
5.DATA MINING EXAMPLES
Telecommunications and media
Several industries use data mining, including the telecom and media industries, where it is often used to analyze consumer data. These companies use data mining to map customer behavior and run highly targeted marketing campaigns.
Insurance
Similarly, data mining is commonly used in the insurance industry, where it helps companies solve complex problems related to compliance, customer attrition and risk management. Health insurance companies use data mining to map the patient’s medical history, examination results and treatment patterns.
This helps them develop and execute an efficient health resource management strategy.
Manufacturing
Data mining is also used in the manufacturing industry to align supply chains with sales forecasts and for early detection of future problems. Through data mining, manufacturers are able to anticipate maintenance and predict the depreciation of production assets.
Banking
Finally, the banking industry uses data mining algorithms to detect fraud and other anomalies in their data. Data mining helps banks and other financial institutions achieve optimum ROI on marketing investments, meet compliance requirements and have a better view of market risks.

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TECHNICAL REPORT WRITING:DATA MINING

PRESENTED BY SIDDHARTH KUMAR

Although data mining can be used in various

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