1.

Discuss the role of data mining techniques and data visualization in e commerce
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visualization/)
Data Mining

Data mining is looking for hidden, valid, and potentially useful patterns in huge data sets.
Data Mining is all about discovering unsuspected/ previously unknown relationships amongst
the data. It is a multi-disciplinary skill that uses machine learning, statistics, AI and database
technology. The insights derived via Data Mining can be used for marketing, fraud detection,
and scientific discovery, etc. Data mining is also called as Knowledge discovery, Knowledge
extraction, data/pattern analysis, information harvesting, etc.

Data Mining Techniques

 1. Classification: This analysis is used to retrieve important and relevant
information about data, and metadata. This data mining method helps to classify
data in different classes.

2. Clustering: Clustering analysis is a data mining technique to identify data that

are like each other. This process helps to understand the differences and
similarities between the data.

3. Regression: Regression analysis is the data mining method of identifying and

analyzing the relationship between variables. It is used to identify the likelihood of a
specific variable, given the presence of other variables.

4. Association Rules: This data mining technique helps to find the association between
two or more Items. It discovers a hidden pattern in the data set.

5. Outer detection: This type of data mining technique refers to observation of data items
in the dataset which do not match an expected pattern or expected behavior. This
technique can be used in a variety of domains, such as intrusion, detection, fraud or
fault detection, etc. Outer detection is also called Outlier Analysis or Outlier mining.

6. Sequential Patterns: This data mining technique helps to discover or identify similar
patterns or trends in transaction data for certain period.

7. Prediction: Prediction has used a combination of the other data mining techniques like
trends, sequential patterns, clustering, classification, etc. It analyzes past events or
instances in a right sequence for predicting a future event.
Techniques used in Data Mining
The most commonly used techniques in data mining are:
 Artificial neural networks: Non-linear predictive models that learn through training
and resemble biological neural networks in structure.
 Decision trees: Tree-shaped structures that represent sets of decisions. These
decisions generate rules for the classification of a dataset. Specific decision tree
methods include Classification and Regression Trees (CART) and Chi Square
Automatic Interaction Detection (CHAID) .
 Genetic algorithms: Optimization techniques that use processes such as genetic
combination, mutation, and natural selection in a design based on the concepts of
evolution.
  Nearest neighbour method: A technique that classifies each record in a dataset based
on a combination of the classes of the k record(s) most similar to it in a historical
dataset (where k ³ 1). Sometimes called the k-nearest neighbour technique.
 Rule induction: The extraction of useful if-then rules from data based on statistical
significance.
Many of these technologies have been in use for more than a decade in specialized analysis
tools that work with relatively small volumes of data. These capabilities are now evolving to
integrate directly with industry-standard data warehouse and OLAP platforms.

Benefits of Data Mining:

 Data mining technique helps companies to get knowledge-based information.

 Data mining helps organizations to make the profitable adjustments in operation and
production.
 The data mining is a cost-effective and efficient solution compared to other statistical
data applications.
 Data mining helps with the decision-making process.
 Facilitates automated prediction of trends and behaviors as well as automated
discovery of hidden patterns.
 It can be implemented in new systems as well as existing platforms
 It is the speedy process which makes it easy for the users to analyze huge amount of
data in less time.

The most important elements that a good e-commerce web site should have are:

 A well-organized collection of products and/or services

 A convenient way for a customer to select products.
 Convenient order forms.
 Convenient ways of payment.
 Secure communication system.
 Some way of storing information about customers.
 A way of keeping information about orders.
 Customer support and feedback

ROLE OF WEB MINING IN E-COMMERCE

Financial Analyses: It includes reviewing of costs and revenues, calculation and
comparative analysis of corporate income statements, analysis of corporate balance sheet and
profitability, cash flow statement, analysis of financial markets and sophisticated controlling.
Web mining can be an effective tool.

Marketing Analyses: It includes analysis of sales receipts, sales profitability, profit margins,
meeting sales targets, time of orders, actions undertaken by competitors, stock exchange
quotations, and market identification and segmentation. Web mining can be used here as a
key tools that helps in building effective marketing strategy.

Customer Analysis: It mainly concern time maintaining contacts with customers, customer
profitability, modelling customers' behaviour and reactions, customer satisfaction, churn
analysis etc. web mining tells us what strategy should be used to get number of customers
with quality.

Production Management Analysis where work is mainly to identify production 'bottlenecks'

and delayed orders and enabling organizations to examine production dynamics and to
compare production results obtained by departments or plants, etc.

Logistic Analysis where can be effective to identify partners of supply chain quickly, reverse
logistics analysis and handling.

Wage analysis where analysis of wage related data including wage component reports made
with reference to the type required, reports made from the perspective of a given enterprise,
wage report distinguishing employment types, payroll surcharges, personal contribution
reports, analyse of average wages, etc.

Personal data analyses it includes examination of employment turnover, employment types,

presentation of information on individual employee's personal data, etc.

