UNIT – 1 INTRODUCTION TO BUSINESS Both BI and data warehouses involve the

INTELLIGENCE storage of data. However, business intelligence

is also the collection, methodology, and analysis
BUSINESS INTELLIGENCE & BUSINESS
of data.
DECISIONS

Business Intelligence:

Business intelligence combines business

analytics, data mining, data visualization, data
tools and infrastructure, and best practices to
help organizations make more data-driven
decisions.

Business Decisions:
Roles of Data Warehouse in BI
A business decision, sometimes called an
operational decision, is any choice made by a In business intelligence, data warehouses serve
business professional that determines short- as the backbone of data storage. Business
term or long-term company activities. intelligence relies on complex queries and
comparing multiple sets of data to inform
DATA WAREHOUSE AND ITS ROLE IN BI
everything from everyday decisions to
DATAWAREHOUSE: organization-wide shifts in focus.

A Data warehouse is a type of data To facilitate this, business intelligence is

management system that is designed to enable comprised of three overarching activities:
and support business intelligence (BI) activities,
 Data wrangling,
especially analytics.
 Data storage,
Data warehouses are solely intended to perform
queries and analysis and often contain large  Data analysis.
amounts of historical data.
CREATING A CORPORATE DATAWAREHOUSE
 CDW: Data Warehouse applications are designed to
support the user ad-hoc data requirements, an
The Corporate Data Warehouse (CDW) is
activity recently dubbed online analytical
an environment for storage and retrieval of
processing (OLAP).
corporate systems data, both current and
historical. The goal of the CDW is to provide Each data warehouse is different, but all are
easy access to integrated, accurate, and timely characterized by standard vital components.
information through interfaces that facilitate
querying and reporting by end users.

DATA WAREHOUSING ARCHITECTUE

A data warehouse architecture is a method of

defining the overall architecture of data
communication processing and presentation
that exist for end-clients computing within the
enterprise.

ETL PROCESS  Data Loading

“Extract, Transform, Load ”(ETL) is the general Data Extraction:

procedure of copying data from one or more
It involves extracting data from
data sources into a destination system which
homogeneous or heterogeneous sources.
represents the data differently from the sources.
Data Transformation:
The ETL process is often used in data
warehousing. This processes data by cleaning and
transforming them into a proper storage
 Data Extraction
format/structure for the purposes of querying
 Data Transformation and analysis.
 Data Loading:  BI360 Data Warehouse

It describes the insertion of data into the  Cloudera

target data store, data mart, data lake or data
TOOLS USED FOR DATA WARE HOUSING
warehouse.

TOOLS USED FOR DATA WARE HOUSING :

Some of the tools used for Data WareHousing

are listed below:

 Amazon Redshift

 Microsoft Azure

 Google BigQuery

 Snowflake

 Micro Focus Vertica

 Teradata

 Amazon DynamoDB
DATA MINING
 Amazon RDS
Data mining is the process of sorting through
 Amazon S3 large data sets to identify patterns and
relationships that can help solve business
 MarkLogic
problems through data analysis. Data mining
 MariaDB techniques and tools enable enterprises to

 IBM Db2 Warehouse predict future trends and make more-informed

business decisions.
 Exadata
KDD PROCESS

KDD is referred to as Knowledge Discovery in

Database and is defined as a method of finding,
transforming, and refining meaningful data and
patterns from a raw database in order to be
utilised in different domains or applications. What is a Data Warehouse?

KDD is the systematic process of identifying A Data Warehouse (DW) is a relational database
valid, practical, and understandable patterns in that is designed for query and analysis rather
massive and complicated data sets. The base of than transaction processing. It includes
the KDD method is data mining, which involves historical data derived from transaction data
the inference of algorithms that analyze the from single and multiple sources.
data, build the model, and discover previously
unknown patterns. A Data Warehouse provides integrated,
enterprise-wide, historical data and focuses on
KDD PROCESS :
providing support for decision-makers for data
modeling and analysis.

A Data Warehouse is a group of data specific to

the entire organization, not only to a particular
group of users.
 It is not used for daily operations and Subject-Oriented
transaction processing but used for making
Data warehouses typically provide a concise and
decisions.
straightforward view around a particular subject,
A Data Warehouse can be viewed as a data such as customer, product, or sales, instead of the
system with the following attributes: global organization's ongoing operations.

o It is a database designed for investigative tasks, This is done by excluding data that are not useful
using data from various applications. concerning the subject and including all data

o It supports a relatively small number of clients needed by the users to understand the subject.

with relatively long interactions.

o It includes current and historical data to provide
a historical perspective of information.
o Its usage is read-intensive.

o It contains a few large tables.

"Data Warehouse is a subject-oriented,

integrated, and time-variant store of
information in support of management's
Integrated
decisions."

A data warehouse integrates various

Characteristics of Data Warehouse
heterogeneous data sources like RDBMS, flat files,
and online transaction records. It requires
performing data cleaning and integration during
data warehousing to ensure consistency in
naming conventions, attributes types, etc., among
different data sources.
 capabilities, which allows for substantial
speedup of data retrieval. Non-Volatile defines
that once entered into the warehouse, and data
should not change.

Time-Variant

Historical information is kept in a data

warehouse. For example, one can retrieve files
from 3 months, 6 months, 12 months, or even
previous data from a data warehouse. These
variations with a transactions system, where Goals of Data Warehousing
often only the most current file is kept.
o To help reporting as well as analysis
Non-Volatile
o Maintain the organization's historical
information
The data warehouse is a physically separate
data storage, which is transformed from the o Be the foundation for decision making.

source operational RDBMS. The operational o Need for Data Warehouse

updates of data do not occur in the data
Data Warehouse is needed for the following
warehouse, i.e., update, insert, and delete
reasons:
operations are not performed. It usually
requires only two procedures in data accessing:
Initial loading of data and access to data.
Therefore, the DW does not require transaction
processing, recovery, and concurrency
 types of queries, which demands a significant
degree of flexibility and quick response time.

Benefits of Data Warehouse

1. Understand business trends and make better

forecasting decisions.
2. Data Warehouses are designed to perform well
1. 1) Business User: Business users require a data enormous amounts of data.
warehouse to view summarized data from the 3. The structure of data warehouses is more
past. Since these people are non-technical, the accessible for end-users to navigate,
data may be presented to them in an elementary understand, and query.
form. 4. Queries that would be complex in many
2. 2) Store historical data: Data Warehouse is normalized databases could be easier to build
required to store the time variable data from the and maintain in data warehouses.
past. This input is made to be used for various 5. Data warehousing is an efficient method to
purposes. manage demand for lots of information from
3. 3) Make strategic decisions: Some strategies lots of users.
may be depending upon the data in the data 6. Data warehousing provide the capabilities to
warehouse. So, data warehouse contributes to analyze a large amount of historical data.
making strategic decisions.
DATA WAREHOUSE ARCHITECTURE
4. 4) For data consistency and quality: Bringing
the data from different sources at a
A data warehouse architecture is a method of
commonplace, the user can effectively
defining the overall architecture of data
undertake to bring the uniformity and
communication processing and presentation
consistency in data.
that exist for end-clients computing within the
5. 5) High response time: Data warehouse has to enterprise. Each data warehouse is different, but
be ready for somewhat unexpected loads and all are characterized by standard vital
components.
 As the warehouse is populated, it must be An operational system is a method used in
restructured tables de-normalized, data data warehousing to refer to a system that is
cleansed of errors and redundancies and new used to process the day-to-day transactions of
fields and keys added to reflect the needs to the an organization.
user for sorting, combining, and summarizing
Flat Files
data.

