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Business Understanding

- Business Understanding Overview

Explore what your organization expects to gain from data mining. Try to involve as many key people as possible in these discussions and document the results. The final step of this CRISP-DM phase discusses how to produce a project plan using the information gathered here. This step helps to ensure that everyone is on the same page before expending valuable resources.

- Determining Business Objectives

Your first task is to try to gain as much insight as possible into the business goals for data mining. This step can minimize later risk by clarifying problems, goals, and resources. The CRISP-DM methodology provides a structured way for you to accomplish this.

  1. Start gathering background information about the current business situation.
  2. Document specific business objectives decided upon by key decision makers.
  3. Agree upon criteria used to determine data mining success from a business perspective.

- Assessing the Situation

You have to make an assessment of where you are right now. This step involves asking questions such as:

  1. What sort of data are available for analysis?
  2. Do you have the personnel needed to complete the project?
  3. What are the biggest risk factors involved?
  4. Do you have a contingency plan for each risk?

- Determining Data Mining Goals

Now that the business goal is clear, it's time to translate it into a data mining reality. For example, the business objective to "reduce churn" can be translated into a data mining goal that includes:

  1. Identifying high-value customers based on recent purchase data
  2. Building a model using available customer data to predict the likelihood of churn for each customer
  3. Assigning each customer a rank based on both churn propensity and customer value

These data mining goals, if met, can then be used by the business to reduce churn among the most valuable customers. As you can see, business and technology must work hand-in-hand for effective data mining. Read on for specific tips on how to determine data mining goals.

- Producing a Project Plan

At this point, you're ready to produce a plan for the data mining project. The questions you have asked so far and the business and data mining goals you have formulated will form the basis for this road map.

Reference

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