Safeway supermarkets carried over two dozen brands of orange juidce until they identified the eight best-sellers through AI technology. They now benefit from increased sales as well as reduced floor space, creating room for other products. MCI uses similar techniques to detect when a customer is about to leave. Once identified, MCI initiates marketing efforts to retain them - you may have experienced this first hand. McDonald's analyzes its menus, sales, profitability, and combinations of products at various price points to develop reliable predictive models.
Data mining reveals the tactical and strategic information hidden in large databases.
Many of the more publicized success stories involve data mining. Modeling and simulation tools enable organizations to diagram and analyze their current and future business and technical processes. Genetic algorithms, in conjunction with technologies such as neural networks, expert systems, fuzzy logic, simulated annealing, classical search, and optimization are transitioning from the research arena into commercial applications. This issue provides a technical look at data mining from methodology and data partitioning to predictions. Issuing Predictions and Revealing Unexpected Phenomena.