Title: Decision support tools : Data warehousing, OLAP and data mining.
1Decision support tools Data warehousing, OLAP
and data mining.
2Data explosion
- Banks, companies, websites, retail stores,
scientific labs --- contain terabytes of data
and is continually growing. - Storage and processing getting cheaper
- Wealth of information hidden in the flood of data
- Conventional querying/analysis methods did not
scale - Need new ways of interaction
- Data warehousing and Data mining
3What is a Data Warehouse?
- A single, complete and consistent store of data
obtained from a variety of different sources made
available to end users in a what they can
understand and use in a business context. - Barry Devlin
4Why a Warehouse?
- Large organizations have complex internal
organizations, and have data stored at different
locations, on different operational - Data sources often store only current data, not
historical data - Corporate decision making requires a unified view
of all organizational data, including historical
data - A data warehouse
- Greatly simplifies querying, permits study of
historical trends - Shifts decision support query load away from
transaction processing systems
5Decision support tools
Mining tools
Direct Query
Reporting tools
Intelligent Miner
Essbase
Crystal reports
Merge Clean Summarize
Relational DBMS e.g. Redbrick
Data warehouse
Staging ETL layer
Detailed transactional data
Oracle
SAS
IMS
Operational data
6MTNL case study
- MTNL operates in 9 zones, each with 5-7
exchanges.
7Data Warehouse vs. Operational DBMS
- OLTP (on-line transaction processing)
- Day-to-day operations purchasing, inventory,
banking, manufacturing, payroll, registration,
accounting, etc. - Data warehouse system
- Data analysis and decision making
- Distinct features
- User and system orientation customer vs. market
- Data contents current, detailed vs. historical,
consolidated - Database design ER application vs. star
subject - View current, local vs. evolutionary, integrated
- Access patterns update vs. read-only but complex
queries
8Data warehouse construction
- Heterogeneous schema integration
- merge from various sources, fuzzy matches
- remove inconsistencies
- Data cleaning
- missing data, outliers, clean fields e.g.
names/addresses - Data loading efficient parallel loads
- Products Prism warehouse manager, Platinum info
refiner, info pump, QDB, Vality
9Warehouse maintenance
- Data refresh
- when to refresh, what form to send updates?
- Materialized view maintenance with batch updates.
- Query evaluation using materialized views
- Monitoring and reporting tools
- HP intelligent warehouse advisor
10Warehouse Schemas
- Typically warehouse data is multidimensional,
with very large fact tables - Examples of dimensions item-id, date/time of
sale, store where sale was made, customer
identifier - Examples of measures number of items sold, price
of items - Dimension values are usually encoded using small
integers and mapped to full values via dimension
tables - Resultant schema is called a star schema
- More complicated schema structures
- Snowflake schema multiple levels of dimension
tables - Constellation multiple fact tables
11OLAP
- Fast, interactive answers to large aggregate
queries. - Multidimensional model dimensions with
hierarchies - Dim 1 Bank location
- branch--gtcity--gtstate
- Dim 2 Customer
- sub profession --gt profession
- Dim 3 Time
- month --gt quarter --gt year
- Measures loan amount, transactions, balance
12Multidimensional Data
- Sales volume as a function of product, month, and
region
Dimensions Product, Location, Time Hierarchical
summarization paths
Region
Industry Region Year Category
Country Quarter Product City Month
Week Office Day
Product
Month
13A Sample Data Cube
Total annual sales of TV in India
14Typical OLAP Operations
- Roll up (drill-up) summarize data
- by climbing up hierarchy or by dimension
reduction - Drill down (roll down) reverse of roll-up
- from higher level summary to lower level summary
or detailed data, or introducing new dimensions - Slice and dice
- project and select
- Pivot (rotate)
- reorient the cube, visualization, 3D to series of
2D planes. - Other operations
- drill across involving (across) more than one
fact table - drill through through the bottom level of the
cube to its back-end relational tables (using SQL)
15OLAP products
- About 30 OLAP vendors
- Dominant ones
- Oracle Express largest market share
- Hyperion technology leader
- Microsoft Plato introduced late last year,
rapidly taking over...
