How do machine learning professionals make data readable and accessible? What techniques do they use to dissect raw information?

One of these techniques is clustering. Data clustering is the process of grouping items in a data set together. These items are related, allowing key stakeholders to make critical strategic decisions using the insights.

After preparing data, which is what specialists do 50%-80% of the time, clustering takes center stage. It forms structures other members of the company can understand more easily, even if they lack advanced technical knowledge.

Clustering in machine learning involves many techniques to help accomplish this goal. Here is a detailed overview of those techniques.

Clustering Techniques

Data science is an ever-changing field with lots of variables and fluctuations. However, one thing’s for sure – whether you want to practice clustering in data mining or clustering in machine learning, you can use a wide array of tools to automate your efforts.

Partitioning Methods

The first groups of techniques are the so-called partitioning methods. There are three main sub-types of this model.

K-Means Clustering

K-means clustering is an effective yet straightforward clustering system. To execute this technique, you need to assign clusters in your data sets. From there, define your number K, which tells the program how many centroids (“coordinates” representing the center of your clusters) you need. The machine then recognizes your K and categorizes data points to nearby clusters.

You can look at K-means clustering like finding the center of a triangle. Zeroing in on the center lets you divide the triangle into several areas, allowing you to make additional calculations.

And the name K-means clustering is pretty self-explanatory. It refers to finding the median value of your clusters – centroids.

K-Medoids Clustering

K-means clustering is useful but is prone to so-called “outlier data.” This information is different from other data points and can merge with others. Data miners need a reliable way to deal with this issue.

Enter K-medoids clustering.

It’s similar to K-means clustering, but just like planes overcome gravity, so does K-medoids clustering overcome outliers. It utilizes “medoids” as the reference points – which contain maximum similarities with other data points in your cluster. As a result, no outliers interfere with relevant data points, making this one of the most dependable clustering techniques in data mining.

Fuzzy C-Means Clustering

Fuzzy C-means clustering is all about calculating the distance from the median point to individual data points. If a data point is near the cluster centroid, it’s relevant to the goal you want to accomplish with your data mining. The farther you go from this point, the farther you move the goalpost and decrease relevance.

Hierarchical Methods

Some forms of clustering in machine learning are like textbooks – similar topics are grouped in a chapter and are different from topics in other chapters. That’s precisely what hierarchical clustering aims to accomplish. You can the following methods to create data hierarchies.

Agglomerative Clustering

Agglomerative clustering is one of the simplest forms of hierarchical clustering. It divides your data set into several clusters, making sure data points are similar to other points in the same cluster. By grouping them, you can see the differences between individual clusters.

Before the execution, each data point is a full-fledged cluster. The technique helps you form more clusters, making this a bottom-up strategy.

Divisive Clustering

Divisive clustering lies on the other end of the hierarchical spectrum. Here, you start with just one cluster and create more as you move through your data set. This top-down approach produces as many clusters as necessary until you achieve the requested number of partitions.

Density-Based Methods

Birds of a feather flock together. That’s the basic premise of density-based methods. Data points that are close to each other form high-density clusters, indicating their cohesiveness. The two primary density-based methods of clustering in data mining are DBSCAN and OPTICS.

DBSCAN (Density-Based Spatial Clustering of Applications With Noise)

Related data groups are close to each other, forming high-density areas in your data sets. The DBSCAN method picks up on these areas and groups information accordingly.

OPTICS (Ordering Points to Identify the Clustering Structure)

The OPTICS technique is like DBSCAN, grouping data points according to their density. The only major difference is that OPTICS can identify varying densities in larger groups.

Grid-Based Methods

You can see grids on practically every corner. They can easily be found in your house or your car. They’re also prevalent in clustering.

STING (Statistical Information Grid)

The STING grid method divides a data point into rectangular grills. Afterward, you determine certain parameters for your cells to categorize information.

CLIQUE (Clustering in QUEst)

Agglomerative clustering isn’t the only bottom-up clustering method on our list. There’s also the CLIQUE technique. It detects clusters in your environment and combines them according to your parameters.

Model-Based Methods

Different clustering techniques have different assumptions. The assumption of model-based methods is that a model generates specific data points. Several such models are used here.

Gaussian Mixture Models (GMM)

The aim of Gaussian mixture models is to identify so-called Gaussian distributions. Each distribution is a cluster, and any information within a distribution is related.

