Steps to Create and Develop Your Own Neural Network

Ever wondered how technology nowadays can learn to recognize patterns, make decisions, and even understand human language? One powerful tool that makes it all possible is neural networks. At its core, neural networks are inspired by the way a human brain processes information. 

So, how to develop a neural network? By developing a neural network you can set your company up for success, but how does it help? Neural networks help by powering some of the most cutting-edge technologies today, such as image recognition, language translation, and personalized recommendations.

If you’re looking for ways to develop a neural network, we’ll walk you through the key steps–from preparing data to building and training your model. Before you learn how to build a neural network, you must understand what they are and why they’re important.

What are Neural Networks and Their Importance?

Neural networks are computational models inspired by the human brain. They’re designed to recognize patterns and solve complex problems. They are widely used in various fields, including image and speech recognition, natural language processing, and predictive analytics. 

Importance of Neural Networks

  • Pattern Recognition: Neural networks can identify complex patterns in large datasets, which makes them invaluable in fields like image and speech recognition. 
  • Automation: They can automate tasks that normally require human intervention, improving efficiency and reducing errors.
  • Data-Driven Decisions: By analyzing vast amounts of data, neural networks help organizations make informed decisions based on insights gathered from their datasets.
  • Adaptability: These models can learn and adapt over time and improve performance as they are exposed to more data.
  • Real-Time Processing: Neural networks can process information in real time. This enables immediate responses in applications such as autonomous vehicles and fraud detection.

With an understanding of neural networks, you must be looking for ways to develop a neural network. In the next section, we’ll walk you through the key steps. 

Step-by-Step Process for Neural Network Development

As you embark on your journey to create and develop your own neural network, it’s essential to follow a structured approach that guides you through each phase of the process. Here are the steps that can help you build a robust neural network:

Step 1: Define the Problem and Collect Data

Neural networks are powerful tools. They work best when they have a clear focus. Do you want to predict future sales, classify customer feedback, or maybe identify patterns in user behavior? Whatever your goal, defining the problem is the first critical step.

  1. Identify the Problem

Consider an example where you want to develop a neural network to predict customer churn (customers who are more likely to stop using your product). You can begin the process by asking questions like, “What data do I have?” and “What outcome am I trying to predict?” 

For this example, the goal is a simple yes/no answer: Will this customer churn or not? With a clearly defined problem, it becomes easier to build a solution. 

Codewave’s experts can assist you in accurately defining and solving complex problems with our design-thinking approach. We will ensure that every step, from gathering and preprocessing data to designing the architecture of your neural network, aligns with your specific goals.

  1. Gather and Preprocess the Dataset

Data fuels the neural networks. For the above example of a customer churn problem, you should collect customer data, like their age, product usage, and engagement levels. This data is the input for your neural networks. However, this data is raw.

Raw data isn’t ready to be fed into a neural network. You’ll need to clean and preprocess it. This includes things like: 

  • Handling Missing Values: You can find missing information in datasets. For instance, if a customer’s age is not recorded, it can lead to incomplete data. You can handle it by either removing those records or filling them in with estimates, like the average age of the remaining customers.
  • Normalizing Data: Neural networks work best when input features are on a similar scale. In a dataset with age (18 to 80) and engagement scores (0 to 1), the model could prioritize age as its larger range. Normalizing works by scaling the data so that all features fall within a similar range (typically 0 to 1 or -1 to 1).
  • Converting Categorical Data: Many datasets include non-numerical or categorical variables, like gender or country. As neural networks need numerical input, you can use the one-hot encoding approach to transform each category into a binary vector. For example, gender could be converted to two binary columns:
    • One for male (1 if male, 0 if not)
    • One for female (1 if female, 0 if not) 

However, manual data collection and preprocessing can be time-consuming and prone to errors. With Codewave’s Process Automation services, you can automate data extraction, cleaning, and transformation—saving valuable time while ensuring high-quality datasets for your neural network.

  1. Understand the Dataset

You should know what kind of data you’re feeding into the neural network. Your dataset will have features and labels. Features are the input variables (such as customer age, and spending habits), while labels are the output (such as a customer churned or not for the above example).

