Data Mining

History, e-business applications, and modern approach to data analysis

Team:Asher, EduardoGeiger, CharlesHeth, JenniferMonjazi, JonathanSanchez, Christian

Data Mining

CollectData

Extract(Clustering)

Prepare(Classification

)

Evaluate(Regression)

Implement(Association

Rule Learning)

The extraction of hidden predictive information from large databases.

Predictive Analysis

Data Mining: the Beginning.

Classical Statistics• Regression Model• Cluster Analysis• Confidence Intervals

Artificial Intelligence (AI)• Heuristic• RDBMS

Machine Learning

HUMAN-THOUGHT-

LIKE PROCESSES

DATA AND RELATIONSHI

PS

Data Mining in use.

E-business and Data Mining

Classification

Segmentation

Association

Clustering

Visualization

Optimization

B2BB2C

E-business and Data Mining

True one-to-one marketing effectiveness based on observed behavior patterns

Concentrated effort on prospects that are most likely to respond to offer

E-business and Data Mining

• Market Basket Analysiso Track Alpha Consumer

• Affinity Analysiso Cross Sellingo Up-selling

• Sales Promotions• Discount Plans

“A personalized internet experience”

Should the web match your interests?

• PhormDiscover• In-page widgets• Personalized Homepage

• OIX (Open Internet Exchange)• ISP’s• Publishers• Advertisers

• PhormSecure• Protect from malware and

phishing

“Privacy by design”

• Phormo May 2009: 2075 UK Residents, 82% liked PhormDiscover

• MarketingCharts.como June 2008: Consumers willing to provide information in exchange for

personalized relevant shopping

• New York Timeso March 2008: Services providers on board with Phorm: BT, Carphone

Warehouse, Virgin Media

• New York Timeso July 2009: Setbacks, BT no longer service provider, Stocks dropped more

than 40%

• The Registero October 2010: Crown Prosecution Service, BT-Phorm Case

• Track Website Performanceo Analyze how visitors find, navigate

and interact.

• Featureso Data Historical Trendso Cross Channel and Multimedia

Trackingo Visualizing Datao Customized Reporting

• Keyword Targeting

• Context Targeting• Geo Targeting

Costco Travel

When to Trav

el

•365 days of travel

•Length of Stay (1 to 30 days)

•100 destinations.

Options

•Double

•King

More

Options

•Ocean View

•Mountain View

•City View

Even

more

options

•Activities

•Insurance

•Transportation

Costco uses Google Analytics to grow Costco Travel.

Solution:• Stratigent (Google Analytics

Cert. Partner)• Tagging Audit• Realized not all information

was mined correctly.

• Track options to offer tailored promotions.

Since implementing Google Analytics online travel sales have increased by over 50%

"Funnel reports in Google Analytics are crucial to our success. (…)Google Analytics gives us the insight we need to quickly see which step in the online sales process is broken so we can fix it immediately.“

Google Analytics• Keyword Driven Searches

(AdWord)• Realize when inventory will be

low• Target clicks to realize when best

to stock certain products in local stores

Real World Results

• Vueling's flight ticket sales increased by 20%

• The American Cancer Society uses Google Analytics to boost ROI on the web and help treat patients around the country.

Future of Data Mining• Understanding consumer behavior

• Forecasting product demand

• Managing and building the brand

• Tracking performance of customers or products in the market

• Driving incremental revenue

from transforming data into

information and information

into knowledge

"Data mining is dead! Long live predictive analytics!"

Sources• http://www.data-mining-software.com/data_mining_history.htm

• http://www.impact-sol.com/datamining.html

• http://www.stratigent.com/

• http://www.google.com/analytics/

• http://www.google.com/analytics/case_study_costco.html

• http://www.phorm.com/

• http://www.dwreview.com/Data_mining/Future_data_mining.html