The document discusses data analysis and its applications. It begins with definitions of data analysis and discusses its goal of extracting useful knowledge from large databases. Examples are given of commercial applications of data analysis in areas like online advertising, online dating, e-commerce, entertainment, and sports. Privacy issues related to combining data sources are also mentioned. The document encourages businesses to use data analysis to acquire customers, increase loyalty, and reduce costs.

1. The Data Analysis Opportunity Whatmy Business canlearnfrommy Data Dr. Rosaria Silipo Data Mining Consultant Email: rosariasilipo@yahoo.com

2. Agenda Whatisdataanalysis? Whatisthegoalofdataanalysis? Whatdataanalysiscan not do Data analysiscurrentchallenge Commercialapplications PrivacyIssues 9/23/2010 2 Rosaria Silipo Data Mining Consultant

3. Ignaz Semmelweis (1818-1865) HungarianGynecologist 9/23/2010 3 Rosaria Silipo Data Mining Consultant

4. PuerperalFeverMortality Rate in a graphic 9/23/2010 4 Rosaria Silipo Data Mining Consultant

5. Whatis Data Analysis? Data Mining istheprocessofautomaticextractionofKnowledgefromdatabases, whichis: valid ( = significant) previouslyunknown ( = new / interesting) andpotentiallyuseful (Fayyad, Piatetsky-Shapiro and Smyth, 1996) 9/23/2010 5 Rosaria Silipo Data Mining Consultant

6. MSN Money, Dec 02, 2009: http://articles.moneycentral.msn.com/Insurance/InsureYourCar/worse-drivers-males-or-females.aspx Car Insurance Costs 9/23/2010 6 Rosaria Silipo Data Mining Consultant

7. MSN Money, Dec 02, 2009: http://articles.moneycentral.msn.com/Insurance/InsureYourCar/worse-drivers-males-or-females.aspx Car Insurance: Reasons Data from: U.S. Departmentof Transportation and National Highway Traffic Safety Administration, 2007 Traffic Violations Car Crashes 189% 30-40% D.U.I. Women Men 9/23/2010 7 Rosaria Silipo Data Mining Consultant

8. The Goal of Data Analysis Data Mining istheprocessofautomaticextractionofKnowledgefromdatabases, whichis: valid ( = significant) previouslyunknown ( = new / interesting) andpotentiallyuseful (= money) (Fayyad, Piatetsky-Shapiro and Smyth, 1996) 9/23/2010 8 Rosaria Silipo Data Mining Consultant

9. Hypothesis Verification Hypothesis: „Do Storks bring Babies?“ Correlationbetween „storkspopulation“ and „birth rate in Germany“ 9/23/2010 9 Rosaria Silipo Data Mining Consultant

10. Hypothesis Verfication Hypothesis: „Do Storks bring Babies?“ Time Series: „storkspopulation“ and „birth rate in Germany“ 9/23/2010 10 Rosaria Silipo Data Mining Consultant

11. Data Analysis Mistakes Data Mining istheprocessofautomaticextractionofKnowledgefromdatabases, whichis: valid ( = significant) previouslyunknown ( = new / interesting) andpotentiallyuseful (Fayyad, Piatetsky-Shapiro and Smyth, 1996) 9/23/2010 11 Rosaria Silipo Data Mining Consultant

12. Classical Data Analysis 9/23/2010 12 Rosaria Silipo Data Mining Consultant

13. Table based Data Analysis 9/23/2010 13 Rosaria Silipo Data Mining Consultant Somestatistics and Visual Exploration (Excel)

14. Thereis Data Everywhere! Smart Carts The amountofdatacreatedbyeachpersondoublesevery 1.5 – 2 years Contactless Cards CellularPhones 9/23/2010 14 Rosaria Silipo Data Mining Consultant

16. previouslyunknown ( = new / interesting)

17. andpotentiallyuseful(Fayyad, Piatetsky-Shapiro and Smyth, 1996) 9/23/2010 15 Rosaria Silipo Data Mining Consultant

18. Data Mining Tools 9/23/2010 16 Rosaria Silipo Data Mining Consultant Traditional Data Analysis: Reporting andbasicStatistics More complexalgorithmsfor Data Exploration Abletoscaletovery large amountsofdata Affordablefor medium sizedcompanies

