Data Mining + Business Intelligence. Integration, Design and Implementation

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1 Data Mining + Business Intelligence Integration, Design and Implementation

2 ABOUT ME Vijay Kotu Data, Business, Technology, Statistics

3 BUSINESS INTELLIGENCE - Result Making data accessible Wider distribution Dimensional slicing Mostly as-is reporting DATA MINING - Finding useful patterns in data Limited distribution Algorithms Insights and Predictions

4 DATA MINING Data Mining in simpler terms, is finding useful patterns in the data. It is non-trivial process of finding useful, valid, novel, understandable patterns or relationships in the data to make important decisions (Fayyad et al., 1996) Statistics Quantitative Operations Research Computing Machine Learning Data Stores Computation Machine Learning, Optimization, Algorithms

5 DATA MINING: MODELS

6 DATA MINING: TYPES Tasks Regression Classification Feature Selection Clustering Data Mining Text Mining Anomaly detection Time Series Applications Association

7 DATA MINING: TYPES Tasks Examples Classification Assigning voters into known buckets by political parties eg: soccer moms. Bucketing new customers into one of known customer groups. Regression Predicting unemployment rate for next year. Estimating insurance premium. Anomaly detection Fraud transaction detection in credit cards. Network intrusion detection. Time series Sales forecasting, production forecasting, virtually any growth phenomenon that needs to be extrapolated Clustering Finding customer segments in a company based on transaction, web and customer call data. Association analysis Find cross selling opportunities for a retailer based on transaction purchase history.

8 DATA MINING: TYPES Tasks Algorithms Classification Decision Trees, Neural networks, Bayesian models, Induction rules, K nearest neighbors Regression Linear regression, Logistic regression Anomaly detection Distance based, Density based, LOF Time series Exponential smoothing, ARIMA, regression Clustering K means, density based clustering - DBSCAN Association analysis FP Growth, Apriori

9 DATA MINING: PROCESS

10 DATA MINING: PROCESS

11 DATA MINING: PROCESS

12 DATA MINING: PROCESS

13 DATA MINING: PROCESS

14 DATA MINING: PROCESS Data Mining Scoring 625

15 DATA MINING: PROCESS

16 Data Mining + Business Intelligence

17 ISSUES Data Mining Business Intelligence - People: Skills of data mining and business intelligence are exclusive - Organization: They live in different organizations within an enterprise - Technology: Minimal overlap in the tools, platform and technology - Use cases: History reporting vs. prediction and insights

18 BENEFITS Data Mining Business Intelligence - Distribution: Data Mining insights will have wider real time distribution - Smarter Analytics: History + Predictions - Visual discovery: Common link - Security: Secure delivery of insights

19 CLASSIC BI ARCHITECTURE Security Layer Extraction Transformation &Loading Star Schema Staging OLAP Dashboards, reports, alerts, ad hoc...

20 ANALYTICAL ARCHITECTURE #1 Data Mining Tool Scoring Data Mining Tool Extraction Transformation &Loading Star Schema Staging OLAP Dashboards, reports, alerts, ad hoc... Data Mining tool does the scoring. Robust modeling and scoring capabilities. BI tool reports the scored like any other data points. Limitations: New records cannot be scored, unless scoring is provided by DM tool. Required multiple analytical tools.

21 ANALYTICAL ARCHITECTURE #2 Database Scoring Extraction Transformation &Loading Star Schema Staging OLAP Database does the scoring. Can handle large data. Model, scoring and data in one place. Limitations: DB vendors have to provide full DM suite. Analysis Skills Dashboards, reports, alerts, ad hoc...

22 ANALYTICAL ARCHITECTURE #3 BI Scoring: Native Modeling Extraction Transformation &Loading Star Schema Staging OLAP Dashboards, reports, alerts, ad hoc... BI platform does the scoring. Good integration between predictive metrics with BI metrics. Security. Distribution. Real time scoring. Limitations: Performance. Limited Functionality

23 ANALYTICAL ARCHITECTURE #4 BI Scoring: Data Mining Tool Modeling Extraction Transformation &Loading Star Schema Data Mining Tool Staging OLAP Dashboards, reports, alerts, ad hoc... PMML Model BI platform does the scoring. Modeled by DM tool and imported in BI platform. Real time scoring. Supports wide selection of algo. Limitations: Performance.

24 ANALYTICAL ARCHITECTURE Data Mining Tool Scoring Database Scoring BI Scoring - Native Modeling - Data Mining Tool Modeling

25 USE CASE Association Analysis or Market Basket Analysis

26 CLICKSTREAM DATA Can be generalized to transactions Applies to any product purchases in an enterprise

27 CLICKSTREAM DATA Creation of Association Rules

28 CLICKSTREAM DATA Creation of Association Rules

29 CLICKSTREAM DATA Creation of Association Rules

30 DATA MINING USING BI SYSTEM Model Building in BI MicroStrategy Desktop > Data Mining Services

31 DATA MINING SERVICE MicroStrategy Desktop > Data Mining Services

32 DATA MINING SERVICE MicroStrategy Desktop > Data Mining Services

33 DATA MINING SERVICE MicroStrategy Desktop > Data Mining Services

34 MODEL DETAILS MicroStrategy Desktop > Data Mining Services

35 RESULTS MicroStrategy Desktop > Data Mining Services

36 RESULTS

37 PMML MicroStrategy Desktop > Data Mining Services

38 PMML

39 PMML

40 PMML

41 PMML

42 PMML

43 BI VS. DATA MINING THINKING Number of customers lost last month Production downtime report ROI for Marketing Campaigns Yesterday s revenue Who will most likely churn in next 10 days What part of process will fail and mitigation Whats the next action will the prospect make Tomorrow s

44 Data Mining + Business Intelligence

45 RECOMMENDED READING Advanced Reporting Guide: Enhancing Your Business Intelligence OPEN SOURCE DATA MINING TOOLS

46 Data Mining + Business Intelligence Appendix

47 CLUSTERING CLUSTERING

48 CLUSTERING

49 CLUSTERING Data Set

50 CLUSTERING k-means Clustering

51 CLUSTERING

52 CLUSTERING

53 CLUSTERING

54 CLUSTERING

55 DECISION TREES DECISION TREES

56 DECISION TREES

57 DECISION TREES

58 DECISION TREES

59 DECISION TREES

60 DECISION TREES

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