Publications

Tim Graettinger, president of Discovery Corps, Inc., has published an article on Data Mining in the most recent issue of TEQ magazine. Discovery Corps, Inc. is a data visualization, data mining, and predictive analytics consultancy headquartered outside of Pittsburgh, PA. TEQ magazine is a publication of the Pittsburgh Technology Council.

By Tim Graettinger

Data mining, the discovery and modeling of hidden patterns in large volumes of data, is becoming a mainstream technology. And yet, for many, the prospect of initiating a data mining (DM) project remains daunting. Chief among the concerns of those considering DM is, "How do I know if data mining is right for my organization?"

A meaningful response to this concern hinges on three underlying questions:

• Economics - Do you have a pressing business/economic need, a "pain" that needs to be addressed immediately?
• Data - Do you have, or can you acquire, sufficient data that are relevant to the business need?
• Performance - Do you need a DM solution to produce a moderate gain in business performance compared to current practice?

In the following sections, we'll consider each of the above questions in the context of a sales and marketing case study. Since DM applies to a wide spectrum of industries, we will also generalize each of the solution principles.

To begin, suppose that Donna is the VP of Marketing for a trade organization. She is responsible for several trade shows and a large annual meeting. Attendance was good for many years, and she and her staff focused their efforts on creating an excellent meeting experience (program plus venue). Recently, however, there has been declining response to promotions, and a simultaneous decline in attendance. Is data mining right for Donna and her organization?

Economics
Begin with economics - Is there a pressing business need? Donna knows that meeting attendance was down 15% this year. If that trend continues for two more years, turnout will be only about 60% of its previous level (85% x 85% x 85%), and she knows that the annual meeting is not sustainable at that level. It is critical, then, to improve the attendance, but to do so profitably. Yes, Donna has an economic need.

Read the rest of this article at the Discovery Corps website.