Thursday, August 30, 2007

Predictive Analytics and Data Mining

Excellent article by David in terms of the utilization of data mining and predictive modeling concepts. I believe that expectations and corporate strategy are not properly aligned in this area. Data mining, predictive modeling, and business intelligence give an enterprise the opportunity to build a decision support system which is the marriage of the best technology and science have to offer. It does not replaces intuition, but augments it. The best way that I can describe this enterprise system is:
1. A robust back end to handle large amounts of diverse and complex data;
2. Creation of client, industry, and business problem variables that can assist in determining patterns in the data;
3. Utilization of multiple data mining or predictive modeling algorithms to classify the data; and
4. Utilization of statistical techniques to help forecast, partition, or determine areas with common patterns.

1 comment:

James Taylor said...

I would not limit this to decision support as I think predictive analytics ALSO allow for decision automation and, ultimately, decision management. To your list I would add business rules to provide a platform for automating decisions into which analytic insight can be injected.
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