You also need to look at the data distribution. Is your data balanced? For example, if you’re working with customer churn data, and 95% of your customers don’t churn, while only 5% do, your model might become biased towards predicting “no churn” because it’s the majority case. Techniques like resampling or data augmentation can address this problem.

After gathering the dataset, next comes preparing the data for training your neural network. But, how to develop a neural network using data preparation?

Step 2: Prepare Data for Training

Well-prepared data leads to more accurate predictions and better overall results. Here’s how you can adequately prepare the data for training.

Split the Data

You need to divide your dataset into three distinct parts: training, validation, and test sets, which help you get the most out of your neural network. 

  • The training set is like the learning phase for your model. It’s where the neural network tries to understand patterns in the data. 
  • The validation set helps you evaluate how well your model is learning. 
  • At last, the test set is used only after the model is fully trained. It helps you see how well your model performs on completely unseen data.

A typical split might include 70% of your data for training, 15% for validation, and 15% for testing.

Normalize and Scale

Neural networks work best when the data is within a consistent range. Normalizing and scaling the features can help. 

  • By normalizing, you bring all your features into the same range—typically between 0 and 1. 
  • Let’s say your data includes age, income, and years of experience, these numbers might vary widely. Scaling is important as the neural network might give too much importance to larger numbers (like income) over smaller ones (like age).

Data Augmentation

You might encounter missing values, outliers, or other inconsistencies in real-world data. 

  • Handle Missing Data: To maintain the integrity of your model, you must learn how to handle missing data. You can do this by either removing rows with missing values or, in some cases, filling them in with averages or estimates.
  • Data Augmentation: It can artificially increase the size of your dataset which is useful when you have a small dataset. Let’s take an example of image recognition tasks where data augmentation could involve flipping, rotating, or slightly altering images to create more examples that the neural network could learn from.

But, how to develop a neural network, once your data is prepped? The next step is to design the architecture of your neural network. 

Step 3: Design Neural Network Architecture

The architecture is essentially the blueprint of your model. It outlines the number of layers, how many neurons are in each layer, and how they all connect. Let’s break this step down:

Select the Number of Layers and Neurons

Each layer of the neural network processes information and passes it to the next one, so the more layers you have, the deeper your network becomes. Hence, it’s often referred to as deep neural networks. 

However, having too many layers can lead to overfitting. It’s a condition where your model works well on training data but struggles with new information. For example, let’s assume you’re building a simple feedforward network for image classification.

  • You might start with just three layers: an input layer, one hidden layer, and an output layer.
  • Each layer contains a certain number of neurons, which represent how much data each layer processes.
  • The number of neurons in your input layer should match the number of features in your data (e.g., pixels in an image). 
  • For hidden layers, start simple and scale up as needed. 
  • The output layer depends on your task—binary problems require one output neuron, while multi-class tasks might need several.

Choose Activation Functions for Each Layer

Activation functions are like the gears that drive each layer. They determine whether a neuron should fire or stay inactive. Activation functions introduce non-linearity to the model so it can learn more complex patterns.

Popular activation functions include:

  • ReLU (Rectified Linear Unit): The most widely used for hidden layers because it’s simple and effective.
  • Sigmoid: Often used in the output layer for binary classification tasks.
  • Softmax: Ideal for multi-class classification problems, as it converts outputs into probabilities.

The right activation function can make a huge difference. For example, ReLU is a solid default choice for hidden layers due to its efficiency, while Sigmoid and Softmax are best for the final layer depending on your output needs.

Decide on Network Architecture

It’s important to decide on the right architecture:

  • Feedforward Networks: These are the most basic type of neural network, where data moves straight from input to output. These work well for straightforward tasks like classification and regression.
  • Convolutional Neural Networks (CNNs): CNNs are specialized for image-related tasks. They use filters to scan images and identify patterns like edges or textures, making them ideal for image recognition.
  • Recurrent Neural Networks (RNNs): RNNs are great for sequential data, such as time series or natural language. They have loops in their architecture, allowing them to remember previous inputs and make better predictions based on history.

Deciding on the right architecture is essential. If you’re struggling to align your data with the right AI solution, Codewave’s offers AI prototype development to help you design proof-of-concept models tailored to your unique business challenges. Explore how we fast-track AI experimentation to validate ideas early.

