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DATA MINING TOOLS AND TECHNIQUES: Data mining is also called the kno ledge disco!

e"# $"ocess% It is a $"ocess o& anal#'ing data &"om di&&e"ent $e"s$ecti!e and s(mma"i'ing it into (se&(l in&o"mation) hich can *e (sed to inc"ease "e!en(e c(t cost o" *oth% Data mining so&t a"e is one o& the man# anal#tical tools &o" data anal#sis% It allo s (se"s to anal#'e data &"om man# angles) catego"ies it and s(mma"i'e the "elationshi$s identi&ied% Technicall#) it is the $"ocess o& &ind $atte"ns o" co+"elations among !a"io(s &ields in a la"ge data *ase com$anies (se $o e"&(l s#stems to anal#'e h(ge data ma"ket sea"ch "e$o"ts &o" *(siness ad!antage%

,hat can data mining do% Data mining is (sed *# com$anies ith st"ong cons(me" &oc(s% It ena*les these com$anies to dete"mine "elationshi$ among inte"nal &acto"s s(ch as $"od(ct) $"ice) $ositioning) sta&& skill) and e-te"nal &acto"s s(ch as com$etition) economic indicato"s) c(stome" demog"a$hics% Data mining ena*les to dete"mine the im$act o& sales) c(stome" satis&action and $"o&it% It ena*les *(siness to d"ill do n into s(mma"# in&o"mation to !ie t"ansaction data% E-am$le) a "etaile" (ses a $oint o& sale "e a"d o& c(stome" $("chase to send ta"geted $"omotions *ased on an indi!id(al $("chase histo"#% Data mining o& the c(stome" comments o" the a""ant# ca"ds hel$s in de!elo$ing $"od(ct and $"omotions to a$$eal to s$eci&ic c(stome" segments% E-am$le% ,alma"t ca$t("es .OS &"om o!e" /000 sto"es in 1 co(nt"ies and t"ansmits this data to massi!e 2%3 te"a*#te data a"eho(se% ,alma"t allo s almost /300 s($$lie"s to access this data and $e"&o"m anal#sis% The s($$lie"s can identi&# c(stome" *(#ing $atte"n at a sto"e dis$la# le!el% This $atte"n is the *asic in&o"mation to mange local sto"e in!ento"# and identi&# ne me"chandi'ing o$$o"t(nit#%

Ho

does data mining

o"k%

Se!e"al t#$es o& anal#tical so&t a"e (sing statistical algo"ithms) ne("al net o"ks) a"e a!aila*le% Gene"all#) an# o& the &ollo ing &o(" t#$es o& "elationshi$s a"e identi&ied% CLASS: Sto"ed data is (sed to locate data in a $"edete"mined g"o($% E-am$le 4esta("ant chain co(ld mine c(stome"s data to (nde"stand hen c(stome"s !isit and hat the# t#$icall# o"de"% This in&o"mation is (sed to $lan thei" dail# s$ecial on men(%

CLUSTE4S: Data items a"e g"o($ed acco"ding to logical "elationshi$s o" c(stome" $"e&e"ence% E-am$le% Data can *e mined to identi&# ma"ket segment o" c(stome" a&&init#% ASSOCIATION: Data mining can *e (sed to identi&# association% 5an e-am$le is a most6% SEQUENTIAL .ATTE4N: data is mined to antici$ate *eha!io" $atte"ns and t"end% E-am$le) a s$o"ts e7(i$ment "etaile" co(ld $"edict the li!elihood o& a *ack$ack is *eing $("chased *ased on cons(me" $"e&e"ences and $ast $("chases%

Data mining consists o& 3 ma8o" elements% 9% E-t"act t"ans&o"mation) load t"ansaction) data on the data a"eho(se s#stem%

:% Sto"e and manage the data in a m(ltidimensional data *ase s#stem% /% ."o!ide data access to *(siness anal#st and IT $"o&essionals% ;% Anal#'e the data *# (sing a$$lication so&t a"e% 3% ."esent the data in (se&(l &o"mat s(ch as a g"a$h o" ta*le% Data anal#sis methods: 9% A"ti&icial ne("al net o"k) (sing nonlinea" $"edicti!e model% :% Algo"ithm (sing o$timi'ing techni7(es% /% Decision+t"ee% ;% Nea"est neigh*o" method% 3% 4(le ind(ction + the e-t"action o& (se&(l i&+then "(les &"om data *ased on statical signi&icance% 1% Data !is(ali'ation% This is the !is(al inte"$"etation o& com$le- "elationshi$s in a m(ltidimensional data e-am$le g"a$hics tools%

4OLE O< C=O

9%

A C=O is "es$onsi*le &o" &acilitating a =M c(lt("e to the $"ocess o& instilling the c(lt("e and hel$ing $eo$le &ind a#s to sha"e and (tili'e thei" collecti!e kno ledge% C=O is the cham$ion &o" changing the c(lt("e in o"de" to c"eate a climate in hich em$lo#ees !ol(ntee" thei" c"eati!it# and e-$e"tise% C=O has to &o"ce an en!i"onment he"e the manage"s need to look *e#ond the t"aditional tools at thei" dis$osal *# &inding a#s to *(ild t"(st and de!elo$ a &ai" $"ocess% That means getting the gate kee$e" to &acilitate &lo o& in&o"mation "athe" than hoa"d it% C=O sho(ld *e ca$a*le o& ena*ling the com$an# to think th"o(gh thei" technological s#stem s(ch as Int"anet) ad!anced colla*o"ati!e so&t a"e% C=O ens("es that the lines *et een de$a"tments and o$e"ating di!isions lea"n% C=O ens("es that =M does not s(&&e" d(e to o"gani'ational hie"a"ch#% >e the cham$ion &o" signi&icant change the"e *# leading to s(staina*ilit#% The"e&o"e high the $eo$le cont"ol has to *e $(t a side "es(lting in the eme"gents and the de!elo$ment o& in&o"mal net o"ks% S(ch a c(lt("e sho(ld *e s($$o"ted so that em$lo#ees can sha"e thei" tacit kno ledge and hel$ one anothe"% A C=O &acilitates the &ollo ing: Gene"ates kno ledge% Accessing kno ledge% 4e$"esenting and em*edding kno ledge% <acilitating% T"ans&e""ing kno ledge *# "e a"ding and enco("aging em$lo#ees% S(""ende" manage" cont"ol% 4eassess mento" model%

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