Knowledge Management Complete Notes

KNOWLEDGE
MANAGEMENT
Syllabus
• UNIT-I Business Intelligence and Business Decisions: Modeling
Decision Process; Decision support systems; Group decision support
and Groupware Technologies.
• UNIT-II Executive Information and support Systems: Business Expert
System and AI, OLTO & OLAP; Data Warehousing; Data Marts, Data
Warehouse architecture; Tools for data warehousing.
• UNIT-III Multi- Dimensional analysis: Data mining and knowledge
discovery; Data mining and Techniques; Data mining of Advance
Databases.
• UNIT-IV Knowledge Management Systems: Concept and Structure
KM systems, techniques of knowledge management appreciation &
limitation.
Axis Institute of Higher Education, Kanpur

Important Questions Unit-1
• Data, Information, Knowledge, Knowledge management, information Management
• What do you understand by Decision support system? What are the components of DSS? Discuss
the characteristics of DSS.
• What do you understand by Group Decision support system? What are the components of GDSS?
Discuss the characteristics of GDSS.
• How does decision support system help in business?
• What is groupware technology? Discuss different groupware technologies.
• Information system.
• What is CSCW?
• How is Groupware Design Different from Traditional User Interface Design?

Data, Information and Knowledge
• Data: Data symbolize unorganized and unrefined facts. Typically data is stagnant in nature.
• It can correspond to a set of distinct facts about events.
• Data is a precondition to information.
• An organization from time to time has to decide on the nature and amount of data that is necessary for generating
the required information.
• Information: Information can be measured as a collection of data (processed data) due to which decision making
becomes easier.
• Information has generally got some connotation and function.
• Knowledge: Knowledge indicates human understanding of a subject matter that has been attained in the course of
appropriate study and familiarity.
• Knowledge is usually based on learning, thinking, and proper perception of the problem area.
• Knowledge is not information and information is not data.
• Knowledge is resultant from information in the same way information is derivative of data.

Knowledge
• Knowledge can be defined as the understanding obtained through the process of experience or
appropriate study.
• Knowledge can also be an accumulation of facts, procedural rules, or heuristics. A procedural rule
is a rule that describes a sequence of actions.
• A fact is generally a statement representing truth about a subject matter or domain.
• A heuristic is a rule of thumb based on years of experience.
• Intelligence implies the capability to acquire and apply appropriate knowledge.
• Memory indicates the ability to store and retrieve relevant experience according to will.
• Learning represents the skill of acquiring knowledge using the method of instruction/ study
• Experience relates to the understanding that we develop through our past actions.
• Knowledge can develop over time through successful experience, and experience can lead to
expertise.
• Common sense refers to the natural and mostly unreflective opinions of humans

Knowledge management
• Knowledge management is the
systematic management of an
organization's knowledge assets for the
purpose of creating value and meeting
tactical & strategic requirements; it
consists of the initiatives, processes,
strategies, and systems that sustain and
enhance the storage, assessment, sharing,
refinement, and creation of knowledge.
Knowledge management (KM) therefore
implies a strong tie to organizational goals
and strategy, and it involves the
management of knowledge that is useful
for some purpose and which creates value
for the organization.

Why is knowledge management useful?
• It helps firms learn from past mistakes and successes.
• It better exploits existing knowledge assets by re-deploying them in areas where the firm stands to
gain something, e.g. using knowledge from one department to improve or create a product in
another department, modifying knowledge from a past process to create a new solution, etc.
• It promotes a long term focus on developing the right competencies and skills and removing
obsolete knowledge.
• It enhances the firm's ability to innovate.
• It enhances the firm's ability to protect its key knowledge and competencies from being lost or
copied.

Information Management (IM)
• Focus on data and information
• Deal with unstructured and structured facts and figures.
• Benefit greatly from technology, since the information being conveyed is already codified and in
an easily transferrable form.
• Focus on organizing, analyzing, and retrieving - again due to the codified nature of the
information.
• Is largely about know-what, i.e. it offers a fact that you can then use to help create useful
knowledge, but in itself that
• fact does not convey a course of action (e.g. sales of product x are up 25% last quarter).
• Is easy to copy - due to its codified and easily transferrable nature.

Concept of Decision-Making
• Concept of Decision-Making: Decision making is a cognitive
process that results in the selection of a course of action among
several alternative scenarios. Decision-making is a daily activity
for any human being. There is no exception about that. When it
comes to business organizations, decision-making is a habit and a
process as well.
• Effective and successful decisions result in profits, while
unsuccessful ones cause losses. Therefore, corporate decision-
making is the most critical process in any organization. In a
decision-making process, we choose one course of action from a
few possible alternatives. In the process of decision-making, we
may use many tools, techniques, and perceptions. In addition, we
may make our own private decisions or may prefer a collective
decision.
• Usually, decision-making is hard. Majority of corporate decisions
involve some level of dissatisfaction or conflict with another party.
• Decision-Making Process Following are the important steps of
the decision-making process. Each step may be supported by
different tools and techniques.
• Step 1: Identification of the Purpose of the Decision: In this step, the problem is thoroughly analyzed.
There are a couple of questions one should ask when it comes to identifying the purpose of the decision.
• What exactly is the problem?
• Why the problem should be solved?
• Who are the affected parties of the problem?
• Does the problem have a deadline or a specific time-line?
• Step 2: Information Gathering: A problem of an organization will have many stakeholders. In
addition, there can be dozens of factors involved and affected by the problem. In the process of solving
the problem, you will have to gather as much as information related to the factors and stakeholders
involved in the problem. For the process of information gathering, tools such as 'Check Sheets' can be
effectively used.
• Step 3: Principles for Judging the Alternatives: In this step, the baseline criteria for judging the
alternatives should be set up. When it comes to defining the criteria, organizational goals as well as the
corporate culture should be taken into consideration. As an example, profit is one of the main concerns
in every decision making process. Companies usually do not make decisions that reduce profits, unless it
is an exceptional case. Likewise, baseline principles should be identified related to the problem in hand.
•

• Step 4: Brainstorm and Analyze the Choices: For this step, brainstorming to list down all the ideas is the best
option. Before the idea generation step, it is vital to understand the causes of the problem and prioritization of
causes.
• For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect diagram
helps you to identify all possible causes of the problem and Pareto chart helps you to prioritize and identify the
causes with the highest effect. Then, you can move on generating all possible solutions (alternatives) for the
problem in hand.
• Step 5: Evaluation of Alternatives: Use your judgment principles and decision-making criteria to evaluate
each alternative. In this step, experience and effectiveness of the judgment principles come into play. You need
to compare each alternative for their positives and negatives.
• Step 6: Select the Best Alternative: Once you go through from Step 1 to Step 5, this step is easy. In addition,
the selection of the best alternative is an informed decision since you have already followed a methodology to
derive and select the best alternative.
• Step 7: Execute the decision: Convert your decision into a plan or a sequence of activities. Execute your plan
by yourself or with the help of subordinates.
• Step 8: Evaluate the Results: Evaluate the outcome of your decision. See whether there is anything you
should learn and then correct in future decision making. This is one of the best practices that will improve your
decision-making skills.

Decision Support System
• DSS is an information system application that helps in decision-making. DSS is used in planning and
analyzing alternatives. DSS differs from most traditional information system in that each DSS is distinct
from the other information system and is specifically made for managers.
• All though it is used by managers it is part of organization’s MIS. A DSS is prepared for a specific
managerial task and special problem and thus its use is limited to that problem. Decision support systems
tend to be designed to serve management control level and strategic planning level managers.
• The elements of DSS include a database, a model base and a software providing interactive dialogue
facility for a manager. The data in the database is a combination of master files, and data from external
sources. The second component of DSS is a library of models to manipulate and analyze the data in the
desired ways.
• The third component is the user interface through this the user can communicate with the DSS. The
physical interface generally consists of a terminal attach to the mainframe computer either directly or by
telephone. DSS can be differentiated from MIS in terms of its processing capabilities. whereas MIS process
data to convert it into information, DSS processes information.