A Flat file system is a system of files in which

Data warehouses and their architectures very
transactional data is stored, and every file in the
depending upon the elements of an
system must have a different name.
organization's situation.

Meta Data
Three common architectures are:

A set of data that defines and gives information

o Data Warehouse Architecture: Basic
about other data.
o Data Warehouse Architecture: With Staging
Area Meta Data used in Data Warehouse for a variety
o Data Warehouse Architecture: With Staging of purpose, including:
Area and Data Marts
Meta Data summarizes necessary information
DATA WAREHOUSE ARCHITECTURE: BASIC about data, which can make finding and work
with particular instances of data more
accessible. For example, author, data build, and
data changed, and file size are examples of very
basic document metadata.

Metadata is used to direct a query to the most

appropriate data source.

Lightly and highly summarized data

Operational System
The area of the data warehouse saves all the
predefined lightly and highly summarized
 (aggregated) data generated by the warehouse We can do this programmatically, although data
manager. warehouses uses a staging area (A place where
data is processed before entering the
The goals of the summarized information are to
warehouse).
speed up query performance. The summarized
record is updated continuously as new A staging area simplifies data cleansing and
information is loaded into the warehouse. consolidation for operational method coming
from multiple source systems, especially for
End-User access Tools
enterprise data warehouses where all relevant

The principal purpose of a data warehouse is to data of an enterprise is consolidated.

provide information to the business managers

for strategic decision-making. These customers
interact with the warehouse using end-client
access tools.

The examples of some of the end-user access

tools can be:

o Reporting and Query Tools

o Application Development Tools

o Executive Information Systems Tools

Data Warehouse Staging Area is a temporary
o Online Analytical Processing Tools
location where a record from source systems is
o Data Mining Tools copied.

DATA WAREHOUSE ARCHITECTURE: WITH STAGING

AREA

We must clean and process your operational

information before put it into the warehouse.
DATA WAREHOUSE ARCHITECTURE: WITH STAGING
AREA AND DATA MARTS

We may want to customize our warehouse's

architecture for multiple groups within our
PROPERTIES OF DATA WAREHOUSE ARCHITECTURES
organization.
The following architecture properties are
We can do this by adding data marts. A data
necessary for a data warehouse system:
mart is a segment of a data warehouses that can
provided information for reporting and analysis
on a section, unit, department or operation in
the company, e.g., sales, payroll, production, etc.

The figure illustrates an example where

purchasing, sales, and stocks are separated. In
this example, a financial analyst wants to
analyze historical data for purchases and sales
or mine historical information to make
1. Separation: Analytical and transactional
predictions about customer behavior.
processing should be keep apart as much as
possible.
2. Scalability: Hardware and software amount of data stored to reach this goal; it
architectures should be simple to upgrade the removes data redundancies.
data volume, which has to be managed and
The figure shows the only layer physically
processed, and the number of user's
available is the source layer. In this method,
requirements, which have to be met,
data warehouses are virtual. This means that
progressively increase.
the data warehouse is implemented as a
3. Extensibility: The architecture should be multidimensional view of operational data
able to perform new operations and created by specific middleware, or an
technologies without redesigning the whole intermediate processing layer.
system.

4. Security: Monitoring accesses are necessary

because of the strategic data stored in the data
warehouses.

5. Administerability: Data Warehouse

management should not be complicated.

TYPES OF DATA WAREHOUSE ARCHITECTURES

The vulnerability of this architecture lies in its

failure to meet the requirement for separation
between analytical and transactional
processing. Analysis queries are agreed to
operational data after the middleware
SINGLE-TIER ARCHITECTURE
interprets them. In this way, queries affect
Single-Tier architecture is not periodically used transactional workloads.
in practice. Its purpose is to minimize the
TWO-TIER ARCHITECTURE 1. Source layer: A data warehouse system uses a
heterogeneous source of data. That data is
The requirement for separation plays an
stored initially to corporate relational databases
essential role in defining the two-tier
or legacy databases, or it may come from an
architecture for a data warehouse system, as
information system outside the corporate walls.
shown in fig:
2. Data Staging: The data stored to the source
should be extracted, cleansed to remove
inconsistencies and fill gaps, and integrated to
merge heterogeneous sources into one standard
schema. The so-
named Extraction, Transformation,
and Loading Tools (ETL) can combine
heterogeneous schemata, extract, transform,
cleanse, validate, filter, and load source data into
a data warehouse.
3. Data Warehouse layer: Information is saved to
one logically centralized individual repository: a
data warehouse. The data warehouses can be
directly accessed, but it can also be used as a
source for creating data marts, which partially
replicate data warehouse contents and are
designed for specific enterprise departments.
Although it is typically called two-layer Meta-data repositories store information on
architecture to highlight a separation between sources, access procedures, data staging, users,
physically available sources and data data mart schema, and so on.
warehouses, in fact, consists of four subsequent 4. Analysis: In this layer, integrated data is
data flow stages: efficiently, and flexible accessed to issue reports,
dynamically analyze information, and simulate
hypothetical business scenarios. It should
feature aggregate information navigators, storage space used through the extra redundant
complex query optimizers, and customer- reconciled layer. It also makes the analytical
friendly GUIs. tools a little further away from being real-time.

THREE-TIER ARCHITECTURE

The three-tier architecture consists of the

source layer (containing multiple source
system), the reconciled layer and the data
warehouse layer (containing both data
warehouses and data marts). The reconciled
layer sits between the source data and data
warehouse.

The main advantage of the reconciled layer is

that it creates a standard reference data model
for a whole enterprise. At the same time, it
separates the problems of source data
extraction and integration from those of data
warehouse population. In some cases,
the reconciled layer is also directly used to
accomplish better some operational tasks, such
as producing daily reports that cannot be
satisfactorily prepared using the corporate
TYPES OF DATA STORES:
applications or generating data flows to feed
external processes periodically to benefit from
ETL(EXTRACT,TRANSFORM, AND LOAD) PROCESS
cleaning and integration.
WHAT IS ETL?
This architecture is especially useful for the
extensive, enterprise-wide systems. A The mechanism of extracting information from
disadvantage of this structure is the extra file source systems and bringing it into the data
warehouse is commonly called ETL, which EXTRACTION
stands for Extraction, Transformation and o Extraction is the operation of extracting
Loading. information from a source system for further
use in a data warehouse environment. This is
The ETL process requires active inputs from
the first stage of the ETL process.
various stakeholders, including developers,
o One of the most time-consuming tasks in the
analysts, testers, top executives and is
ETL.
technically challenging.
o The source systems might be complicated and
ETL is a recurring method (daily, weekly, poorly documented, and thus determining
monthly) of a Data warehouse system and needs which data needs to be extracted can be
to be agile, automated, and well documented. difficult.
o The data has to be extracted several times in a
periodic manner to supply all changed data to
the warehouse and keep it up-to-date.

