Data Mining and Customer Relationship Management “ It is now conventional wisdom among marketers, and IT personnel who support them, that investments in customer data have a demonstrable return” said Phillip Russom, director of data warehousing and Business Intelligence, Hurwits Group
Directed data mining: is a top down approach, used when we know what we are looking for.
Undirected data mining: is a bottom up approach that lets the data speak for itself.
Sometimes we do not care how the model works. It is a black box and we just want the best prediction possible . Sometimes we want to use the model to gain insight into the data. We need to understand how the model works; it is more like a semitransparent box. Data mining uses both black box models and semitransparent box.