78 research outputs found

    Predictive Modelling of Retail Banking Transactions for Credit Scoring, Cross-Selling and Payment Pattern Discovery

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    Evaluating transactional payment behaviour offers a competitive advantage in the modern payment ecosystem, not only for confirming the presence of good credit applicants or unlocking the cross-selling potential between the respective product and service portfolios of financial institutions, but also to rule out bad credit applicants precisely in transactional payments streams. In a diagnostic test for analysing the payment behaviour, I have used a hybrid approach comprising a combination of supervised and unsupervised learning algorithms to discover behavioural patterns. Supervised learning algorithms can compute a range of credit scores and cross-sell candidates, although the applied methods only discover limited behavioural patterns across the payment streams. Moreover, the performance of the applied supervised learning algorithms varies across the different data models and their optimisation is inversely related to the pre-processed dataset. Subsequently, the research experiments conducted suggest that the Two-Class Decision Forest is an effective algorithm to determine both the cross-sell candidates and creditworthiness of their customers. In addition, a deep-learning model using neural network has been considered with a meaningful interpretation of future payment behaviour through categorised payment transactions, in particular by providing additional deep insights through graph-based visualisations. However, the research shows that unsupervised learning algorithms play a central role in evaluating the transactional payment behaviour of customers to discover associations using market basket analysis based on previous payment transactions, finding the frequent transactions categories, and developing interesting rules when each transaction category is performed on the same payment stream. Current research also reveals that the transactional payment behaviour analysis is multifaceted in the financial industry for assessing the diagnostic ability of promotion candidates and classifying bad credit applicants from among the entire customer base. The developed predictive models can also be commonly used to estimate the credit risk of any credit applicant based on his/her transactional payment behaviour profile, combined with deep insights from the categorised payment transactions analysis. The research study provides a full review of the performance characteristic results from different developed data models. Thus, the demonstrated data science approach is a possible proof of how machine learning models can be turned into cost-sensitive data models

    Characterisation of business documents: an approach to the automation of quality assessment

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    This thesis explores a new approach to automatic characterisation of business documents of different levels of document effectiveness. Supervised text categorisation techniques are used to derive text features that characterise a specific type of business document in accordance with pre-assigned levels of document utility. The documents in question are the executive summary sections of a representative sample of sales proposal documents. The executive summaries are first rated by domain experts against a quality framework comprising pre-selected dimensions of document quality. An automatic analysis of the texts shows that certain words, word sequences, and patterns of words have the capacity to discriminate between executive summaries of varying levels of document effectiveness. Function words, which are frequently ignored in many text classification tasks, are retained and are shown to provide an important element of the word patterns. Automatic text classifiers that utilise these features are shown to categorise previously unseen executive summaries at an acceptable level of classification performance. The outcomes of the research are applied to the development of a new computer application. The application identifies, in the text of a new executive summary, word patterns that discriminate between sets of summaries previously categorised into different levels of document utility. The action of highlighting the respective categories of discriminating word patterns directs authors to areas of text that may need further attention. A trial of a prototype of the application suggests that it provides an effective way to help sales professionals improve the content and quality of the text of this type of business document. Moreover, as the approach is suitably generic, it could be applied to different types of document in different domains

