Your competitors are not familiar with your company's unstructured problems. In fact, they’re probablynot even aware that such problems exist. Your real competitive edge lies in using knowledge-discoveringtechnology to solve your business’s unstructured problems, as your competitors will be unable to easilyreplicate your solutions.In summary, projects that find the solutions to unstructured business problems can be termed realdata mining projects. The successful resolution of a real data mining project provides organizationswith high payoff.
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Characteristics GoalComplexityCausalityConsequences of potential actionsExampleKey business question Translation intoquantitative counterpart
Can be:described with a high degree of completenesssolved with a high degree of certaintyeasily and uniquely translated into quantitativecounterpartExperts usually agree on the best method andbest solutionFind the best solutionFrom very simple to complex, usually lies withinone disciplineEasy to ascertainKnownProject: Sample size identificationWhat is customers sample size (only onepromotion channel vs. synergy of twopromotional channels) to detect at least twopurchase difference in sales of Product A?If the project will be given to 5 differentstatisticians, all of them will come up withidentical results: same methodology, samesample size calculation procedure, and sameoutcome – a table with calculated samplesize as a function of power, regardless of software used
Cannot be:described with a high degree of completenessresolved with a high degree of certaintyeasily and uniquely translated into quantitativecounterpartExperts usually disagree on the best methodand best solutionFind reasonable/acceptable solutionFrom complex to very complex, as a rule lies atthe interface of multiple disciplinesDifficult to ascertainUnknownProject: Customer Feedback StudyIs there any relationship between customerperception of company reputation/brand equityand company products portfolio sales?If the project will be given to 5 different dataminers, each of them will come up with uniquemethodology, require specific data miningalgorithms and software, and the results will notbe identical (even terms in which findings will beformulated, can be completely different)
TABLE 1: UNSTRUCTURED VS. STRUCTURED BUSINESS PROBLEMS