Download presentation
Presentation is loading. Please wait.
Published bySilvia Marsh Modified over 9 years ago
1
Capabilities Apollo and SQL Server Data Mining Presented by Jeff Kaplan, Principal Client Services Paul Bradley, Ph.D., Principal Data Mining Technology 312.787.7376
2
2 Agenda Apollo Overview Data Mining 101 Project REAL Case Study SQL Server 2005 Data Mining Demo Real-life Examples
3
3 Apollo Overview PART ONE
4
4 Company Background First company delivering true predictive analytic solutions 10 plus years in data mining and data warehousing Premier Partner for SQL Server 2005 Data Mining Cater to a wide range of business including Microsoft, Sprint, Wal-Mart, Barnes & Noble, Seattle Times, Knight Ridder Variety of Industries Retail and Consumer Goods Media Financial Services Manufacturing Public Services overview
5
5 Industry Recognition overview
6
6 Testimonials overview
7
7 Testimonials overview
8
8 Testimonials overview
9
9 Analytic Landscape
10
10 Capabilities overview Customer Acquisition Campaign Targeting Cross-sell/Up-sell Customer Segmentation Retention Modeling Behavioral Targeting Personalization Claim Analysis Call Center Analytics Data Warehousing Dashboard Reporting Marketing Sales & Distribution Correlation Analysis Key Driver Analysis Verbatim Summarization Market Research Operations Inventory Forecasting Sales Forecasting Pricing Optimization Next Best Offer Market Basket Analysis Recency & Frequency Modeling
11
11 Red Card Booking Call Center SQL-Server 2005 Stores Predictive Models Dashboard & Ad-hoc Reporting Customer Clustering Models Measure Promotion Success Web Direct Mail Email Phone Automate Predictions for Targeting, Forecasting, Detection, etc. Join Customer Data Sources Customer Targeting Models Score Model Results Deliver Targeted Predictions Run Predictive Algorithms overview
12
12 MS Data Mining PART TWO
13
13 Fastest Growing BI Segment (IDC) Data Mining Tools: $1.85B in 2006 Predictive Analytic projects yield a high median ROI of 145% Uses Marketing: Customer Acquisition and Targeting, Cross-Sell/Up-Sell Retail: Inventory Forecasting, Price Optimization Market Research: Driver Analysis, Verbatim Summarization Operations: Call Center Analytics Finance: Fraud Detection, Risk Models Mainstream Emergence E-commerce (e.g Amazon.com) Search (e.g. Vivisimo.com) Behavioral Advertising SQL-Server is in a Unique Position to Service Market Needs ms data mining Background
14
14 Evolution of SQL Server Data Mining SQL 2000 SQL 2005 Enter the Game Create industry standard Create industry standard Target developer audience Target developer audience V1.0 product with 2 algorithms V1.0 product with 2 algorithms Win Leadership Continue standards and developer effort Continue standards and developer effort Comprehensive feature set Comprehensive feature set Penetrate the Enterprise Penetrate the Enterprise Thought leadership Thought leadership ms data mining
15
15 SQL-Server 2005 OLAP Reports (Adhoc) Reports (Static) Data Mining Business Knowledge EasyDifficult Relative Business Value ms data mining Value of Data Mining
16
16 SQL-Server 2005 BI Platform Analysis Services OLAP & Data Mining Integration Services ETL SQL Server Relational Engine Reporting Services Management Tools Development Tools ms data mining
17
17 SQL Server 2005 BI Platform Embed Data Mining: Development Tool Integration Make Decisions Without Coding Customized Logic Based on Client Data Logic Updated by Model Reprocessing – Applications Do Not Need to be Re- Written, Re-Compiled, and Re-Deployed Data Mining Key Points Price Point to Achieve Market Penetration Database Metaphors for Building, Managing, Utilizing Extracted Patterns and Trends APIs for Embedding Data Mining Functionality into Applications ms data mining
18
18 SQL-Server 2005 Algorithms Decision Trees Time Series Neural Net Neural NetClustering Sequence Clustering Sequence ClusteringAssociation Naïve Bayes ms data mining Linear and Logistic Regression
19
19 Project REAL PART THREE
20
20 Client Profile – Inventory Forecasting Create a Reference Implementation of a BI System Using Real Retail Data. Partners - Barnes & Noble, Microsoft, Scalability Experts, EMC, Unisys, Panorama, Apollo Forecast Out-of-Stock for 5 Book Titles Across Entire Chain (800 Stores) Predictive Models to Flag Items That Are Going to be Out-of-Stock Model on 48 Weeks of Data, Predictions for Month of December Models Predicted Out-of-Stock Occurrences > 90% Accuracy Conservative Sales Opportunity for just 5 Titles: $6,800 per year Extrapolate Across Millions of Titles - Million Dollar Sales Opportunity project real
21
21 Predictive Modeling Process + Each item belongs to a category For the category, create a set of store clusters predictive of sales in the category Category STEP 1 STEP 2 Identify the cluster which the store belongs to, for the category of that item. STEP 3 Utilize sales data predict item sales 2 weeks out. ITEMSTORE CATEGORY project real
22
22 Store Clustering Demo project real
23
23 Store Clustering Overview Average Category Sales 685, $14,366 Average Category Sales 2,532, $45,153 Average Category Sales 120, $2,081 Average Category Sales 8,936, $188,921 Average Category Sales 1,320, $22,805 project real
24
