SBI Project

on
Role of Business Intelligence in Indian
E-commerce Industry for Strategic
Decisions
Group 3 Section B
Shrikant Kale
0338/50
Surjith kumar mayalagan
0368/50
Shiva Kumar N
0335/50
Sushant kongadi
0369/50
Subrata Roy
0363/50
Sumeet K B
0365/50
Taslim Tadvi
0374/50
Partha Pratim Paramanik

E-commerce Industry :
Introduction

Online shopping cycle

Components of E-commerce
system

Indian E-commerce Industry

CAGR of 30% since FY09
Expected to be $18 billion by
2015
Rising smartphone usage
Increasing internet penetration

High competition in Ecommerce

Newer and bigger players like
amazon entering the market
All e-commerce players trying to
gain market share

Indian E-commerce Industry

Sectors such as Travel, E-Tailing, Financial services etc

High competition in each sector
Challenge of acquiring and retaining customers
Analyzing customer activities and buying behavior on internet
Finding patterns out of customer behavior and making use of such
information to grow business

How BI can help E-commerce

?

Search pattern followed by customers is

huge source of data which contains lot of

information about customers

Google search is one of the important

portals through which people get to
desired sites

E-commerce sites can define their

metatags intelligently so that they get
good traffic and more users

Online Shopping Behavior

How customers come to a site to begin

shopping
What search engine do they use?
What specific search terms are entered?
Do they use a bookmark they created
previously?
Did they click a shared link?

What products they explored and how

Who looked at a product landing page?

Who drilled down further?
Who looked at detailed product specifications?
Who looked at shipping information?
Who read reviews?

Entry to e-commerce site?

For every online interaction

There is no one home page anymore

keywords searched determines their landing page
There might be dozens or hundreds of specific actions
That information needs to be collected and analyzed
Any of this could be the landing page? How to measure their
effectiveness?
Consumer
electronics

laptop
TV
T shirt

Apparel
Party wear
Nutrition products
Fitness products
Weight machines

Customer Research Behavior

Understanding how customers utilize

the content on the website
Can help understand how different
aspects of the website do or do not add
value in driving sale
Understand how customers gather
information affecting buying decision
It can help customize the website for
individuals

Keywords- Text Data

It is one of the biggest and most common sources of big data
E-mails, Text messages, Social media postings, Instant messages
Natural language processing
Parsing text and assigning meaning to the words, phrases and
components
The results of those processes can be analyzed
Sentiment mining
The comments about specific products from customers
Interpreting text data is quite difficult
The words change meaning based on emphasis & context

Uses of Text Data

Sentiment analysis
Looks at the general direction of opinion
Understanding the trends can be immensely valuable in planning
For a product, positive or negative is valuable information
Pattern recognition
Complains, repair notes, other comments
An organization will be more quickly able to identify and fix problems
Fraud detection

Amazon tag cloud

Ebay tag cloud

Myntra tag cloud

Flipkart tag cloud

Components of BI
system

Web data
->
Google analytics datastore
SAS,SPSS,XLMiner

->

OLAP Intro

Enables users to gain a deeper understanding and

knowledge about various aspects of their corporate data
through fast, consistent, interactive access to a wide
variety of possible views of the data.

Allows users to view corporate data in such a way that it

is a better model of the true dimensionality of the
enterprise.

Can easily answer who? and what? questions,

however, ability to answer what if? and why? type
questions distinguishes OLAP from general-purpose
query tools.

Types of analysis ranges from basic navigation and

browsing (slicing and dicing) to calculations, to more
complex analyses such as time series and complex
modeling.

Examples of OLAP

Comparisons (this period v.s. last period)

Show me the sales per region for this year and compare it to that
of the previous year to identify discrepancies

Multidimensional ratios (percent to total)

Show me the contribution to weekly profit made by all items sold
in the northeast stores between may 1 and may 7

Ranking and statistical profiles (top N/bottom N)

Show me sales, profit and average call volume per day for my 10
most profitable salespeople

Custom consolidation (market segments, ad hoc groups)

Show me an abbreviated income statement by quarter for the last
four quarters for my northeast region operations

Multidimensional Modeling

Example: compute total sales volume

per product and store
Store

Total
Sales

Product
1

Store

1 $454

$925

2 $468 $800
3 $296

$240

4 $652

$540 $745

800

Product

Dimensions and Hierarchies

A cell in the cube may store values (measurements) relative to
the combination of the labeled dimensions
Sales of
DVDs in NY
in August

NY

DIMENSIONS
PRODUCT LOCATION TIME
category region
year

product

DVD

product

country

month

August

state
city
store

quarter

month
day

week

Common OLAP Operations

Roll-up: move up the

hierarchy

e.g given total sales per city,

we can roll-up to get sales
per state

Drill-down: move down the

hierarchy

more fine-grained
aggregation
lowest level can be the detail
records (drill-through)