Hidden Markov Models (HMM)

Most people use HMM to determine the probability of certain outcomes. Once they calculate the probability, they can figure out the distance between individual data points for clustering purposes.

Spectral Clustering

If you often deal with information organized in graphs, spectral clustering can be your best friend. It finds related groups of notes according to linked edges.

Comparison of Clustering Techniques

It’s hard to say that one algorithm is superior to another because each has a specific purpose. Nevertheless, some clustering techniques might be especially useful in particular contexts:

  • OPTICS beats DBSCAN when clustering data points with different densities.
  • K-means outperforms divisive clustering when you wish to reduce the distance between a data point and a cluster.
  • Spectral clustering is easier to implement than the STING and CLIQUE methods.

Cluster Analysis

You can’t put your feet up after clustering information. The next step is to analyze the groups to extract meaningful information.

Importance of Cluster Analysis in Data Mining

The importance of clustering in data mining can be compared to the importance of sunlight in tree growth. You can’t get valuable insights without analyzing your clusters. In turn, stakeholders wouldn’t be able to make critical decisions about improving their marketing efforts, target audience, and other key aspects.

Steps in Cluster Analysis

Just like the production of cars consists of many steps (e.g., assembling the engine, making the chassis, painting, etc.), cluster analysis is a multi-stage process:

Data Preprocessing

Noise and other issues plague raw information. Data preprocessing solves this issue by making data more understandable.

Feature Selection

You zero in on specific features of a cluster to identify those clusters more easily. Plus, feature selection allows you to store information in a smaller space.

Clustering Algorithm Selection

Choosing the right clustering algorithm is critical. You need to ensure your algorithm is compatible with the end result you wish to achieve. The best way to do so is to determine how you want to establish the relatedness of the information (e.g., determining median distances or densities).

Cluster Validation

In addition to making your data points easily digestible, you also need to verify whether your clustering process is legit. That’s where cluster validation comes in.

Cluster Validation Techniques

There are three main cluster validation techniques when performing clustering in machine learning:

Internal Validation

Internal validation evaluates your clustering based on internal information.

External Validation

External validation assesses a clustering process by referencing external data.

Relative Validation

You can vary your number of clusters or other parameters to evaluate your clustering. This procedure is known as relative validation.

Applications of Clustering in Data Mining

Clustering may sound a bit abstract, but it has numerous applications in data mining.

  • Customer Segmentation – This is the most obvious application of clustering. You can group customers according to different factors, like age and interests, for better targeting.
  • Anomaly Detection – Detecting anomalies or outliers is essential for many industries, such as healthcare.
  • Image Segmentation – You use data clustering if you want to recognize a certain object in an image.
  • Document Clustering – Organizing documents is effortless with document clustering.
  • Bioinformatics and Gene Expression Analysis – Grouping related genes together is relatively simple with data clustering.

Challenges and Future Directions

  • Scalability – One of the biggest challenges of data clustering is expected to be applying the process to larger datasets. Addressing this problem is essential in a world with ever-increasing amounts of information.
  • Handling High-Dimensional Data – Future systems may be able to cluster data with thousands of dimensions.
  • Dealing with Noise and Outliers – Specialists hope to enhance the ability of their clustering systems to reduce noise and lessen the influence of outliers.
  • Dynamic Data and Evolving Clusters – Updates can change entire clusters. Professionals will need to adapt to this environment to retain efficiency.

Elevate Your Data Mining Knowledge

There are a vast number of techniques for clustering in machine learning. From centroid-based solutions to density-focused approaches, you can take many directions when grouping data.

Mastering them is essential for any data miner, as they provide insights into crucial information. On top of that, the data science industry is expected to hit nearly $26 billion by 2026, which is why clustering will become even more prevalent.

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Agenda Digitale: Regenerative Business – The Future of Business Is Net-Positive
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Dec 8, 2025 5 min read

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The net-positive model transcends traditional sustainability by aiming to generate more value than is consumed. Blockchain, AI, and IoT enable scalable circular models. Case studies demonstrate how profitability and positive impact combine to regenerate business and the environment.

By Francesco Derchi, Professor and Area Chair in Digital Business @ OPIT – Open Institute of Technology

In recent years, the word ” sustainability ” has become a firm fixture in the corporate lexicon. However, simply “doing no harm” is no longer enough: the climate crisis , social inequalities , and the erosion of natural resources require a change of pace. This is where the net-positive paradigm comes in , a model that isn’t content to simply reduce negative impacts, but aims to generate more social and environmental value than is consumed.

