Cluster analysis Usage in various fields....... By Ajay Amarnath A

It is used mainly for software project planning control and management, an accurate estimate of software development cost is important. Past research has focused on using parametric models to predict development cost. The integration a neural network method with cluster analysis to estimate development cost.
Clustering is an economic development model signifying growth of similar kinds of industries at one geographical location. Locating near other similar firms provides numerous competitive advantages, including sharing a common labor pool, enhancing close working relationships between firms, reducing transaction costs and travel times between customers and suppliers, and enhancing the spread of technology through firms in the region.
As a cluster in a region takes root and expands, synergies often develop between firms and institutions, spurring additional growth and innovation. The existence of demand centre and concentration of Service Providers around the cluster also contributes to the growth of the cluster in terms of number of units. Other stakeholders like consultants, equipment manufacturers, Government Agencies etc also get concentrated in the cluster.
A cluster analysis was then performed to identify aspects of low, medium, and high risk projects. An examination of risk dimensions across the levels revealed that even low risk projects have a high level of complexity risk. For high risk projects, the risks associated with requirements, planning and control and the organization become more obvious. The influence of project scope, sourcing practices, and strategic orientation on project risk dimensions was also examined. Results suggested that project scope affects all dimensions of risk, whereas sourcing practices and strategic orientation had a more limited impact.
In marketing, cluster analysis is used for segmenting the market and determining target markets. Product positioning and New Product Development Selecting test markets the basic procedure. Formulate the problem - select the variables that you wish to apply the clustering technique.