Put BW's Newly Enhanced Data-Mining Tools to Use

  • by Mark Heffernan, Managing Consultant, CRM and BW Business Development, SAP Asia
  • July 1, 2003
BW has built-in data-mining capability that lets you perform many types of customer analytics without having a full mySAP CRM implementation. Find out how BW's seven data-mining tools and their associated models can help you answer key questions about your customers.

Think of an aspect of your business where you feel cost could be minimized or revenue enhanced: the launch of a new product, more efficient and targeted marketing, understanding customer retention patterns over time, or pricing new or existing products. All present opportunities for data-mining analysis.

Data mining is useful to all industries. For example, improving the customer retention rate is a universal goal. Telecommunications companies call it “churn management;” banks call it “attrition management.” Weeding out bad or unprofitable customers is also a cross-industry challenge that can be addressed with data-mining tools. Data-mining tools are generally a set of specific algorithms that crunch large volumes of data to identify and present patterns in that data. They can, for example, help to answer these questions:

  • Which customers should have their loan/credit card application rejected?
  • Which customers should be offered different payment terms?
  • Who should wait on hold the longest?

SAP has delivered a set of data-mining tools with BW since Release 2.1C, Support Pack 08. These tools are underused and almost unknown. What follows is an overview of the available BW data-mining tools followed by two real-world examples of how I put two of them—Decision Trees and Scoring—to use.

Mark Heffernan

Mark Heffernan is a managing consultant in the CRM and BI Business Development division of SAP Asia. Mark is responsible for the implementation of mySAP CRM and BW across all industry sectors and countries in Asia, participating in key implementation projects such as Sony Playstation.com, Samsung Electronics, and Unilever. Before joining SAP, Mark worked in Andersen Consulting’s (now Accenture) SAP Core Group as a process and change management consultant in SAP implementation projects.

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