DSS Characteristics
• i) Support for decision makers in semi structured and unstructured problems.
• ii) Support managers at all levels.
• iii) Support individuals and groups.
• iv) Support for interdependent or sequential decisions.
• v) Support intelligence, design, choice, and implementation.
• vi) Support variety of decision processes and styles

Modern classification of DSS
• Model Driven DSS is a DSS that uses a model (quantitative) based on heuristics, optimization, simulation
etc. for deriving solutions to problems. It has access to the models and has flexibility of changing the
parameters of the model. Real data or transactional data from databases of TPS is then passed through the
model to arrive at the solution. The system is capable of producing different scenarios.
• Data Driven DSS is a DSS that gives access to time-series internal data. Data ware houses that have tools
that provide facility to manipulate such data are examples of advances systems. Executive Information
Systems are examples of data-driven DSS.
• Communications-driven DSS is a DSS that uses network and communications technologies to support
decision-relevant collaboration and communication. In such systems, communication technologies are the
most important component.
• Document-driven DSS is a DSS that uses computer storage and processing to provide document retrieval
and analysis.
• Knowledge-driven DSS is a DSS that collects and stores 'expertise' so that it can be used for decision-
making when required.
Component of DSS
• Interactive User-System Dialog Management Subsystem-DSS requires continuous user interaction. Sometimes
the system should prompt the user to give an input at other time the user should be able to control the
processing. A typical user system dialog management subsystem will have the following elements:
• User Interface - the user interface of a DSS has to be dynamic and GUI based. It has to be an easy to use user
interface as most of the people who will be using it are not technical experts but management experts (top
management) and hence the interface should be minimalist in design. also the system should be able to interact
with the user in a interactive mode and hence the user interface has to be dynamic.
• Request Constructor - since DSS works on an interactive dynamic mode, it needs a request constructor
(incorporating aspects of Language Query Interface) which can convert the user's instructors into model
understandable form, the model's data request to the database and the model's instructions/requests to the user.
• Data Management Subsystem - data is the most important component of a DSS. Without the data a DSS
cannot function. The data management subsystem manages the data for DSS. Data is accessed in a DSS in many
ways like ad hoc basis, structured query basis and heuristic search basis and hence a strong data management
subsystems is required to service the varied data requests from a DSS. The subsystem has the following
elements:
• The Query Control - this is a tailored element to handle the query requirements of DSS. It may
connect the database, directly to the user interface or to the model base or both.
• Meta Data - this contains data about the data that is stored in the database. This helps the DSS in
understanding the data in the database properly and helps in creating ad hoc queries.
• Model Management Subsystem - this is the unique feature of a DSS. This makes the system special.
However, this also makes the system very specific. There are very few examples of a generalized
DSS as generalized models are not available. Those that exist work on half baked solutions. The
model management subsystem may use different classes of models like,
• Optimization Models, Simulation Models, Heuristic Models, Deterministic Models, Predictive Models
• Each class of model is useful to solve a specific class of problems like a routing problem or a
scheduling problem or a combinatorial search problem etc. Model and Model Management has several
connotations in DSS literature and there have been wide ranging definitions of these terms.

Advantages of DSS
• Improves personal efficiency
• Speed up the process of decision making
• Increases organizational control
• Encourages exploration and discovery on the part of the decision maker
• Speeds up problem solving in an organization
• Facilitates interpersonal communication
• Promotes learning or training
• Generates new evidence in support of a decision
• Creates a competitive advantage over competition
• Reveals new approaches to thinking about the problem space
• Helps automate managerial processes

Group Decision Support System (GDSS)
• A group decision support system (GDSS) is an interactive computer-based system that facilitates a
number of decision-makers (working together in a group) in finding solutions to problems that are
unstructured in nature. They are designed in such a way that they take input from multiple users interacting
simultaneously with the systems to arrive at a decision as a group.
• The tools and techniques provided by the group decision support system improve the quality and
effectiveness of the group meetings. Groupware and web-based tools for electronic meetings and
videoconferencing also support some of the group decision making processes, but their main function is to
make communication possible between the decision-makers.
• In a group decision support system (GDSS) electronic meeting, each participant is provided with a
computer. The computers are connected to each other, to the facilitator’s computer and to the file server. A
projection screen is available at the front of the room. The facilitator and the participants can both project
digital text and images onto this screen.
• A group decision support system (GDSS) meeting comprises different phases, such as idea generation,
discussion, voting, vote counting and so on. The facilitator manages and controls the execution of these
phases. The use of various software tools in the meeting is also controlled by the facilitator.

Components of Group Decision Support System
• A group decision support system (GDSS) is composed of 3 main components, namely hardware,
software tools, and people
• Hardware: It includes electronic hardware like the computer, equipment used for networking, electronic
display boards and audio-visual equipment. It also includes the conference facility, including the physical
set up – the room, the tables, and the chairs – laid out in such a manner that they can support group
discussion and teamwork.
• Software Tools: It includes various tools and techniques, such as electronic questionnaires, electronic
brainstorming tools, idea organizers, tools for setting priority, policy formation tool, etc. The use of these
software tools in a group meeting helps the group decision-makers to plan, organize ideas, gather
information, establish priorities, take decisions and document the meeting proceedings. As a result,
meetings become more productive.
• People: It compromises the members participating in the meeting, a trained facilitator who helps with the
proceedings of the meeting, and an expert staff to support the hardware and software. The GDSS
components together provide a favourable environment for carrying out group meetings.

Features of Group Decision Support System
• Ease of Use: It consists of an interactive interface that makes working with GDSS simple and easy.
• Better Decision Making: It provides the conference room setting and various software tools that
facilitate users at different locations to make decisions as a group resulting in better decisions.
• Emphasis on Semi-structured and Unstructured Decisions: It provides important information that
assists middle and higher-level management in making semi-structured and unstructured decisions.
• Specific and General Support: The facilitator controls the different phases of the group decision
support system meeting (idea generation, discussion, voting and vote counting, etc.) what is displayed
on the central screen and the type of ranking and voting that takes place, etc. In addition, the facilitator
also provides general support to the group and helps them to use the system.
• Supports all Phases of the Decision Making: It can support all the four phases of decision making,
viz intelligence, design, choice, and implementation.
• Supports Positive Group Behaviour: In a group meeting, as participants can share their ideas more
openly without the fear of being criticized, they display more positive group behaviour towards the
subject matter of the meeting.

Group Decision Support System Software Tools
• Group decision support system software tools help the decision-makers in organizing their ideas, gathering
required information and setting and ranking priorities. Some of these tools are as follows:
• Electronic Questionnaire: The information generated using the questionnaires helps the organizers of the
meeting to identify the issues that need immediate attention, thereby enabling the organizers to create a
meeting plan in advance.
• Electronic Brainstorming Tools: It allows the participants to simultaneously contribute their ideas on the
subject matter of the meeting. As the identity of each participant remains secret, individuals participate in
the meeting without the fear of criticism.
• Idea Organizer: It helps in bringing together, evaluating and categorizing the ideas that are produced
during the brainstorming activity.
• Tools for Setting Priority: It includes a collection of techniques, such as simple voting, ranking in order
and some weighted techniques that are used for voting and setting priorities in a group meeting.
• Policy Formation Tool: It provides the necessary support for converting the wordings of policy statements
into an agreement.

Data Security
• Data Security: Security capabilities may be essential for a dispersed proximity group decision
support systems or in a uncooperative group situation.
• Data encryption may be used to protect sensitive company data transmitted over a WAN.
• In a negotiation situation each party has private information to protect from the other parties,
semiprivate information that is shared between a party and the mediator, and public information
that is available to all parties involved.
• In this situation the Group Decision Support System must be able to distinguish between each of
these types of data.
• The integrity of shared data would also need to be protected through shared and exclusive locks
when data is accessed by two or more members of the group at the same time.

Groupware technology
• Computer-based systems that support groups of people engaged in a common task (or goal) and
that provide an interface to a shared environment.
• Secure, dynamic collaboration solution that offers both traditional and mobile support for any
communication over intranets, extranets and internet.
• A combination of technologies enabling an organization to create, share, and leverage an
accumulated knowledge base.
• Commercial CSCW
• Groupware technologies are typically categorized along two primary dimensions:
1. whether users of the groupware are working together at the same time (“realtime” or
“synchronous” groupware) or different times (“asynchronous” groupware), and
2. whether users are working together in the same place (“co- located” or “face-to-face”) or in
different places (“non-co-located” or “distance”).