    IoT and Sensor Networks in Industry and Society

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    The exponential progress of Information and Communication Technology (ICT) is one of the main elements that fueled the acceleration of the globalization pace. Internet of Things (IoT), Artificial Intelligence (AI) and big data analytics are some of the key players of the digital transformation that is affecting every aspect of human's daily life, from environmental monitoring to healthcare systems, from production processes to social interactions. In less than 20 years, people's everyday life has been revolutionized, and concepts such as Smart Home, Smart Grid and Smart City have become familiar also to non-technical users. The integration of embedded systems, ubiquitous Internet access, and Machine-to-Machine (M2M) communications have paved the way for paradigms such as IoT and Cyber Physical Systems (CPS) to be also introduced in high-requirement environments such as those related to industrial processes, under the forms of Industrial Internet of Things (IIoT or I2oT) and Cyber-Physical Production Systems (CPPS). As a consequence, in 2011 the German High-Tech Strategy 2020 Action Plan for Germany first envisioned the concept of Industry 4.0, which is rapidly reshaping traditional industrial processes. The term refers to the promise to be the fourth industrial revolution. Indeed, the first industrial revolution was triggered by water and steam power. Electricity and assembly lines enabled mass production in the second industrial revolution. In the third industrial revolution, the introduction of control automation and Programmable Logic Controllers (PLCs) gave a boost to factory production. As opposed to the previous revolutions, Industry 4.0 takes advantage of Internet access, M2M communications, and deep learning not only to improve production efficiency but also to enable the so-called mass customization, i.e. the mass production of personalized products by means of modularized product design and flexible processes. Less than five years later, in January 2016, the Japanese 5th Science and Technology Basic Plan took a further step by introducing the concept of Super Smart Society or Society 5.0. According to this vision, in the upcoming future, scientific and technological innovation will guide our society into the next social revolution after the hunter-gatherer, agrarian, industrial, and information eras, which respectively represented the previous social revolutions. Society 5.0 is a human-centered society that fosters the simultaneous achievement of economic, environmental and social objectives, to ensure a high quality of life to all citizens. This information-enabled revolution aims to tackle today’s major challenges such as an ageing population, social inequalities, depopulation and constraints related to energy and the environment. Accordingly, the citizens will be experiencing impressive transformations into every aspect of their daily lives. This book offers an insight into the key technologies that are going to shape the future of industry and society. It is subdivided into five parts: the I Part presents a horizontal view of the main enabling technologies, whereas the II-V Parts offer a vertical perspective on four different environments. The I Part, dedicated to IoT and Sensor Network architectures, encompasses three Chapters. In Chapter 1, Peruzzi and Pozzebon analyse the literature on the subject of energy harvesting solutions for IoT monitoring systems and architectures based on Low-Power Wireless Area Networks (LPWAN). The Chapter does not limit the discussion to Long Range Wise Area Network (LoRaWAN), SigFox and Narrowband-IoT (NB-IoT) communication protocols, but it also includes other relevant solutions such as DASH7 and Long Term Evolution MAchine Type Communication (LTE-M). In Chapter 2, Hussein et al. discuss the development of an Internet of Things message protocol that supports multi-topic messaging. The Chapter further presents the implementation of a platform, which integrates the proposed communication protocol, based on Real Time Operating System. In Chapter 3, Li et al. investigate the heterogeneous task scheduling problem for data-intensive scenarios, to reduce the global task execution time, and consequently reducing data centers' energy consumption. The proposed approach aims to maximize the efficiency by comparing the cost between remote task execution and data migration. The II Part is dedicated to Industry 4.0, and includes two Chapters. In Chapter 4, Grecuccio et al. propose a solution to integrate IoT devices by leveraging a blockchain-enabled gateway based on Ethereum, so that they do not need to rely on centralized intermediaries and third-party services. As it is better explained in the paper, where the performance is evaluated in a food-chain traceability application, this solution is particularly beneficial in Industry 4.0 domains. Chapter 5, by De Fazio et al., addresses the issue of safety in workplaces by presenting a smart garment that integrates several low-power sensors to monitor environmental and biophysical parameters. This enables the detection of dangerous situations, so as to prevent or at least reduce the consequences of workers accidents. The III Part is made of two Chapters based on the topic of Smart Buildings. In Chapter 6, Petroșanu et al. review the literature about recent developments in the smart building sector, related to the use of supervised and unsupervised machine learning models of sensory data. The Chapter poses particular attention on enhanced sensing, energy efficiency, and optimal building management. In Chapter 7, Oh examines how much the education of prosumers about their energy consumption habits affects power consumption reduction and encourages energy conservation, sustainable living, and behavioral change, in residential environments. In this Chapter, energy consumption monitoring is made possible thanks to the use of smart plugs. Smart Transport is the subject of the IV Part, including three Chapters. In Chapter 8, Roveri et al. propose an approach that leverages the small world theory to control swarms of vehicles connected through Vehicle-to-Vehicle (V2V) communication protocols. Indeed, considering a queue dominated by short-range car-following dynamics, the Chapter demonstrates that safety and security are increased by the introduction of a few selected random long-range communications. In Chapter 9, Nitti et al. present a real time system to observe and analyze public transport passengers' mobility by tracking them throughout their journey on public transport vehicles. The system is based on the detection of the active Wi-Fi interfaces, through the analysis of Wi-Fi probe requests. In Chapter 10, Miler et al. discuss the development of a tool for the analysis and comparison of efficiency indicated by the integrated IT systems in the operational activities undertaken by Road Transport Enterprises (RTEs). The authors of this Chapter further provide a holistic evaluation of efficiency of telematics systems in RTE operational management. The book ends with the two Chapters of the V Part on Smart Environmental Monitoring. In Chapter 11, He et al. propose a Sea Surface Temperature Prediction (SSTP) model based on time-series similarity measure, multiple pattern learning and parameter optimization. In this strategy, the optimal parameters are determined by means of an improved Particle Swarm Optimization method. In Chapter 12, Tsipis et al. present a low-cost, WSN-based IoT system that seamlessly embeds a three-layered cloud/fog computing architecture, suitable for facilitating smart agricultural applications, especially those related to wildfire monitoring. We wish to thank all the authors that contributed to this book for their efforts. We express our gratitude to all reviewers for the volunteering support and precious feedback during the review process. We hope that this book provides valuable information and spurs meaningful discussion among researchers, engineers, businesspeople, and other experts about the role of new technologies into industry and society

