

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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Open Institute of Technology (OPIT) masterclasses bring students face-to-face with real-world business challenges. In OPIT’s July masterclass, OPIT Professor Francesco Derchi and Ph.D. candidate Robert Mario de Stefano explained the principles of regenerative businesses and how regeneration goes hand in hand with growth.
Regenerative Business Models
Professor Derchi began by explaining what exactly is meant by regenerative business models, clearly differentiating them from sustainable or circular models.
Many companies pursue sustainable business models in which they offset their negative impact by investing elsewhere. For example, businesses that are big carbon consumers will support nature regeneration projects. Circular business models are similar but are more focused on their own product chain, aiming to minimize waste by keeping products in use as long as possible through recycling. Both models essentially aim to have a “net-zero” negative impact on the environment.
Regenerative models are different because they actively aim to have a “net-positive” impact on the environment, not just offsetting their own use but actively regenerating the planet.
Massive Transformative Purpose
While regenerative business models are often associated with philanthropic endeavors, Professor Derchi explained that they do not have to be, and that investment in regeneration can be a driver of growth.
He discussed the importance of corporate purpose in the modern business space. Having a strong and clearly stated corporate purpose is considered essential to drive business decision-making, encourage employee buy-in, and promote customer loyalty.
But today, simple corporate missions, such as “make good shoes,” don’t go far enough. People are looking for a Massive Transformational Purpose (MTP) that can take the business to the next level.
Take, for example, Ben & Jerry’s. The business’s initial corporate purpose may have been to make great ice cream and serve it up in a way that people will enjoy. But the business really began to grow when they embraced an MTP. As they announced in their mission statement, “We believe that ice cream can change the world.” Their business activities also have the aim of advancing human rights and dignity, supporting social and economic justice, and protecting and restoring the Earth’s natural systems. While these aims are philanthropic, they have also helped the business grow.
RePlanet
Professor Derchi next talked about RePlanet, a business he recently worked to develop their MTP. Founded in 2015, RePlanet designs and implements customized renewable energy solutions for businesses and projects. The company already operates in the renewable energy field and ranked as the 21st fastest-growing business in Italy in 2023. So while they were already enjoying great success, Derchi worked with them to see if actively embracing a regenerative business model could unlock additional growth.
Working together, RePlanet moved towards an MTP of building a greener future based on today’s choices, ensuring a cleaner world for generations. Meeting this goal started with the energy products that RePlanet sells, such as energy systems that recover heat from dairy farms. But as the business’s MTP, it goes beyond that. RePlanet doesn’t just engage suppliers; it chooses partners that share its specific values. It also influences the projects they choose to work on – they prioritize high-impact social projects, such as recently installing photovoltaic energy systems at a local hospital in Nigeria – and how RePlanet treats its talent, acknowledging that people are the true energy of the company.
Regenerative Business Strategies
Based on work with RePlanet and other businesses, Derchi has identified six archetypal regenerative business strategies for businesses that want to have both a regenerative impact and drive growth:
- Regenerative Leadership – Laying the foundation for regeneration in a broader sense throughout the company
- Nature Regeneration – Strategies to improve the health of the natural world
- Social Regeneration – Regenerating human ecosystems through things such as fair-trade practices
- Responsible Sourcing – Empowering and strengthening suppliers and their communities
- Health & Well-being – Creating products and services that have a positive effect on customers
- Employee Focus – Improve work conditions, lives, and well-being of employees.
Case Studies
Building on the concept of regenerative business models, Roberto Mario de Stefano shared other case studies of businesses that are having a positive impact and enjoying growth thanks to regenerative business models and strategies.
Biorfarm
Biorfarm is a digital platform that supports small-scale agriculture by creating a direct link between small farmers and consumers. Cutting out the middleman in modern supply chains means that farmers earn about 50% more for their produce. They set consumers up as “digital farmers” who actively support and learn about farming activities to promote more conscious food consumption.
Their vision is to create a food economy in which those who produce food and those who consume it are connected. This moves consumers from passive cash cows for large corporations that prioritize profits over the well-being of farmers to actively supporting natural production and a more sustainable system.
Rifo Lab
Rifo Lab is a circular clothing brand with the vision of addressing the problem of overproduction in the clothing industry. Established in Prato, Italy, a traditional textile-producing area, the company produces clothes made from textile waste and biodegradable materials. There are no physical stores, and all orders must be placed online; everything is made to order, reducing excess production.
With an eye on social regeneration, all production takes place within 30 kilometers of their offices, allowing the business to support ethical and local production. They also work with companies that actively integrate migrants into the local community, sharing their local artisan crafts with future generations.
Ogyre
Ogyre is a digital platform that allows you to pay fishermen to fish for waste. When fishermen are out conducting their livelihood, they also collect a significant amount of waste from the ocean, especially plastic waste. Ogyre arranges for fishermen to get paid for collecting that waste, which in turn supports the local fishing communities, and then transforms the waste collected into new sustainable products.