• Groupware offers significant advantages over single-user systems. These are some of the most common reasons
people want to use groupware:
• to facilitate communication: make it faster, clearer, morepersuasive
• to enable communication where it wouldn’t otherwise be possible
• to enable telecommuting
• to cut down on travel costs
• to bring together multiple perspectives and expertise
• to form groups with common interests where it wouldn’t be possible to gather a sufficient number of people face-
to-face
• to save time and cost in coordinating group work
• to facilitate group problem-solving
• to enable new modes of communication, such as anonymous interchanges or structured interactions
• In addition to the benefits of groupware, another good reason to study usability and design issues in groupware is
to avoid a failed design. Groupware is significantly more difficult to get right than traditional software. Typically,
a groupware system can’t succeed unless most or all of the target group is willing to adopt the system. In contrast,
a single-user system can be successful even if only a fraction of the target market adopts it.
Applications of groupware technology
• There are several types of groupware applications. Comparing those design options across applications yields
interesting new perspectives on well-known applications. Also, in many cases, these systems can be used
together, and in fact, are intended to be used in conjunction. For example, group calendars are used to schedule
videoconferencing meetings, multi-player games use live video and chat to communicate, and newsgroup
discussions spawn more highly-involved interactions in any of the other systems.
• Asynchronous Groupware
• Email is by far the most common groupware application (besides, of course, the traditional telephone). While
the basic technology is designed to pass simple messages between 2 people, even relatively basic email
systems today typically include interesting features for forwarding messages, filing messages, creating mailing
groups, and attaching files with a message. Other features that have been explored include: automatic sorting
and processing of messages, automatic routing, and structured communication (messages requiring certain
information).

• Newsgroups and mailing lists are similar in spirit to email systems except that they are intended for
messages among large groups of people instead of 1-to-1 communication. In practice the main difference between
newsgroups and mailing lists is that newsgroups only show messages to a user when they are explicitly requested
(an “on-demand” service), while mailing lists deliver messages as they become available (an “interrupt-driven”
interface).
• Workflow systems allow documents to be routed through organizations through a relatively-fixed process. A
simple example of a workflow application is an expense report in an organization: an employee enters an expense
report and submits it, a copy is archived then routed to the employee’s manager for approval, the manager receives
the document, electronically approves it and sends it on and the expense is registered to the group’s account and
forwarded to the accounting department for payment. Workflow systems may provide features such as routing,
development of forms, and support for differing roles and privileges.
• Hypertext is a system for linking text documents to each other, with the Web being an obvious example. Whenever
multiple people author and link documents, the system becomes group work, constantly evolving and responding to
other’s work. Some hypertext systems include capabilities for seeing who else has visited a certain page or link, or
at least seeing how often a link has been followed, thus giving users a basic awareness of what other people are
doing in the system -- page counters on the Web are a crude approximation of this function. Another common
multi-user feature in hypertext (that is not found on the Web) is allowing any user to create links from any page, so
that others can be informed when there are relevant links that the original author was unaware of.
• Group calendars allow scheduling, project management, and coordination among many people, and may
provide support for scheduling equipment as well. Typical features detect when schedules conflict or find meeting
times that will work for everyone. Group calendars also help to locate people. Typical concerns are privacy (users
may feel that certain activities are not public matters), completeness and accuracy (users may feel that the time it
takes to enter schedule information is not justified by the benefits of the calendar).
• Collaborative writing systems may provide both real time support and non-real time support. Word processors
may provide asynchronous support by showing authorship and by allowing users to track changes and make
annotations to documents. Authors collaborating on a document may also be given tools to help plan and coordinate
the authoring process, such as methods for locking parts of the document or linking separately-authored documents.
Synchronous support allows authors to see each other’s changes as they make them, and usually needs to provide
an additional communication channel to the authors as they work (via videophones or chat).
• Synchronous or Real time Groupware
• Shared whiteboards allow two or more people to view and draw on a shared drawing surface even from different
locations. This can be used, for instance, during a phone call, where each person can jot down notes (e.g., a name,
phone number, or map) or to work collaboratively on a visual problem. Most shared whiteboards are designed for
informal conversation, but they may also serve structured communications or more sophisticated drawing tasks,
such as collaborative graphic design, publishing, or engineering applications. Shared whiteboards can indicate
where each person is drawing or pointing by showing telepointers, which are color-coded or labeled to identify each
person.
• Video communications systems allow two-way or multi-way calling with live video, essentially a
telephone system with an additional visual component. Cost and compatibility issues limited early use of video
systems to scheduled videoconference meeting rooms. Video is advantageous when visual information is being
discussed, but may not provide substantial benefit in most cases where conventional audio telephones are adequate.
In addition to supporting conversations, video may also be used in less direct collaborative situations, such as by
providing a view of activities at a remote location.
• Chat systems permit many people to write messages in real time in a public space. As each person submits a
message, it appears at the bottom of a scrolling screen. Chat groups are usually formed by having a listing of chat
rooms by name, location, number of people, topic of discussion, etc. Many systems allow for rooms with
controlled access or with moderators to lead the discussions, but most of the topics of interest to researchers involve
issues related to un-moderated real time communication including: anonymity, following the stream of
conversation, scalability with number of users, and abusive users. While chat-like systems are possible using non-
text media, the text version of chat has the rather interesting aspect of having a direct transcript of the conversation,
which not only has long-term value, but allows for backward reference during conversation making it easier for
people to drop into a conversation and still pick up on the ongoing discussion.

• Decision support systems are designed to facilitate groups in decision making. They provide tools for
brainstorming, critiquing ideas, putting weights and probabilities on events and alternatives, and voting. Such
systems enable presumably more rational and even-handed decisions. Primarily designed to facilitate meetings,
they encourage equal participation by, for instance, providing anonymity or enforcing turn-taking.
• Multi-player games have always been reasonably common in arcades, but are becoming quite common on the
internet. Many of the earliest electronic arcade games were multi-user, for example, Pong, Space Wars, and car
racing games. Games are the prototypical example of multi-user situations “non-cooperative”, though even
competitive games require players to cooperate in following the rules of the game. Games can be enhanced by other
communication media, such as chat or video systems.

Groupware Design Different from
Traditional User Interface Design
• Groupware design involves understanding groups and how people behave in groups.
• It also involves having a good understanding of networking technology and how aspects of that
technology (for instance, delays in synchronizing views) affect a user’s experience.
• All the issues related to traditional user interface design remain relevant, since the technology still
involves people.
• However, many aspects of groups require special consideration.
• For instance, not only do million-person groups behave differently from 5-person groups, but the
performance parameters of the technologies to support different groups vary.
• Ease-of-use must be better for groupware than for single-user systems because the pace of use of
an application is often driven by the pace of a conversation.

CSCW
• CSCW (Computer-Supported Cooperative Work) refers to the field of study which examines the
design, adoption, and use of groupware.
• Despite the name, this field of study is not restricted to issues of “cooperation” or “work” but also
examines competition, socialization, and play.
• The field typically attracts those interested in software design and social and organizational
behavior, including business people, computer scientists, organizational psychologists,
communications researchers, and anthropologists, among other specialties.

Important Questions Unit-2
• What are Data Warehousing, Data Marts, Meta Data
• What is Data Warehouse? Draw and explain Data Warehouse architecture
• Discuss the basic concept and characteristics of Data Warehouse
• Explain different types of Tools for data warehousing
• What is Executive information system?
• What is Business Expert System?
• What are the benefit of data warehouse

• What is Artificial Intelligence? Describe its application. How is Artificial Intelligence different
from Expert system?
• Explain & draw 3 tier architecture of Data Warehouse .
• Define OLAP & OLTP
• Define MOLAP & ROLAP
What is Executive information system? How does decision
support system help in business?
• Executive support systems are intended to be used by the senior managers directly to provide support to
non-programmed decisions in strategic management.
• These information are often external, unstructured and even uncertain. Exact scope and context of such
information is often not known before hand.
• This information is intelligence based:
• Examples of Intelligent Information
• External databases
• Technology reports like patent records etc.
• Technical reports from consultants
• Market reports
• Government policies
• Financial reports and information

Features of Executive Information System

Advantages of EIS
• Easy for upper level executive to use
• Ability to analyze trends
• Augmentation of managers' leadership capabilities
• Enhance personal thinking and decision-making
• Contribution to strategic control flexibility
• Enhance organizational competitiveness in the market place
• Instruments of change
• Increased executive time horizons.
• Better reporting system

Advantages of EIS
• Improved mental model of business executive
• Help improve consensus building and communication
• Improve office automation
• Reduce time for finding information
• Early identification of company performance
• Detail examination of critical success factor
• Better understanding
• Time management
• Increased communication capacity and quality

Disadvantage of EIS
• Functions are limited
• Hard to quantify benefits
• Executive may encounter information overload
• System may become slow
• Difficult to keep current data
• May lead to less reliable and insecure data
• Excessive cost for small company

Artificial intelligence
• Intelligence : “The capacity to learn and solve problems.”
• Artificial Intelligence : Artificial Intelligence (AI) is the simulation of human intelligence by machines.
• Artificial Intelligence is the intelligence of machines and the branch of computer science which aims to
create it.
• 1) The ability to solve problems.
• 2) The ability to act rationally.
• 3) The ability to act like humans.
• The central principles of Al include :
• 1) Reasoning, knowledge, planning, learning and communication.
• 2) Perception and the ability to move and manipulate objects.
• 3) It is the science and engineering of making intelligent machines, especially intelligent computer
programs

