MGCR 331 Lecture Notes - Lecture 18: Online Analytical Processing, Data Warehouse, Data Mining
Document Summary
Business intelligence: data warehouse and data mining: previously too costly to store and process transactions data is now useful for management decision making, example: a large retailer with 100 000 products (skus) and hundreds of braches. Sales are tracked by time of day and linked to spending by individual customers: example of analysis: spot that some regions have not accepted new products as fast as others. Is it because: of inadequate promotion, unsuitability of the new products, lack of briefings of the sales force in the slow areas, or some areas that are always slower to accept new products. Identify which prospects should be included in a mailing list. Identify common characteristics of customers who buy same products. Customers churn: predict which customers are likely to leave your company for a competitor. Identify what products are likely to be brought together. Insurance claims analysis: discover patterns of fraudulent transactions, compare current transactions against those patterns.