Big Data Mining

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Predictive Analytics, Data Mining and Big Data

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9781137379276_01_prexii.indd i 5/12/2014 8:52:45 PM5/12/2014 8:52:45 PM 10.1057/9781137379283 - Predictive Analytics, Data Mining and Big Data, Steven Finlay

Cop yright material fr om www .palgra veconnect.com - licensed to npg - P algra veConnect - 2016-02-17

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10.1057/9781137379283 - Predictive Analytics, Data Mining and Big Data, Steven Finlay

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Predictive Analytics,

Data Mining and

Big Data

Myths, Misconceptions and Methods

Steven Finlay

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9781137379276_01_prexii.indd iii 5/12/2014 8:52:45 PM5/12/2014 8:52:45 PM 10.1057/9781137379283 - Predictive Analytics, Data Mining and Big Data, Steven Finlay

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No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS.

Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2014 by

PALGRAVE MACMILLAN

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ISBN 978–1–137–37927–6

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To Ruby and Samantha

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vii

Figures and Tables x Acknowledgments xii

1 Introduction 1

1.1 What are data mining and predictive analytics? 2 1.2 How good are models at predicting behavior? 6 1.3 What are the beneﬁ ts of predictive models? 7 1.4 Applications of predictive analytics 9

1.5 Reaping the beneﬁ ts, avoiding the pitfalls 11 1.6 What is Big Data? 13

1.7 How much value does Big Data add? 16 1.8 The rest of the book 19

2 Using Predictive Models 21

2.1 What are your objectives? 22 2.2 Decision making 23

2.3 The next challenge 31 2.4 Discussion 34

2.5 Override rules (business rules) 36

3 Analytics, Organization and Culture 39

3.1 Embedded analytics 40 3.2 Learning from failure 42 3.3 A lack of motivation 43 3.4 A slight misunderstanding 45 3.5 Predictive, but not precise 50 3.6 Great expectations 52

3.7 Understanding cultural resistance to predictive analytics 54 3.8 The impact of predictive analytics 60

Big Data Mining

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Predictive Analytics,

Data Mining and

Big Data

Myths, Misconceptions and Methods

Steven Finlay

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Contents