Application of AI
• Medical: A medical clinic can use AI systems to organize bed schedules, make a staff rotation and
provide medical information. AI has also application in fields of cardiology (CRG), neurology (MRI),
embryology (sonography), complex operations of internal organs, etc
• Entertainment: Composition, performance, music theory, sound processing are some of the major areas
on which research in music and AI are focusing on. Eg : chucks, smartmusic, etc
• Telecommunications: Many telecommunications companies make use of heuristic search in the
management of their workforces. For example BT Group has deployed heuristic search in a scheduling
application that provides the work schedules of 20000 engineers.
• Robotics: A Robot is a mechanical or virtual artificial agent, usually an electro mechanical
machine that is guided by a computer program or electronic circuitry. Robots can be
autonomous or semi-autonomous. A robot may convey a sense of intelligence or thoughts of
its own.
• Gaming: Physicist Willy Higinbotham created the the first video game in 1958. It was called
“Tennis For Tow” and was oscilloscope. But, now AI technology has become vast and
standard has also been increased. For Eg : Sudoku, Fear, Fallout, Pubg, etc
• Banking: Organize operations, invest in stocks, and manage properties. In August 2001,
robots beat humans in a simulated financial trading competition. Some other applications
include loan investigation, ATM design, safe and fast banking, etc.

Other Applications
• Information management and retrieval
• AI and expert systems embedded in products
• Help desk and assistance
• Employee performance evaluation
• Marketing
• Warehouse optimization
• Satellite controls
• Network developments
• Nuclear management

Advantages and Disadvantages of AI
• Advantages
• More powerful and more useful computers.
• New and improved interfaces.
• Solving new problems.
• Better handling of information.
• Relieves information overload.
• Conversion of information into knowledge.
• Disadvantages
• Increased costs
• Difficulty with software development - slow and expensive
• Few experienced programmers
• Few practical products have reached the market as yet.

Future of AI
• Looking at the features and its wide application we may definitely stick to artificial intelligence.
Seeing at the development of Al is it that the future world is becoming artificial.
• Biological intelligence is fixed, because it is an old, mature paradigm but the new paradigm of
non-biological computation and intelligence is growing exponentially.
• The memory capacity of the human brain is probably of the order often thousand million binary
digits. But most of this is probably used in remembering visual impressions, and other
comparatively wasteful ways.

Expert System
An Expert System (ES) is software that attempts to reproduce the performance of one or more human
experts, typically in a specific problem domain
• ES employs human knowledge represented in a computer to solve problems that ordinarily require
human expertise.
• ES imitate the expert’s reasoning processes to solve specific problems
Why Expert System

Capture and preserve irreplaceable human expertise
Provide expertise needed at a number of locations at the same time or in a hostile environment that is
dangerous to human health
Provide unemotional objective solutions faster than human experts
Provide expertise that is expensive or rare – Share human expertise with a large number of people

• Explanation in Reasoning
• ES answers two questions:
• WHY? means “why are you asking for a particular information”.
• ES returns the current rule that is being fired.
• HOW? means “how did you reach the conclusion”.
• ES returns the sequence of rules that are fired to reach a conclusion.

Characteristics of Expert Systems
• Expert systems can be distinguished from conventional computer systems in that:
• They simulate human reasoning about the problem domain, rather than simulating the domain
itself.
• They perform reasoning over representations of human knowledge, in addition to doing
numerical calculations or data retrieval. They have corresponding distinct modules referred to as
the inference engine and the knowledge base.
• Problems tend to be solved using heuristics (rules of thumb) or approximate methods or
probabilistic methods which, unlike algorithmic solutions, are not guaranteed to result in a correct
or optimal solution.
• They usually have to provide explanations and justifications of their solutions or
recommendations in order to convince the user that their reasoning is correct.
• Note that the term Intelligent Knowledge Based System (IKBS) is sometimes used as a synonym
for Expert System.

The Architecture of Expert Systems
• The process of building expert systems is often called knowledge engineering. The knowledge
engineer is involved with all components of an expert system: Building expert systems is generally
an iterative process. The components and their interaction will be refined over the course of
numerous meetings of the knowledge engineer with the experts and users.

Limitations of expert System
• Limited to relatively narrow problems
• Cannot readily deal with “mixed” knowledge
• Errors may occur in the knowledge base
• Cannot refine own knowledge base or learn from experience
• Lack common sense
• Cannot make creative responses as human expert
• Domain experts not always able to explain their logic and reasoning

Data Warehouse

Producer wants to know

Data warehouse
• A data warehouse is an appliance for storing and analyzing

data, and reporting.
• Central database that includes information from several
different sources.
• Keeps current as well as historical data.
• Used to produce reports to assist in decision-making and
management.

Data Warehouse is a subject
oriented, integrated, time variant and
non-volatile collection of data in
support of management’s decision
making process.”
– W. H. Inmon

Data Warehousing
• A process of transforming data into information and
making it available to users in a timely enough manner to
make a difference .
• A data warehouse is constructed by integrating data from
multiple heterogeneous sources that support analytical
reporting, structured and/or ad hoc queries, and decision
making.
• Data warehousing involves data cleaning, data
integration, and data consolidations.

Database
• Transaction Oriented
• For saving online bargain data
• E-R modelling techniques are used for designing
• Capture data
• Constitute real time information

Data Warehouse
• Subject oriented
• For saving historical data
• Data modeling techniques are used for designing.
• Analyze data
• Constitute entire information base for all time

Data Processing Technologies
• OLTP (on-line transaction processing)
• OLAP(On-Line Analytical Processing)

OLTP (on-line transaction processing)
• The major task is to perform on-line transaction and query
processing.
• Covers most of the day-to-day operations of an organization.

OLAP(On-Line Analytical Processing)
• Serve knowledge workers(users) in the role of data analysis
and decision making.
• Organize and present data in various formats to
accommodate the diverse needs of the different users.

OLTP Vs OLAP

Data Warehouse Architecture

Data Marts
• Contains a subset of the data stored in the data warehouse that is of
interest to a specific business community, department, or set of users.
• E.g.: Marketing promotions, finance ,or account collections.
• Data marts are small slices of the data warehouse.
• Data marts improve end-user response time by allowing users to have
access to the specific type of data they need to view.
• A data mart is basically a condensed and more focused version of a data
warehouse.

Functions of Data Warehouse Tools
• Data Extraction − Involves gathering data from multiple
heterogeneous sources.
• Data Cleaning − Involves finding and correcting the errors in data.
• Data Transformation − Involves converting the data from legacy
format to warehouse format.
• Data Loading − Involves sorting, summarizing, consolidating,
checking integrity, and building indices and partitions.
• Refreshing − Involves updating from data sources to warehouse.
• Note − Data cleaning and data transformation are important steps in
improving the quality of data and data mining results.

Metadata
• Metadata is simply defined as data about data.
• The data that are used to represent other data is known as
metadata.
• For example, the index of a book serves as a metadata for the
contents in the book.
• In other words, we can say that metadata is the summarized data
that leads us to the detailed data.

Data cube
• A data cube helps us represent data in multiple dimensions.
• It is defined by dimensions and facts.
• The dimensions are the entities with respect to which an
enterprise preserves the records.
• For example, a company wants to keep track of sales
records with the help of sales data warehouse with respect to
time, item, branch, and location. These dimensions allow to
keep track of monthly sales and at which branch the items
were sold.

Virtual Warehouse
• The view over an operational data warehouse is known
as virtual warehouse.
• It is easy to build a virtual warehouse.
• Building a virtual warehouse requires excess capacity on
operational database servers.

Business Analysis Framework
• The business analyst get the information from the data
warehouses to measure the performance and make
critical adjustments in order to win over other business
holders in the market.

Business analysis framework.
• The top-down view − This view allows the selection of
relevant information needed for a data warehouse.
• The data source view − This view presents the information
being captured, stored, and managed by the operational
system.
• The data warehouse view − This view includes the fact
tables and dimension tables. It represents the information
stored inside the data warehouse.
• The business query view − It is the view of the data from
the viewpoint of the end-user.

Three-Tier Data Warehouse Architecture
• Generally a data warehouses adopts a three-tier architecture.

