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

New Approach for Market Intelligence Using Artificial and Computational Intelligence

Small and medium sized retailers are central to the private sector and a vital contributor to economic growth, but often they face enormous challenges in unleashing their full potential. Financial pitfalls, lack of adequate access to markets, and difficulties in exploiting technology have prevented them from achieving optimal productivity. Market Intelligence (MI) is the knowledge extracted from numerous internal and external data sources, aimed at providing a holistic view of the state of the market and influence marketing related decision-making processes in real-time. A related, burgeoning phenomenon and crucial topic in the field of marketing is Artificial Intelligence (AI) that entails fundamental changes to the skillssets marketers require. A vast amount of knowledge is stored in retailers’ point-of-sales databases. The format of this data often makes the knowledge they store hard to access and identify. As a powerful AI technique, Association Rules Mining helps to identify frequently associated patterns stored in large databases to predict customers’ shopping journeys. Consequently, the method has emerged as the key driver of cross-selling and upselling in the retail industry. At the core of this approach is the Market Basket Analysis that captures knowledge from heterogeneous customer shopping patterns and examines the effects of marketing initiatives. Apriori, that enumerates frequent itemsets purchased together (as market baskets), is the central algorithm in the analysis process. Problems occur, as Apriori lacks computational speed and has weaknesses in providing intelligent decision support. With the growth of simultaneous database scans, the computation cost increases and results in dramatically decreasing performance. Moreover, there are shortages in decision support, especially in the methods of finding rarely occurring events and identifying the brand trending popularity before it peaks. As the objective of this research is to find intelligent ways to assist small and medium sized retailers grow with MI strategy, we demonstrate the effects of AI, with algorithms in data preprocessing, market segmentation, and finding market trends. We show with a sales database of a small, local retailer how our Åbo algorithm increases mining performance and intelligence, as well as how it helps to extract valuable marketing insights to assess demand dynamics and product popularity trends. We also show how this results in commercial advantage and tangible return on investment. Additionally, an enhanced normal distribution method assists data pre-processing and helps to explore different types of potential anomalies.Små och medelstora detaljhandlare är centrala aktörer i den privata sektorn och bidrar starkt till den ekonomiska tillväxten, men de möter ofta enorma utmaningar i att uppnå sin fulla potential. Finansiella svårigheter, brist på marknadstillträde och svårigheter att utnyttja teknologi har ofta hindrat dem från att nå optimal produktivitet. Marknadsintelligens (MI) består av kunskap som samlats in från olika interna externa källor av data och som syftar till att erbjuda en helhetssyn av marknadsläget samt möjliggöra beslutsfattande i realtid. Ett relaterat och växande fenomen, samt ett viktigt tema inom marknadsföring är artificiell intelligens (AI) som ställer nya krav på marknadsförarnas färdigheter. Enorma mängder kunskap finns sparade i databaser av transaktioner samlade från detaljhandlarnas försäljningsplatser. Ändå är formatet på dessa data ofta sådant att det inte är lätt att tillgå och utnyttja kunskapen. Som AI-verktyg erbjuder affinitetsanalys en effektiv teknik för att identifiera upprepade mönster som statistiska associationer i data lagrade i stora försäljningsdatabaser. De hittade mönstren kan sedan utnyttjas som regler som förutser kundernas köpbeteende. I detaljhandel har affinitetsanalys blivit en nyckelfaktor bakom kors- och uppförsäljning. Som den centrala metoden i denna process fungerar marknadskorgsanalys som fångar upp kunskap från de heterogena köpbeteendena i data och hjälper till att utreda hur effektiva marknadsföringsplaner är. Apriori, som räknar upp de vanligt förekommande produktkombinationerna som köps tillsammans (marknadskorgen), är den centrala algoritmen i analysprocessen. Trots detta har Apriori brister som algoritm gällande låg beräkningshastighet och svag intelligens. När antalet parallella databassökningar stiger, ökar också beräkningskostnaden, vilket har negativa effekter på prestanda. Dessutom finns det brister i beslutstödet, speciellt gällande metoder att hitta sällan förekommande produktkombinationer, och i att identifiera ökande popularitet av varumärken från trenddata och utnyttja det innan det når sin höjdpunkt. Eftersom målet för denna forskning är att hjälpa små och medelstora detaljhandlare att växa med hjälp av MI-strategier, demonstreras effekter av AI med hjälp av algoritmer i förberedelsen av data, marknadssegmentering och trendanalys. Med hjälp av försäljningsdata från en liten, lokal detaljhandlare visar vi hur Åbo-algoritmen ökar prestanda och intelligens i datautvinningsprocessen och hjälper till att avslöja värdefulla insikter för marknadsföring, framför allt gällande dynamiken i efterfrågan och trender i populariteten av produkterna. Ytterligare visas hur detta resulterar i kommersiella fördelar och konkret avkastning på investering. Dessutom hjälper den utvidgade normalfördelningsmetoden i förberedelsen av data och med att hitta olika slags anomalier