CLEANSING

The cleansing stage is crucial in a data

warehouse technique because it is supposed to
improve data quality. The primary data
cleansing features found in ETL tools are
rectification and homogenization. They use
HOW ETL WORKS?
specific dictionaries to rectify typing mistakes
ETL consists of three separate phases: and to recognize synonyms, as well as rule-
based cleansing to enforce domain-specific rules
and defines appropriate associations between
values.

The following examples show the essential of

data cleaning:
 If an enterprise wishes to contact its users or its o Different formats can be used for individual
suppliers, a complete, accurate and up-to-date data. For example, data can be saved as a string
list of contact addresses, email addresses and or as three integers.
telephone numbers must be available.
Following are the main transformation
If a client or supplier calls, the staff responding processes aimed at populating the reconciled
should be quickly able to find the person in the data layer:
enterprise database, but this need that the
o Conversion and normalization that operate on
caller's name or his/her company name is listed
both storage formats and units of measure to
in the database.
make data uniform.
If a user appears in the databases with two or o Matching that associates equivalent fields in
more slightly different names or different different sources.
account numbers, it becomes difficult to update
o Selection that reduces the number of source
the customer's information.
fields and records.

TRANSFORMATION
Cleansing and Transformation processes are
often closely linked in ETL tools.
Transformation is the core of the reconciliation
phase. It converts records from its operational
source format into a particular data warehouse
format. If we implement a three-layer
architecture, this phase outputs our reconciled
data layer.

The following points must be rectified in this

phase:

o Loose texts may hide valuable information. For

example, XYZ PVT Ltd does not explicitly show
that this is a Limited Partnership company.
 LOADING organization, transformations, aggregation,
calculation and automatic loading of
The Load is the process of writing the data into
information into the object database.
the target database. During the load step, it is
necessary to ensure that the load is performed An ETL tool should provide a simple user
correctly and with as little resources as possible. interface that allows data cleansing and data
transformation rules to be specified using a
Loading can be carried in two ways:
point-and-click approach. When all mappings

1. Refresh: Data Warehouse data is completely and transformations have been defined, the ETL

rewritten. This means that older file is replaced. tool should automatically generate the data

Refresh is usually used in combination with extract/transformation/load programs, which

static extraction to populate a data warehouse typically run in batch mode.

initially.
ONLINE ANALYTICAL PROCESSING (OLAP)
2. Update: Only those changes applied to source OLAP stands for Online Analytical Processing.
information are added to the Data Warehouse. OLAP systems have the capability to analyze
An update is typically carried out without database information of multiple systems at the
deleting or modifying preexisting data. This current time. The primary goal of OLAP Service
method is used in combination with incremental is data analysis and not data processing.
extraction to update data warehouses regularly.
ONLINE TRANSACTION PROCESSING (OLTP)
SELECTING AN ETL TOOL

OLTP stands for Online Transaction Processing.

Selection of an appropriate ETL Tools is an
OLTP has the work to administer day-to-day
important decision that has to be made in
transactions in any organization. The main goal
choosing the importance of an ODS or data
of OLTP is data processing not data analysis.
warehousing application. The ETL tools are
required to provide coordinated access to ONLINE ANALYTICAL PROCESSING (OLAP)
multiple data sources so that relevant data may
be extracted from them. An ETL tool would
Online Analytical Processing (OLAP) consists of
generally contains tools for data cleansing, re-
a type of software tool that is used for data
 analysis for business decisions. OLAP provides OLAP services provide a multidimensional
an environment to get insights from the view of data, which helps in applying
database retrieved from multiple database operations on data in various ways.
systems at one time.
DRAWBACKS OF OLAP SERVICES
OLAP EXAMPLES
OLAP Services requires professionals to handle
Any type of Data Warehouse System is an OLAP the data because of its complex modeling
system. The uses of the OLAP System are procedure.
described below. OLAP services are expensive to implement and
maintain in cases when datasets are large.
 Spotify analyzed songs by users to come up
We can perform an analysis of data only after
with a personalized homepage of their songs
extraction and transformation of data in the
and playlist.
case of OLAP which delays the system.
 Netflix movie recommendation system.
OLAP services are not efficient for decision-
making, as it is updated on a periodic basis.
ONLINE TRANSACTION PROCESSING (OLTP)
BENEFITS OF OLAP SERVICES
Online transaction processing provides
transaction-oriented applications in a 3-tier
 OLAP services help in keeping consistency and
architecture. OLTP administers the day-to-day
calculation.
transactions of an organization.
 We can store planning, analysis, and budgeting
for business analytics within one platform.
OLTP EXAMPLES
 OLAP services help in handling large volumes
of data, which helps in enterprise-level An example considered for OLTP System is
business applications. ATM Center a person who authenticates first
 OLAP services help in applying security will receive the amount first and the condition
restrictions for data protection. is that the amount to be withdrawn must be
present in the ATM. The uses of the OLTP
System are described below.
 ATM center is an OLTP application. OLTP has high maintenance costs because of
 OLTP handles the ACID properties during data frequent maintenance, backups, and recovery.
transactions via the application. OLTP Services get hampered in the case
 It’s also used for Online banking, Online airline whenever there is a hardware failure which
ticket booking, sending a text message, add a leads to the failure of online transactions.
book to the shopping cart. OLTP Services many times experience issues
such as duplicate or inconsistent data.

OLTP vs OLAP WHAT IS DATA MINING?

BENEFITS OF OLTP SERVICES The process of extracting information to identify

patterns, trends, and useful data that would
 OLTP services allow users to read, write and allow the business to take the data-driven
delete data operations quickly. decision from huge sets of data is called Data
 OLTP services help in increasing users and Mining.
transactions which helps in real-time access to
In other words, we can say that Data Mining is
data.
the process of investigating hidden patterns of
 OLTP services help to provide better security
information to various perspectives for
by applying multiple security features.
categorization into useful data, which is
 OLTP services help in making better decision
collected and assembled in particular areas such
making by providing accurate data or current
as data warehouses, efficient analysis, data
data.
mining algorithm, helping decision making and
 OLTP Services provide Data Integrity,
other data requirement to eventually cost-
Consistency, and High Availability to the data.
cutting and generating revenue.

DRAWBACKS OF OLTP SERVICES

Data mining is the act of automatically searching
for large stores of information to find trends and
 OLTP has limited analysis capability as they are
patterns that go beyond simple analysis
not capable of intending complex analysis or
procedures. Data mining utilizes complex
reporting.
mathematical algorithms for data segments and
evaluates the probability of future events. Data The main objective of the KDD process is to
Mining is also called Knowledge Discovery of extract information from data in the context of
Data (KDD). large databases. It does this by using Data
Mining algorithms to identify what is deemed
Data Mining is a process used by organizations
knowledge.
to extract specific data from huge databases to
solve business problems. It primarily turns raw The Knowledge Discovery in Databases is
data into useful information. considered as a programmed, exploratory
analysis and modeling of vast data
repositories.KDD is the organized procedure of
recognizing valid, useful, and understandable
patterns from huge and complex data sets. Data
Mining is the root of the KDD procedure,
including the inferring of algorithms that
investigate the data, develop the model, and find
previously unknown patterns. The model is
used for extracting the knowledge from the
data, analyze the data, and predict the data.

