1. Data Mining Jessica Jackson Kimberli Klein Kevin Wood

2. Overview Brief Introduction What Can Data Mining Do? How Does Data Mining Work? Important Aspects Charts and Graphs Examples Wrap up

3. Data, Information, Knowledge Data Items that are the most elementary descriptions of things, events, activities, and transactions May be internal or external Information Organized data that has meaning and value Knowledge Processed data or information that conveys understanding or learning applicable to a problem or activity

4. What is Data Mining? The process of analyzing data from different perspectives and summarizing it into useful information This information can be used to increase revenue, cuts costs, or both

5. What Can Data Mining Do? Primarily used today by companies with a strong customer focus Determines impact of sales, customer satisfaction & corporate profits Determines relationships among “internal” factors and “external” factors Internal factors: price, product positioning, or staff skills External factors: economic indicators, competition, customer demographics

6. How Does Data Mining Work? Data mining software analyzes relationships and patterns in stored transaction data based on open-ended user queries The four types of relationships: Classes Clusters Associations Sequential patterns

7. Important Aspects Three important considerations include: Clean data, Security and Scalability Large amounts of access- Data must be accurate and free of errors and inconsistencies Must establish access rights to the data and to enforcing those rights The infrastructure must be in place includes web servers, report servers, databases and networks to support scalability

8. Dig, Discover, & Share*

9. Flow of Data Mining

10. The Life Cycle of a Data Mining Project

11. Example of Data Mining Software Oracle Data Mining (ODM) Oracle Data Mining Enables you to produce predictive information Build integrated business intelligence applications Find patterns and insights hidden in your data Extract greater value from corporate data resulting in better decision making

12. Field Use "...Using Oracle Data Mining, medical researchers are discovering trends and patterns that will Improve the health care for millions of people around the globe.“ -Dr. Carolyn Hamm, Director of Decision Support, Walter Reed Medical Center. "Saving Lives with Oracle"

13. Customer Successes of ODM Xerox Corporation Walter Reed Medical Center Internal Revenue Services CitiGroup Stuart Maue, Inc. Rexter Analytics Management Information Analysis

14. Company Uses Of Data Mining Starbucks- Reduce Insurance Claims The data is analyzed to uncover locations, floor designs and time patterns where customers slip and fall more frequently from coffee spills Dow Jones Wall Street Journal- Site Performance How the site is performing by correlating the log and click-stream information generated with the customer files The Royal Dutch/Shell Group- Operates in 135 countries with 90,000 employees and 1,700 separate operating companies. Help negotiate better contracts and identify products that are doing well or declining on a global basis.

15. Questions Comments