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Lesson 3 Data Mining activity

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Lesson 3 Data Mining activity

Uploaded by

Alona Magante
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Examples Of Data Mining In Real Life

The importance of data mining and analysis is growing day by day in our real
life. Today most organizations use data mining for analysis of Big Data.

Let us see how these technologies benefit us.


#1) Mobile Service Providers
Mobile service providers use data mining to design their marketing
campaigns and to retain customers from moving to other vendors.

From a large amount of data such as billing information, email, text


messages, web data transmissions, and customer service, the data mining
tools can predict “churn” that tells the customers who are looking to change
the vendors.

With these results, a probability score is given. The mobile service providers
are then able to provide incentives, offers to customers who are at higher
risk of churning. This kind of mining is often used by major service providers
such as broadband, phone, gas providers, etc.

#2) Retail Sector


Data Mining helps the supermarket and retail sector owners to know the
choices of the customers. Looking at the purchase history of the customers,
the data mining tools show the buying preferences of the customers.
With the help of these results, the supermarkets design the placements of
products on shelves and bring out offers on items such as coupons on
matching products, and special discounts on some products.

These campaigns are based on RFM grouping. RFM stands for recency,
frequency, and monetary grouping. The promotions and marketing
campaigns are customized for these segments. The customer who spends a
lot but very less frequently will be treated differently from the customer who
buys every 2-3 days but of less amount.

Data Mining can be used for product recommendation and cross-referencing


of items.

Data Mining In Retail Sector From Different Data Sources.

#3) Artificial Intelligence


A system is made artificially intelligent by feeding it with relevant patterns.
These patterns come from data mining outputs. The outputs of the artificially
intelligent systems are also analyzed for their relevance using the data
mining techniques.
The recommender systems use data mining techniques to make
personalized recommendations when the customer is interacting with the
machines. The artificial intelligence is used on mined data such as giving
product recommendations based on the past purchasing history of the
customer in Amazon.

#4) Ecommerce
Many E-commerce sites use data mining to offer cross-selling and upselling
of their products. The shopping sites such as Amazon, Flipkart show “People
also viewed”, “Frequently bought together” to the customers who are
interacting with the site.

These recommendations are provided using data mining over the purchasing
history of the customers of the website.

#5) Science And Engineering


With the advent of data mining, scientific applications are now moving from
statistical techniques to using “collect and store data” techniques, and then
perform mining on new data, output new results and experiment with the
process. A large amount of data is collected from scientific domains such as
astronomy, geology, satellite sensors, global positioning system, etc.

Data mining in computer science helps to monitor system status, improve its
performance, find out software bugs, discover plagiarism and find out faults.
Data mining also helps in analyzing the user feedback regarding products,
articles to deduce opinions and sentiments of the views.

#6) Crime Prevention


Data Mining detects outliers across a vast amount of data. The criminal data
includes all details of the crime that has happened. Data Mining will study
the patterns and trends and predict future events with better accuracy.

The agencies can find out which area is more prone to crime, how much
police personnel should be deployed, which age group should be targeted,
vehicle numbers to be scrutinized, etc.

#7) Research
Researchers use Data Mining tools to explore the associations between the
parameters under research such as environmental conditions like air
pollution and the spread of diseases like asthma among people in targeted
regions.

#8) Farming
Farmers use Data Mining to find out the yield of vegetables with the amount
of water required by the plants.

#9) Automation
By using data mining, the computer systems learn to recognize patterns
among the parameters which are under comparison. The system will store
the patterns that will be useful in the future to achieve business goals. This
learning is automation as it helps in meeting the targets through machine
learning.

#10) Dynamic Pricing


Data mining helps the service providers such as cab services to dynamically
charge the customers based on the demand and supply. It is one of the key
factors for the success of companies.

#11) Transportation
Data Mining helps in scheduling the moving of vehicles from warehouses to
outlets and analyze the product loading patterns.

#12) Insurance
Data mining methods help in forecasting the customers who buy the policies,
analyze the medical claims that are used together, find out fraudulent
behaviors and risky customers.

Data Mining Examples In Finance


[image source]
The finance sector includes banks, insurance companies, and investment
companies. These institutions collect a huge amount of data. The data is
often complete, reliable and of high quality and demands a systematic data
analysis.

To store financial data, data warehouses that store data in the form of data
cubes are constructed. To analyze this data, advanced data cube concepts
are used. Data mining methods such as clustering and outlier analysis,
characterization are used in financial data analysis and mining.

Some examples of data mining in marketing are:


#1) Forecasting Market
To predict the market, the marketing professionals will use Data Mining
techniques like regression to study customer behavior, changes, and habits,
customer response and other factors like marketing budget, other incurring
costs, etc. In the future, it will be easier for professionals to predict the
customers in case of any factor changes.

#2) Anomaly Detection


Data mining techniques are deployed to detect any abnormalities in data
that may cause any kind of flaw in the system. The system will scan
thousands of complex entries to perform this operation.
#3) System Security
Data Mining tools detect intrusions that may harm the database offering
greater security to the entire system. These intrusions may be in the form of
duplicate entries, viruses in the form of data by hackers, etc.

Examples Of Data Mining Applications In


Healthcare

[image source]
In healthcare, data mining is becoming increasingly popular and essential.

Data generated by healthcare is complex and voluminous. To avoid medical


fraud and abuse, data mining tools are used to detect fraudulent items and
thereby prevent loss.

Some data mining examples of the healthcare industry are given


below for your reference.
#1) Healthcare Management
The data mining method is used to identify chronic diseases, track high-risk
regions prone to the spread of disease, design programs to reduce the
spread of disease. Healthcare professionals will analyze the diseases, regions
of patients with maximum admissions to the hospital.
With this data, they will design the campaigns for the region to make people
aware of the disease and see how to avoid it. This will reduce the number of
patients admitted to hospitals.

#2) Effective Treatments


Using data mining, the treatments can be improved. By continuous
comparison of symptoms, causes, and medicines, data analysis can be
performed to make effective treatments. Data mining is also used for the
treatment of specific diseases, and the association of side-effects of
treatments.

#3) Fraudulent And Abusive Data


Data mining applications are used to find abnormal patterns such as
laboratory, physician’s results, inappropriate prescriptions, and fraudulent
medical claims.

Source:
https://www.softwaretestinghelp.com/data-mining-examples/#1_Mobile_Servi
ce_Providers

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