16Part 2 Data mining
17Data mining
- Process of semi-automatically analyzing large
databases to find patterns that are - valid hold on new data with some certainity
- novel non-obvious to the system
- useful should be possible to act on the item
- understandable humans should be able to
interpret the pattern - Other names Knowledge discovery in databases,
Data analysis
18Relationship with other fields
- Overlaps with machine learning, statistics,
artificial intelligence, databases, visualization
but more stress on - scalability of number of features and instances
- stress on algorithms and architectures whereas
foundations of methods and formulations provided
by statistics and machine learning. - automation for handling large, heterogeneous data
19Applications
- Banking loan/credit card approval
- predict good customers based on old customers
- Customer relationship management
- identify those who are likely to leave for a
competitor. - Targeted marketing
- identify likely responders to promotions
- Fraud detection telecommunications, financial
transactions - from an online stream of event identify
fraudulent events - Manufacturing and production
- automatically adjust knobs when process parameter
changes
20Applications (continued)
- Medicine disease outcome, effectiveness of
treatments - analyze patient disease history find
relationship between diseases - Molecular/Pharmaceutical identify new drugs
- Scientific data analysis
- identify new galaxies by searching for sub
clusters - Web site/store design and promotion
- find affinity of visitor to pages and modify
layout
21Mining technology today
Preprocessing utilities
Mining operations
Data warehouse
Extract data via ODBC
Visualization Tools
- Sampling
- Attribute transformation
- Vendors
- (IDC 1999)
- SAS 29
- SPSS 13.5
- IBM 6
- Scalable algorithms
- association
- classification
- clustering
- sequence mining
22Mining operations
- Itemset mining
- Association rules
- Causality
- Clustering
- hierarchical
- EM
- density based
- Classification
- Regression
- Classification trees
- Neural networks
- Bayesian learning
- Nearest neighbour
- Radial basis functions
- Support vector machines
- Meta learning methods
- Bagging,boosting
23Classification
- Given old data about customers and payments,
predict new applicants loan eligibility.
Previous customers
Classifier
Decision rules
Age Salary Profession Location Customer type
Salary gt 5 L
Good/ bad
Prof. Exec
New applicants data
24Classification methods
- Goal Predict class Ci f(x1, x2, .. Xn)
- Regression (linear or any other polynomial)
- Decision tree classifier divide decision space
into piecewise constant regions. - Neural networks partition by non-linear
boundaries - Probabilistic/generative models
- Lazy learning methods nearest neighbor
- Support vector machines boundary to maximally
separate classes
25Decision tree classifiers
- Widely used learning method
- Easy to interpret can be re-represented as
if-then-else rules - Approximates function by piece wise constant
regions - Does not require any prior knowledge of data
distribution, works well on noisy data. - Has been applied to
- classify medical patients based on the disease,
- equipment malfunction by cause,
- loan applicant by likelihood of payment.
26Decision trees
- Tree where internal nodes are simple decision
rules on one or more attributes and leaf nodes
are predicted class labels.
Salary lt 1 M
Prof teacher
Age lt 30
27Algorithm for tree building
- Greedy top-down construction.
Gen_Tree (Node, data)
Yes
make node a leaf?
Stop
Selection criteria
Find best attribute and best split on attribute
Partition data on split condition
For each child j of node Gen_Tree (node_j,
data_j)
28Nearest neighbor
- Define proximity between instances, find
neighbors of new instance - K-NN approach assign majority class amongst k
nearest neighbour - weighted regression learn a new regression
equation by weighting each training instance
based on distance from new instance
- Cons
- Slow during application.
- No feature selection.
- Notion of proximity vague
29Neural networks
- Useful for learning complex data like
handwriting, speech and image recognition
Decision boundaries
Neural network
Classification tree
Linear regression
30Bayesian learning
- Assume a probability model on generation of data.
