DATA MINING

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PRESENTATION TITLE

TOPICS
• OPENING VIGNETTE

• DATA MINING CONCEPTS AND

APPLICATIONS

• DATA MINING APPLICATIONS

• DATA MINING PROCESS

• DATA MINING METHODS

• DATA MINING SOFTWARE

2 TOOLS

• DATA MINING PRIVACY

 OPENING VIGNETTE: CABELA'S
PRESENTATION TITLE

REELS IN MORE CUSTOMERS

W I T H A D VA N C E D A N A LY T I C S
A N D D ATA M I N I N G

The study described in the opening vignette clearly

illustrates the power of analytics and data mining to create a
holistic view of the customer for better customer
relationship management.

Ones who are able to create an intimate relationship through

a "holistic view of the customer" will be the beneficiaries of
this seemingly chaotic environment. In the midst of these
challenges, what works in favor of these retailers is the
availability of technologies to collect and analyze data about
3 their customers.
ANALYTICS HELPS CABELA'S TO
1. IMPROVE THE RETURN ON ITS DIRECT MARKETING
INVESTMENT.
2. SELECT OPTIMAL SITE LOCATIONS.
3. UNDERSTAND THE VALUE OF CUSTOMERS ACROSS ALL
CHANNELS.
4. DESIGN PROMOTIONAL OFFERS THAT BEST ENHANCE
SALES AND PROFITABILITY.
5. TAILOR DIRECT MARKETING OFFERS TO CUSTOMER
PREFERENCES.
PRESENTATION TITLE
DATA MINING IS A PROCESS THAT USES STATISTICAL,
MATHEMATICAL, AND ARTIFICIAL INTELLIGENCE
TECHNIQUES TO EXTRACT AND IDENTIFY USEFUL
INFORMATION AND SUBSEQUENT KNOWLEDGE (OR
PATTERNS) FROM LARGE SETS OF DATA.

DATA MINING IS TIGHTLY POSITIONED AT THE

INTERSECTION OF MANY DISCIPLINES, INCLUDING
STATISTICS, ARTIFICIAL INTELLIGENCE, MACHINE
LEARNING, MANAGEMENT SCIENCE, INFORMATION
SYSTEMS, AND DATABASES.

DATA MINING OFFERS ORGANIZATIONS AN

INDISPENSABLE DECISION-ENHANCING
ENVIRONMENT TO EXPLOIT NEW OPPORTUNITIES BY
TRANSFORMING
DATA MINING DATA INTO A STRATEGIC
CONCEPTS ANDWEAPON .
APPLICATIONS
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 A SIMPLE TAXONOMY OF DATA
PRESENTATION TITLE

Data refers to a collection of facts usually obtained as the result of experiences, observations, or
experiments.

C AT E G O R I C A L NOMINAL ORDINAL NUMERIC I N T E R VA L R AT I O

D ATA D ATA D ATA D ATA D ATA D ATA

Contain codes Represent the Variables that can Include

Represent the Contain
assigned to numeric values be measured on measurement
labels of multiple measurements of
objects or events of specific interval scales. variables
classes used to simple codes
as labels that also variables. commonly found
divide a variable assigned to
represent in the physical
into specific objects as labels,
the rank order sciences and
groups. which are not
among them. engineering.
measurements.

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PRESENTATION TITLE

H O W D ATA M I N I N G W O R K S

A S S O C I AT I O N S PREDICTIONS CLUSTERS SEQUENTIAL

R E L AT I O N S H I P S
find the commonly tell the nature of identify natural discover time-ordered
co-occurring future occurrences of groupings of things events
groupings of things, certain events based based on their known
such as beer and on what has happened characteristics
diapers going together in the past
in market-basket
analysis.
These types of patterns have been manually extracted from data by humans for centuries, but the increasing volume of data in modern
times has created a need for more automatic approaches.
The manifestation of such evolution of automated and semiautomated means of processing large data sets is now commonly referred to
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as data mining.
PRESENTATION TITLE DATA MINING APPLICATIONS
The goal of many of these business data mining applications is to solve a pressing problem or to explore an emerging
business opportunity in order to create a sustainable competitive advantage.

1. C U S TO M E R R E L AT I O N S H I P 8. G O V E R N M E N T A N D
MANAGEMENT DEFENSE
2. BANKING 9. T R AV E L I N D U S T RY
(AIRLINES,
3. R E TA I L I N G A N D
H O T E L S / R E S O RT S , R E N TA L
LOGISTICS Iterative approaches to corporate strategy
C A R C O M PA N I E S )
Establish a management framework from the inside
4. M A N U FA C T U R I N G A N D
10. H E A LT H C A R E
PRODUCTION
11. M E D I C I N E
5. BROKERAGE AND
SECURITIES TRADING 12. E N T E RTA I N M E N T
I N D U S T RY
6. INSURANCE
13. H O M E L A N D S E C U R I T Y A N D
8 7. C O M P U T E R H A R D WA R E
L AW E N F O R C E M E N T
A N D S O F T WA R E .
14. S P O RT S
 S TE P 1 : BU S I N ES S U N D E RS TA N D I N G
PRESENTATION TITLE
The key element of any data mining study is to know what the study
is for.
S TE P 2 : D ATA U N D E RS TA N D I N G
Following the business understanding, the main activity of the data mining
process is to identify the relevant data from many available databases.

ST EP 3 : D ATA P REPA RATI O N

The purpose of data preparation (or more commonly called data preprocessing)
is to take the data identified in the previous step and prepare it for analysis by
data mining methods.

ST EP 4 : M O D EL BU I L D I N G
The model-building step also encompasses the assessment and comparative
analysis of the various models built.

S T EP 5 : T ES T I N G A N D EVA LU ATI O N
DATA MINING The developed models are assessed and evaluated for their accuracy and
generality.

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PROCESS S T EP 6 : D E P LO Y ME N T
Even if the purpose of the model is to have a simple exploration of the data, the
knowledge gained from such exploration w ill need to be organized and
presented in a way that the end user can understand and benefit from.
 DATA MINING METHODS
PRESENTATION TITLE

Classification is perhaps
the most frequently used
data mining method for
real-world problems. As
a popular member of the
machine-learning family
of techniques,
classification
learns patterns from past
data in order to place Chief Executive Officer Chief Operations Officer VP Marketing
new instances into their
respective groups or
classes.

C L A S S I F I C AT I O N S REGRESSION CLUSTERING A S S O C I AT I O N

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 MEET OUR EXTENDED TEAM
PRESENTATION TITLE

TA K U M A MIRJAM FLORA RAJESH

H AYA S H I NILSSON BERGGREN SANTOSHI
President Chief Executive Officer Chief Operations Officer VP Marketing

GRAHAM R O WA N ELIZABETH ROBIN

11 BARNES MURPHY MOORE KLINE
VP Product SEO Strategist Product Designer Content Developer
 SUMMARY
PRESENTATION TITLE

At Contoso, we believe in giving 110%. By

using our next-generation data architecture, we help
organizations virtually manage agile workflows. We
thrive because of our market knowledge and great
team behind our product. As our CEO says,
"Efficiencies will come from proactively
transforming how we do business."

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 THANK YOU

MIRJAM NILSSON​
MIRJAM@CONTOSO.COM | WWW.CONTOSO.COM