IEG 201402 ABIBA WAR with R
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ABIBA:
WAR with R
Dr Jay B Simha
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Advanced Business Intelligence and Business Analytics
WAR with RPower of open source!!
Jay B.Simha
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An year of active research in Artificial Intelligence is sufficient for any body to believe in god
Alan J.PerlisMIT – AI genius
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Why Analytics?
Creativity Risk
Opportunity LossDomain Experts
Knowledge Competence
Know
ledg
e Po
tent
ial
Unk
now
nKn
own
UnknownKnown
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What is WAR?
ACQUIRE
WALLET SHARE RETENTION
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Types of Analysis required
Profiling • Who are my customers? Where they live? • How is the responder’s concentration,?• What behavioral similarity is there in segments?
Diagnostics• What makes some thing to happen? • What caused a particular effect?
Predictive• Who will respond to my next offer?• Who will not recharge next month and why?
Prescriptive• What is the best offer for a group of customers?• Which is the best campaign for this customer
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How R can be used?
ACQUIRE
WALLET SHARE RETENTION
Decision tree/SVMSOM/K-means models/Random forests
SOM/K-means models
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WAR Applications
Acquisition Retention Wallet Share
Telecom × × ×Retail × × ×Banking × ×Insurance × × ×Hospitality × × ×Education × ×
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Methods for Madness
SEMMA
CRISP DM
KDD
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A KISS approach for modeling
+SEMMA
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What tools are needed with R
RWeka
Free Community Edition
Rule based scoring
Build any whereScore anywhere
The new lord Ganesha!!
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Acquisition process
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Acquisition process
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Acquisition
Build model on this
Test model on this
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Acquisition
K-means clusteringSelf Organizing Maps
Exploratory Methods
Cross tabs/Pivots
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Acquisition – Simulated data
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Acquisition - SOM
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Acquisition – SOM visualization
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Acquisition - Kmeans
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Acquisition - Kmeans
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Acquisition – Kmeans visualization
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Acquisition – Kmeans visualization
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Retention
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Retention
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Retention
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Retention
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Retention
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Retention
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Wallet Share (X-Sell)
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Take away
• Data modeling and preprocessing is most important
• All models are not equal• Few techniques are enough for WAR modeling• R and its friends are more than sufficient for
most of the cases• Analytics is fun..Enjoy
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Take away
• Thanks to all people whom I can not thank individually who shared their expertise, slides, data and comments
• All mistakes are mine, if you find any, in this talk or preso
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