Following are the three tiers of the data warehouse
architecture.
• Bottom Tier − The bottom tier of the architecture is the data
warehouse database server. It is the relational database
system. We use the back end tools and utilities to feed data
into the bottom tier. These back end tools and utilities
perform the Extract, Clean, Load, and refresh functions.
• The following diagram depicts the three-tier architecture of
data warehouse −

• Middle Tier − In the middle tier, we have the OLAP Server that
can be implemented in either of the following ways.
• By Relational OLAP (ROLAP), which is an extended
relational database management system. The ROLAP maps
the operations on multidimensional data to standard relational
operations.
• By Multidimensional OLAP (MOLAP) model, which directly
implements the multidimensional data and operations.
• Top-Tier − This tier is the front-end client layer. This layer holds
the query tools and reporting tools, analysis tools and data
mining tools.

Data Warehouse Models
• From the perspective of data warehouse architecture, we
have the following data warehouse models −
• Virtual Warehouse
• Data mart
• Enterprise Warehouse

Virtual Warehouse
• The view over an operational data warehouse is known as a
virtual warehouse.
• It is easy to build a virtual warehouse.
• Building a virtual warehouse requires excess capacity on
operational database servers.

Data Mart
• Data mart contains a subset of organization-wide data.
• This subset of data is valuable to specific groups of an
organization.
• Points to remember about data marts −
• The life cycle of a data mart may be complex in long run, if its
planning and design are not organization-wide.
• Data marts are small in size.
• Data marts are customized by department.
• The source of a data mart is departmentally structured data
warehouse.
• Data mart are flexible.

Enterprise Warehouse
• An enterprise warehouse collects all the information and the
subjects spanning an entire organization
• It provides us enterprise-wide data integration.
• The data is integrated from operational systems and external
information providers.
• This information can vary from a few gigabytes to hundreds
of gigabytes, terabytes or beyond.

Explicit knowledge
• Documented information that can facilitate action.
• Explicit knowledge
• Formal or codified
• Documents: reports, policy manuals, white papers, standard
procedures
• Databases –
• Books, magazines, journals (library)

Implicit knowledge (Tacit)
• Know-how & learning embedded within the minds people.
• Informal and uncodified
• Values, perspectives & culture
• Knowledge in heads
• Memories of staff, suppliers and vendors

Process Flow in Data Warehouse
• There are four major processes that contribute to a data
warehouse −
• Extract and load the data.
• Cleaning and transforming the data.
• Backup and archive the data.
• Managing queries and directing them to the appropriate
data sources.

Extract and Load Process
• Data extraction takes data from the source systems. Data load takes the
extracted data and loads it into the data warehouse.
• Note − Before loading the data into the data warehouse, the information
extracted from the external sources must be reconstructed.
• Controlling the Process
• Controlling the process involves determining when to start data extraction
and the consistency check on data. Controlling process ensures that the
tools, the logic modules, and the programs are executed in correct sequence
and at correct time.
• When to Initiate Extract
• Data needs to be in a consistent state when it is extracted, i.e., the data
warehouse should represent a single, consistent version of the information to
the user.

• For example, in a customer profiling data warehouse in
telecommunication sector, it is illogical to merge the list of customers at
8 pm on Wednesday from a customer database with the customer
subscription events up to 8 pm on Tuesday. This would mean that we
are finding the customers for whom there are no associated
subscriptions.
• Loading the Data
• After extracting the data, it is loaded into a temporary data store where
it is cleaned up and made consistent.
• Note − Consistency checks are executed only when all the data sources
have been loaded into the temporary data store.

Clean and Transform Process
• Once the data is extracted and loaded into the temporary data store, it is time to
perform Cleaning and Transforming. Here is the list of steps involved in Cleaning
and Transforming −
• Clean and transform the loaded data into a structure
• Partition the data
• Aggregation
• Clean and Transform the Loaded Data into a Structure
• Cleaning and transforming the loaded data helps speed up the queries. It can be
done by making the data consistent −
• within itself.
• with other data within the same data source.
• with the data in other source systems.
• with the existing data present in the warehouse.
• Transforming involves converting the source data into a structure. Structuring
the data increases the query performance and decreases the operational cost.
The data contained in a data warehouse must be transformed to support
performance requirements and control the ongoing operational costs.
• Partition the Data
• It will optimize the hardware performance and simplify the management of
data warehouse. Here we partition each fact table into multiple separate
partitions.
• Aggregation
• Aggregation is required to speed up common queries. Aggregation relies on
the fact that most common queries will analyze a subset or an aggregation of
the detailed data.

Backup and Archive the Data
• In order to recover the data in the event of data loss, software failure, or
hardware failure, it is necessary to keep regular back ups. Archiving
involves removing the old data from the system in a format that allow it
to be quickly restored whenever required.
• For example, in a retail sales analysis data warehouse, it may be required
to keep data for 3 years with the latest 6 months data being kept online. In
such as scenario, there is often a requirement to be able to do month-on-
month comparisons for this year and last year. In this case, we require
some data to be restored from the archive.

Query Management Process
• This process performs the following functions −
• manages the queries.
• helps speed up the execution time of queris.
• directs the queries to their most effective data sources.
• ensures that all the system sources are used in the most effective
way.
• monitors actual query profiles.
• The information generated in this process is used by the warehouse
management process to determine which aggregations to generate.
This process does not generally operate during the regular load of
information into data warehouse.
Relational OLAP
• Relational OLAP servers are placed between relational back-end server
and client front-end tools. To store and manage the warehouse data, the
relational OLAP uses relational or extended-relational DBMS.
• ROLAP includes the following −
• Implementation of aggregation navigation logic
• Optimization for each DBMS back-end
• Additional tools and services
• Points to Remember
• ROLAP servers are highly scalable.
• ROLAP tools analyze large volumes of data across multiple dimensions.
• ROLAP tools store and analyze highly volatile and changeable data.
Relational OLAP Architecture
• ROLAP includes the following components −
• Database server
• ROLAP server
• Front-end tool.

Advantages and Disadvantages
• Advantages
• ROLAP servers can be easily used with existing RDBMS.
• Data can be stored efficiently, since no zero facts can be
stored.
• ROLAP tools do not use pre-calculated data cubes.
• DSS server of micro-strategy adopts the ROLAP approach.
• Disadvantages
• Poor query performance.
• Some limitations of scalability depending on the technology
architecture that is utilized.

Multidimensional OLAP (MOLAP)
• (MOLAP) uses array-based multidimensional storage engines for multidimensional views of data.
With multidimensional data stores, the storage utilization may be low if the dataset is sparse.
Therefore, many MOLAP servers use two levels of data storage representation to handle dense and
sparse datasets.
• Points to Remember −
• MOLAP tools process information with consistent response time regardless of level of summarizing
or calculations selected.
• MOLAP tools need to avoid many of the complexities of creating a relational database to store data
for analysis.
• MOLAP tools need fastest possible performance.
• MOLAP server adopts two level of storage representation to handle dense and sparse data sets.
• Denser sub-cubes are identified and stored as array structure.
• Sparse sub-cubes employ compression technology.

MOLAP Architecture
• MOLAP includes the following components −
• Database server.
• MOLAP server.
• Front-end tool.

Advantages and Disadvantages
• Advantages
• MOLAP allows fastest indexing to the pre-computed
summarized data.
• Helps the users connected to a network who need to analyze
larger, less-defined data.
• Easier to use, therefore MOLAP is suitable for inexperienced
users.
• Disadvantages
• MOLAP are not capable of containing detailed data.
• The storage utilization may be low if the data set is sparse.
KNOWLEDGE MANAGEMENT
UNIT-3
Data Mining
• Data mining is one of the most useful techniques that help
entrepreneurs, researchers, and individuals to extract valuable
information from huge sets of data.
• The process of extracting information to identify patterns, trends,

and useful data that would allow the business to take the data-
driven decision from huge sets of data is called Data Mining.

• In other words, we can say that Data Mining is the process of
investigating hidden patterns of information to various
perspectives for categorization into useful data, which is
collected and assembled in particular areas such as data
warehouses, efficient analysis, data mining algorithm, helping
decision making and other data requirement to eventually cost-
cutting and generating revenue.

• Data mining is the act of automatically searching for large
stores of information to find trends and patterns that go
beyond simple analysis procedures. Data mining utilizes
complex mathematical algorithms for data segments and
evaluates the probability of future events. Data Mining is
also called Knowledge Discovery of Data (KDD).