KDD- KNOWLEDGE DISCOVERYIN DATABASES

The availability and abundance of data today

The term KDD stands for Knowledge Discovery make knowledge discovery and Data Mining a

in Databases. It refers to the broad procedure of matter of impressive significance and need. In

discovering knowledge in data and emphasizes the recent development of the field, it isn't

the high-level applications of specific Data surprising that a wide variety of techniques is

Mining techniques. It is a field of interest to presently accessible to specialists and exper

researchers in various fields, including artificial

HE KDD PROCESS
intelligence, machine learning, pattern
recognition, databases, statistics, knowledge The knowledge discovery process(illustrates in
acquisition for expert systems, and data the given figure) is iterative and interactive,
visualization. comprises of nine steps. The process is iterative
at each stage, implying that moving back to the transformation, algorithms, representation, etc.
previous actions might be required. The process The individuals who are in charge of a KDD
has many imaginative aspects in the sense that venture need to understand and characterize
one cant presents one formula or make a the objectives of the end-user and the
complete scientific categorization for the correct environment in which the knowledge discovery
decisions for each step and application type. process will occur ( involves relevant prior
Thus, it is needed to understand the process and knowledge).
the different requirements and possibilities in
each stage.

The process begins with determining the KDD

objectives and ends with the implementation of
the discovered knowledge. At that point, the
loop is closed, and the Active Data Mining starts.
Subsequently, changes would need to be made
in the application domain. For example, offering
various features to cell phone users in order to
reduce churn. This closes the loop, and the
impacts are then measured on the new data
repositories, and the KDD process again.
Following is a concise description of the nine-
step KDD process, Beginning with a managerial
step:

1. Building up an understanding of the

application domain 2. Choosing and creating a data set on which
discovery will be performed
This is the initial preliminary step. It develops
the scene for understanding what should be Once defined the objectives, the data that will be
done with the various decisions like utilized for the knowledge discovery process
should be determined. This incorporates
discovering what data is accessible, obtaining one suspects that a specific attribute of lacking
important data, and afterward integrating all reliability or has many missing data, at this
the data for knowledge discovery onto one set point, this attribute could turn into the objective
involves the qualities that will be considered for of the Data Mining supervised algorithm. A
the process. This process is important because prediction model for these attributes will be
of Data Mining learns and discovers from the created, and after that, missing data can be
accessible data. This is the evidence base for predicted. The expansion to which one pays
building the models. If some significant attention to this level relies upon numerous
attributes are missing, at that point, then the factors. Regardless, studying the aspects is
entire study may be unsuccessful from this significant and regularly revealing by itself, to
respect, the more attributes are considered. On enterprise data frameworks.
the other hand, to organize, collect, and operate
4. Data Transformation
advanced data repositories is expensive, and
there is an arrangement with the opportunity In this stage, the creation of appropriate data for
for best understanding the phenomena. This Data Mining is prepared and developed.
arrangement refers to an aspect where the Techniques here incorporate dimension
interactive and iterative aspect of the KDD is reduction( for example, feature selection and
taking place. This begins with the best available extraction and record sampling), also attribute
data sets and later expands and observes the transformation(for example, discretization of
impact in terms of knowledge discovery and numerical attributes and functional
modeling. transformation). This step can be essential for
the success of the entire KDD project, and it is
3. Preprocessing and cleansing
typically very project-specific. For example, in
In this step, data reliability is improved. It medical assessments, the quotient of attributes
incorporates data clearing, for example, may often be the most significant factor and not
Handling the missing quantities and removal of each one by itself. In business, we may need to
noise or outliers. It might include complex think about impacts beyond our control as well
statistical techniques or use a Data Mining as efforts and transient issues. For example,
algorithm in this context. For example, when studying the impact of advertising
accumulation. However, if we do not utilize the 6. Selecting the Data Mining algorithm
right transformation at the starting, then we
Having the technique, we now decide on the
may acquire an amazing effect that insights to
strategies. This stage incorporates choosing a
us about the transformation required in the next
particular technique to be used for searching
iteration. Thus, the KDD process follows upon
patterns that include multiple inducers. For
itself and prompts an understanding of the
example, considering precision versus
transformation required.
understandability, the previous is better with
5. Prediction and description neural networks, while the latter is better with
decision trees. For each system of meta-
We are now prepared to decide on which kind
learning, there are several possibilities of how it
of Data Mining to use, for example, classification,
can be succeeded. Meta-learning focuses on
regression, clustering, etc. This mainly relies on
clarifying what causes a Data Mining algorithm
the KDD objectives, and also on the previous
to be fruitful or not in a specific issue. Thus, this
steps. There are two significant objectives in
methodology attempts to understand the
Data Mining, the first one is a prediction, and the
situation under which a Data Mining algorithm
second one is the description. Prediction is
is most suitable. Each algorithm has parameters
usually referred to as supervised Data Mining,
and strategies of leaning, such as ten folds cross-
while descriptive Data Mining incorporates the
validation or another division for training and
unsupervised and visualization aspects of Data
testing.
Mining. Most Data Mining techniques depend on
inductive learning, where a model is built 7. Utilizing the Data Mining algorithm
explicitly or implicitly by generalizing from an
At last, the implementation of the Data Mining
adequate number of preparing models. The
algorithm is reached. In this stage, we may need
fundamental assumption of the inductive
to utilize the algorithm several times until a
approach is that the prepared model applies to
satisfying outcome is obtained. For example, by
future cases. The technique also takes into
turning the algorithms control parameters, such
account the level of meta-learning for the
as the minimum number of instances in a single
specific set of accessible data.
leaf of a decision tree.
8. Evaluation become unavailable, and the data domain might
be modified, such as an attribute that may have
In this step, we assess and interpret the mined
a value that was not expected previously.
patterns, rules, and reliability to the objective
characterized in the first step. Here we consider UNIT II
the preprocessing steps as for their impact on
APPLICATIONS OF DATA MINING:
the Data Mining algorithm results. For example,
including a feature in step 4, and repeat from
there. This step focuses on the
comprehensibility and utility of the induced
model. In this step, the identified knowledge is
also recorded for further use. The last step is the
use, and overall feedback and discovery results
acquire by Data Mining.

9. Using the discovered knowledge

Now, we are prepared to include the knowledge

into another system for further activity. The
knowledge becomes effective in the sense that
Scientific Analysis: Scientific simulations are
we may make changes to the system and
generating bulks of data every day. This
measure the impacts. The accomplishment of
includes data collected from nuclear
this step decides the effectiveness of the whole
laboratories, data about human psychology,
KDD process. There are numerous challenges in
etc. Data mining techniques are capable of the
this step, such as losing the "laboratory
analysis of these data. Now we can capture and
conditions" under which we have worked. For
store more new data faster than we can analyze
example, the knowledge was discovered from a
the old data already accumulated. Example of
certain static depiction, it is usually a set of data,
scientific analysis:
but now the data becomes dynamic. Data
Sequence analysis in bioinformatics
structures may change certain quantities that
Classification of astronomical objects
Medical decision support.