    A conceptual framework for the direct marketing process using business intelligence

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    Direct marketing is becoming a key strategy for organisations to develop and maintain strong customer relationships. This method targets specific customers with personalised advertising and promotional campaigns in order to help organisations increase campaign responses and to get a higher return on their investments. There are, however, many issues related to direct marketing, ranging from the highly technical to the more organisational and managerial aspects. This research focuses on the organisational and managerial issues of the direct marketing process and investigates the stages, activities and technologies required to effectively execute direct marketing. The direct marketing process integrates a complex collection of marketing concepts and business analytics principles, which form an entirely ‘self-contained’ choice for organisations. This makes direct marketing a significantly difficult process to perform. As a result, many scholars have attempted to tackle the complexity of executing the direct marketing process. However, most of their research efforts did not consider an integrated information system platform capable of effectively supporting the direct marketing process. This research attempts to address the above issues by developing a conceptual framework for the Direct Marketing Process with Business Intelligence (DMP-BI). The conceptual framework is developed using the identified marketing concepts and business analytics principles for the direct marketing process. It also proposes Business Intelligence (BI) as an integrated information system platform to effectively execute the direct marketing process. In order to evaluate and illustrate the practicality and impact of the DMP-BI framework, this thesis adopts a case study approach. Three case studies have been carried out in different industries including retailing, telecommunication and higher education. The aim of the case studies is also to demonstrate the usage of the DMP-BI framework within an organisational context. Based on the case studies’ findings, this thesis compares the DMP-BI framework with existing rival methodologies. The comparisons provide clear indications of the DMP-BI framework’s benefits over existing rival methodologies.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

    A framework for knowledge discovery within business intelligence for decision support

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    Business Intelligence (BI) techniques provide the potential to not only efficiently manage but further analyse and apply the collected information in an effective manner. Benefiting from research both within industry and academia, BI provides functionality for accessing, cleansing, transforming, analysing and reporting organisational datasets. This provides further opportunities for the data to be explored and assist organisations in the discovery of correlations, trends and patterns that exist hidden within the data. This hidden information can be employed to provide an insight into opportunities to make an organisation more competitive by allowing manager to make more informed decisions and as a result, corporate resources optimally utilised. This potential insight provides organisations with an unrivalled opportunity to remain abreast of market trends. Consequently, BI techniques provide significant opportunity for integration with Decision Support Systems (DSS). The gap which was identified within the current body of knowledge and motivated this research, revealed that currently no suitable framework for BI, which can be applied at a meta-level and is therefore tool, technology and domain independent, currently exists. To address the identified gap this study proposes a meta-level framework: - ‘KDDS-BI’, which can be applied at an abstract level and therefore structure a BI investigation, irrespective of the end user. KDDS-BI not only facilitates the selection of suitable techniques for BI investigations, reducing the reliance upon ad-hoc investigative approaches which rely upon ‘trial and error’, yet further integrates Knowledge Management (KM) principles to ensure the retention and transfer of knowledge due to a structured approach to provide DSS that are based upon the principles of BI. In order to evaluate and validate the framework, KDDS-BI has been investigated through three distinct case studies. First KDDS-BI facilitates the integration of BI within ‘Direct Marketing’ to provide innovative solutions for analysis based upon the most suitable BI technique. Secondly, KDDS-BI is investigated within sales promotion, to facilitate the selection of tools and techniques for more focused in store marketing campaigns and increase revenue through the discovery of hidden data, and finally, operations management is analysed within a highly dynamic and unstructured environment of the London Underground Ltd. network through unique a BI solution to organise and manage resources, thereby increasing the efficiency of business processes. The three case studies provide insight into not only how KDDS-BI provides structure to the integration of BI within business process, but additionally the opportunity to analyse the performance of KDDS-BI within three independent environments for distinct purposes provided structure through KDDS-BI thereby validating and corroborating the proposed framework and adding value to business processes.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

    A survey of the application of soft computing to investment and financial trading

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    Essentials of Business Analytics

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