• Data Mining is similar to Data Science carried out by a person,
in a specific situation, on a particular data set, with an objective.
This process includes various types of services such as text
mining, web mining, audio and video mining, pictorial data
mining, and social media mining. It is done through software
that is simple or highly specific. By outsourcing data mining, all
the work can be done faster with low operation costs.
Specialized firms can also use new technologies to collect data
that is impossible to locate manually.
Types of Data Mining
• Relational Database
• Data warehouses
• Data Repositories
• Object-Relational Database
• Transactional Database

Relational Database
• A relational database is a collection of multiple data sets
formally organized by tables, records, and columns from
which data can be accessed in various ways without having to
recognize the database tables.
• Tables convey and share information, which facilitates data

searchability, reporting, and organization.

Data warehouses
• A Data Warehouse is the technology that collects the data from
various sources within the organization to provide meaningful
business insights. The huge amount of data comes from multiple
places such as Marketing and Finance. The extracted data is
utilized for analytical purposes and helps in decision- making for a
business organization. The data warehouse is designed for the
analysis of data rather than transaction processing.

Data Repositories
• The Data Repository generally refers to a destination for data
storage. However, many IT professionals utilize the term more
clearly to refer to a specific kind of setup within an IT structure.
For example, a group of databases, where an organization has
kept various kinds of information.

Object-Relational Database
• A combination of an object-oriented database model and
relational database model is called an object-relational model. It
supports Classes, Objects, Inheritance, etc.
• One of the primary objectives of the Object-relational data model

is to close the gap between the Relational database and the
object-oriented model practices frequently utilized in many
programming languages, for example, C++, Java, C#, and so on.
Transactional Database
• A transactional database refers to a database management
system (DBMS) that has the potential to undo a database
transaction if it is not performed appropriately. Even though
this was a unique capability a very long while back, today,
most of the relational database systems support transactional
database activities.

Advantages of Data Mining
• The Data Mining technique enables organizations to obtain
knowledge-based data.
• Data mining enables organizations to make lucrative

modifications in operation and production.
• Compared with other statistical data applications, data mining is a

cost-efficient.

Advantages of Data Mining
• Data Mining helps the decision-making process of an organization.
• It Facilitates the automated discovery of hidden patterns as well as

the prediction of trends and behaviours.
• It can be induced in the new system as well as the existing platforms.
• It is a quick process that makes it easy for new users to analyse

enormous amounts of data in a short time.

Disadvantages of Data Mining
• There is a probability that the organizations may sell useful data of
customers to other organizations for money.
• Many data mining analytics software is difficult to operate and needs

advance training to work on.
• Therefore, the selection of the right data mining tools is a very

challenging task.
• The data mining techniques are not precise, so that it may lead to
severe consequences in certain conditions
Apriori Algorithm
• Apriori algorithm is given by R. Agrawal and R. Srikant in 1994
for finding frequent itemsets in a dataset for boolean association
rule. Name of the algorithm is Apriori because it uses prior
knowledge of frequent itemset properties. We apply an iterative
approach or level-wise search where k-frequent itemsets are used to
find k+1 itemsets.

• To improve the efficiency of level-wise generation of
frequent itemsets, an important property is used
called Apriori property which helps by reducing the search
space.

Apriori Property
• All non-empty subset of frequent itemset must be frequent. The key
concept of Apriori algorithm is its anti-monotonicity of support
measure. Apriori assumes that
• All subsets of a frequent itemset must be frequent(Apriori propertry).

If an itemset is infrequent, all its supersets will be infrequent.

Apriori Algorithm Working
Suppose we have the following dataset that has various transactions,
and from this dataset, we need to find the frequent itemsets and
generate the association rules using the Apriori algorithm

We have only one combination, i.e., {A, B, C}

Data mining Techniques
Association
Classification Clustering Regression
Rules
Outer Sequential
Prediction
detection Patterns

What is classification
• Classification is a process of categorization where objects are
recognized, differentiated and understood on the basis of the
training set of data.
• Classification is a supervised learning technique where a training

set and correctly defined observations are available.

What is Clustering
• Clustering is a method of grouping objects in such a way that
objects with similar features come together, and objects with
dissimilar features go apart.
• It is a common technique for statistical data analysis used

in machine learning and data mining.
• Clustering can be used for exploratory data analysis and

generalization.
• Clustering belongs to unsupervised data mining, and
clustering is not a single specific algorithm, but a general
method to solve the task. Clustering can be achieved by
various algorithms.

What is prediction
• A prediction is a statement about the way things will happen
in the future, Often but not always based on experience or
knowledge.

• Suppose the marketing manager needs to predict how much a
given customer will spend during a sale at his company. In this
example we are bothered to predict a numeric value. Therefore
the data analysis task is an example of numeric prediction. In
this case, a model or a predictor will be constructed that predicts
a continuous-valued-function or ordered value.

Forecasting
Axis Institute of Higher Education, Kanpur 121

Regression
• Regression analysis is the data mining process is used to identify
and analyse the relationship between variables because of the
presence of the other factor. It is used to define the probability of
the specific variable. Regression, primarily a form of planning and
modeling. For example, we might use it to project certain costs,
depending on other factors such as availability, consumer demand,
and competition. Primarily it gives the exact relationship between
two or more variables in the given data set.
Association Rules
• This data mining technique helps to discover a link between two or
more items. It finds a hidden pattern in the data set.
• Association rules are if-then statements that support to show the

probability of interactions between data items within large data sets
in different types of databases. Association rule mining has several
applications and is commonly used to help sales correlations in data
or medical data sets.

• The way the algorithm works is that you have various data,
For example, a list of grocery items that you have been
buying for the last six months. It calculates a percentage of
items being purchased together.

Outer detection
• This type of data mining technique relates to the observation of data items in
the data set, which do not match an expected pattern or expected behaviour.
This technique may be used in various domains like intrusion, detection, fraud
detection, etc. It is also known as Outlier Analysis or Outlier mining. The
majority of the real-world datasets have an outlier. Outlier detection is
valuable in numerous fields like network interruption identification, credit or
debit card fraud detection, detecting outlying in wireless sensor network data,
etc.
Sequential Patterns
• The sequential pattern is a data mining technique specialized
for evaluating sequential data to discover sequential patterns. It
comprises of finding interesting subsequence in a set of sequences,
where the stake of a sequence can be measured in terms of different
criteria like length, occurrence frequency, etc.
• In other words, this technique of data mining helps to discover or

recognize similar patterns in transaction data over some time.

Data Mining Tools
• R-language
• Oracle Data Mining

R language
• R language is an open source tool for statistical computing
and graphics. R has a wide variety of statistical, classical
statistical tests, time-series analysis, classification and
graphical techniques. It offers effective data handing and
storage facility.

Oracle Data Mining
• Oracle Data Mining popularly knowns as ODM is a
module of the Oracle Advanced Analytics Database. This
Data mining tool allows data analysts to generate detailed
insights and makes predictions. It helps predict customer
behaviour, develops customer profiles, identifies cross-
selling opportunities.

Data Mining Applications
Communications Insurance Education Manufacturing
Service
Banking Retail E-Commerce
Providers
Crime
Super Markets Bioinformatics
Investigation

Summary
• Data Mining is all about explaining the past and predicting the
future via Data analysis.
• Data mining helps to extract information from huge sets of data. It

is the procedure of mining knowledge from data.
• Data mining process includes business understanding, Data

Understanding, Data Preparation, Modelling, Evolution,
Deployment.
• Important Data mining techniques are Classification, clustering,
Regression, Association rules, Outer detection, Sequential
Patterns, and prediction
• R-language and Oracle Data mining are prominent data mining
tools and techniques.
• Data mining technique helps companies to get knowledge-based
information.

• The main drawback of data mining is that many analytics software
is difficult to operate and requires advance training to work on.
• Data mining is used in diverse industries such as Communications,
Insurance, Education, Manufacturing, Banking, Retail, Service
providers, E-Commerce, Supermarkets Bioinformatics.

Strategic Planning
• Management Systems has developed a unique, proven
methodology for strategic planning that has been used by
hundreds of organizations to grow successfully and profitably
over the long term. Our approach is fundamentally different from
that of any other firm because it is built upon our Pyramid of
Organizational Development™.

• Management Systems methodology for strategic planning consists of
six steps, as shown below
• Environmental Scan
• Organizational Assessment
• Strategic Issue Resolution
• Strategic Business Plan
• Budgeting
• Management Review

Step 1: Environmental Scan
• Identify Target Market (Customers) and strengths and
limitations with respect to meeting market needs
• Identify the strengths and limitations of Key Competitors
• Identify Key Market Trends and the threats and

opportunities they present

Step 2: Organizational Assessment
• Identify the company’s strengths and limitations at each

level in the Pyramid of Organizational Development™

Step 3: Strategic Issue Resolution
• Identify and work to resolve specific strategic issues –
identified through an analysis of information collected
about the company’s environment and internal
capabilities.

