DATA MINING APPLICATION

WHERE DATA MINING CAN BE USED?

For example, data mining will be helpful for:

• analysts and managers who have to deal with strategic and tactical decision making.
• managers responsible for revenue and cost reduction
• risk managers in insurance, to minimise the risk of claims and to maximise the profit
• educators, to improve educational processes, to conduct researches, provide analysis of education effectiveness and institutional decisions
• scientists, to provide new knowledge for researches in various fields

Business intelligence benefits

Data mining enables companies, in the context of defined business objectives, discover new knowledge, to explore, visualise and understand their data, and to identify patterns, relationships and dependencies that impact on business outcomes.

Various data mining techniques, like decision trees, decision rules (if-then), etc, help to create effective models for decision making, making data warehousing much more than just a method of data collecting.
Here are a few snapshots how data mining can benefit certain industries.

• Retail / Marketing
  Identify buying behavior patterns from customers and model customer acquisition.
  Find associations among customer demographic characteristics.
  Predict which customers will respond to mailing.
• Banking
  Detect patterns of fraudulent credit card usage.
  Identify "loyal" customers.
  Predict customers that are likely to change their credit card affiliation.
  Determine credit card spending by customer groups.
  Find hidden correlations between different financial indicators.
  Identify stocks trading rules from historical market data.
• Insurance and Health Care
  Claims analysis - determine which medical procedures are claimed together.
  Predict which customers will buy new policies.
  Identify behavior patterns of risky customers.
  Reduce losses through investigation of incidence of fraud.
• Transportation
  Determine the distribution schedules among outlets.
  Analyze loading patterns.
• Medicine
  Characterize patient behavior to predict office visits.
  Identify successful medical therapies for different illnesses.