Business Intelligence/Decision Models

CRISP

Learning by associationor problem solving

Time/Cost

Cumulated Productivity

This Week CRISP

(Cross Industry Standard Procedure for Data Mining)

CRISP-DM Phases

Source SPSS Inc. 2008

SEMMA (SAS Institute)

Source SPSS Inc. 2008

CRISP Case Study A large telecom (XYZ PHONE) has discovered that it is losing

customers at a much higher rate than in previous years.

Reporting through the corporate dashboard (OLAP)has shown churn rates growing by a large margin last year.

Source SPSS Inc. 2008

Define Business Objectives Strategic objective definition

Increase revenues by retaining more customers Related business goal identification

Retain high value customers Identify process problems that need to be changed

Clear success factor (metric) Decrease customer churn by 1%

Cost-benefit analysis Increase revenues by $750,000

Actionable BI objectives XYZ wants to retain more customers by identifying likely

churners 2 months prior and putting an action in place to retain them

Source SPSS Inc. 2008

Timeline Example XYZ’s project: 13 weeks

1 week business understanding• Involves line of business managers• Includes better defining high-value and churner definition

3 weeks data understanding • Involves line of business managers and data experts

5 weeks data preparation• Heavy reliance on data experts and database administrators

2 weeks modeling (1) and evaluation (1)• Models developed by data miners and results evaluated by line of business

managers 1 week deployment ?

• Heavy involvement of database administrators

Model deployment entailed setting up a data model for monthly scoring of customer base with resulting reports feeding a mail offer