Business Intelligence and Data Mining - Lagout.org

1 Big data and Business Analytics Mark Ferguson, Editor Business Intelligence and data Mining Anil K. Maheshwari, Business Intelligence and data Mining Business Intelligence and data Mining Anil K. Maheshwari, PhD. Business Intelligence and data Mining Copyright Anil K. Maheshwari, PhD, 2015. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 400 words, without the prior permission of the publisher.

2 First published by Business Expert Press, LLC. 222 East 46th Street, New York, NY 10017. ISBN-13: 978-1-63157-120-6 (print). ISBN-13: 978-1-63157-121-3 (e-book). eISSN: 2333-6757. ISSN: 2333-6749. Business Expert Press Big data and Business Analytics Collection. Cover and interior design by S4 Carlisle Publishing Services Private Ltd., Chennai, India Dedicated to my parents, Mr. Ratan Lal and Mrs. Meena Maheshwari. Abstract Business is the act of doing something productive to serve someone's needs, and thus earn a living, and make the world a better place.

3 Business activities are recorded on paper or using electronic media, and then these records become data . There is more data from customers' responses and on the industry as a whole. All this data can be analyzed and mined using special tools and techniques to generate patterns and Intelligence , which reflect how the Business is functioning. These ideas can then be fed back into the Business so that it can evolve to become more effective and ef- ficient in serving customer needs. And the cycle continues on. Business Intelligence includes tools and techniques for data gather- ing, analysis, and visualization for helping with executive decision making in any industry.

4 data Mining includes statistical and machine-learning techniques to build decision-making models from raw data . data Mining techniques covered in this book include decision trees, regression, artifi- cial neural networks, cluster analysis, and many more. Text Mining , web Mining , and big data are also covered in an easy way. A primer on data modeling is included for those uninitiated in this topic. Keywords data Analytics, data Mining , Business Intelligence , Decision Trees, Regression, Neural Networks, Cluster analysis, Association rules.

5 Contents Chapter 1 Wholeness of Business Intelligence and data Business Pattern data Processing Organization of the Review Section 1 .. 19. Chapter 2 Business Intelligence Concepts and BI for Better Decision BI BI BI Applications ..26. Review Liberty Stores Case Exercise: Step Chapter 3 data Design Considerations for DW Development DW data data Loading DW DW DW Best x CONTENTS. Review Liberty Stores Case Exercise: Step Chapter 4 data Mining ..45. Gathering and Selecting data Cleansing and Outputs of data Evaluating data Mining data Mining Tools and Platforms for data data Mining Best Myths about data data Mining Review Liberty Stores Case Exercise: Step Section 2.

6 61. Chapter 5 Decision Decision Tree Decision Tree Construction ..66. Lessons from Constructing Decision Tree Review Questions ..75. Liberty Stores Case Exercise: Step Chapter 6 Correlations and Visual Look at Regression Nonlinear Regression Logistic Advantages and Disadvantages of Regression Models ..86. Review Liberty Stores Case Exercise: Step CONTENTS xi Chapter 7 Artificial Neural Business Applications of Design Principles of an Representation of a Neural Network ..95. Architecting a Neural Developing an Advantages and Disadvantages of Using Review Chapter 8 Cluster Analysis.

7 99. Applications of Cluster Definition of a Representing Clustering Clustering K-Means Algorithm for Selecting the Number of Clusters ..109. Advantages and Disadvantages of K-Means Review Liberty Stores Case Exercise: Step Chapter 9 Association Rule Mining ..113. Business Applications of Association Rules ..114. Representing Association Algorithms for Association Apriori Association Rules Creating Association Review Liberty Stores Case Exercise: Step 7 ..121. xii Business Intelligence AND data Mining . Section 3.

8 123. Chapter 10 Text Text Mining Text Mining Mining the Comparing Text Mining and data Text Mining Best Review Liberty Stores Case Exercise: Step Chapter 11 Web Web Content Web Structure Web Usage Web Mining Review Chapter 12 Big Defining Big Big data Business Implications of Big Technology Implications of Big Big data Management of Big data ..148. Review Chapter 13 data Modeling Evolution of data Management Relational data Implementing the Relational data Database Management Review Additional Preface There are many good textbooks in the market on Business Intelligence and data Mining .

9 So, why should anyone write another book on this topic? I have been teaching courses in Business Intelligence and data Mining for a few years. More recently, I have been teaching this course to combined classes of MBA and Computer Science students. Existing textbooks seem too long, too technical, and too complex for use by stu- dents. This book fills a need for an accessible book on the topic of busi- ness Intelligence and data Mining . My goal was to write a conversational book that feels easy and informative.

10 This is an easy book that covers everything important, with concrete examples, and invites the reader to join this field. This book has developed from my own class notes. It reflects many years of IT industry experience, as well as many years of academic teach- ing experience. The chapters are organized for a typical one-semester graduate course. The book contains caselets from real-world stories at the beginning of every chapter. There is a running case study across the chap- ters as exercises. Many thanks are in order.