24 Out-of-Stock Data Preparation Summary Apollo Explored 3 Data Preparation Strategies 1. Use Sales, On-Hand, On-Order History Data for All Stores in the Same Cluster Build One Mining Structure per Cluster, For All Stores in that Cluster for Each Title Build One Mining Model per Store, per Cluster for Each Title Negative: Few OOS Examples per Store, Computation to Deploy One Mining Model per Store/Title Combination 2. Use Sales, On-Hand, On-Order History for All Stores, Across All Clusters Build One Mining Structure per Book, Use Cluster Membership of Store as Input Attribute Positive: Optimizes OOS Examples per Title by Considering All Stores Negative: Does Not Capture Derivative Sales Information 3. Removed Negative of Strategy 2 Included Historical Week-on-Week Sales Derivative Information for Each Title Increase the Information Content of the Source Data for Modeling project real
25
25 Creating Variables for Success Using: Sales and Inventory History from January 2004 to end of November 2004 Recommend two (2) years of Historical Data to Increase accuracy for training model Key: Store + Fiscal Year + WeekID Predicted Variables 1 Week Ahead OOS Boolean 1 Week Ahead Sales Bin (None, 1 to 2, 3 to 4, 4+) 2 Week Ahead OOS Boolean 2 Week Ahead Sales Bin (None, 1 to 2, 3 to 4, 4+) Input Attributes Store Cluster Membership (Derived from Store Cluster Model) Current Week Sales, On-Hand, On-Order Preceding 1-5 Week Sales, On-Hand, On-Order Sales Derivative Atttributes project real
26
26 Model Training and Testing Scenarios Purpose: Intelligence on Model Training Frequency Scenario 1: Train Models Every 2 Weeks Training Dataset: All Data Prior to Last 2 Fiscal Weeks in December 2004 Test Dataset: Last 2 Fiscal Week in December 2004 Scenario 2: Train Models Monthly Training Dataset: All Data Prior to End of Fiscal November 2004 Test Dataset: Fiscal Month of December 2004 project real
27
27 Balancing Training Data When Considering All Stores, Still Have Un-Balanced Datasets [# Store/Week Combinations Where OOS is False] >> [# Store/Week Combinations Where OOS is True] Common in Many Data Mining Applications Training Datasets were Balanced Sample Store/Week Combinations Where OOS is False to Obtain Equal Proportion of True/False Values “Cost” of Predictive Errors are Equal Requested by Client project real
28
28 Prediction Methods Algorithm Selection Microsoft Decision Trees for Predicting OOS Boolean flags Consistently High Overall Accuracy Straightforward Interpretation Data Preparation Scenario 2 Rebuild models monthly Predictive Models are Contextual and Optimized for Behavior in the Coming Month project real
29
29 Prediction Methods Modeling Methodology Benefits Scalability (Titles and Stores) Saves 4x to 5x on Computational Cost when Rebuilding Models (versus Neural Networks) 5 Minutes for All 5 Titles => 1 Minute per Title for All Stores project real
30
30 Out-of-Stock Prediction Demo project real
31
31 Predictive Models Identify Opportunities to Improve Forecasting Rules Save Scored Results to Database and Leverage UI to View KPI and Alerts for Store Managers and Inventory analysts project real
32
32 Inventory Prediction Results 1 week and 2 week prediction accuracies project real
33
33 Sales Opportunity Data Mining created revenue generating opportunity Based on 55 titles for Jan 2004 - Dec 2004 (# of weeks OOS across all stores)(Apollo Boolean Predicted Accuracy) X (actual % of actual sales across all stores) x (retail price) = Yearly Increase in Sales Opportunity using Apollo OOS Predictions Sales bins produced $3.4K, $6.8K potential lift in sales project real
34
34 Client Profiles PART FOUR
35
35 Client Profile – Customer Acquisition Decrease Subscriber Churn Increase New Subscriptions Segment Geo-Demographic and Attitudinal Behaviors for Subscribers and Non-Subscribers Build Predictive Models to Identify Likely New Subscribers Using Analysis to Deliver Targeted Marketing Campaigns for Acquisition Increased Stop Saves by 2% client profiles
36
36 Client Profile – Cross sell / Up sell (Global Catalog Retailer) Increase Average Purchase Size Deploy Product Recommendations on their Website Modeling Historical Sales to Determine Product Affinities Incorporate Business Logic into Modeling Process (e.g. Same category recommendation) Increase Average Shopping Cart Size Increase Sales Lift Data Mining Driven Product Recommendation Performed Better than Manual Recommendations client profiles
37
37 Client Profile – Customer Support Automation Increase Visibility into Customer Service Center Increase Speed of Customer Support Utilizing Text Mining Engines to Automate Processing of Customer Support (Email, Web Inquiries, etc.) Automating the Process of Rolling up Keywords into Concepts Customer Support Center has the Ability to View Trends in Minutes versus Weeks Improved Accuracy - Text Mining Engines Removed the Bias and Inaccuracies Often Occurring in Call Center Representative Notes and Tagging. client profiles
38
38 Client Profile – Key Driver Analysis Evaluate Customer Satisfaction Metrics Increase Customer Satisfaction Partnered with Apollo to Develop Market Research Database and Reporting Developed Models to Identify “Key” Satisfaction Drivers Successfully Identified Drivers to Increase Customer Satisfaction Delivered Driver Recommendations to Field Operations - Insight into Action Company Wide (sales, marketing, executive level) Visibility into Customer Satisfaction Metrics client profiles
39
Presented by Jeff Kaplan Principal Client Services jeff@apollodatatech.com 312.787.7376
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.