Step 4: Strategic Business Plan
• This plan consists of the following components:
• Business Definition/Concept Statement
• Core Strategy
• Key Result Areas (KRAs
• Objectives
• Goals
Business Definition/Concept Statement
• A one- to three- sentence statement that answers the

question: “What business are we in?” It identifies
the boundaries in which the business will operate
and provides focus

Strategic Mission Statement
• A broad statement of what an organization wants to achieve
during the planning period (typically 3-5 years). The Strategic
Mission Statement should include specific targets (e.g.,
revenue, market share, profitability, expansion, brand, etc.)
against which performance can be assessed and a date (3-5
years out) by which these targets should be reached.

Core Strategy
• Defines how the organization will compete to “win the game”
in its market. A Core Strategy (or what might be thought of as
an organization’s “success formula”) should reflect the factors
that differentiate or will differentiate the company from those
with whom it competes for customers. These factors should
be truly unique.

Key Result Areas (KRAs)
• Areas of an organization’s operation in which
performance has a critical impact on the
achievement of the overall Strategic Mission. In a
very real sense, Key Result Areas or “KRAs” are
critical success factors.

Objectives
• Broad statements of what an organization wants to
achieve in the long run (that is, by the Strategic
Mission’s due date). In a sense, Objectives reflect
the strategy that the organization is adopting with
respect to each Key Result Area (KRA). Each KRA
will have one or more Objectives.

Goals
• Goals should be SMART:Specific – Define a specific outcome
• Measurable – Targets against which progress can be assessed
• Accountable – someone on the team has responsibility for each Goal – and
• Actionable – action can be taken on the Goal
• Realistic – a high probability that the Goal can be achieved by its due date
• Results-Oriented – results to be achieved, versus action to be taken
• Time-Dated – Specific due date

Step 5: Budgeting
• Identifies how financial resources will be invested to help the
organization achieve its plan.
• Involves translating the overall strategic plan into financial terms.

It should be noted that the development of a strategic plan and
budget is an iterative process – it may be that an organization will
need to adjust its strategic plan, depending upon the financial
resources available to support it.
• Budgeting is the responsibility of an organization’s “CFO.

Step 6: Management Review
• A half- to full-day meeting each quarter during which management:
• Reviews progress being made against Goals.
• Celebrates successes with respect to achieving Goals.
• Identifies any problems or anticipated problems with respect to

achieving Goals and develops plans to address these problems.
• Discusses and works to resolve any other issues that might affect
organizational performance.
Facebook Data Mining
• Facebook has made the world seems much smaller. Facebook is
one of the most important sources of online business
communication. The business holders make the most out of this
platform. The most important reason for which this platform is
most accessed is because of its characteristic of being the oldest
video and photo sharing social media tool.

• A Facebook page helps the people to get aware of the
brand through the media content shared. The platform
supports the businesses to reach out to their audience and
then establish their business belonging to Facebook usage
itself.

Some Facts about Facebook
• Headquarters: California, US
• Established: February 2004
• Founded by: Mark Zuckerberg
• There are approximately 52 percent Female users and 48 percent
Male users on Facebook.
• Facebook stories are viewed by 0.6 Billion viewers on
a daily basis.
• In 2019, in 60 seconds on the internet, 1 million people Log In to
Facebook.
• More than 5 billion messages are posted on Facebook pages
collectively, on a monthly basis.
Clustering in Data Mining
• Clustering is an unsupervised Machine Learning-based Algorithm
that comprises a group of data points into clusters so that the
objects belong to the same group.
• Clustering helps to splits data into several subsets. Each of these
subsets contains data similar to each other, and these subsets are
called clusters. Now that the data from our customer base is
divided into clusters, we can make an informed decision about who
we think is best suited for this product.
What is a Cluster?
• A cluster is a subset of similar objects
• A subset of objects such that the distance between any of

the two objects in the cluster is less than the distance
between any object in the cluster and any object that is not
located inside it.
• A connected region of a multidimensional space with a

comparatively high density of objects.
What is clustering in Data Mining?
• Clustering is the method of converting a group of abstract objects into
classes of similar objects.
• Clustering is a method of partitioning a set of data or objects into a set

of significant subclasses called clusters.
• It helps users to understand the structure or natural grouping in a data

set and used either as a stand-alone instrument to get a better insight
into data distribution or as a pre-processing step for other algorithms.
Important points
• Data objects of a cluster can be considered as one group.
• We first partition the information set into groups while doing cluster
analysis. It is based on data similarities and then assigns the levels to
the groups.
• The over-classification main advantage is that it is adaptable to

modifications, and it helps single out important characteristics that
differentiate between distinct groups.
Applications of cluster analysis in data mining
• In many applications, clustering analysis is widely used, such as data
analysis, market research, pattern recognition, and image processing.
• It assists marketers to find different groups in their client base and
based on the purchasing patterns. They can characterize their customer
groups.
• It helps in allocating documents on the internet for data discovery.
• Clustering is also used in tracking applications such as detection of
credit card fraud.
Applications of cluster analysis in data mining
• In many applications, clustering analysis is widely used, such as data
analysis, market research, pattern recognition, and image processing.
• It assists marketers to find different groups in their client base and
based on the purchasing patterns. They can characterize their customer
groups.
• It helps in allocating documents on the internet for data discovery.
• Clustering is also used in tracking applications such as detection of
credit card fraud.
Text Data Mining
• Text data mining can be described as the process of

extracting essential data from standard language text. All
the data that we generate via text messages, documents,
emails, files are written in common language text. Text
mining is primarily used to draw useful insights or
patterns from such data.

Text Data Mining

• The text mining market has experienced exponential growth and
adoption over the last few years and also expected to gain
significant growth and adoption in the coming future.
• One of the primary reasons behind the adoption of text mining is
higher competition in the business market, many organizations
seeking value-added solutions to compete with other
organizations.
• The primary source of data is e-commerce websites, social media
platforms, published articles, survey, and many more.
• The larger part of the generated data is unstructured, which makes it
challenging and expensive for the organizations to analyse with the help
of the people.
• This challenge integrates with the exponential growth in data generation
has led to the growth of analytical tools.
• It is not only able to handle large volumes of text data but also helps in
decision-making purposes.
• Text mining software empowers a user to draw useful information from a
huge set of data available sources.
Areas of text mining in data mining

Information Extraction
• The automatic extraction of structured data such as
entities, entities relationships, and attributes describing
entities from an unstructured source is called information
extraction.

Natural Language Processing
• NLP stands for Natural language processing. Computer software can
understand human language as same as it is spoken. NLP is primarily a
component of artificial intelligence(AI). The development of the NLP
application is difficult because computers generally expect humans to
"Speak" to them in a programming language that is accurate, clear, and
exceptionally structured. Human speech is usually not authentic so that
it can depend on many complex variables, including slang, social
context, and regional dialects.
Data Mining
• Data mining refers to the extraction of useful data, hidden patterns
from large data sets. Data mining tools can predict behavior and
future trends that allow businesses to make a better data-driven
decision. Data mining tools can be used to resolve many business
problems that have traditionally been too time-consuming

Information Retrieval
• Information retrieval deals with retrieving useful data from data
that is stored in our systems. Alternately, as an analogy, we can
view search engines that happen on websites such as e-commerce
sites or any other sites as part of information retrieval.

Text Mining Process

Text transformation
A text transformation is a technique that is used to control
the capitalization of the text.
Here the two major way of document representation is
given.
1.Bag of words
2.Vector Space

Text Pre-processing
• Pre-processing is a significant task and a critical step in Text Mining,
Natural Language Processing (NLP), and information retrieval(IR).
• In the field of text mining, data pre-processing is used for extracting
useful information and knowledge from unstructured text data.
• Information Retrieval (IR) is a matter of choosing which documents
in a collection should be retrieved to fulfil the user's need.

Feature selection
• Feature selection is a significant part of data mining. Feature
selection can be defined as the process of reducing the input of
processing or finding the essential information sources. The feature
selection is also called variable selection.

Data Mining
• Now, in this step, the text mining procedure merges with the
conventional process. Classic Data Mining procedures are used in
the structural database.

Evaluate
Afterward, it evaluates the results. Once the result is evaluated, the
result abandon.

Applications
1. Risk Management: Risk Management is a systematic and logical
procedure of analysing, identifying, treating, and monitoring the
risks involved in any action or process in organizations. Insufficient
risk analysis is usually a leading cause of disappointment. It enables
the administration of millions of sources and petabytes of text
documents, and giving the ability to connect the data. It helps to
access the appropriate data at the right time.

