The Data Mining Lifecycle: A Practical Guide

The Data Mining Pipeline

Successful analytics doesn’t start with algorithms - it starts with clarity. Use this lifecycle as a repeatable blueprint. Expect to loop back as you learn.

Data pipeline

1) Application Domain

Goal: Understand context, success criteria, and stakeholders.
Do: Define the decision to support, metrics that matter, constraints (privacy, latency), and where relevant data lives.

2) Data Selection

Goal: Pull only what’s needed for the task.
Do: Identify the target, choose candidate features, avoid data leakage, and set up time-aware train/validation/test splits.

3) Data Preprocessing (Cleaning)

Goal: Make data trustworthy. Often 60-80% of the work.
Do: Remove duplicates, handle missing values, fix inconsistent categories/units, and investigate outliers (cap, transform, or justify exclusion).

4) Data Transformation (and Reduction)

Goal: Turn raw fields into signals and manage complexity.
Do: Engineer features (lags, ratios, interactions), encode categoricals, normalise/standardise where needed, and reduce dimensionality/numerosity (PCA, aggregation, binning).

5) Data Mining

Goal: Apply suitable algorithms and tools.
Do: Start with baselines, run cross-validation, tune hyperparameters, and select models that meet business constraints (accuracy, interpretability, latency).

6) Interpretation/Evaluation

Goal: Translate results into decisions.
Do: Use task-appropriate metrics, perform error analysis across segments, calibrate thresholds, and communicate findings with clear visuals and plain language.

7) Revisit, Revise

Goal: Improve by iterating.
Do: Loop back when you find leakage, weak features, misaligned metrics, or drift. Update data, features, models, and documentation as needed.

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