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SPSS Solutions

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SPSS Solutions

  1. 1. What Data Mining brings to Small and Medium sized Businesses Prety Widjaja Systems Engineer SPSS Inc.
  2. 2. Commonly Asked Questions <ul><li>Will I be able to get copies of the slides after the event? </li></ul><ul><li>Is this webinar being taped or can I view it after the fact? </li></ul>Yes Yes www.spss.com/events
  3. 3. Agenda <ul><li>Data mining myths </li></ul><ul><li>Data mining overview </li></ul><ul><li>SPSS as a leader in the Data Mining space </li></ul><ul><li>SPSS Clementine </li></ul><ul><li>Demo </li></ul><ul><li>Key takeaways </li></ul><ul><li>Getting started in Data Mining </li></ul>
  4. 4. Data Mining Myths <ul><li>Data Mining is only for large companies </li></ul><ul><li>Data Mining is all about massive data </li></ul><ul><li>Data Mining is a complex technical process </li></ul>
  5. 5. What is Data Mining? <ul><li>Data mining uses existing data to: </li></ul><ul><ul><li>Predict </li></ul></ul><ul><ul><ul><li>Response </li></ul></ul></ul><ul><ul><ul><li>Category membership </li></ul></ul></ul><ul><ul><li>Group </li></ul></ul><ul><ul><ul><li>Cluster (group) attributes and metrics together based on their characteristics </li></ul></ul></ul><ul><ul><li>Associate </li></ul></ul><ul><ul><ul><li>Find events that occur together, or in a sequence </li></ul></ul></ul><ul><ul><li>Find outliers </li></ul></ul><ul><ul><ul><li>Identify cases that don’t follow expected behavior </li></ul></ul></ul>“ The process of discovering meaningful new relationships, patterns and trends by sifting through data using pattern recognition technologies as well as statistical and mathematical techniques.” The Gartner Group
  6. 6. Who performs “data mining” <ul><li>Analysts </li></ul><ul><li>Business Intelligence users </li></ul><ul><li>Business executives </li></ul><ul><li>Small, medium, and large sized organizations </li></ul><ul><li>Companies in virtually every industry </li></ul>
  7. 7. <ul><li>Data Mining is enabling companies to… </li></ul><ul><li>Understand customers better </li></ul><ul><li>Increase sales </li></ul><ul><li>Increase profitability </li></ul><ul><li>Increase website profitability </li></ul><ul><li>Cross-sell/Up-sell </li></ul><ul><li>Increase retention/loyalty </li></ul><ul><li>Detect fraud </li></ul><ul><li>Identify credit risks </li></ul><ul><li>Acquire new customers </li></ul>How and where is data mining being used
  8. 8. Case Study: CIM’01 <ul><li>5-year old French Market Research firm </li></ul><ul><li>Data mining was included in the business plan and is considered as a key differentiator </li></ul><ul><li>CIM’01 purchased Clementine + Text Mining for Clementine in 2003 </li></ul>
  9. 9. CIM01: Addressing their client’s business pain <ul><li>Big pharmaceutical labs spend large $ marketing to many practitioners </li></ul><ul><li>Central nervous system drugs represent a large market </li></ul><ul><li>Bottom line: want to improve marketing campaign, increase ROI. </li></ul>
  10. 10. CIM01: Data + Text Mining Results <ul><li>Clustering of GPs using both structured data and unstructured data </li></ul><ul><li>Similarities found between general practitioners and specialists. </li></ul><ul><li>Discover a new market previously untapped by the pharmaceutical lab </li></ul><ul><li>ROI achieved! </li></ul>
  11. 11. Data Mining and Predictive Analytics Powered by Clementine <ul><li>Industry-leading workbench for data mining </li></ul><ul><li>Pioneered visual approach </li></ul><ul><li>Supports the entire data mining process </li></ul><ul><li>Multiple modeling techniques </li></ul><ul><li>Easily integrate Clementine </li></ul>
  12. 12. Clementine Supports for a Proven Process <ul><li>CRISP-DM </li></ul><ul><ul><li>Cross Industry Standard Process for Data Mining Focused on business issues </li></ul></ul>
  13. 13. Demonstration –World Motors <ul><li>Business Challenge: develop marketing campaign to increase sales and product awareness of their hybrid (HEV) car line </li></ul><ul><li>Data Mining Goal: determine what factors drive consumer decision to purchase a hybrid car </li></ul>
  14. 14. What you will learn today <ul><li>How easy it is to work with different data sources </li></ul><ul><li>Discover patterns and trends in the data </li></ul><ul><li>Build predictive models to identify what buying factors are important to their customers </li></ul><ul><li>How you can apply your results to the their customer base to generate potential lead list for marketing campaign </li></ul>
  15. 15. Demonstration If you are not automatically taken to the &quot;Shared Application&quot; screen during the demonstration, please click on the &quot;Shared Application&quot; button at the bottom of your screen.
