BENIFITS ASSOCIATED WITH DATA MINING

1
Welcome To Loginworks Softwares
2
6 BENEFITS ASSOCIATED WITH DATA MINING

• Data has been used from time immemorial by
  various companies to manage their operations.Data
  is needed by various organizations strategically
  aimed at expanding their business operations,
  reduction of costs, improve their marketing force
  and above all improve profitability. Data mining
  is aimed at the creation of information assets
  and uses them to leverage their objectives.
• In this article, we discuss some of the common
  questions asked about the data mining technology.
  Some of the questions we have addressed include
• How can we define data mining?
• How can data mining affect my organization?
• How can my business get started with data mining?

3
In this article, we discuss some of the common
questions asked about the data mining technology.
Some of the questions we have addressed include

1. How can we define data mining?

2. How can data mining affect my organization?

3. How can my business get started with data
mining?
4
Data Mining Defined

• Data mining can be regarded as a new concept in
  the enterprise decision support system, usually
  abbreviated as DSS. It does more than
  complementing and interlocking with the DSS
  capabilities that may involve reporting and
  query. It can also be used in on-line analytical
  processing (OLAP), traditional statistical
  analysis and data visualization. The technology
  comes up with tables, graphs, and reports of the
  past business history.
• We may define data mining as modeling of hidden
  patterns and discovering data from large volumes
  of data.It is important to note that data mining
  is very different from other retrospective
  technologies because it involves the creation of
  models. By using this technology, the user can
  discover patterns and use them to build models
  without even understanding what you are after. It
  gives an explanation why the past events happened
  and even predicting what is likely to happen.
• Some of the information technologies that can be
  linked to data mining include neural networks,
  fuzzy logic, rule induction and genetic
  algorithms. In this article, we do not cover
  those technologies but focus on how data mining
  can be used to meet your business needs and you
  can translate the solutions thereafter into
  dollars.

5
Setting Your Business Solutions and Profits

• One of the common questions asked about this
  technology is what role can data mining play for
  my organization? At the start of this article, we
  described some of the opportunities that can be
  associated with the use of data. Some of those
  benefits include cost reduction, business
  expansion, sales and marketing, and
  profitability. In the following paragraphs, we
  look into some of the situations where companies
  have used data mining to their advantage.

6

Business Expansion

• Equity Financial Limited wanted to expand their
  customer base and also attract new customers.
  They used the Loan Check offer to meet their
  objectives. Initiating the loan, a customer had
  to go to any branch of Equity branch and just
  cash the loan. Equity introduced a 6000
  LoanCheck by just mailing the promotion to their
  existing customers. The equity database was able
  to track about 400 characteristics of every
  customer. The characteristics were about loan
  history of the customer, their active credit
  cards, current balance on the credit cards and if
  they could respond to the loan offer. Equity used
  data mining to shift through 400 customer
  features and also finding the significant ones.
  They used the data and build a model based on the
  response to the Loan Check offer. They then
  integrated this model to 500,000 potential
  customers from a credit bureau. They then
  selectively mailed the most potential customers
  that were determined by the data mining model. At
  the end of the process, they were able to
  generate a total of 2.1M in extra net income
  from 15,000 new customers.

7
Reduction of Operating Costs

• Empire is one of the largest insurance companies
  in the country. In order to compete with other
  insurance companies, it has to offer quality
  services and at the same time reducing
  costs.Therefore it has to attack costs that may
  in form of fraud and abuse. This demands a
  considerable investigation skills and use of data
  management technology. The latter calls for data
  mining application that can profile every
  physician in their network based on claims
  records of every patient in their data warehouse.
  The application is able to detect subtle
  deviations on the physician behavior that are
  linked to her/her peer group. The deviations are
  then reported to the intelligence and fraud
  investigators as suspicion index. With this
  effort derived from data mining, the company was
  able to save 31M, 37M, and 41M in the first
  three years respectively from frauds.

8
Sales Effectiveness and Profitability

• In this case, we look into pharmaceutical sector.
  Their sales representatives have a wide range of
  assortment tools they use in promoting various
  products to physicians. Some of the tools include
  product samples, clinical literature, dinner
  meetings, golf outings, teleconferences and many
  more. Therefore getting to know the promotions
  methods that are ideal for a particular physician
  is of valuable importance and it is likely to
  cost the company a lot of dollars in sales call
  and thereby more lost revenue. Through data
  mining, a drug maker was able to link eight
  months of promotional activity based on
  corresponding sales found in their database. They
  then used this information to build a predictive
  model for each physician.The model revealed that
  for the six promotional alternatives, only three
  had a significant impact. Then they used the
  knowledge found in the data mining models and
  thereby customizing the ROI.
• Looking at those two case studies, then ask
  yourself, was data mining necessary?

9
Getting Started

• All the cases presented above have revealed how
  data mining was used to yield results to the
  various businesses. Some of the results led to
  increased revenue and increased customer base.
  Others can be regarded as bottom-line
  improvements that impacted on cost savings and
  also improved productivity.In the next few
  paragraphs we try to answer the question how can
  my company get started and start realizing the
  benefits of data mining.
• The right time to start your data mining project
  is now. With the emergence of specialized data
  mining companies, starting the process has been
  simplified and the costs greatly reduced. Data
  mining project can offer important insights into
  the field and also aggregate the idea of creating
  a data warehouse.
• In this article, we have addressed some of the
  common questions regarding data mining, what are
  the benefits associated with the process and how
  a company can get started. Now, with this
  knowledge your company should start with a pilot
  project and then continue building a data mining
  capability in your company to improve
  profitability, market your products more
  effectively, expand your business and also reduce
  costs

10
Thank You For Watching

Connect with This For More Inf

https//www.loginworks.com

Call us 1-434-608-0184