DATA VISUALIZATION
Data visualization is the representation of data or information in a graph, chart, or
other visual format. It communicates relationships of the data with images. This is important
because it allows trends and patterns to be more easily seen. With the rise of big data upon us,
we need to be able to interpret increasingly larger batches of data. Machine learning makes it
easier to conduct analyses such as predictive analysis, which can then serve as helpful
visualizations to present. But data visualization is not only important for data scientists and
data analysts, it is necessary to understand data visualization in any career. Whether you work
in finance, marketing, tech, design, or anything else, you need to visualize data. That fact
showcases the importance of data visualization.

Data visualization used

Data visualization has many uses. Each type of data visualization can be used in
different ways. We’ll get into the different types in a moment, but for now, here are some of
the most common ways data visualization is used.

Changes over time

This is perhaps the most basic and common use of data visualization, but that doesn’t mean
it’s not valuable. The reason it is the most common is because most data has an element of
time involved. Therefore, the first step in a lot of data analyses is to see how the data trends
over time.

Determining frequency

Frequency is also a fairly basic use of data visualization because it also applies to data that
involves time. If time is involved, it is logical that you should determine how often the
relevant events happen over time.

Determining relationships (correlations)

Identifying correlations is an extremely valuable use of data visualization. It is extremely

difficult to determine the relationship between two variables without a visualization, yet it is
important to be aware of relationships in data. This is a great example of the value of data
visualization in data analysis.

Examining a network

An example of examining a network with data visualization can be seen in market research.

Marketing professionals need to know which audiences to target with their message, so they
analyze the entire market to identify audience clusters, bridges between the clusters,
influencers within clusters, and outliers.
Scheduling

When planning out a schedule or timeline for a complex project, things can get confusing.
A Gantt chart solves that issue by clearly illustrating each task within the project and how
long it will take to complete.

Analyzing value and risk

Determining complex metrics such as value and risk requires many different variables to be
factored in, making it almost impossible to see accurately with a plain spreadsheet. Data
visualization can be as simple as color-coding a formula to show which opportunities are
valuable and which are risky.

Types of data visualization charts

Now that we understand how data visualization can be used, let’s apply the different types of
data visualization to their uses. There are numerous tools available to help create data
visualizations. Some are more manual and some are automated, but either way they should
allow you to make any of the following types of visualizations.

Line chart

A line chart illustrates changes over time. The x-axis is usually a period of time, while the y-
axis is quantity. So, this could illustrate a company’s sales for the year broken down by
month or how many units a factory produced each day for the past week.

Area chart

An area chart is an adaptation of a line chart where the area under the line is filled in to
emphasize its significance. The color fill for the area under each line should be somewhat
transparent so that overlapping areas can be discerned.

Bar chart

A bar chart also illustrates changes over time. But if there is more than one variable, a bar
chart can make it easier to compare the data for each variable at each moment in time. For
example, a bar chart could compare the company’s sales from this year to last year.
Histogram

A histogram looks like a bar chart, but measures frequency rather than trends over time. The
x-axis of a histogram lists the “bins” or intervals of the variable, and the y-axis is frequency,
so each bar represents the frequency of that bin. For example, you could measure the
frequencies of each answer to a survey question. The bins would be the answer:
“unsatisfactory,” “neutral,” and “satisfactory.” This would tell you how many people gave
each answer.

Scatter plot

Scatter plots are used to find correlations. Each point on a scatter plot means “when x = this,
then y equals this.” That way, if the points trend a certain way (upward to the left, downward
to the right, etc.) there is a relationship between them. If the plot is truly scattered with no
trend at all, then the variables do not affect each other at all.

Bubble chart

A bubble chart is an adaptation of a scatter plot, where each point is illustrated as a bubble
whose area has meaning in addition to its placement on the axes. A pain point associated with
bubble charts is the limitations on sizes of bubbles due to the limited space within the axes.
So, not all data will fit effectively in this type of visualization.

Pie chart

A pie chart is the best option for illustrating percentages, because it shows each element as
part of a whole. So, if your data explains a breakdown in percentages, a pie chart will clearly
present the pieces in the proper proportions.

Gauge

A gauge can be used to illustrate the distance between intervals. This can be presented as a
round clock-like gauge or as a tube type gauge resembling a liquid thermometer. Multiple
gauges can be shown next to each other to illustrate the difference between multiple intervals.
Map

Much of the data dealt with in businesses has a location element, which makes it easy to
illustrate on a map. An example of a map visualization is mapping the number of purchases
customers made in each state in the U.S. In this example, each state would be shaded in and
states with less purchases would be a lighter shade, while states with more purchases would
be darker shades. Location information can also be very valuable for business leadership to
understand, making this an important data visualization to use.

Heat map

A heat map is basically a color-coded matrix. A formula is used to color each cell of the
matrix is shaded to represent the relative value or risk of that cell. Usually heat map colors
range from green to red, with green being a better result and red being worse. This type of
visualization is helpful because colors are quicker to interpret than numbers.

Frame diagram

Frame diagrams are basically tree maps which clearly show hierarchical relationship
structure. A frame diagram consists of branches, which each have more branches connecting
to them with each level of the diagram consisting of more and more branches.

