What is a neural network?
A neural network is a methodology or set of algorithms that functions similarly to a human brain. It applies deep learning techniques to recognize patterns and draws conclusions without human intervention.
Neural networks, a type of machine learning, learn and refine results over time. They are capable of organically learning and modeling complex, non-linear relationships. They can also find shortcuts, which is highly valuable in big data analysis. Neural networks can infer relationships and self-repair when data is missing or error conditions occur.
What are the business benefits of a neural network?
A deep neural network offers multiple business benefits. For example, it can:
- Detect fraud. Across multiple industries, neural networking helps prevent fraud by detecting and sending alerts on fraudulent schemes.
- Enhance customer relationships. Businesses can use neural networks to better identify customer segments, target their marketing and sales efforts and determine why customers may be choosing their competition.
- Refine marketing initiatives. Evolutionary neural network applications can be used to create segment-specific marketing campaign approaches. For instance:
- In retail, they can make forecasts more accurate, providing a better picture of which products were purchased on a particular day, how many times and what combinations of products were purchased most often.
- In finance, they can provide more accurate exchange and stock rate predictions, and enable banks to offer loans based on statistical data collected.
- On manufacturing floors, they can analyze data from machinery, sensors, beacons and cameras to monitor and optimize plant processes.
- In insurance, they enable insurers to segment their customers for marketing, pricing and risk purposes.