This isn’t about philanthropy, nor is it about reputational makeovers: net-positive is a strategic approach that intertwines economics, technology, and corporate culture. Within this framework, digitalization becomes an essential lever, capable of enabling regenerative models through circular platforms and exponential technologies.

Blockchain, AI, and IoT: The Technological Triad of Regeneration

Blockchain, Artificial Intelligence, and the Internet of Things represent the technological triad that makes this paradigm shift possible. Each addresses a critical point in regeneration.

Blockchain guarantees the traceability of material flows and product life cycles, allowing a regenerated dress or a bottle collected at sea to tell their story in a transparent and verifiable way.

Artificial Intelligence optimizes recovery and redistribution chains, predicting supply and demand, reducing waste and improving the efficiency of circular processes .

Finally, IoT enables real-time monitoring, from sensors installed at recycling plants to sharing mobility platforms, returning granular data for quick, informed decisions.

These integrated technologies allow us to move beyond linear vision and enable systems in which value is continuously regenerated.

New business models: from product-as-a-service to incentive tokens

Digital regeneration is n’t limited to the technological dimension; it’s redefining business models. More and more companies are adopting product-as-a-service approaches , transforming goods into services: from technical clothing rentals to pay-per-use for industrial machinery. This approach reduces resource consumption and encourages modular design, designed for reuse.

At the same time, circular marketplaces create ecosystems where materials, components, and products find new life. No longer waste, but input for other production processes. The logic of scarcity is overturned in an economy of regenerated abundance.

To complete the picture, incentive tokens — digital tools that reward virtuous behavior, from collecting plastic from the sea to reusing used clothing — activate global communities and catalyze private capital for regeneration.

Measuring Impact: Integrated Metrics for Net-Positiveness

One of the main obstacles to the widespread adoption of net-positive models is the difficulty of measuring their impact. Traditional profit-focused accounting systems are not enough. They need to be combined with integrated metrics that combine ESG and ROI, such as impact-weighted accounting or innovative indicators like lifetime carbon savings.

In this way, companies can validate the scalability of their models and attract investors who are increasingly attentive to financial returns that go hand in hand with social and environmental returns.

Case studies: RePlanet Energy, RIFO, and Ogyre

Concrete examples demonstrate how the combination of circular platforms and exponential technologies can generate real value. RePlanet Energy has defined its Massive Transformative Purpose as “Enabling Regeneration” and is now providing sustainable energy to Nigerian schools and hospitals, thanks in part to transparent blockchain-based supply chains and the active contribution of employees. RIFO, a Tuscan circular fashion brand, regenerates textile waste into new clothing, supporting local artisans and promoting workplace inclusion, with transparency in the production process as a distinctive feature and driver of loyalty. Ogyre incentivizes fishermen to collect plastic during their fishing trips; the recovered material is digitally tracked and transformed into new products, while the global community participates through tokens and environmental compensation programs.

These cases demonstrate how regeneration and profitability are not contradictory, but can actually feed off each other, strengthening the competitiveness of businesses.

From Net Zero to Net Positive: The Role of Massive Transformative Purpose

The crucial point lies in the distinction between sustainability and regeneration. The former aims for net zero, that is, reducing the impact until it is completely neutralized. The latter goes further, aiming for a net positive, capable of giving back more than it consumes.

This shift in perspective requires a strong Massive Transformative Purpose: an inspiring and shared goal that guides strategic choices, preventing technology from becoming a sterile end. Without this level of intentionality, even the most advanced tools risk turning into gadgets with no impact.

Regenerating business also means regenerating skills to train a new generation of professionals capable not only of using technologies but also of directing them towards regenerative business models. From this perspective, training becomes the first step in a transformation that is simultaneously cultural, economic, and social.

The Regenerative Future: Technology, Skills, and Shared Value

Digital regeneration is not an abstract concept, but a concrete practice already being tested by companies in Europe and around the world. It’s an opportunity for businesses to redefine their role, moving from mere economic operators to drivers of net-positive value for society and the environment.

The combination of blockchainAI, and IoT with circular product-as-a-service models, marketplaces, and incentive tokens can enable scalable and sustainable regenerative ecosystems. The future of business isn’t just measured in terms of margins, but in the ability to leave the world better than we found it.

