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Data Mining History, e-business applications, and modern approach to data analysis Team: Asher, Eduardo Geiger, Charles Heth, Jennifer Monjazi, Jonathan Sanchez, Christian Data Mining The extraction of hidden predictive information from large databases. Implement Collect Extract Prepare Evaluate Data (Clustering) (Classification) (Regression) (Association Rule Learning) Predictive Analysis Data Mining: the Beginning. Classical Statistics •Regression Model •Cluster Analysis •Confidence Intervals Machine Learning Artificial Intelligence (AI) •Heuristic •RDBMS Data Mining in use. E-business and Data Mining Classification Optimization Segmentation Visualization Association Clustering 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 Analysis o Track Alpha Consumer • Affinity Analysis o Cross Selling o 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” • Phorm o May 2009: 2075 UK Residents, 82% liked PhormDiscover • MarketingCharts.com o June 2008: Consumers willing to provide information in exchange for personalized relevant shopping • New York Times o March 2008: Services providers on board with Phorm: BT, Carphone Warehouse, Virgin Media • New York Times o July 2009: Setbacks, BT no longer service provider, Stocks dropped more than 40% • The Register o October 2010: Crown Prosecution Service, BT-Phorm Case • Track Website Performance o Analyze how visitors find, navigate and interact. • Features o Data Historical Trends o Cross Channel and Multimedia Tracking o Visualizing Data o Customized Reporting • Keyword Targeting • Context Targeting • Geo Targeting Costco Travel Costco uses Google Analytics to grow Costco Travel. When to Travel • 365 days of travel • Length of Stay (1 to 30 days) • 100 destinations. • Double • King Options Solution: • Stratigent (Google Analytics Cert. Partner) • Tagging Audit • Realized not all information was mined correctly. More Options • Ocean View • Mountain View • City View • Track options to offer tailored promotions. Even more options • Activities • Insurance • Transportation Since implementing Google Analytics online travel sales have increased by over 50% 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 "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.“ 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