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Simple ideas and insights that could make a huge difference to a business often go unnoticed for
years. It's usually a matter of "not seeing the wood for the trees", or in today's complex business
world, "not seeing the information for the data".
Data mining allows companies to explore data and surface nuggets of valuable information that might otherwise remain hidden. It's a form of statistical analysis that is increasingly used by organisations to understand their customers, help develop new products, meet quality targets, forecast trends and generally analyse business activities. Very different organisations such as Telstra, HBOS plc, and Trigon Blue Cross Blue Shield have all used data mining to make significant improvements in their business. In each case data mining has highlighted efficiencies and new ways of doing business that would have otherwise been missed. For example, Trigon Blue Cross Blue Shield in the US uses data mining to identify early indicators of disease. This enables healthcare professionals to intervene before the patient becomes seriously ill. According to the U.S. Health Care Financing Administration, early identification and subsequent care management can reduce the need to go into hospital by 50 percent and cut healthcare costs by 35 percent. Given that a mere one percent of patients currently account for nearly a quarter of all healthcare costs, early intervention can also significantly reduce the cost burden on Trigon's policyholders. Data mining enables Trigon to identify "at risk" patients very early on. Previously the company had relied on standard procedures to identify those patients most in need of care, which meant they missed about 80 percent of cases. The reason is that many early indictors of serious conditions go unnoticed when viewed in isolation. Now data mining helps Trigon's analysts to identify the most relevant variables and identify those patients most at risk of developing chronic conditions. For example the disease management programme for high-risk asthma patients has reduced emergency room visits by 84 percent and inpatient admissions by 28 percent. The programme for congestive heart failure has reduced emergency room visits by 38 percent and inpatient admissions by 43 percent. Data mining has therefore helped Trigon to increase the quality of life immeasurably for many of its patients while saving millions of dollars in hospital costs. Healthcare is just one business area where data mining can make a big difference. If you would like to know how to use advanced analytical approaches like text and data mining in your company, we're running a Data Mining Showcase in Marlow on the 25 June. For further information on SAS Data Mining: http://www.sas.com/technologies/analytics/datamining/ Click here for an Information Pack on SAS Data Mining.
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