Sunday, April 13, 2008
This is an IBM paper that presents a good methodology for business transformation using predictive modeling and business analytics. This approach could be used in supply-chain cases. From a practical approach, if you have a Microsoft shop, you can use Analysis Services (2005 or 2008) Logistic Regression or Linear Regression and use the predict probability feature to get the multidimensional vector. At the front end, the cluster analysis function of Excel 2007 will help separate the cluster. By adding the vector to the cluster variables this algorithm will give you an interactive or dynamic visualization that will separate the clusters in the data, and clarify the driving factors.
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