Data Mining and its Application in Marketing and

Transcript:Data Mining and its Application in Marketing and:
Data Mining and its Application in Marketing and Business Credit: Gaby Matalon What is Data Mining? The process of analyzing data from different perspectives and summarizing it into useful information It uncovers patterns in a large set of data Growing industry to target their products and advertisements towards consumers based on data mining Why Data Mining? Almost everything we do leaves electronic data behind Needs to extract useful information from data in order to interpret the data Data mining helps speed up the process of finding relationships and patterns in raw data Uses of Data Mining Healthcare Finance Retail & E-Commerce Learn about consumer preferences Countless others! History of Data Mining The term “data mining” is relatively new but the concepts have been around for many years Classical statistics, artificial intelligence and machine learning culminated over the years and evolved into data mining History of Data Mining (Cont.) Data Collection (1960s)- process of storing information on computers Technology- computers, tapes and disks Data Access (1980s)-the introduction of structured query languages and relational databases helped us learn more about data Data available at record level dynamically History of Data Mining (Cont.) Data Warehousing and Decision Report (1990s)-the process of centralized data management and retrieval Maintaining a central location for all organizational data Helps you analyze data and concentrate on very specific characteristics Dynamic data delivery at multiple levels Data Mining (present)- generalizing patterns, predictive Influential People/Events In 1975, John Henry Holland wrote Adaptation in Natural and Artificial Systems, a book on genetic algorithms – start in data mining 1990s, the term “data mining” appeared in the database community for the first time In 2001, William S. Cleveland introduced data mining as an independent discipline DJ Patil became the first Chief Data Scientist in the White House in February 2015 Terminology Data: facts, numbers or text that can be processed by a computer Information: the patterns, associations and relationships of data Knowledge: understanding of a subject, synthesise information to gain knowledge about historical patterns and future trends Data, Information, vs. Knowledge Data Mining in the Knowledge Discovery Process How Data Mining Works Need a clear understanding of data in order to be able to use the information effectively To do this, classify data into these groups: Classes Clusters Associations Sequential Patterns Classes Classes are groups where the data shares characteristics Example- A class for a company like Netflix would be the customers