Business Intelligence Techniques

Business intelligence (BI) is a set of theories, approaches, procedures, architectures, and

technology that involves the transformation of raw data into a valuable and meaningful
information for business and commerce [5]. It provides forecast views of business processes
by assessing previous and present data. Dashboards, data mining, predictive modelling,
model visualisation, reporting, analytics, online analytical processing (OLAP), scorecards
and extract transfer load (ETL) are the most typical services performed by business
intelligence tools.

Data Mining (DM)

Data mining (DM) is one of the business intelligences tools which involves the
processing of tremendous data that held in a company data warehouse to explore useful
patterns and rules. This process play an important role in making critical business decisions.
As a result, many analysts use data mining techniques or knowledge discovery method to
discover most of the hidden patterns and relationships in data.

DM has helped several businesses enhance their operations. PETRE et al. reported
that many companies that have a significant emphasis on customers, such as those in the
industries of marketing, communication, and retail, finance, employ data mining to "dig
down" into their transactional data [6]. This is important in assessing customer preferences,
product pricing and placement, customer loyalty, and business profitability. Furthermore,
Scarf et al. has proved a few applications of data mining in different fields [7].

Case I: Marketing or Retail

The applications of DM in the marketing industry contains market based and segmentation
analysis, retails sales analysis and product performance analysis [7]. DM is used to identify
purchase behaviour, support patterns, and trends, resulting in improved customer happiness
and retention, as well as an increase in the goods consumption ratio, lowering company costs
[8]. The following are some data mining approaches that might be beneficial in the retail
industry:

 Determine consumer shopping behaviour

 Results: This allows customers' purchase trends to be discovered, as well as the type
of goods they are most likely to buy next.
 Customer Retention
Results: This allows the adjustment of price, product range and promotions based on
customer’s purchase trends.
 Analyse sales campaign
Results: The efficiency of a sales campaign can be determined by observing at
aspects such as the advertising that were utilised and the discounts that were provided.

Case II: Biomedical and DNA Data Analysis

Recently, DM is widely employed in areas of medical science for instance biomedical

research, DNA, genetics, and medicine. Application of DM in the field of genetics help us to

learn about the mapping relationships that are connected to human DNA sequences and

disease susceptibility. Meanwhile, DM may be used to help with ailment treatment,

prevention, and diagnosis [9]. The following are some data mining approaches that might be

beneficial in the medical industry:

 Data cleaning and data mining

Results: The discovered DNA data is extremely dispersed, diverse, and uncontrollable

in nature. DM may be done to appropriately marshalled data followed by storage of

data in a data warehouse or database for later use in research.

Case III: Banking or Finance

Jayasree and colleagues reported that the applications of DM in the financial and banking

industry contains marketing, rating investments, credit analysis, forecasting operations and

cash management [10]. The data mining approach can be applied in the following

applications:

 Credit Scoring
 Results: Several factors for instance, customer’s payment history can be identified,

and this can have an impact on the loan payment.

 Customer Retention

Results: This allows the adjustment of price, product range and promotions based on

customer’s purchase trends.

 Client Segmentation

Results: Specific customer groups was created, and new consumers was divided based

on appropriate groupings.

 Predict customer profitability

Results: The items utilized by customers aid as a guideline for the identification of

trends and prediction of customer proditability.

Becker et al. and Brahman et al. reported that DM technologies such as MineSet's Rules

Visualizer [11] and Nicheworks' Nicheworks [12] may be used to identify commonly

purchased goods. On the other hand, Anand and colleagues also reported that Spotlight [13],

an explanation-based mining system, may be used to accomplish the performance analysis.

Case IV: Telecommunication Industry

Both the telecommunications industry and technology are expanding at the same time.

Telecommunication services have evolved from local and long-distance voice

communication to modern means such as pagers, faxes, e-mails, and cellular phones. They

are now connected to numerous communication technologies such as the internet, a network,

and a computer [9]. The following are some of the uses for data mining techniques:

 Analysis of clusters

Results: The telecommunications business faces a danger from fraudulent activity.

These actions have an impact on the network's performance. Clustering can aid in the
 detection of fraudulent patterns and the improvement of the effectiveness of various

communication systems. Finally, DM helps in the reduction of service fraud and the

saving of time and money.

Case V: Insurance

Many commercial processes employ DM, such as conducting sophisticated classifications

and correlations, attracting new clients while maintaining relationships with existing ones,

and establishing and selecting policies [14]. The following are some data mining approaches

that might be beneficial in the insurance industry:

 Fraud detection

Results: The characteristics that indicate a high likelihood of a claim or fraud

occurring, as well as their various patterns, can be examined.

 Identifying risk factors

Results: Several factors for examples, customer claims history and behaviour patterns

may have an impact on the insured level of risk.

 Customer segmentation and retention

Results: This allows the adjustment of price, product range and promotions based on

customer’s purchase trends. Besides, specific customer groups was created, and new

consumers was divided based on appropriate groupings.

In DM applications, several machine learning approaches are employed. Mishra and

colleagues [9] describe an integrated system that uses neural network (NN) and case-

based reasoning (CBR) to anticipate interest rates for Treasury bills and corporate

bonds. Data visualisation is utilised in various fields of finance. Accounts with

unusual behaviour patterns are identified using Knowledge Seeker, GUHA, and KEX

[9]. FALCON uses a NN-based technique to identify credit card transactions that are

suspicious [11].