2. Compare the communication system in traditional business and online business

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commerce-and-ecommerce/)

Definition of Traditional Commerce

Traditional commerce involves the exchange of goods and services between two
people face to face. Like mentioned in the introduction, it is one of the oldest modes of
buying products and services. It is done by almost everyone all  over the globe. Just walking
into a store or a marketplace, selecting an item and paying for the product.

Traditional Commerce is part of a business that involves all the activities that expedite
business. The main two kinds of actions include trade and trading auxiliaries. Trading is, of
course, the buying and selling of goods and services for money.  Trading auxiliaries refer to
business-related activities such as banking, transportation, insurance, packaging, marketing
and advertisements, and more. Auxiliaries focus on helping to achieve successful business
transactions between any two trading parties.

More on traditional commerce is that it includes all the activities that make straightforward
goods and services exchange from the manufacturer to the consumers. Production of goods
does not reach the consumer directly. Reasonably it passes various activities included in
commerce. Traditional commerce depends on routine business operating hours during a
specified period. It also requires occupying a retail store and housing inventory.

Business transactions mostly face to face interactions with customers. For new and repeat
business, traditional commerce thrives on word of mouth, customer referrals, and networking.
For business success, personal communication is, therefore, a key factor when relying on
traditional commerce. Many businesses that trade their goods and services like this network
within the society establish relationships with town leaders, chambers of commerce and also
sponsor local sports teams and events to attract business and develop relationships within the
community.

Definition of e-Commerce

e-Commerce or electronic commerce refers to the exchange of goods and services, funds or
information, between businesses and consumers using the electronic network, i.e. internet or
online social network. e-Commerce means trading and providing assistance to trading
activities, through the use of the electronic medium, i.e. all the activities like purchasing,
selling, ordering and paying are performed over the internet. The scope of e-commerce is
discussed in the following points:

 B2B commerce: When the business transaction takes place between two business
houses, through the electronic channel, it is called B2B commerce.
 B2C commerce: When the exchange of goods and service takes place between the
business entity and the customer, over the internet, then it is known as B2C
commerce.
 C2C commerce: When the buying and selling of goods and services take place
between customers using electronic medium, then it is called C2C commerce
 Intra-B commerce: When the exchange occurs within the firm or business house,
with the use of electronic media, it is called as Intra B-commerce.
Key Differences Between Traditional Commerce and e-Commerce

The following points are noteworthy so far as the difference between traditional
commerce and e-commerce is concerned:

1. A part of business, that focuses on the exchange of products and services, and
includes all those activities which encourage exchange, in some way or the other, is
called traditional commerce. E Commerce means carrying out commercial
transactions or exchange of information, electronically on the internet.

2. In traditional commerce, the transactions are processed manually whereas, in the case
of e-commerce, there is automatic processing of transactions.

3. In traditional commerce, the exchange of goods and services, for money can take
place, only during working hours. On the other hand, in e-commerce, the buying and
selling of goods can occur anytime.

4. One of the major drawbacks of e-commerce is that the customers cannot physically
inspect the goods before purchase, however, if customers do not like the goods after
delivery they can return it within the stipulated time. Conversely, in traditional
commerce physical inspection of goods is possible.
5. In traditional commerce, the interaction between buyers and sellers is direct, i.e. face
to face. As against this, there is indirect customer interaction, in the case of e-
commerce, because it may be possible that the customer is miles away from where
they place an order for the purchase of goods.

6. The scope of business in traditional commerce is limited to a particular area, i.e. the
reach of business is limited to the nearby places where it operates. On the contrary,
the business has worldwide reach in case of e-commerce, due to its ease of access.

7. As there is no fixed platform for information exchange in traditional commerce, the

business has to rely on the intermediaries for information fully. Unlike e-Commerce,
wherein there is a universal platform for information exchange, i.e. electronic
communication channel, which lessen the dependency on persons for information.

8. Traditional commerce is concerned with the supply side. In contrast, the resource
focus of e-commerce is the demand side.

9. In traditional commerce, the business relationship is vertical or linear, while in the

case of e-commerce there is directness in command leading to a horizontal business
relationship.

10. In traditional commerce, due to standardisation, there is mass/one way marketing.

However, customization exists in e-commerce leading to one to one marketing.

11. Payment for transactions can be done by paying cash, cheque or via credit card. On
the other hand, payment in e-commerce transactions can be done through online
payment modes like credit card, fund transfer, etc.

12. The delivery of goods is immediate in traditional commerce but in the case of e-
commerce, the goods are delivered at the customer’s place, after some time, usually
within a week.
Summary of Traditional Commerce and E-commerce 

Following the discussion above, both traditional and e-commerce are modes of
exchanging goods and services. Each has its pros and cons. e-Commerce is like conventional
commerce with the major difference being the platforms via which the exchange and business
transactions occur.  E-commerce saves consumers a lot of time and is therefore convenient
because you can buy goods and services in the comfort of your home or just from anywhere
at any time. Traditional commerce works in such a way that you have to take time and go to
the place/ store where goods and services are stocked hence consuming a lot of time.

E-commerce is not appropriate for perishable goods, and high-value items, so

traditional commerce is the one that can better work with such. On the other hand, it is not
suitable for software or music purchases.  Hence, both modes are needed in the market today.