1. www.keysoft.co.in Data Mining Copyright KEYSOFT Solutions

2. www.keysoft.co.in Agenda What is Data Mining? Definition CRISP-DM Modeling Techniques How models are built and used? Data warehouse Vs Data mining Applications Of Data Mining Case Study - Telecom

3. www.keysoft.co.in What is Data Mining? Interactive and iterative process To find underlying relationships and features in data Knowledge driven Enhance the value of existing information resources Predicting valuable information Data or knowledge discovery To predict future trend and behavior Copyright KEYSOFT Solutions

4. www.keysoft.co.in Definition The process of finding previously unknown patterns and trends in databases and using that information to build predictive models. Copyright KEYSOFT Solutions

5. www.keysoft.co.in CRISP - DM CRISP-DM stands for CRoss Industry Standard Process for Data Mining It is a industry and tool neutral data mining process model This Process makes large data mining projects faster, cheaper and more reliable Check CRIP-DM’s home page for more details www.crisp-dm.orgwww.crisp-dm.org Copyright KEYSOFT Solutions

6. www.keysoft.co.in Phases in CRISP - DM Copyright KEYSOFT Solutions

7. www.keysoft.co.in Modeling Techniques Predictive Models Neural Nets Rule Induction Linear and Logistic Regression Example Credit card Company can rate the customer before issuing Credit card by using the predictive models. Customer’s applications which are rated low by the predictive models are rejected. Copyright KEYSOFT Solutions

8. www.keysoft.co.in Modeling Techniques Association Rules APPRIORI GRI Example A leading Super market applies association techniques in its transaction database and finds out items which are often purchased together and comes up with new bundled offer to promote its other non selling items. Copyright KEYSOFT Solutions

9. www.keysoft.co.in Modeling Techniques Clustering Techniques Kohonen Networks K-Means Two Step Example A Insurance company groups similar customers based on various parameters and launches special promotional offers targeting each segment and achieves higher response rate. Copyright KEYSOFT Solutions

10. www.keysoft.co.in How Models are built and used? Copyright KEYSOFT Solutions

11. www.keysoft.co.in Data Mining Process Copyright KEYSOFT Solutions

12. www.keysoft.co.in Data Warehouse Vs Data Mining Data WarehouseData Mining Contains historical information stored in the form of relational database which are acquired from different sources. Process of finding hidden information from large datasets. Present information can be acquired. Future information can be predicted. Provides answers to questions like “Who is purchasing our products?” Provides answers to questions like “Who is not purchasing our products?” Copyright KEYSOFT Solutions

13. www.keysoft.co.in Applications of Data Mining Market Segmentation Customer churn Fraud Detection Direct Marketing Interactive Marketing Market basket Analysis Trend Analysis Copyright KEYSOFT Solutions

14. www.keysoft.co.in Case Study - Telecom Objective: To retain the customer base for a telecom company by creating a model using Neural network algorithm which will predict which customers are probable churners Copyright KEYSOFT Solutions

15. www.keysoft.co.in Data Preparation Use the service usage data which contains summarized information about present as well as past customers Prepare the data by removing missing values and deriving new fields Partition the data as Training and Testing data Select only important fields as input fields with respect to output field Case Study - Telecom Copyright KEYSOFT Solutions

16. www.keysoft.co.in Case Study - Telecom Modeling Apply Neural Network Algorithm to Training data and build the model After creating the model apply Testing data in order to verify the models accuracy Deployment Deploy the final model to the current customer database The model Predicts ‘n’ no. of customers are probable Churners in its current customer database Copyright KEYSOFT Solutions

17. www.keysoft.co.in Case Study - Telecom End Result The telecom company reacts immediately by sending lucrative offers through SMS and other means to these probable churners by then it prevents its customers from losing to its competitors Copyright KEYSOFT Solutions

18. www.keysoft.co.in Finally…. Data mining lets you be Proactive rather than Retrospective Copyright KEYSOFT Solutions

19. www.keysoft.co.in For more presentations visit: http://www.keysoft.co.in/downloads.aspx Or mail us at questions@keysoft.co.inquestions@keysoft.co.in For an exclusive Forum on Business Intelligence visit: http://forums.keysoft.co.in Copyright KEYSOFT Solutions