  16. 16. Demonstration Summary and ROI <ul><li>Combined demographic data and transaction data </li></ul><ul><li>Identified simple patterns through data visualization </li></ul><ul><li>Generated models to determine what factors drive customers decision to purchase a hybrid car </li></ul><ul><ul><li>Higher income level than average car buyer ~above $120K </li></ul></ul><ul><ul><li>Higher age group level ~ 40s </li></ul></ul><ul><ul><li>More likely to be female </li></ul></ul><ul><ul><li>Price is not a decision factor </li></ul></ul><ul><ul><li>Want to help reduce air pollution </li></ul></ul><ul><li>Reduce mailing cost by 30% and yield higher ROI </li></ul>
  17. 17. More on ROI SPSS Customer’s successes <ul><li>Banking </li></ul><ul><li>Lloyds TSB </li></ul><ul><ul><li>Saved $ 3.5 million by reducing credit card fraud </li></ul></ul><ul><li>Groupe Banque Populaire (Natexis) </li></ul><ul><ul><li>generated $ 1.8 million additional revenue on a lead generation campaign </li></ul></ul><ul><li>BankFinancial </li></ul><ul><ul><li>7 x increase in response rates, 80% reduction in costs </li></ul></ul><ul><li>Insurance </li></ul><ul><li>Aegon </li></ul><ul><ul><li>Generated $30M additional revenue in service call center </li></ul></ul><ul><li>FBTO </li></ul><ul><ul><li>Decreased direct mailing costs by 35 percent, increased conversion rates by 40 percent </li></ul></ul><ul><li>Telecommunications </li></ul><ul><li>Verizon Wireless </li></ul><ul><ul><li>Cut churn by 20%, saved 33% of “at-risk” clients </li></ul></ul><ul><li>Swisscom </li></ul><ul><ul><li>Doubled responses on win back campaigns </li></ul></ul><ul><li>Telstra </li></ul><ul><ul><li>Doubled sales in service call centers </li></ul></ul><ul><li>Other industries </li></ul><ul><li>Experian </li></ul><ul><ul><li>Generated $2.5 million in catalog revenue while reducing hardware and software maintenance costs by 80% </li></ul></ul><ul><li>Center Parcs </li></ul><ul><ul><li>added $ 3 million to their bottom line </li></ul></ul><ul><ul><li>Reduced mail costs by 46% </li></ul></ul><ul><li>Sofmap.com (retail) </li></ul><ul><ul><li>Tripled profitability of online operations </li></ul></ul>
  18. 18. Nucleus Research The Real ROI from SPSS <ul><li>94% achieved a positive ROI, with an average payback period of 10.7 months. </li></ul><ul><li>Returns were achieved through reduced costs, increased productivity, increased employee and customer satisfaction, and greater visibility. </li></ul><ul><li>Over 90% of SPSS users surveyed attributed an increase in productivity to SPSS, expressed in increased productivity from existing employees, or reduced the need to hire additional employees. </li></ul><ul><li>81% of projects were deployed on time, 75% on or under budget. </li></ul>“ This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports” Rebecca Wettemann, Vice President of Research at Nucleus Research
  19. 19. Recent Awards <ul><li>SPSS Inc. was included in the listing of the annual DM Review 100, which constitutes the top 100 companies in the business intelligence space as determined by DM Review readers. </li></ul><ul><li>KDnuggets News , a data mining and knowledge discovery newsletter, polled more than 600 of its readers, to find out which data mining tool they regularly used. The #1 response was SPSS Inc.'s Clementine data mining workbench, for the 4th year in a row. </li></ul><ul><li>SPSS Inc. was ranked first in the Intelligent Enterprise “2004 Companies to Watch.” These awards highlight companies that provide the strongest vision, market leadership and technology innovation . </li></ul>
  20. 20. A bit more on SPSS: Positioned to grow with you… SPSS Enterprise Platform for Predictive Analytics Decision Optimization Advanced Analytics <ul><li>Predict </li></ul><ul><li>Data mining </li></ul><ul><li>Statistics </li></ul><ul><li>Understand </li></ul><ul><li>Reporting </li></ul><ul><li>Vizualization </li></ul><ul><li>Act </li></ul><ul><li>Optimization </li></ul><ul><li>Recommendation </li></ul>Operational data Call Center data Marketing databases Attitudinal data Interaction data Webdata Mail Call Center Internet Branches Customer View
  21. 21. Key Takeaways <ul><li>Companies of all sizes can profit </li></ul><ul><li>Various types of users are performing data mining </li></ul><ul><li>Performing data mining is within reach </li></ul><ul><li>Proven tools are available to take you from data discovery to action! </li></ul>
  22. 22. Getting started with Data Mining <ul><li>Begin with the end in mind </li></ul><ul><li>Limit the scope of your initial project </li></ul><ul><li>Define an executable data mining strategy </li></ul><ul><li>Attendees will receive a free copy of “Planning Successful Data Mining Projects.” </li></ul>
  23. 23. Question and Answer
  24. 24. For More Information <ul><li>In case you missed it: recorded version and slides available at www.spss.com/events </li></ul><ul><li>Visit www.spss.com/ clementine to learn more about the platform </li></ul><ul><li>Call us at 1-800-543-2185 or [email_address] </li></ul><ul><li>Please fill out the post event survey </li></ul><ul><li>Stay up-to-date on the most recent events with  the new SPSS Events RSS feed ! </li></ul><ul><li>http:// www.spss.com/rss </li></ul>