Intrusion Detection: A network

intrusion refers to any unauthorized activity on
a digital network. Network intrusions often
involve stealing valuable network resources.
Data mining technique plays a vital role in
searching intrusion detection, network attacks,
and anomalies. These techniques help in
selecting and refining useful and relevant
information from large data sets. Data mining
technique helps in classify relevant data for
Intrusion Detection System. Intrusion
Detection system generates alarms for the
network traffic about the foreign invasions in
the system. For example: Business Transactions: Such transactions are
Detect security violations usually time-related and can be inter-business
Misuse Detection deals or intra-business operations. Data mining
Anomaly Detection helps to analyze these business transactions
and identify marketing approaches and
decision-making. Example :
Direct mail targeting
Stock trading
Customer segmentation
Churn prediction (Churn prediction is one of
the most popular Big Data use cases in
business)
Market Basket Analysis: Market Basket
Analysis is a technique that gives the careful
study of purchases done by a customer in a Curriculum development
supermarket. This concept identifies the Predicting student placement opportunities
pattern of frequent purchase items by
customers. This analysis can help to promote Research: A data mining technique can
deals, offers, sale by the companies and data perform predictions, classification, clustering,
mining techniques helps to achieve this associations, and grouping of data with
analysis task. Example: perfection in the research area. Rules
Data mining concepts are in use for Sales and generated by data mining are unique to find
marketing to provide better customer service, results. In most of the technical research in
to improve cross-selling opportunities, to data mining, we create a training model and
increase direct mail response rates. testing model. The training/testing model is a
Customer Retention in the form of pattern strategy to measure the precision of the
identification and prediction of likely proposed model. It is called Train/Test because
defections is possible by Data mining. we split the data set into two sets: a training
Risk Assessment and Fraud area also use the data set and a testing data set. A training data
data-mining concept for identifying set used to design the training model whereas
inappropriate or unusual behavior etc. testing data set is used in the testing model.
Example:
Education: For analyzing the education sector, Classification of uncertain data.
data mining uses Educational Data Mining Information-based clustering.
(EDM) method. This method generates Decision support system
patterns that can be used both by learners and Web Mining
educators. By using data mining EDM we can Domain-driven data mining
perform some educational task: IoT (Internet of Things)and Cybersecurity
Predicting students admission in higher Smart farming IoT(Internet of Things)
education Healthcare and Insurance: A Pharmaceutical
Predicting students profiling sector can examine its new deals force activity
Predicting student performance and their outcomes to improve the focusing of
Teachers teaching performance high-value physicians and figure out which
promoting activities will have the best effect in Determine credit card spending by customer
the following upcoming months, Whereas the groups.
Insurance sector, data mining can help to
predict which customers will buy new policies,
CRM
identify behavior patterns of risky customers
and identify fraudulent behavior of customers. Customer relationship management, also
Claims analysis i.e which medical procedures known as CRM, forms a crucial aspect of small
are claimed together. as well as large businesses. More and more
Identify successful medical therapies for businesses rely on CRM systems to fortify
different illnesses. customer relationships and boost profitability.
Characterizes patient behavior to predict office The best CRM software helps you manage your
visits. sales and contact list, besides streamlining
Transportation: A diversified transportation your workflow process.
company with a large direct sales force can Businesses use CRM software for reporting,
apply data mining to identify the best prospects recording, and evaluating interactions between
for its services. A large consumer merchandise the company and its clients. The data generated
organization can apply information mining to by CRM tools help you develop an all-
improve its business cycle to retailers. embracing business strategy that will generate
Determine the distribution schedules among the desired outcome. Let’s learn more about
outlets. why data mining in CRM is such a wise
Analyze loading patterns. decision.
Financial/Banking Sector: A credit card
company can leverage its vast warehouse of THE RELATIONSHIP BETWEEN CRM AND DATA MINING
customer transaction data to identify
customers most likely to be interested in a new The explosive growth of data calls for the
credit product. analysis of large and complex data sets to
Credit card fraud detection. acquire hidden information; this is where data
Identify ‘Loyal’ customers. mining comes into play. The insights offered by
Extraction of information related to customers. data mining may lead to exceptional turnover
 for businesses, along with enhanced customer  customers,
satisfaction.  their buying patterns,
 industry trends, and
 much more. The information gathered via data
mining can later be used for developing your
business strategies more efficiently.
In lucid terms, data mining helps in identifying
why

 company’s sales are soaring or plummeting at

a given time.
 identify the weak points of your business

Data Mining involves the process of offerings.

 collecting, PURPOSE OF DATA MINING

 storing, and
Data mining techniques are currently used in a
 analyzing huge volumes of data for statistical
wide array of data profiling practices including
analysis, and
 sales,
 for identifying patterns in the data for
 interactive marketing,
discovering new information..
 direct marketing,

Since CRM-integrated platforms such as  market segmentation,

a billing software solution allow you to  scientific invention,

reinforce customer relations, application of  trend analysis,

data mining techniques in CRM software goes a  surveillance,

long way in helping your business in gathering  market basket analysis, and
and processing useful and relevant information  detecting fraudulent activities.
that can be leveraged to obtain the right TYPES OF DATA MINING TECHNIQUES:
information about
There are two forms of data mining techniques.
1. Predictive data mining: It makes use of some are some of the benefits of using data mining in
variables for predicting the efficacy of other CRM:
variables. 1. Provides useful insights: Data Mining allows
2. Descriptive data mining: It aims at finding the you to analyze historical data about your
frequency and correlation in the data for customers and also provides you with useful
revealing readable patterns. hidden insights. The knowledge accumulated
Both predictive data and descriptive data through the process of data mining can be used
mining techniques involve four types of tasks for customer retention, market analysis,
corporate analysis, production control, risk
 Clustering: It is the method of categorizing management, and fraud detection.
data that are identical in some way into the 2. Helps understand consumer behavior: Data
same class. The process of classifying data is mining process helps you identify the shopping
known as a cluster. patterns of your customers. It also enlightens
 Classification: It is the process of forecasting you about consumer behavior, which in turn
the target class accurately for each case in the helps you understand your consumers’
data. opinions about your products and services.
 Regression: It is the technique of predicting 3. Helps you design a results-driven marketing
the numerical value of a specific dataset. This campaign: Data mining also plays an
model is widely used for marketing, instrumental role in implementing successful
analyzing trends, and financial forecasting. marketing campaigns. With the help of accurate
Association rule learning: Association rules data models, businesses can implement more
are hypothetical propositions that aim to targeted marketing campaigns. What’s more,
demonstrate the connection between data the insights obtained from data mining can be
items within humongous data sets in different used for providing personalized offers to your
types of databases. customers.
THE BENEFITS OF DATA MINING IN CRM 4. Helps measure profitability: Data mining also
helps you gauge the profitability of your
Data mining offers myriad benefits to
business. Moreover, by analyzing customer
individuals, businesses, as well as the
data, you can identify which category of
government agencies and departments. Here
 products, services, and costs keep your in the form of enhanced revenue only with a
customers come back to you for more. solid execution plan.
Additionally, it also helps you identify the
trends which led to the loss of customers. KM Strategic Principles

5. Enhances customer loyalty: Through the data 1. KM implementation needs to be organization-

mining process, you can enhance led; tied to organization strategy and to specific
your customer loyalty and brand loyalty, organization issues
besides increasing the number of product
purchases. It also allows you to reward 2. KM needs to be delivered where the critical

consumer behavior through coupons, offers, knowledge lies, and where the high value

discounts, and other incentives. decisions are made

6. Helps you interpret market trends: A Delivering a high-level KM pilot at a senior level
powerful data mining program helps you has three benefits:
forecast future market trends, besides helping  It delivers significant value to the organization
you identify new target markets.  It engages senior managers in KM, and helps
7. Keeps you ahead of the pack: In today’s them understand the value KM can bring to the
competitive marketplace, businesses need to organization as a whole
make the right decisions to stay ahead of the
 It gains senior managers’ buy-in, by showing
curve. Since data mining techniques help you
how KM can solve their most pressing problems
make precise business decisions, data mining
3. KM implementation needs to be treated as a
tools nowadays form an essential aspect of
behavior change program
enterprise decision-making.
So this is how data mining in CRM can benefit 4.. The endgame will be to introduce a complete
your business. However, data mining management framework for KM
techniques can generate benefits only if you
5. This framework will need to be embedded
adhere to the insights provided by the tool, and
into the organization structures
take action accordingly. You can witness a
successful transformation in your CRM process 6. The framework will need to include
governance if it is to be sustainable
 7. The framework will be structured, rather than profound understanding of both the portions
emergent and the collaboration that gets made up.