Applications
2. Customer Care Service: Text mining methods, particularly NLP,
are finding increasing significance in the field of customer care.
Organizations are spending in text analytics programming to
improve their overall experience by accessing the textual data from
different sources such as customer feedback, surveys, customer
calls, etc. The primary objective of text analysis is to reduce the
response time of the organizations and help to address the
complaints of the customer rapidly and productively.
Applications
3. Business Intelligence: Companies and business firms have started
to use text mining strategies as a major aspect of their business
intelligence. Besides providing significant insights into customer
behaviour and trends, text mining strategies also support
organizations to analyse the qualities and weaknesses of their
opponent's so, giving them a competitive advantage in the market.

Applications
3. Social Media Analysis: Social media analysis helps to track the online
data, and there are numerous text mining tools designed particularly for
performance analysis of social media sites. These tools help to monitor
and interpret the text generated via the internet from the news, emails,
blogs, etc. Text mining tools can precisely analyse the total no of posts,
followers, and total no of likes of your brand on a social media platform
that enables you to understand the response of the individuals who are
interacting with your brand and content.
Text Mining Approaches in Data Mining
1. Keyword-based Association Analysis: It collects sets of keywords or
terms that often happen together and afterward discover the association
relationship among them. First, it pre-processes the text data by parsing,
stemming, removing stop words, etc. Once it pre-processed the data,
then it induces association mining algorithms. Here, human effort is not
required, so the number of unwanted results and the execution time is
reduced.

Text Mining Approaches in Data Mining
2. Document Classification Analysis:
• Automatic document classification:
• This analysis is used for the automatic classification of the huge number
of online text documents like web pages, emails, etc. Text document
classification varies with the classification of relational data as document
databases are not organized according to attribute values pairs.

Knowledge Discovery in Database
• Knowledge Discovery in Databases, refers to the
nontrivial extraction of implicit, previously unknown and
potentially useful information from data stored in
databases.

Steps Involved in KDD Process

Data Cleaning
• Data cleaning is defined as removal of noisy and irrelevant
data from collection. Cleaning in case of Missing values.
• Cleaning noisy data, where noise is a random or variance

error.
• Cleaning with Data discrepancy detection and Data

transformation tools.

Data Integration
• Data integration is defined as heterogeneous data from multiple
sources combined in a common source(Data Warehouse).Data
integration using Data Migration tools.
• Data integration using Data Synchronization tools.
• Data integration using ETL(Extract-Load-Transformation)

process

Data Selection
• Data selection is defined as the process where data relevant to
the analysis is decided and retrieved from the data collection.
Data selection using Neural network.
• Data selection using Decision Trees.
• Data selection using Naive bayes.
• Data selection using Clustering, Regression, etc.

Data Transformation
• Data Transformation is defined as the process of transforming
data into appropriate form required by mining procedure.Data
Transformation is a two step process:
• Data Mapping: Assigning elements from source base to

destination to capture transformations.
• Code generation: Creation of the actual transformation program.

Data Mining
• Data mining is defined as clever techniques that are applied to
extract patterns potentially useful. Transforms task relevant data
into patterns.
• Decides purpose of model

using classification or characterization.

Pattern Evaluation
• Pattern Evaluation is defined as identifying strictly increasing
patterns representing knowledge based on given measures.
Find interestingness score of each pattern.
• Uses summarization and Visualization to make data

understandable by user.

Knowledge representation
• Knowledge representation is defined as technique which utilizes
visualization tools to represent data mining results.
Generate reports.
• Generate tables.
• Generate discriminant rules, classification rules, characterization

rules, etc.

• KDD is an iterative process where evaluation measures can be
enhanced, mining can be refined, new data can be integrated and
transformed in order to get different and more appropriate results.
• Pre-processing of databases consists of Data cleaning and Data

Integration.

KNOWLEDGE MANAGEMENT
UNIT-4
RER: Rapid Evidence Review
A Rapid Evidence Review is a way of reviewing research and
evidence on a particular issue.
It looks at what has been done in particular area and records the
main outcomes.
Evidence review can be run in several ways. Some are more
exhaustive in their execution and ambitious in their scope.
The RER provides a quicker review but still useful way of gathering
and consolidating knowledge.
It’s useful building block from which to start work on a new project.

CASE STUDY
A case study is a written examination of a project, or important part
of a project. It has a clear structure that brings out key qualitative
and quantitative information from the project. Case studies are also
published with a broad audience in mind, so it is useful to bring the
most useful and transferable information to the fore.

KNOWLEDGE BANK
Knowledge banks are online services and resources which hold
information, learning and support, giving you the power to improve
your council. They are typically used to showcase the work of an
organization and provide signposts to documents, article and
toolkits.

KNOWLEDGE CAFE
A knowledge café people brings together to have open creative
conversation on topics of mutual interest. It can be organized in a
meeting or workshop format, but the emphasis should be on
following dialogue that allows people to share ideas and learn from
each other. It encourages people to explore issues that require
discussion in order to build a consensus around an issue.

KNOWLEDGE MARKETPLACE
Knowledge Marketplace – Modelled on the E-Business Net Market
concept, several knowledge-trading places have recently been
established. In a Knowledge Marketplace, a third party vendor hosts
a web site grouping together many suppliers of knowledge services.
Suppliers may include expert advisors, vendors providing product
support services, KM job placement agencies, procedures for the
evaluation of KM and portal software, and research companies
providing industry benchmarks and best practice case studies. Two
types of Knowledge Marketplace exist.one provides common
COTS
Customized Off The Shelf (COTS) – this is the traditional and
most popular way of deploying application services. Based on the
organizational needs, the applications will be identified and then
examined against the functional needs of the organization. A short-
period test may follow to identify the most suitable application.
Once an application is acquired, customization of the standard
features is usually performed to integrate it into the organization’s
information system.
BRAINSTORMING
Brainstorming is a process where a group of people meet to focus on
a problem, or idea, and explore such ideas with a view to coming up
with solutions, or further developing the ideas. The participants
express or contribute their ideas as they strike them and then build
on the ideas raised by others. All the ideas are noted down and are
not criticized. Only when the brainstorming session is over are the
ideas evaluated. Brainstorming helps in problem solving and in
creating new knowledge from existing knowledge.
Expert system
• Expert systems (ES) are one of the prominent research domains
of AI. It is introduced by the researchers at Stanford University,
Computer Science Department.
• The expert systems are the computer applications developed to

solve complex problems in a particular domain, at the level of
extra-ordinary human intelligence and expertise.

Expert System is an Artificial intelligence based system that
converts the knowledge of an expert in a specific subject into a
software code. This code can be merged with other such codes
(based on the knowledge of other experts) and used for
answering questions (queries) submitted through a computer.
Expert systems typically consist of three parts:

(1)knowledge base which contains the information acquired by
interviewing experts, and logic rules that govern how that
information is applied;
(2)Inference engine that interprets the submitted problem against
the rules and logic of information stored in the knowledge base;
and an
(3)User Interface that allows the user to express the problem in a
human language such as English.
Thank you

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KNOWLEDGE

Axis Institute of Higher Education, Kanpur

• How does decision support system help in business?

• What is groupware technology? Discuss different groupware technologies.

• How is Groupware Design Different from Traditional User Interface Design?

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

• ii) Support managers at all levels.

• iii) Support individuals and groups.

• iv) Support for interdependent or sequential decisions.

• v) Support intelligence, design, choice, and implementation.

• vi) Support variety of decision processes and styles

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

• What is Data Warehouse? Draw and explain Data Warehouse architecture

• Discuss the basic concept and characteristics of Data Warehouse

• Explain different types of Tools for data warehousing

• What is Executive information system?

• What is Business Expert System?

• What are the benefit of data warehouse

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur

• Ability to analyze trends

• Augmentation of managers' leadership capabilities

• Enhance personal thinking and decision-making

• Contribution to strategic control flexibility

• Enhance organizational competitiveness in the market place

• Increased executive time horizons.

• Better reporting system

Axis Institute of Higher Education, Kanpur

• Help improve consensus building and communication

• Improve office automation

• Reduce time for finding information

• Early identification of company performance

• Detail examination of critical success factor

• Increased communication capacity and quality

Axis Institute of Higher Education, Kanpur

• Hard to quantify benefits

• Executive may encounter information overload

• System may become slow

• Difficult to keep current data

• May lead to less reliable and insecure data

• Excessive cost for small company

Axis Institute of Higher Education, Kanpur

Axis Institute of Higher Education, Kanpur