ABSTRACT
Data mining is widely used by banking firms in soliciting credit card customers, by insurance and telecommunication companies in detecting fraud, by telephone companies and credit card issuers in identifying those potential customers most likely to churn, by manufacturing firms in quality control, and by many other applications. Data mining is being applied to improve food and drug product safety and the detection of terrorists or criminals. Data mining involves statistical and/or artificial intelligence (AI) analysis, usually applied to large-scale datasets. Data mining software products that are being used include Enterprise Miner by SAS, Intelligent Miner by IBM, CLEMENTINE by SPSS, and PolyAnalyst by Megaputer. WEKA is an open source tool with many useful developing methods. Data mining can provide customer insight, which is vital for establishing an effective customer relationship management (CRM) strategy. The Cross Industry Standard Process–Data Mining (CRISP-DM) methodology was initiated in 1996 and represents a generalized pattern applicable to any data mining project.
