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Artificial Neural Networks for Business Analytics

Humans are naturally suited for recognizing and interpreting patterns; however, large and complex datasets, as in Big Data, preclude efficient human analysis. Computational pattern recognition encompasses means of describing, classifying, grouping, categorization, and/or clustering data (Jain, Duin, & Mao, 2000). Expanding on the concept of pattern recognition is knowledge discovery in datasets (KDD), the process of finding non-obvious patterns or trends in datasets primarily to assist in understanding complicated systems (Mannila, 1996). Within a world of decreasing cost of computer storage, increasing capabilities of computer processing performances, and increasing complexity of today’s business problems to solve, data analysts are encouraged to adopt more robust data mining methods. One such methodology described in this chapter is an artificial neural network (ANN).