Metric estimation via a fuzzy grade-of-membership model applied to analysis of business opportunities

Abstract

This paper describes a technique for estimating business opportunity metrics from mixed numeric and categorical type databases by using a fuzzy Grade-of-Membership clustering model. The technique is applied to the problem of opportunity analysis for business decision-making. We propose two metrics called unfamiliarity and follow-on importance. Real business contract data are used to demonstrate the technique. This general approach could be adapted to many other applications where a decision agent needs to assess the value of items from a set of opportunities with respect to a reference set representing its business.