1. Business Intelligence/ Decision Models CRISP

5. Learning by association or problem solving

12. Time/ Cost Cumulated Productivity

13. This Week CRISP ( Cross Industry Standard Procedure for Data Mining)

14. CRISP-DM Phases Source SPSS Inc. 2008

16. SEMMA (SAS Institute)

17. Source SPSS Inc. 2008 CRISP Case Study A large telecom (XYZ PHONE) has discovered that it is losing customers at a much higher rate than in previous years. Reporting through the corporate dashboard (OLAP)has shown churn rates growing by a large margin last year.

18. Source SPSS Inc. 2008 Define Business Objectives Strategic objective definition Increase revenues by retaining more customers Related business goal identification Retain high value customers Identify process problems that need to be changed Clear success factor (metric) Decrease customer churn by 1% Cost-benefit analysis Increase revenues by $750,000 Actionable BI objectives XYZ wants to retain more customers by identifying likely churners 2 months prior and putting an action in place to retain them

19. Source SPSS Inc. 2008 Timeline Example XYZ’s project: 13 weeks 1 week business understanding Involves line of business managers Includes better defining high-value and churner definition 3 weeks data understanding Involves line of business managers and data experts 5 weeks data preparation Heavy reliance on data experts and database administrators 2 weeks modeling (1) and evaluation (1) Models developed by data miners and results evaluated by line of business managers 1 week deployment ? Heavy involvement of database administrators Model deployment entailed setting up a data model for monthly scoring of customer base with resulting reports feeding a mail offer