- Apply Bayes theorem to find most likely class as
- Naïve bayes Assume attributes conditionally
independent given class value
31Meta learning methods
- No single classifier good under all cases
- Difficult to evaluate in advance the conditions
- Meta learning combine the effects of the
classifiers - Voting sum up votes of component classifiers
- Combiners learn a new classifier on the outcomes
of previous ones - Boosting staged classifiers
- Disadvantage interpretation hard
- Knowledge probing learn single classifier to
mimick meta classifier
32What is Cluster Analysis?
- Cluster a collection of data objects
- Similar to one another within the same cluster
- Dissimilar to the objects in other clusters
- Cluster analysis
- Grouping a set of data objects into clusters
- Clustering is unsupervised classification no
predefined classes - Typical applications
- As a stand-alone tool to get insight into data
distribution - As a preprocessing step for other algorithms
33Applications
- Customer segmentation e.g. for targeted marketing
- Group/cluster existing customers based on time
series of payment history such that similar
customers in same cluster. - Identify micro-markets and develop policies
foreach - Image processing
- Text clustering e.g. scatter/gather
- Compression
34Distance functions
- Numeric data euclidean, manhattan distances
- Minkowski metric sum(xi-yi)m(1/m)
- Larger m gives higher weight to larger distances
- Categorical data 0/1 to indicate
presence/absence - Euclidean distance equal weightage to 1 and 0
match - Hamming distance ( dissimilarity)
- Jaccard coefficients similarity in 1s/( of 1s)
(0-0 matches not important - data dependent measures similarity of A and B
depends on co-occurance with C. - Combined numeric and categorical dataweighted
normalized distance
35Clustering methods
- Hierarchical clustering
- agglomerative Vs divisive
- single link Vs complete link
- Partitional clustering
- distance-based K-means
- model-based EM
- density-based
36Agglomerative Hierarchical clustering
- Given matrix of similarity between every point
pair - Start with each point in a separate cluster and
merge clusters based on some criteria - Single link merge two clusters such that the
minimum distance between two points from the two
different cluster is the least - Complete link merge two clusters such that all
points in one cluster are close to all points
in the other.
37Partitional methods K-means
- Criteria minimize sum of square of distance
- Between each point and centroid of the cluster.
- Between each pair of points in the cluster
- Algorithm
- Select initial partition with K clusters random,
first K, K separated points - Repeat until stabilization
- Assign each point to closest cluster center
- Generate new cluster centers
- Adjust clusters by merging/splitting
38Association Rule
- Given (1) database of transactions, (2) each
transaction is a list of items (purchased by a
customer in a visit) - Find all rules that correlate the presence of
one set of items with that of another set of
items - Rule form Body Head support, confidence.
- E.g., 98 of people who have an checking account
and a PPF also apply for a credit card
39Rule Measures Support and Confidence
Customer buys both
- Find all the rules X Y ? Z with minimum
confidence and support - support, s, probability that a transaction
contains X Y Z - confidence, c, conditional probability that a
transaction having X Y also contains Z
Customer buys d
Customer buys b
- Let minimum support 50, and minimum confidence
50, we have - A ? C (50, 66.6)
- C ? A (50, 100)
40Applications of fast itemset counting
- Find correlated events
- Applications in medicine find redundant tests
- Cross selling in retail, banking
- Improve predictive capability of classifiers that
assume attribute independence - New similarity measures of categorical
attributes Mannila et al, KDD 98
41Mining market
- Around 20 to 30 mining tool vendors
- Major tool players
- SASs Enterprise Miner.
- IBMs Intelligent Miner,
- SGIs MineSet,
- All pretty much the same set of tools
- Many embedded products
- fraud detection
- electronic commerce applications,
- health care,
- customer relationship management Epiphany
42Summary
- Need for new decision support tools
- Data warehousing
- Data integration, loading, cleaning
- Interactive data analysis/navigation OLAP
- Data mining definition and an overview of the
various operations - Classification regression, nearest neighbour,
neural network, bayesian - Clustering distance based (k-means),
Heirarchical - Itemset counting