Transcript Chapter 18

Chapter 18
Putting Data Mining to Work
Introduction
• We have come to the last chapter –
• You are theoretically ready to start putting data mining to
work for your organization
• Hopefully, you are convinced that when data mining has
been woven into the fabric of your organization, the
whole organization will benefit in many ways – what are
some of those ways???
• You also know that there is a big difference between
understanding something we have studied and actually
putting it into practice
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Getting Started in the “Real World”
• Full integration of DM into a company’s
customer relationship management
strategy is a large and daunting project
• Best approached incrementally
• Establish achievable goals and
measurable results along the way
• First Step: Demonstrate 3rd bullet above
on a pilot or proof-of-concept project
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Sample First Projects
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Find 10,000 high-end mobile telephone customers who are most
likely to churn in October in time for us to start an outbound
telemarketing campaign in Sept.
Find differences in the shopping profiles of Hispanic and nonHispanic shoppers in Texas with respect to ready-to-eat cereals,
so we can better direct our Spanish-language advertising
campaigns.
Guide our expansion plans by discovering what our best
customers have in common with one another and locate new
markets where similar customers can be found.
Build a model to identify market research segments among the
customers in our corporate data warehouse, so we can target
messages to the right customers.
Forecast the expected level of debt collection for the next several
months, so we can manage to a plan.
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Expectations from Pilot Project
1.
A prototype model development system which could
be expanded to become a full-blown production
system
2.
An evaluation of several data mining techniques and
tools
3.
A plan for modifying business processes and systems
to incorporate data mining
4.
A description of the production DM environment
5.
A business case for investing in DM
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Book Sidebar Review
Read and discuss “A Successful Proof
of Concept” Sidebar in book on p. 601
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Book Case Study Review
Read and discuss “How One
Company Began Data Mining” case
study in the book on pp. 608-614
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End of Chapter 18
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