Applications Of Data Mining

Presented by
Charu Bansal (009)
Roheen Reez Kaur Gill (029)
Pawan Bakshi (033)
 Data Mining
• Data mining is the
discovery of knowledge
in databases. It is often
done on data in data
warehouses.

• Data mining is the

process of extracting
hidden patterns from
the data.
 How does data mining work ?
•Data Mining is used to find patterns in data
and may even infer rules from them.
•Data mining uses these patterns and rules
to guide decision making process and
forecasting the effect of these decisions.
•Data mining can speed analysis by
focusing attention on most important
variables.
 Applications of Data Mining
• Banking: forecasting levels of bad loans
and fraudulent credit card usage, credit
card spending by new customers, and
which kind of customers will best respond
to new loan offers. Eg.
• Insurance: forecasting claims amounts and medical
coverage costs, classifying the most important
elements that affect medical coverage, predicting
which customers will buy new policy. Eg.

• Brokerage and Securities trading: predicting

when bond prices will change, forecasting the range
of stock fluctuation for particular issues and overall
market ; determining when to trade stocks.Eg.
Marketing:

Predicting which customers will respond to

internet banners or buy a particular product.
Data mining helps in:
• Delivering services
• Using innovation
• Using client relationship management
Sales:
Predicting sales and determining correct inventory
levels.

Airlines:
Helps to collect data of customers and then to add
routes and capture lost business.
• Healthcare:
using the demographics of patients and illness
symptoms, doctors and develop better insights.

• Government and Defense:

Helps in forecasting cost and predicting resource
consumption at a large scale in the departments
of the government.
 Text Mining
•Process of deriving high quality
information from text.
•Takes advantage of infrastructure of
stored data to extract information.

Helps organizations to:

•Find the “hidden” contents of documents,
•Relate documents across previous
unnoticed divisions;
•Group documents by common themes.
 Case Study
Data Mining at Marriott
• US largest seller of vacation time-share
packages
• Advertisement at great expense; no results
• Decided to identify the customers likely to
respond
• Neural computing data mining-Detect patterns
• Worked on records of prospect list
• Identify the most likely to respond to mailed fliers
• Data mining increased the response rate by 33%
• Also reported significant savings on mail costs
• Considered for Internet Advertisement.
Reference:
• Decision Support Systems and Intelligent
Systems
by: Efraim Turban & Jay E. Aronson
• MIS by: Lauden & Lauden
• www.wikipedia.com