Toiling in the Media Data Mines

At PHD Canada, we deal in “time and space” — a phrase used when the term “media management” draws blank stares at cocktail parties. There are thousands of people like us, in hundreds of companies like ours, responsible for managing advertising media budgets. We all go to great lengths to create crisp target group definitions for consumer brands. We determine which media channels should be employed in support of our clients’ messages — time and space channels such as TV, radio, magazines, Internet, and newspapers. We recommend when our clients should run the media weight afforded by their budgets. And finally, we recommend how the weight should be distributed throughout the country, in which cities and which regions.

Data Mining and the World of Commerce

Despite the research written, the software developed and the business applications that can be enhanced by it, the terms data mining and multivariate modeling continue to stoke uncertainty, complexity and sometimes fear in business managers and strategic decision-makers across industry sectors. Why is this? There are a number of reasons to cite, but probably the most common involves the complex nature of the methodologies incorporated in this analytic technique. The complexity we refer to involves the use of mathematical equations, sophisticated algorithms and advanced search and query techniques, not to mention statistical applications that are utilized in analyzing data. If that is not enough to throw management back on their heels, how about data acquisition, normalization, and model optimization, which are often involved in the process? Let’s add one more attribute to the list, and that is the ability to not only understand these complex methods, but more importantly, to understand when and where they can be used to enhance operational efficiency. Now is there any wonder why data mining continues to be this mysterious phenomenon in the world of commerce? No doubt; however, to dispel some of the uncertainties regarding this issue, the following book will provide the reader with expert input on how these quantitative methods are being used in prominent organizations in a variety of industry sectors to help enhance productivity, efficiency and to some extent, profitability. Before we get into the details of the applied material, the following chapter will provide some general information on what data mining and multivariate modeling is, where it came from, and how it can be used in a corporate setting to enhance operational efficiency.

The Utilization of Business Intelligence and Data Mining in the Insurance Marketplace

NASA Missions are as varied as the mandate of the agency. From using satellite imaging to study climate change to scanning deep space with the Hubble Space Telescope, NASA’s primary goal is to further humankind’s knowledge of our universe. Pioneering the future. Pushing the envelope. Just as NASA’s goals stretch our thoughts, business intelligence (BI) and data mining take us on a journey that continuously provides discovery of new and valuable information, giving us insight into the unknown.

Taking a Close Look at the Evolving Utilities Industry

The electric industry has undergone a radical transformation over the last five years. Prior to the late 1990s, the industry was heavily regulated. Investor-owned utility companies operated in franchise areas, under an agreement with local regulators that no competitors would be allowed, in exchange for the utility to pass through all prudently incurred costs of serving its customers as well as an allowed rate of return for required capital investments. This system worked reasonably well for decades.

Audience Measurement Applications for Online Advertising and E-Commerce

The idea of panel-based Internet audience measurement was a child of the late 1990s “dot-com” era, where financial analysts hinged predictions of stock price rise or ruin on Website rankings. Bold marketing schemes led to spikes in traffic to Websites, which in turn led to higher rankings and the potential for greater advertising revenues. Monthly rankings became as common a mention in company press releases as any other measure of revenue or profit. Despite the sudden and calamitous collapse of the “new economy” in the second quarter of 2000, Internet audience measurement remains a highly relevant industry.

Credit Scoring and Risk Management for Small Business Lending

“The house always wins” is a common reprise for the empty pocket tourist leaving the gambling tables at Vegas. You do not need to be a professional gambler to understand that the house always wins because the odds are stacked in their favor. Unfortunately, the recent conditions in the financial services industry have been tighter than the quarter slot machines in the Vegas airport.

Data Mining and the Banking Sector

Banking has changed rapidly over the last decades due to the ability to capture massive data sets easily and the availability of new tools for analysis. The new, commonly used expressions to describe these phenomena are data warehousing and data mining. The changes have transformed traditional banking activities such as extending loans and given birth to new businesses. For example, the credit card business would simply not exist today, or not in today’s form, without the use of high powered computers and new statistical methods.

The Application of Data Mining Techniques in Health Plan Population Management

Healthcare has become a data-intensive business. Over the last 30 years, we have seen significant advancements in the areas of health information technology and health informatics as well as healthcare modeling and artificial intelligence techniques. Health informatics, which is the science of health information,1 has made great progress during this period (American Medical Informatics Association). Likewise, data mining, which has been generally defined as the application of technology and statistical/mathematical methods to uncover relationships and patterns between variables in data sets, has experienced noteworthy improvements in computer technology (e.g., hardware and software) in addition to applications and methodologies (e.g., statistical and biostatistical techniques such as neural networks, regression analysis, and classification/segmentation methods) (Kudyba & Hoptroff, 2001). Though health informatics is a relatively young science, the impact of this area on the health system and health information technology industry has already been seen, evidenced by improvements in healthcare delivery models, information systems, and assessment/diagnostic tools.

Sales Force Management in the Consumer Product Industry

One of the largest direct-selling companies in the world, with sales forces in the U.S. and abroad, sells a line of beauty, health, and fitness products through a network of independent sales representatives. Currently in the United States alone, the representative population has grown to several hundred thousand individuals. Representatives purchase products from the company at a discount, and in turn, sell them to their own customers, earning revenue through volume discounts. Customers order their products from catalogs that contain a mix of seasonally appropriate items along with core and new products, and special promotions to choose from. To assist its field sales force, this consumer products organization provides incentives, sales recognition awards, and training programs in beauty consultation and sales effectiveness.

The Healthcare Cost Dilemma

The current state of the healthcare industry is one of flux and change. Countless articles and books have been written about the topic, and most suggest either putting control of healthcare into the hands of the consumer — much like we did with retirement planning — or government-based care rationing to a much greater degree than we already do today. So many factors have contributed to the rising costs of healthcare that one can barely grasp the grave realities of what the future holds. Projections of healthcare cost inflation have revealed future increases from 12% to 15% year-over-year into the foreseeable future. While quite disturbing, is this really surprising? Is there any other industry where purchase criteria does not include price? Can you imagine going to the grocery store, filling your cart, taking your groceries home and then getting the bill a few weeks later? Would you shop differently if you did not know the price? Who would buy the generic store brand, the larger size package, or wait for a sale? Nothing would ever go on sale. It would be difficult to make value decisions when benefits are known but not the price.