15,696 research outputs found
Integrating E-Commerce and Data Mining: Architecture and Challenges
We show that the e-commerce domain can provide all the right ingredients for
successful data mining and claim that it is a killer domain for data mining. We
describe an integrated architecture, based on our expe-rience at Blue Martini
Software, for supporting this integration. The architecture can dramatically
reduce the pre-processing, cleaning, and data understanding effort often
documented to take 80% of the time in knowledge discovery projects. We
emphasize the need for data collection at the application server layer (not the
web server) in order to support logging of data and metadata that is essential
to the discovery process. We describe the data transformation bridges required
from the transaction processing systems and customer event streams (e.g.,
clickstreams) to the data warehouse. We detail the mining workbench, which
needs to provide multiple views of the data through reporting, data mining
algorithms, visualization, and OLAP. We con-clude with a set of challenges.Comment: KDD workshop: WebKDD 200
Hidden gems and borrowers with dirty little secrets: investment in soft information, borrower self-selection and competition
This paper empirically examines the role of soft information in the competitive interaction between relationship and transaction banks. Soft information can be interpreted as a private signal about the quality of a firm that is observable to a relationship bank, but not to a transaction bank. We show that borrowers self-select to relationship banks depending on whether their privately observed soft information is positive or negative. Competition affects the investment in learning the private signal from firms by relationship banks and transaction banks asymmetrically. Relationship banks invest more; transaction banks invest less in soft information, exacerbating the selection effect. Finally, we show that firms where soft information was important in the lending decision were no more likely to default compared to firms where only financial information was used
Data Mining in Electronic Commerce
Modern business is rushing toward e-commerce. If the transition is done
properly, it enables better management, new services, lower transaction costs
and better customer relations. Success depends on skilled information
technologists, among whom are statisticians. This paper focuses on some of the
contributions that statisticians are making to help change the business world,
especially through the development and application of data mining methods. This
is a very large area, and the topics we cover are chosen to avoid overlap with
other papers in this special issue, as well as to respect the limitations of
our expertise. Inevitably, electronic commerce has raised and is raising fresh
research problems in a very wide range of statistical areas, and we try to
emphasize those challenges.Comment: Published at http://dx.doi.org/10.1214/088342306000000204 in the
Statistical Science (http://www.imstat.org/sts/) by the Institute of
Mathematical Statistics (http://www.imstat.org
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