Translating Advances in Data Mining to Business Operations: The Art of Data Mining in Retailing

Abstract

Knowledge discovery in databases (KDD) is a field of research that studies the development and use of various data analysis tools and techniques. KDD research has produced an array of models, theories, functions and methodologies for producing knowledge from data. However, despite these advances, nearly two thirds of information technology (IT) managers say that data mining products are too difficult to use in a business context. This chapter discusses how advances in data mining translate into the business context. It highlights the art of business implementation rather than the science of KDD. INTRODUCTION In the past, high storage and processing costs meant that businesses had to be selective about what data they stored. Today, this restriction has been removed as costs of data storage plummet. In addition, there are now more opportunities for capturing detailed data, particularly with the increase in e-commerce activities, where detailed 701 E. Chocolate Avenue, Suite 200, Hershey PA 17033-1240, USA Tel: 717/533-8845; Fax 717/533-8661; URL-http://www.idea-group.com IDEA GROUP PUBLISHING This chapter appears in the book, Organizational Data Mining: Leveraging Enterprise Data Resources for Optimal Performance, edited by Hamid R. Nemati and Christopher D. Barko. Copyright © 2004, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.