Now that you’ve designed the architecture of your neural network, it’s time to initialize the parameters, mainly the starting point for the network to learn from data. Let’s see how to develop a neural network by initializing parameters.

Step 4: Initialize Parameters

How you initialize these parameters can have a huge impact on how well your neural network performs during training.

Initialize Weights with Small Random Values

Weights are the connections between neurons. Their values determine how much influence one neuron has on another. These weights should be set to small random values. 

Why random? If you set all weights to the same value, the neurons will learn the same patterns. It can make it impossible for the network to learn anything meaningful. By starting with random weights, you give the network a chance to explore different patterns in the data.

Set Biases to Zero or Small Values

Along with weights, neural networks also have biases. These are additional parameters that allow the model to shift the output of the activation function. They’re useful as they give the network flexibility and help improve its accuracy.

Unlike weights, it’s often okay to set biases to zero or small values at the beginning. The model will adjust them as it learns. 

Ensure Reproducibility

When you initialize weights and biases randomly, you might wonder: how can I ensure consistent results if I run the model again? Setting a random seed can help in such cases. A random seed ensures that the random values you generate can be replicated.

Setting a random seed is important when you’re testing and debugging your neural network. It allows you to reproduce the same results consistently. This makes it easier to compare different models and experiments, mainly when tuning hyperparameters or testing different architectures.

With your neural network architecture set and parameters initialized, it’s time to bring it to life through forward propagation. Let’s see how to develop a neural network using forward propagation.

Step 5: Implement Forward Propagation

This step is where the neural network processes the input data and begins to make predictions.

Calculate Linear Combinations

For each layer in your network, you’ll take the input features, multiply them by the corresponding weights, and add the biases. For example, if you’re predicting customer churn, the input features could be things like “years with the company” or “monthly spend.” 

These features are multiplied by the weights (which you initialized earlier). Then they are combined with biases to give you the weighted sum for each neuron in the first layer.

The formula looks something like this:

z = W * x + b

Here, z is the linear combination, W represents the weights, x is the input, and b is the bias. This equation helps the network process information as it passes through each layer.

Apply Activation Functions

The activation function helps decide whether a neuron should “fire” (send a signal) or not. It’s like the brain’s way of determining what information to pass along. Popular activation functions include ReLU (Rectified Linear Unit).

After applying an activation function, the output of each layer is transformed into something meaningful for the next layer to process. Without activation functions, your neural network would just be a stack of linear equations.

Store Intermediate Values

As forward propagation proceeds from layer to layer, the network stores intermediate values. These are the values it will need later for backpropagation. It’s like a step-by-step record of what the network has learned so far. 

For example, after calculating the outputs for each layer, you’ll store both the linear combinations and the activation function results. These stored values help when the network begins the learning phase, where it adjusts weights and biases to minimize errors.

If you need expert guidance to bring your neural network ideas to life, Codewave’s GenAI Development Services help you forecast future trends. We inject GenAI into workflows so you can build neural networks that predict customer behavior, sales trends, or operational outcomes with precision.

Once your neural network has made its predictions, you need a way to measure how well it’s performing. This is the work of the cost function–a key part of the learning process. Let’s see how to develop a neural network using a cost function. 

Step 6: Define and Compute Cost Function

The cost function helps quantify the difference between the network’s predictions and the actual outcomes.

Choose an Appropriate Cost Function

The choice of the cost function depends on the type of problem you’re solving. For instance:

  • Mean Squared Error (MSE): It is typically used for regression problems, where you’re predicting continuous values like prices or temperatures. MSE calculates the average of the squared differences between predicted and actual values, penalizing larger errors more than smaller ones.
  • Cross-Entropy: It is commonly used for classification problems, especially when dealing with probabilities. If your neural network is trying to classify whether a customer will churn or not, cross-entropy measures how far off the predicted probabilities are from the true labels.

The right cost function can ensure that your neural network focuses on minimizing the types of errors most relevant to your problem.

Compute the Cost Function Value 

Let’s say your network has predicted that a certain customer has a 70% chance of churning, but the actual outcome shows that the customer didn’t churn (0% probability). The cost function will compute a value representing the error in that prediction.