19. Commercial Applications 9/23/2010 17 Rosaria Silipo Data Mining Consultant Social Networks Entertainment New markets Market Strategy Online Dating Advertisement Sport Teams New customers Financial Risk Security Sales Management Anti-terrorism Drug Discovery FraudDetection Airlines New Products Hotels Clinical Trials Pricing Models Survey Analysis Human Resources e-Commerce Reduce Operational Costs Direct Marketing Customer Retention Decision Making

20. Advertisement: Google AdSense 9/23/2010 18 Rosaria Silipo Data Mining Consultant

21. Advertisement: Google AdSense For our AdSense program, we serve ads based on the content of the site you view. For example, if you visit a gardening site, ads on that site may be related to gardening. In addition, we may serve ads based on your interests. As you browse websites that have partnered with us or Google sites using the DoubleClick cookie, such as YouTube, Google may place the DoubleClick cookie in your browser to understand the types of pages visited or content that you viewed. Based on this information, Google associates your browser with relevant interest categories and uses these categories to show interest-based ads. For example, if you frequently visit travel websites, Google may show more ads related to travel. In addition to ads based on interest categories, Google also allows advertisers to show you ads based on your previous interactions with them, such as visits to their websites. Advertisers may not use this technology to identify you personally, but it enables advertisers to deliver much more relevant ads to groups of users who previously interacted with them. Some of the sites and services (such as social networking sites) that use our AdSense program also may use information that doesn’t identify you personally, such as demographic data, to provide relevant advertising. Google will not associate sensitive interest categories with your browser (such as those based on race, religion, sexual orientation, health, or sensitive financial categories), and will not use such categories when showing you interest-based ads. 9/23/2010 19 Rosaria Silipo Data Mining Consultant Underthe link „Privacy“ atthe end ofthe Google page.

22. Online dating: 9/23/2010 20 Rosaria Silipo Data Mining Consultant

23. Online dating: 9/23/2010 21 Rosaria Silipo Data Mining Consultant http://www.youtube.com/watch?v=mT6L-85c4xc Statistical analysisto find themostlikelymatchforthenewuser Questionnairewithseveralhundredsofquestionsforeachnewuser Reductionto 29 measures

24. E-commerce: 9/23/2010 22 Rosaria Silipo Data Mining Consultant „La DivinaCommedia“

25. E-commerce: 9/23/2010 23 Rosaria Silipo Data Mining Consultant „The girlwhoplayedwithfire“ by Stieg Larsson

26. Entertainment: 9/23/2010 24 Rosaria Silipo Data Mining Consultant

27. Entertainment: 9/23/2010 25 Rosaria Silipo Data Mining Consultant Source: T.H. Davenport, J.G. Harris „Competing on Analytics“, Harvard Business School Press (2007). Your Preference List Least requestedmovies Similarmovies Analytics Analytics List of alternative moviesthat fit yourpreferencesandareavailable on theshelves

28. Entertainment: 9/23/2010 26 Rosaria Silipo Data Mining Consultant

29. Sport: Baseball Oakland A‘s 9/23/2010 27 Rosaria Silipo Data Mining Consultant Source: T.H. Davenport, J.G. Harris „Competing on Analytics“, Harvard Business School Press (2007).

30. 9/23/2010 28 Rosaria Silipo Data Mining Consultant Source: T.H. Davenport, J.G. Harris „Competing on Analytics“, Harvard Business School Press (2007). Sport: Baseball Oakland A‘s Skills Measurement HR: Lessonlearned Maximizationof Sum(Skills) Best Team

31. … Andmore Hospitality: Marriotts Hotels Banking: Capital One Airlines: American Airlines House Products: Procter & Gamble Pharma: Vertex Fraud: Visa 9/23/2010 29 Rosaria Silipo Data Mining Consultant

32. Privacy Issues Data Analysis itselfis on anonymousdata. However, companieswhofollowyouractionsandhaveyour personal datacaneasilycrossthemandhavethefullpicture. 9/23/2010 30 Rosaria Silipo Data Mining Consultant

34. Keep themcoming back

35. Reduceyourcosts… so yougetmoreRevenuesandProfit! 9/23/2010 31 Rosaria Silipo Data Mining Consultant

36. Thanks ( Data analysisforfree: www.knime.org ) 9/23/2010 32 Rosaria Silipo Data Mining Consultant