Moving Towards a Regenerative Future
The masterclass concluded with a Q&A session, where it explained that working in regenerative businesses requires the same skills as any other business. But it also requires you to embrace a mindset where value comes from giving and that growth is about working together for a better future, and not just competition.

Riccardo Ocleppo’s vision for the Open Institute of Technology (OPIT) started when he realized that his own university-level training had not properly prepared him for the modern workplace. Technological innovation is moving quickly and changing the nature of work, while university curricula evolve slowly, in part due to systems in place designed to preserve the quality of courses.
Ocleppo was determined to create a higher learning institution that filled the gap between the two realities – delivering high-quality education while preparing professionals to work in dynamic environments that keep pace with technology. Thus, OPIT opened enrolments in 2023 with a curriculum that created a unique bridge between the present and the future.
This is the story of one student, Ania Jaca, whose time at OPIT gave her the skills to connect her knowledge of product design to full system deployment.
Meet Ania
Ania is an example of an active professional who was able to identify what was missing in her own skills that would be needed if she wanted to advance her career in the direction she desired.
Ania is a highly skilled professional who was working on product and industrial design at Deloitte. She has an MA in product design, speaks five languages, studied in China, and is an avid boxer. She had the intelligence and the temperament to succeed in her career, but felt that she lacked the skills to advance and move from determining how products look to how systems really work, scale, and evolve.
Ania taught herself skills such as Python, artificial intelligence (AI), and cloud infrastructure, but soon realized that she needed a more structured education to go deeper. Thus, the search for her next steps began, and her introduction to OPIT.
OPIT appealed to Ania because it offered a fully EU-accredited MSc that she could pursue at her own pace, thanks to remote delivery and flexible hours. But more than that, it filled exactly the knowledge gap she was looking to build upon, teaching her technical foundations, but always with a focus on applications in the real world. Part of the appeal was the faculty, which includes professionals who are leaders in their field and who deal with current professional challenges on a daily basis, which they can bring into the classroom.
Ania enrolled in OPIT’s MSc in Applied Data Science & AI.
MSc in Applied Data Science and AI
This is OPIT’s first master’s program, which also launched in 2023, and is now one of four on offer. The course is designed for graduates like Ania who want a career at the intersection of management and technology. It is attractive to professionals who are already working in this area but lack the technical training to step into certain roles. OPIT requires no computer science prerequisites, so it accepted Ania with her MA in product design.
It is an intensive program that starts with foundational application courses in business, data science, machine learning, artificial intelligence, and problem-solving. The program then moves towards applying data science and AI methodologies and tools to real-life business problems.
The course combines theoretical study with a capstone project that lets students apply what they learn in the real world, either at their existing company or through internship programs. Many of the projects developed by students go on to become fundamental to the businesses they work with.
Ania’s Path Forward
Ania is working on her capstone project with Neperia Group, an Italian-based IT systems development company that works mostly with financial, insurance, and industrial companies. They specialize in developing analysis tools for existing software to enhance insight, streamline management, minimize the impact of corrective and evolutionary interventions, and boost performance.
Ania is specifically working on tools for assessing vulnerabilities in codebases as an advanced cybersecurity tool.
Ania credits her studies at OPIT for helping her build solid foundations in data science, machine learning, and cloud workflows, giving her a thorough understanding of digital products from end to end. She feels this has prepared her for roles at the intersection between infrastructure, security, and deployment, which is exactly where she wants to be. OPIT is excited to see where Ania’s career takes her in the coming years.
Preparing for the Future of Work
Overall, studying at OPIT has helped Ania and others like her prepare for the future of work. According to the Visual Capitalist, the fastest-growing jobs between 2025 and 2030 will be in big data (up by 110%), Fintech engineers (up by 95%), AI and machine learning specialists (up by 85%), software application developers (up by 60%), and security management specialists (up by 55%).
However, while these industries are growing, entry-level opportunities are declining in areas such as software development and IT. This is because AI now performs many of the tasks associated with those roles. Instead, companies are looking for experienced professionals to take on roles that involve more strategic oversight and innovative problem-solving. But how do recent graduates leapfrog past experienced professionals when there is a lack of entry-level positions to make the transition?
This is another challenge that OPIT addresses in its course design. Students don’t just learn the theory, OPIT actively encourages them to focus on applications, allowing them to build experience while studying. The capstone project consolidates this, enabling students to demonstrate to future employers their expertise at deploying technology to solve problems.
OPIT also has a dynamic Career Services department that specifically works with students to prepare them for the types of roles they want. This focus on not only learning but building a career is one of the elements that makes OPIT stand out in preparing graduates for the workplace.
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