PROJEKTOWANIE SYSTEMÓW ANALIZY DANYCH DO AUTOMATYZACJI PROCESÓW BIZNESOWYCH

The paper deals with the design of data analysis systems for business process automation. The main goal of the project is to develop an innovative system for analyzing multisource data, business data mining processes, and as a result the creation and sharing of new improved procedures and solutions.Artykuł dotyczy projektowania systemów analizy danych do automatyzacji procesów biznesowych. Głównym celem projektu jest opracowanie innowacyjnego systemu do analizy danych wieloźródłowych, procesów eksploracji danych biznesowych, a co za tym idzie tworzenie i udostępnianie nowych ulepszonych procedur i rozwiązań

Aplicação de técnicas de Clustering ao contexto da Tomada de Decisão em Grupo

Nowadays, decisions made by executives and managers are primarily made in a group. Therefore, group decision-making is a process where a group of people called participants work together to analyze a set of variables, considering and evaluating a set of alternatives to select one or more solutions. There are many problems associated with group decision-making, namely when the participants cannot meet for any reason, ranging from schedule incompatibility to being in different countries with different time zones. To support this process, Group Decision Support Systems (GDSS) evolved to what today we call web-based GDSS. In GDSS, argumentation is ideal since it makes it easier to use justifications and explanations in interactions between decision-makers so they can sustain their opinions. Aspect Based Sentiment Analysis (ABSA) is a subfield of Argument Mining closely related to Natural Language Processing. It intends to classify opinions at the aspect level and identify the elements of an opinion. Applying ABSA techniques to Group Decision Making Context results in the automatic identification of alternatives and criteria, for example. This automatic identification is essential to reduce the time decision-makers take to step themselves up on Group Decision Support Systems and offer them various insights and knowledge on the discussion they are participants. One of these insights can be arguments getting used by the decision-makers about an alternative. Therefore, this dissertation proposes a methodology that uses an unsupervised technique, Clustering, and aims to segment the participants of a discussion based on arguments used so it can produce knowledge from the current information in the GDSS. This methodology can be hosted in a web service that follows a micro-service architecture and utilizes Data Preprocessing and Intra-sentence Segmentation in addition to Clustering to achieve the objectives of the dissertation. Word Embedding is needed when we apply clustering techniques to natural language text to transform the natural language text into vectors usable by the clustering techniques. In addition to Word Embedding, Dimensionality Reduction techniques were tested to improve the results. Maintaining the same Preprocessing steps and varying the chosen Clustering techniques, Word Embedders, and Dimensionality Reduction techniques came up with the best approach. This approach consisted of the KMeans++ clustering technique, using SBERT as the word embedder with UMAP dimensionality reduction, reducing the number of dimensions to 2. This experiment achieved a Silhouette Score of 0.63 with 8 clusters on the baseball dataset, which wielded good cluster results based on their manual review and Wordclouds. The same approach obtained a Silhouette Score of 0.59 with 16 clusters on the car brand dataset, which we used as an approach validation dataset.Atualmente, as decisões tomadas por gestores e executivos são maioritariamente realizadas em grupo. Sendo assim, a tomada de decisão em grupo é um processo no qual um grupo de pessoas denominadas de participantes, atuam em conjunto, analisando um conjunto de variáveis, considerando e avaliando um conjunto de alternativas com o objetivo de selecionar uma ou mais soluções. Existem muitos problemas associados ao processo de tomada de decisão, principalmente quando os participantes não têm possibilidades de se reunirem (Exs.: Os participantes encontramse em diferentes locais, os países onde estão têm fusos horários diferentes, incompatibilidades de agenda, etc.). Para suportar este processo de tomada de decisão, os Sistemas de Apoio à Tomada de Decisão em Grupo (SADG) evoluíram para o que hoje se chamam de Sistemas de Apoio à Tomada de Decisão em Grupo baseados na Web. Num SADG, argumentação é ideal pois facilita a utilização de justificações e explicações nas interações entre decisores para que possam suster as suas opiniões. Aspect Based Sentiment Analysis (ABSA) é uma área de Argument Mining correlacionada com o Processamento de Linguagem Natural. Esta área pretende classificar opiniões ao nível do aspeto da frase e identificar os elementos de uma opinião. Aplicando técnicas de ABSA à Tomada de Decisão em Grupo resulta na identificação automática de alternativas e critérios por exemplo. Esta identificação automática é essencial para reduzir o tempo que os decisores gastam a customizarem-se no SADG e oferece aos mesmos conhecimento e entendimentos sobre a discussão ao qual participam. Um destes entendimentos pode ser os argumentos a serem usados pelos decisores sobre uma alternativa. Assim, esta dissertação propõe uma metodologia que utiliza uma técnica não-supervisionada, Clustering, com o objetivo de segmentar os participantes de uma discussão com base nos argumentos usados pelos mesmos de modo a produzir conhecimento com a informação atual no SADG. Esta metodologia pode ser colocada num serviço web que segue a arquitetura micro serviços e utiliza Preprocessamento de Dados e Segmentação Intra Frase em conjunto com o Clustering para atingir os objetivos desta dissertação. Word Embedding também é necessário para aplicar técnicas de Clustering a texto em linguagem natural para transformar o texto em vetores que possam ser usados pelas técnicas de Clustering. Também Técnicas de Redução de Dimensionalidade também foram testadas de modo a melhorar os resultados. Mantendo os passos de Preprocessamento e variando as técnicas de Clustering, Word Embedder e as técnicas de Redução de Dimensionalidade de modo a encontrar a melhor abordagem. Essa abordagem consiste na utilização da técnica de Clustering KMeans++ com o SBERT como Word Embedder e UMAP como a técnica de redução de dimensionalidade, reduzindo as dimensões iniciais para duas. Esta experiência obteve um Silhouette Score de 0.63 com 8 clusters no dataset de baseball, que resultou em bons resultados de cluster com base na sua revisão manual e visualização dos WordClouds. A mesma abordagem obteve um Silhouette Score de 0.59 com 16 clusters no dataset das marcas de carros, ao qual usamos esse dataset com validação de abordagem