8. A KM implementation should be a staged A model-driven KM method permits not only a

process, with regular decision points better explanation of what is currently
happening but also they aid in providing a
9. A KM implementation should contain a
better recommendation for realizing
piloting stage
organizational objectives. This section
10. A KM implementation should be run by an highlights the essential theoretical Knowledge
implementation team, reporting to a cross- Management models that work extensively in
organizational steering group terms of knowledge management literature.

Knowledge Management Model 1. Von Krogh and Roos Model

A knowledge management framework (KM
model)is an organized technique to look at the Designed for Differentiating Between Individual
procedure of KM utilized by an organization to Knowledge and Social Knowledge
inspect its possessions and alter them to its
Let’s understand the point of view behind
particular needs.
building the model of KM models by considering
 Leadership
the following diagram.
 Business Value

 Technology

 Learning

7 Knowledge Management Models

Models of Knowledge Management (KM Models)

assist you to put the dissimilar portions of a
riddle collectively in a manner that leads to a
 HR Management

The above five metrics initiate issues that can

avert impressive strategies of advantages of
knowledge management using cognitive
perspectives. Now, what’s this term mean?

It’s a cognitive system, in the form of human or

virtual mode, having the responsibility to
initiate or create realistic knowledge
management models. Once such model
representations perform manipulation, the
learning process comes into action.
According to the organizational KM model, von
Specification
Krogh and Roos came up with an innovative
On the other hand, the system with
framework solution that the knowledge
organizational knowledge possessing
typically occurs in:
functionalities using self-service is cognitive
 The mind of the member epistemology.

 Links between them Here, a team member is free to select and work

It is one of those knowledge management with the information in such a way that it comes

models that examines its essence specifically in from external sources in a transparent manner.

terms of: his KM perspective helps the individual’s brain

to work like a machine that works for logical
 Knowledge Workers
purposes.
 Better Communication Skills
In this case, the company’s site needs an
 Enterprise Structure impressive framework to fetch information

 Network of Workers congruence like relational links, specifically

from the logical environment actors.
 The brain cannot process the sequential
symbols but possess the strong potential to
handle the complete perspectives, impressive
Knowledge Management models, and effective
processes.

 The inter-related network of the different

components of KM is possible using the learning
rules session to grab such nature of knowledge
from the interior and exterior environments.

SATHYA
Let us now highlight all the four approaches of
Nonaka and Takeuchi
the Nonaka and Takeuchi model framework in
Best for Knowledge Creation Process
detail.
The Nonaka and Takeuchi KM model of
Socialization is the model of KM technique
knowledge conversion typically invokes four
through which a team member can quickly
different knowledge conversion modes in the
share tacit knowledge using monitoring,
KM.
copying, implementation, and involvement in
 Indirect Way Approach – Socialization (tacit to conventional and non-conventional
tacit) communities and groups to enhance the traffic.
 Indirect to Direct Way Approach – This process typically develops the prevention
Externalization (tacit to explicit) of utilizing a physical or virtual space where
 Direct Way Approach – Combination (explicit interaction mainly holds on a social level.
to explicit) Externalization is an innovative platform to
 Direct to Indirect Way – Internalization convey tacit knowledge into explicit concepts.
(explicit to tacit) This innovative approach of the model of KM
plays a vital role in knowledge sharing and the
 creative process as tacit knowledge typically is
highly internalized.
 A combination is a KM model
approach through which the company can
smoothly integrate the concepts into an
effective knowledge system.
Some examples are review report forms,
analysis trending, a detailed executive
summary, or a new database for content
management.
 Internalization is a responsive manner to To flatten the company’s point of view, the
consolidate explicit knowledge into tacit above three highly interconnected processes
knowledge. play a vital role. The potential of knowledge
creation and its commitment to implement such
Choo Sense-Making KM model
knowledge creation is of utmost importance for
Ideal for Decision-Making Process any team member.

The three major components that the Choo Advantages:

Sense-Making Model of KM shows a Sense-Making
considerable focus on: Knowledge Creation
Decision Making
 Sense-Making
This model helps the company to invoke all the
 Knowledge Creation
informational elements in terms of
 Decision-making skills
organizational actions.

WIIGS KM Model

Designed Explicitly for Knowledge Building

Scenario
Karl Wiig, the knowledge management model, Perspective and Purpose
depicts that the knowledge management
Boisot I-Space
process must be perfect and reasonable to make
useful and valuable knowledge. Perfect for Decision-Making Process

The effective knowledge management model by

Boisot creates a decision-making ability based
on useful information and differentiates it from
a physical asset. Such differentiation of new
knowledge from data by Boisot typically
highlights all the information that is of prime
importance to website observers.

Dimensions: Boisot says that they are solely responsible for

Let us now highlight the crucial dimensions in performing data extraction as a mandate
this model of KM. function as per their experience or prior
knowledge.
Completeness
It is a process through which information- Boisot’s model uses a three-dimensional
sourcing occurs using tacit or explicit cube structure:
knowledge within the company. On an initial From uncodified to codified
level, the company needs to be aware of
From concrete to abstract
complete knowledge and knowledge-sharing
capabilities using an efficient way of the KM From undiffused to diffused

model’s completeness approach.

On an initial level, the company must be ready
with complete knowledge. If no one exists to
utilize or access such information or knowledge,
then it is of no use for an individual.
Connectedness
Congruency
 strategies that directly help the learning cycle’s
playful nature.

ZACK Knowledge Management

Best for Converting Information to Usable

Knowledge

Meyer and Zack initiated the Model of KM that

includes the stages of a KM cycle highlighting
the “refinery.”

The ZACK KM Model includes the following

Boisot came up with research and initiated steps:
Social Learning Cycle (SLC) that acquire the I- Acquisition
Space to create an impressive model using
Refinement
active knowledge workflow using five steps that
aids in problem-solving: Storage and Retrieval

The five steps that help in problem-solving: Distribution and presentation

Scanning
Problem-solving
Abstraction
Diffusion
Absorption

The primary goal of Boisot’s model of

knowledge management is to serve companies
with cost-effective solutions. The company’s site
simply adopts dynamic knowledge management Every stage of this KM framework follows the
basic rationality principle of communicating
with each other to facilitate knowledge The knowledge management models that adopt
repository analysis. complex adaptive structures include function
strings.
ZACK Model of Knowledge
Management Steps: The primary reason behind it is to bring

Data or Information Acquisition insurance among the living system feasibility in

Refinement general and of organizations, to a great extent.

