From the course: Predictive Analytics Essential Training: Data Mining

Unlock the full course today

Join today to access over 24,000 courses taught by industry experts.

Evaluate a project's potential with business metrics and ROI

Evaluate a project's potential with business metrics and ROI

From the course: Predictive Analytics Essential Training: Data Mining

Start my 1-month free trial Buy for my team

Evaluate a project's potential with business metrics and ROI

“

- [Instructor] From the very start of these projects, you should be able to identify how you're going to gain from the project. So it might seem somewhat controversial, but I don't think overly so, to establish an equivalence. To call it a data mining project, you must eventually deploy. Only when you deploy and incorporate the model into the routine of the business can you start to generate value. In other words, you have to intend to use the model when you're done. This leads us to our next element. You need to identify and define a measurable benefit. If you've done a good job framing the problem in terms of a micro decision, then this step will make a lot of sense. You have to ask the following question, how much do I gain, in each individual case, when I make a correct prediction and my intervention strategy works? We don't make models merely to make predictions, but to benefit from those predictions in…

Contents