For example, in cross-entropy, the cost would be higher if the prediction is way off (e.g., predicting a high chance of churn when the customer doesn’t churn) and lower if the prediction is closer to reality.

This cost value is then used to adjust the network during the learning process and help it improve over time.

Purpose of the Cost Function in Training

The cost function serves as a map for your neural network. It points out where the errors are and how big they are. During training, your goal is to minimize this cost function. You want your network to make predictions that are as close to reality as possible.

In each training cycle, the neural network computes the cost for its predictions, and based on this value, it adjusts the weights and biases (using backpropagation). The lower the cost function gets, the better your network is performing.

Now that you’ve set up the architecture and initialized the parameters, the real learning begins—training your neural network. So, how to develop a neural network by training the neural network?

Step 7: Training the Neural Network

This process involves fine-tuning the network so that it learns to make better predictions by reducing errors. Let’s dive into the key steps involved.

Implement the Backpropagation Algorithm

Backpropagation is the engine that drives learning in your neural network. After forward propagation, the network generates a prediction. Backpropagation compares this prediction to the actual result and calculates the error. 

The algorithm then works backwards through the network, layer by layer, computing the gradients (how much each weight and bias contributed to the error). These gradients tell the network how much to adjust each parameter to minimize the error. 

Update Weights and Biases 

This is done using an optimization technique called gradient descent. In simple terms, gradient descent adjusts the parameters (weights and biases) in the direction that reduces the error.

Imagine you’re trying to find the lowest point in a valley (the lowest error) and each step you take is an update to the weights and biases. Gradient descent ensures that you move downhill, gradually getting closer to the optimal solution.

Regularization Techniques

As your network learns, there’s a risk that it might become too good at fitting the training data. This problem is known as overfitting. This means the network performs well on the training set but struggles with new, unseen data.

To prevent overfitting, you can use regularization techniques like L2 regularization (which adds a penalty for large weights) or dropout (where a portion of neurons is randomly ignored during training to make the network more robust). 

Monitor Training Progress and Adjust Hyperparameters

You need to closely monitor the training progress by tracking metrics like the cost function and accuracy. Plotting these metrics over time helps you identify if your model is overfitting or underfitting.

Plus, hyperparameters like the learning rate, number of layers, or batch size may need to be adjusted for optimal performance. These parameters aren’t learned by the model but are instead set manually, and tweaking them during training can significantly affect how well your neural network performs.

Now, how to develop a neural network and evaluate it. Once your neural network is trained, evaluating its performance and exploring ways to improve it is done through test sets. 

Step 8: Evaluating Your Neural Network

This is where you truly see how well your network generalizes to new data.

Test the Neural Network on the Test Set

After training your neural network on the training set and validating it with the validation set, it’s time to test it on completely unseen data—the test set. The test set represents real-world scenarios that your model hasn’t encountered before. 

Evaluate Performance

To gauge how effective your neural network is, you’ll want to look at several performance metrics:

  • Accuracy: This measures how often your neural network makes correct predictions. While it’s a good overall metric, accuracy alone doesn’t always tell the whole story, especially if your dataset is imbalanced.
  • Precision: Precision shows how many of the predicted positive outcomes were actually correct. It’s especially useful when false positives are a bigger concern (like predicting customer churn when they don’t actually churn).
  • Recall: Recall measures how many actual positives your model correctly identified. It’s critical when missing a positive prediction can be costly (like failing to identify a customer about to churn).

By reviewing these metrics, you get a well-rounded picture of your neural network’s strengths and areas for improvement.

Conclusion

How to develop a neural network? Building a neural network is a rewarding journey. By following these steps and continuously learning and experimenting, you can create powerful models that solve real-world problems.

Remember, practice makes perfect. The more you build and train neural networks, the better you’ll become at understanding and harnessing their potential. If you’re looking for expert help in taking your ideas further, Codewave is here to assist. 

With Codewave’s design-thinking approach and cutting-edge tech development services, we help SMEs build innovative, scalable solutions. Whether you need help developing a neural network or want to explore other tech-driven innovations, Codewave is your trusted partner.
Ready to take your next big step in tech development? Visit Codewave today, and let’s bring your vision to life!

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