Storage and Retrieval ICAS systems typically follow cybernetics

Distribution principles. Is it connected to Cyber based
Presentation information? No. It uses communications and
control mechanisms to understand the process a
Complex Adaptive System Models
viable company’s site should perform.
Based on Advanced Intelligent Techniques
IThe adaptive systems possess various
An organization is nothing but seen as an independent representatives that interact with
adaptive, complex system – Intelligent Complex each other to enhance business performance.
Adaptive Systems (ICAS) IThe model usually includes composite
behavior, where the self-organized people in
A system with several individualistic
organizations are intelligent elements. In
representatives that perform significant
addition to it, such aspects are a fundamental
interaction locally is a complex adaptive.
part of the organization’s hierarchies.

These are the leading and top-most knowledge

management models that help you, and your
company website deal with the knowledge or
information management approaches on a large
scale.

Specifications:
 creating, editing, and distributing digital
content.
WHY ARE KNOWLEDGE MANAGEMENT TOOLS
IMPORTANT? Additionally, decision support systems help
with data analysis and problem-solving, while
 Improve your profitability and efficiency
social networking tools promote informal
 ORGANIZE CRITICAL COMPANY INFORMATION IN A
knowledge sharing and relationship building.
SINGLE SOURCE OF TRUTH
Implementing the right knowledge management
 Facilitate collaboration across teams, wherever
tools can significantly enhance a company's
they are
productivity and overall performance.
 Promote continuous learning
Here’s a helpful list of knowledge management
TYPES OF KNOWLEDGE MANAGEMENT TOOLS
tool types:
Knowledge management tools are essential for
businesses seeking to improve 1. KNOWLEDGE BASES
A knowledge base is a searchable information
 organizational efficiency,
repository that stores your company’s data for
internal or external access. It serves to capture,
 streamline communication,
manage, and organize key organizational
 and foster innovation. information in order to help your teams or
customers find the information they need, when
These tools come in various types, each
they need it. There are two types of knowledge
designed to serve different purposes. Document
bases. A machine-readable knowledge base
management systems, one of the key knowledge
stores data that can only be analyzed by
management tools, enable easy storage,
artificial intelligence systems. A human-
organization, and retrieval of crucial files and
readable knowledge base stores documents and
documents. Collaboration platforms facilitate
physical texts that are accessible to people.
seamless teamwork and knowledge sharing
Human-readable knowledge bases are more
among employees, while content management
interactive, but searches are often more time-
systems provide a central repository for
consuming.
 AI knowledge management tools can capture,
filter, represent, or apply knowledge. They
include applications that can select, analyze, and
2. LEARNING MANAGEMENT SYSTEMS (LMS) classify text; conduct automated reasoning; and
create visualizations – all of which can enhance
Learning management systems help businesses decision-making capabilities. AI can help
build a strong foundation of knowledge organizations process human input, such as
management by allowing them to create handwriting and voice recognition, using
customized training and educational programs. natural language processing. These systems can
Through this system, company leaders can also deal with “big data,” traditionally deemed
design and manage lessons, courses, quizzes, unwieldy and difficult to maintain, by using new
and other training materials and deliver those methods for data storing such as decentralized
resources to employees, students, or partners. blockchain.

3. KNOWLEDGE-CENTERED SERVICE® (KCS) 5. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

These tools support knowledge centered Designed to help all teams involved in
service, also known as knowledge-centered marketing, sales, and customer service, CRM
support, which describes how customer service systems track prospect and customer
and support teams access and use knowledge to information over the course of customer
deliver greater value to customers, employees, relationships. Using a CRM, your company can
and stakeholders. Each time a problem is solved track everything from the first contact with a
in a KCS organization, that knowledge is stored prospect and how they came to you, to
in a way that is easily accessible to others. KCS interactions they have with your sales team
empowers everyone in the organization to share throughout the buying process, to repeated
collective responsibility for maintaining the purchases. This customer data is stored in the
knowledge base and informs how people in the CRM tool, which your team can now access at
organization solve problems.‍ any time to understand the context of the
relationship and respond appropriately to any
4. AI KNOWLEDGE MANAGEMENT
issues that may arise. This translates to a better
customer experience.
6. CONTENT MANAGEMENT An organisational infrastructure may stand
Content management systems encompass the alone or be connected to a grid, depending on its
creation, management, and distribution of your use case.
organizational content on your company’s An organisation’s infrastructure includes
intranet or website. An effective content processes, policy, computer systems, people and
management system provides templates for relationships.
publishing content, enables easy editing and
metadata tagging, tracks changes and allows KM infrastructure can be classified into two
access to various versions of content, allows for major capabilities,
collaborative work and parallel content  technical and
development, integrates document management  social infrastructure.
systems, and provides extensions and plug-ins Technical infrastructure includes
for enhanced functionality.  physical,
 IT infrastructure,
Knowledge Management Infrastructure
 devices and
Infrastructure is a framework that supports
 components.
organisations in achieving the objectives of their
Social infrastructure, includes
existence. Organisations develop or acquire
 culture,
infrastructure to map their objectives, which
 structure, and
may influence an organisation to acquire several
infrastructure types, such as hard or soft  human resources

infrastructure. KM infrastructure provides the infrastructural

Hard infrastructure is concerned with the environment, both IT and non-IT also in terms

physical foundations or tangible components of culture, structure, people, and technology

necessary for the functioning of an organization. supported this by indicating that organizations
that utilize both technical and organizational

soft infrastructure refers to the intangible infrastructures are more likely to implement

foundations or components required in a successful knowledge management projects.