Artificial Intelligence, Social Media and Supply Chain Management: The Way Forward

Supply chain management (SCM) is a complex network of multiple entities ranging from business partners to end consumers. These stakeholders frequently use social media platforms, such as Twitter and Facebook, to voice their opinions and concerns. AI-based applications, such as sentiment analysis, allow us to extract relevant information from these deliberations. We argue that the context-specific application of AI, compared to generic approaches, is more efficient in retrieving meaningful insights from social media data for SCM. We present a conceptual overview of prevalent techniques and available resources for information extraction. Subsequently, we have identified specific areas of SCM where context-aware sentiment analysis can enhance the overall efficiency

Artificial Intelligence in Banking Industry: A Review on Fraud Detection, Credit Management, and Document Processing

AI is likely to alter the banking industry during the next several years. It is progressively being utilized by banks for analyzing and executing credit applications and examining vast volumes of data. This helps to avoid fraud and enables resource-heavy, repetitive procedures and client operations to be automated without any sacrifice in quality. This study reviews how the three most promising AI applications can make the banking sector robust and efficient. Specifically, we review AI fraud detection and prevention, AI credit management, and intelligent document processing. Since the majority of transactions have become digital, there is a great need for enhanced fraud detection algorithms and fraud prevention systems in banking. We argued that the conventional strategy for identifying bank fraud may be inadequate to combat complex fraudulent activity. Instead, artificial intelligence algorithms might be very useful.  Credit management is time-consuming and expensive in terms of resources. Furthermore, because of the number of phases involved, these processes need a significant amount of work involving many laborious tasks. Banks can assess new clients for credit services, calculate loan amounts and pricing, and decrease the risk of fraud by using strong AA/ML models to assess these large and varied data sets in real-time. Documents perform critical functions in the financial system and have a substantial influence on day-to-day operations. Currently, a large percentage of this data is preserved in email messages, online forms, PDFs, scanned images, and other digital formats. Using such a massive dataset is a difficult undertaking for any bank. We discuss how the artificial intelligence techniques that automatically pull critical data from all documents received by the bank, regardless of format, and feed it to the bank's existing portals/systems while maintaining consistency

Conceptual modeling for the design of intelligent and emergent information systems

A key requirement to today's fast changing economic environment is the ability of organizations to adapt dynamically in an effective and efficient manner. Information and Communication Technologies play a crucially important role in addressing such adaptation requirements. The notion of `intelligent software' has emerged as a means by which enterprises can respond to changes in a reactive manner but also to explore, in a pro-active manner, possibilities for new business models. The development of such software systems demands analysis, design and implementation paradigms that recognize the need for ‘co-development’ of these systems with enterprise goals, processes and capabilities. The work presented in this paper is motivated by this need and to this end it proposes a paradigm that recognizes co-development as a knowledge-based activity. The proposed solution is based on a multi-perspective modeling approach that involves (i) modeling key aspects of the enterprise, (ii) reasoning about design choices and (iii) supporting strategic decision-making through simulations. The utility of the approach is demonstrated though a case study in the field of marketing for a start-up company