PRODUCT LOCATION TIME

category region
year
product

country
state
city

store

quarter
month
day

week

Pivoting
Pivoting: aggregate on selected dimensions
usually 2 dims (cross-tabulation)

Sales

Store

Product
1

ALL

454

925

1379

468

800

1268

296

240

536

652

540

745

1937

780

1670

5120

ALL 1870 800

Slice and Dice Queries

Slice and Dice: select and project on

one or more dimensions
customers

store
customer = Smith

OLAP operations in
ecommerce

Sample Ecommerce search data

Monthly keyword
search data filtered by
country

Country vs monthly keyword

search data

Keyword vs country

Clustering
By understanding clustering of keywords,
you can analyze the needs, wants and
intent of the searcher which allows you
to :
1. Understand the customer
2. Effectively map your content with their
query and query intent
3. Create and influence PR & social media
opportunities
4. Identify new products and services for
future

Clustering
Critical keyword performance
monitoring
Searcher Intent
Ranking of keywords
Underperforming keywords
Understanding keyword qualifiers
Site and content changes

Purchase Cycle and Intent

Analysis
Researching product use and
information
Looking for features and functions?
Comparing brands?
Looking for discounts
Have they already purchased?

Keyword Prioritization

Top Keywords Searched

Apparel

Books

textbooks online

Series1

shopping online

shopping online
0

Mobile

50000100000150000

Computer

ebay

Flipkart

tablet
computer

laptop

printer

tablet pc

1000000
800000
600000
400000
200000
0
shopping
online

mens fashion

buy books online

Series1

laptops

ebay

database management

Flipkart

Myntra

t shirts

online shoes

shoes online

online shopping
india

Flipkart

audio books online

Amazon

Amazon

shopping online

online shopping
india

shopping online

ebay

350000
300000
250000
200000
150000
100000
50000
0

Amazon

Series1

Ecommerce Giants- Competition

in Keywords
Footwear

Myntra- shoes for men, sports shoes

Amazon- shoes online, online shoes
Ebay- mens shoes, shoes for men
Flipkart- online shopping india, shoes
for men

Sports Goods

Ebay- knee brace, soccer balls

Amazon- rowing machine, exercise
bike
Flipkart- lifestyle online shopping,
clothing stores online

Association mining

Association rules between

What items are searched together ?
What items are bought together ?

Why is it important ?
Analyzing customer buying habits and
patterns
Decide which products should be placed
to each other
Decide which products can be bundled
together

Association mining using SAS

Association mining using SAS

Association mining using SAS

Association mining using SAS

Association rules discovered

Support = 120 Confidence = 40%

Lift > 1

Rowing machine
DVD

Gym floor mat

->

Spin and slim

Association rules discovered

Support = 85
Confidence = 40%,

Apple airport
Vacuum

->

Car charger

Support = 73
Lift > 1

Laptop

->

Stick

Association rules discovered

Support = 59 Confidence = 40%

Lift > 1

Ear plugs

Swim cap

->

Anti-fog spray

Data is calculated by taking 1000 nonredundant, clean data

Data taken from competitive
intelligence tools Raven

Text Mining
A process of identifying novel
information from a collection of texts.
In other words, text mining is process
of analysing huge text data to retrieve
the meaningful information from it.
Text mining uses natural language
processing.

Why text mining?

Massive amount of information is

available over the web.
Amount of data is getting doubled every
2 years*.
Most of the data available is in the
unstructured form.
Various data mining techniques can be
used to retrieve useful information such
as clustering, classification.

*http://www.emc.com/about/news/press/2011/20110628-01.htm

Why text mining?

User search phrase on search engine

is not always in structured manner.

Why text mining?

E-commerce firms
requires to know
which keywords from
such unstructured
data are useful to
have sustainable
competitive
advantage over the
other firms.

Text mining and SPSS

Unstructured search engine data collected
from Google AdWords.
The data is chosen such that after the search,
user lands on e-commerce websites.
Developed model in IBM SPSS modeler to
analyse such data using text mining
functionality.

Text mining and SPSS

Text mining and SPSS

Text mining and SPSS

Text mining and SPSS

Amazon average monthly searches for keyword Books India

Text mining benefits

Outcome is that huge unstructured
data is classified into few important
keywords.
Important benefit is that these
keywords can be used to increase
revenue through bidding.
E.g. Flipkart can bid for the keywords
camera and Online. Every user
who types these words on search
engines will get flipkart website as the
top search result.

Classification

How does classification works?

It involves two steps
1. Building the Classifier or Model
2. Using Classifier for Classification

1.

Building the classifier or model

Classification
2. USING CLASSIFIER FOR
CLASSIFICATION

Variables in use
Average number of monthly searches
Category
Company
Keyword
Competition
Suggested bid

Classification done using SPSS

Analysis
Analysis was done
using SPSS
modeller.
The following result
gives prediction
percentage of our
model.
We can say that the
model correctly
predicts the
information.

Correctly predicted

45

Total count

51

Prediction %

88.23

Thank You