Predictive Analytics And E Commerce And Internet Based...

INTRODUCTION TO DATA MINING I – CIS 508 Predictive Analytics in E-Commerce and Internet Based Services Industry Having data is not valuable but using data is. Analytic insights are changing the way corporates strategize and also redefining customer expectations. Analytics is the new differentiator between success and failure in the cut throat e-commerce and internet services based industry. The huge proportions of data generated from the increasing number of smart phones, the social networks and the ever more penetrating internet are automating customer centric marketing and other services. The idea is to predict what a customer may want to buy even before the customer realizes what they need. The techniques to achieve these results are†¦show more content†¦Transaction Profiling 1. Decision Analysis and Optimization Decision analysis refers to the quantitative field that deals with modeling, analyzing and optimizing decisions made by ecommerce organizations. Applications include tracking key performance indicators, optimizing supply chain management, uncovering hidden sales opportunities and determining runaway operating costs, etc. Decision analysis analyzes rationality of multiple aspects of a given decision to identify the most suitable action to take to drive a desired result. Most ecommerce firms leverage decision analysis to provide data-driven solutions to a variety of business applications and challenges. Apart from data mining, modeling and data analysis, the focus is also on understanding business challenges. Integrated approaches to decision analysis include development of decision models that mathematically maps the decision structure using optimization technology that identifies the most effective strategies. They create predictive algorithms to design testing required for active, continuous learning and extrapolation of a more efficient strategy to a wider set of scenarios than historically encountered events. Optimization includes a mathematical modeling and programming language, an easy-to-use development and visualization environment, and a state-of-the-art optimization algorithms. 2. Predictive modeling Predictive modeling mathematically maps underlying relationships in historical data in