Data Mining: Benefits for business.

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1 Data Mining: Benefits for business. Data Mining enables businesses of all types and sizes to empower their data and gain valuable insight into what decisions to take. Since 2005 the Oversea-Chinese Banking Corporation (OCBC) has been analysing historic customer data to plan personalized marketing communications strategies via marketing algorithms and a sophisticated analytics infrastructure. This has lead to a positive return on investment (ROI) on its implementation and has increased its overall marketing productivity 12 times more than it did before its enterprise marketing management system was installed.

2 HSBC turned from online analytical processing (OLAP) tools to Data Mining techniques to satisfy their demands of spotting their key clients and customers buying behavior patterns. The use of Data Mining techniques for Marketing and CRM purposes has increased their sales up to 50% and has reduced marketing costs by 30% in just three years. CRM practices through data mining allow the bank to use 20% of its resources to generate 80% of it s profit. Allianz, one of the major companies in the Insurance sector uses Data Mining tools to assess risk, price products and make appropriate offers. Allianz has invested in a worldwide standardized IT infrastructure, business intelligence and business analytics solutions. Among other products, the company offers personalized travel insurance, that through quick data mining tools automatically generates pop up offers and also creates a feedback loop from customers accepting and rejections of their offers. While only 2% of the 1.1 billion offers are accepted per year, the business is growing by 35 % a year. British Supermarket chain Tesco uses data mining to extract knowledge through big data and transform this knowledge to sales.

3 Gathering and using information from Dunnhumby, a British data mining firm who manages every aspect of its business, from creating new shop formats to developing private-label products and targeting sales promotions. Retail giant Target uses their customers purchase data to provide it s clients with personalised offers and suggestions and to predict their future shopping behavior. A significant example of this use of data to analyse it s clients is the prediction of a teenager s pregnancy in 2012 when the system figured out pregnancy purchasing patterns and started sending offers for baby products. Companies including Dell, Woolworths and Gatorade use Data Mining tools to analyse and take advantage of their mentions on social channels like Twitter and Facebook. Facebook is using the services of a US-based data-mining company that collects and analyses information on how many of its users proceed to buying decisions based on the viewed advertisements. Vodafone uses data mining services for its marketing initiatives and customer loyalty programs. Recently and after launching its 4G service on July 2013 across Australia

4 they released a white paper detailing statistics of the 20,000 network s users behavior information extracted through data mining. It also supports a project for Johannesburg by enabling the reality mining of the data from their cellular network. Their collected location data from the mobile telephones carried by drivers contributes to the analysis of traffic congestion in the city. Ford Motor Company has been using business analytics and data-driven decision making for more than 60 years. In the early 1980s Ford took a leadership position in American industry as one of the first U.S. companies to implement statistical process control methods. Recently it won the 2013 INFORMS Prize for Company-Wide Efforts in Analytics and Data Science as the Institute for Operations Research and the Management Sciences recognizes Ford s efforts to use data to run a smarter business and build better products. Boehringer Ingelheim one of the world s 20 leading pharmaceutical companies increased its commitment to mining massive datasets in its R&D operations using different data sources, mining tools, and work-flows for analyzing the information. On 17th of October 2013 they announced their plans to install Certara s

5 D360 global data mining tool at three of its sites to analyze their data without support from the IT team that will help them to shorten the drug discovery cycle. The global research-driven pharmaceutical company Merck uses Big Data like comprehensive medical, patient, payer and real-world health outcome insights and present new opportunities. Through multidimensional data analysis and reporting tools it gains insights for advanced drugs development that include personalized genome medicines for asthma and HTN. Brands like Amazon, Netflix, Zappos and other online retailers and online services providers use Data Mining to strengthen their CRM and personalised services. Smart data use allows individual customer treatment that results in less marketing expenses, improved services and increased sales. Ebay uses data mining including pattern mining, trend discovery, and prediction. Their extracted knowledge helps in Product Search, Product recommendation, Fraud detection and Business Intelligence purposes.

6 As ebay is the world s largest marketplace for buyers and sellers, it faces a unique problem as there is no complete product catalog that can cover all items sold on ebay s website. Text mining, natural language understanding, and machine learning techniques serve their needs on Inventory Intelligence and classification. On October 2013 Monsanto a publicly traded American multinational chemical, and agricultural biotechnology corporation bought The Climate Corporation; a company specialising in weather big data, for 930 million dollars. The Climate Corporation uses Machine Learning to predict the weather and other essential elements for the agriculture domain. With this investment Monsanto intends to leverage its big data to optimize farming globally and boost it s productivity and profitability.

7 Data Mining for your business MathEPIC works with data mining and predictive analysis. We help companies empower their data. We create software and tools which remove mathematical complexity and help you increase your bottom line. Our solutions make predictive analysis of complex data accessible to businesses of all sizes. Contact us at or to learn more.