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Raconteur: AI on your terms – meet the enterprise-ready AI operating model
OPIT - Open Institute of Technology
OPIT - Open Institute of Technology
Nov 18, 2025 5 min read

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  • Raconteur, published on November 06th, 2025

What is the AI technology operating model – and why does it matter? A well-designed AI operating model provides the structure, governance and cultural alignment needed to turn pilot projects into enterprise-wide transformation

By Duncan Jefferies

Many firms have conducted successful Artificial Intelligence (AI) pilot projects, but scaling them across departments and workflows remains a challenge. Inference costs, data silos, talent gaps and poor alignment with business strategy are just some of the issues that leave organisations trapped in pilot purgatory. This inability to scale successful experiments means AI’s potential for improving enterprise efficiency, decision-making and innovation isn’t fully realised. So what’s the solution?

Although it’s not a magic bullet, an AI operating model is really the foundation for scaling pilot projects up to enterprise-wide deployments. Essentially it’s a structured framework that defines how the organisation develops, deploys and governs AI. By bringing together infrastructure, data, people, and governance in a flexible and secure way, it ensures that AI delivers value at scale while remaining ethical and compliant.

“A successful AI proof-of-concept is like building a single race car that can go fast,” says Professor Yu Xiong, chair of business analytics at the UK-based Surrey Business School. “An efficient AI technology operations model, however, is the entire system – the processes, tools, and team structures – for continuously manufacturing, maintaining, and safely operating an entire fleet of cars.”

But while the importance of this framework is clear, how should enterprises establish and embed it?

“It begins with a clear strategy that defines objectives, desired outcomes, and measurable success criteria, such as model performance, bias detection, and regulatory compliance metrics,” says Professor Azadeh Haratiannezhadi, co-founder of generative AI company Taktify and professor of generative AI in cybersecurity at OPIT – the Open Institute of Technology.

Platforms, tools and MLOps pipelines that enable models to be deployed, monitored and scaled in a safe and efficient way are also essential in practical terms.

“Tools and infrastructure must also be selected with transparency, cost, and governance in mind,” says Efrain Ruh, continental chief technology officer for Europe at Digitate. “Crucially, organisations need to continuously monitor the evolving AI landscape and adapt their models to new capabilities and market offerings.”

An open approach

The most effective AI operating models are also founded on openness, interoperability and modularity. Open source platforms and tools provide greater control over data, deployment environments and costs, for example. These characteristics can help enterprises to avoid vendor lock-in, successfully align AI to business culture and values, and embed it safely into cross-department workflows.

“Modularity and platformisation…avoids building isolated ‘silos’ for each project,” explains professor Xiong. “Instead, it provides a shared, reusable ‘AI platform’ that integrates toolchains for data preparation, model training, deployment, monitoring, and retraining. This drastically improves efficiency and reduces the cost of redundant work.”

A strong data strategy is equally vital for ensuring high-quality performance and reducing bias. Ideally, the AI operating model should be cloud and LLM agnostic too.

“This allows organisations to coordinate and orchestrate AI agents from various sources, whether that’s internal or 3rd party,” says Babak Hodjat, global chief technology officer of AI at Cognizant. “The interoperability also means businesses can adopt an agile iterative process for AI projects that is guided by measuring efficiency, productivity, and quality gains, while guaranteeing trust and safety are built into all elements of design and implementation.”

A robust AI operating model should feature clear objectives for compliance, security and data privacy, as well as accountability structures. Richard Corbridge, chief information officer of Segro, advises organisations to: “Start small with well-scoped pilots that solve real pain points, then bake in repeatable patterns, data contracts, test harnesses, explainability checks and rollback plans, so learning can be scaled without multiplying risk. If you don’t codify how models are approved, deployed, monitored and retired, you won’t get past pilot purgatory.”

Of course, technology alone can’t drive successful AI adoption at scale: the right skills and culture are also essential for embedding AI across the enterprise.

“Multidisciplinary teams that combine technical expertise in AI, security, and governance with deep business knowledge create a foundation for sustainable adoption,” says Professor Haratiannezhadi. “Ongoing training ensures staff acquire advanced AI skills while understanding associated risks and responsibilities.”

Ultimately, an AI operating model is the playbook that enables an enterprise to use AI responsibly and effectively at scale. By drawing together governance, technological infrastructure, cultural change and open collaboration, it supports the shift from isolated experiments to the kind of sustainable AI capability that can drive competitive advantage.

In other words, it’s the foundation for turning ambition into reality, and finally escaping pilot purgatory for good.

 

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