functioning organisation. Thus, KM Infrastructure combines

organisational norms, procedures, conventions,
and information technology tools to enable Knowledge management and human resource
smooth interaction between users, operators, management are people-centred concepts that
and components, including standards, access, focus on creating, sharing, and using knowledge.
licenses, and quality assurance. Human resource is a critical aspect of
knowledge management because it is
Organisational Culture impossible to manage knowledge in a vacuum.
Organisational culture is one aspect of social People are needed for knowledge to be shared.
infrastructure crucial in knowledge Some human resource strategies that promote
management. An organisational culture entails knowledge sharing in an organisation are
the collection of norms and values that the institutionalised learning and proactive HR
stakeholders in the organisation share. strategies. HRM aids in knowledge management
Organisational culture controls the way by creating a platform for sharing experiences,
stakeholders in an organisation interact with opinions, and ideas. Examples of HRM strategies
one another. It facilitates teamwork and that are appropriate for managing knowledge
knowledge sharing because it encourages are; education and training, selection, and
collaboration and interaction required for recruitment. Numerous HRM activities are
knowledge flow. Organisational culture allows essential in enhancing knowledge transfer and
stakeholders to restructure their knowledge to building absorptive capacity during
influence knowledge-sharing and problem- acquisitions. Knowledge-sharing practices
solving. It is an aspect of social infrastructure should be adopted in human resource
that increases trust among team members . A management to enable organisational
lack of trust in an organisation would increase stakeholders to know what they can do to
personal reluctance to share knowledge. As a contribute to the knowledge flow in the
result, the organisation will likely lose its organisation . Examples of knowledge-sharing
competitiveness. Organisational culture is practices that organisations can include
important in almost all industries performance management, recruitment and
selection, and training. Knowledge-sharing
Human Resource and Knowledge techniques should be incorporated into
Management
organisational culture and strategic business identify the lines of communication and
objectives in logistics services. authority between subordinates and superiors.
In the logistics and freight forwarding industry, Knowledge is an organisation’s most important
the human resource department is the best strategic resource . Organisational structure
suited to take care of knowledge management and knowledge management are connected
initiatives because the activities occurring there because the latter is an organisational
are independent of knowledge management framework that incorporates all organisation
initiatives. They also use riders and other sectors. Organisational structure influences
machinery to help them make deliveries to their knowledge management by determining how an
clients. Therefore, human resource management organisation’s power, responsibilities, and roles
has to be aligned with knowledge management are coordinated, controlled, and delegated.
strategies at functional and strategic levels . The Organisational structure also determines the
purpose of such alignments is to provide extent of information flow among the
explorative and decentralised learning within employees.
the organisation. Since knowledge is essential to organisations,
businesses must adopt an organisational
Organisational Structure and Knowledge structure that enables them to transfer as much
Management knowledge as possible. The prevailing
An organisational structure is an example of a organisational model may prevent the
knowledge management infrastructure that organisation from utilising knowledge
plays a crucial role in knowledge management. management infrastructure. An organisational
Organisational structure influences an entity’s structure should not stifle the organisation’s
internal network and the nature of the performance . It should allow knowledge flow
prevailing relationships. Organisational so the employees can undertake actions
structure also shows the actions the various resulting in organisational structure. The
departments in an organisation have taken to organisational structure allows an organisation
achieve the organisation’s objectives . An to structure itself in a way that will enable
organisation’s structure relates to the formal innovation without the current workforce
mechanism by which the management can feeling overstretched.
Technical KM Infrastructure and Knowledge Technology can be divided into the following
Management three categories; knowledge transfer tools,
The technical infrastructure provides knowledge codification tools, and knowledge
knowledge stockholders, and users access to generation tools . The classifications are
critical tools (hardware systems and software) premised on the relationship between
needed to facilitate knowledge management technology and knowledge management.
processes in achieving organisation focus. Technology can be regarded as a knowledge
Technology is one aspect of knowledge management tool that can be used to provide
management infrastructure that plays a services to different target audiences.
significant role in knowledge management. The Developments in information technology have
main purpose of technology in knowledge increased the effectiveness of knowledge
management is to increase efficiency and reduce management processes. Servers and computer
costs. Technology eases the process through technology play a very crucial role in knowledge
which an organisation collects and analyses management. Innovations in modern computers
information. Technology capability relates to an and servers’ storage capacity have led to the
organisation’s informational technology ability of devices to store a large amount of
structure. The structure comprises software, information and data. The information and data
hardware, and external and internal systems . are enough to produce more realistic and
Technology is a crucial tool for knowledge accurate knowledge. The storage capacities that
management as it influences the knowledge technological developments have created have
management model in the organisation. The also resulted in knowledge preservation. This
first way in which technology relates to means that the organisation can store all
knowledge management is that appropriate information until it is needed. Modern
technology facilitates the effectiveness of computers and servers are also characterised by
knowledge effectiveness. The dual role of high accuracy and speed. The processors and
technology is that it streamlines the computers can record and relay information in
organisational structure and enables the real time.
organisation to achieve a high level of Network technologies and communications are
knowledge management effectiveness. examples of useful technical infrastructures in
knowledge management. The developments of contribute to knowledge management by
digital network technologies and creating a platform for recognising details and
communications have made knowledge easily identifying patterns .
available to people worldwide. The internet is Software packages and scanner technologies
among the crucial products of networking have improved knowledge management by
technology and communications. The Internet enabling people to recognise numbers and
influences knowledge management as it makes letters. Other technologies, such as 3-D printing,
learning and information easily available. have assisted in knowledge management,
Internet technologies allow knowledge enabling knowledge to be synthesised more
management, allowing an organisation’s effectively.
stakeholders to collect pertinent information 3-D technology allows stakeholders to share
and data . products and information more clearly. The use
The Internet of Things (IoT) is a derivation of video technologies and 3-D technologies
from the Internet that allows connection not to means that knowledge management is heavily
be limited only to humans. Presently, different dependent on technology.
devices can be connected to the internet and Other systems that form part of the technical
share information. IoT allows knowledge infrastructure include groupware systems and
management by collecting data directly from document and content management systems
instruments and equipment. IoT facilitates that allow the transfer of codified knowledge
knowledge management in the among stakeholders. In addition, artificial
telecommunication industry by creating useful intelligence, simulation, and semantics
and accurate knowledge. networks allow knowledge engineers to see
Video and image technologies are technical how knowledge relates and interconnect.
infrastructures that promote knowledge
WHAT IS A KNOWLEDGE MANAGEMENT STRATEGY?
management in an organisation.
A knowledge management strategy is a
Camera technology is an example of a
systematic approach to create, share, and use its
technology that has significantly developed in
information and documentation to improve
the past and made it an important source for
business processes, enhance innovation, and
collecting information. Camera technologies
achieve competitive advantages. Properly
 implemented, the strategy should involve the Here are eight types of knowledge management
identification of critical knowledge areas, and strategies that can guide you in planning your
investments in tools designed to capture, organization’s necessary actions:
organize, store, and share knowledge. An effective
knowledge management strategy aims to enhance
1. Motivate Behavior: To motivate knowledge
collaboration and communication among
sharing, clearly communicate KM strategy and
employees, facilitate informed decision-making,
goals to stakeholders and provide incentives or
reduce redundancy and errors, and foster
rewards for achieving desired knowledge-sharing
innovation and learning across the organization.
behavior.
The end result should be the cultivation of an
open and curious knowledge-driven culture. 2. Encourage Networking: Help your employees
share knowledge by providing opportunities for
THE BENEFITS OF CREATING A KNOWLEDGE
collaboration across organizational silos and
MANAGEMENT STRATEGY
through the use of social software.
Developing a clear and effective KM strategy
allows you to: 3. Gather SME Knowledge: Keep information from
SMEs flowing through your KM pipeline.
 Increase internal awareness and understanding
Consistently capture, analyze, and codify this
of knowledge management.
knowledge and then make it available for search
 Make a strong business case for potential benefits
and retrievable.
to your organization.
 Get buy-in from senior management. 4. Analyze and Activate: Careful evaluation of new
 Obtain resources to implement your strategy. knowledge to ensure accuracy is key. Then,
 Clearly communicate good knowledge analyze the knowledge to look for patterns, trends
management practices and your current or connections that can lead to new knowledge.
organizational KM status, goals, and plans for
achieving those goals. 5. Codify: Collected knowledge should be codified to

 Track your progress. make it more searchable and enable tagging,

templating, and cataloguing.
TOP 8 TYPES OF KNOWLEDGE MANAGEMENT STRATEGIES
6. Disseminate: Captured knowledge has no value Use common processes and technology to
unless potential users know it’s available. Plan to encourage collaboration
notify users of new or updated knowledge and Transform the perception of KM by creating
where to find it via channels those users engage tangible results
with most, including email, newsletters, websites,
HOW TO DEVELOP A KNOWLEDGE MANAGEMENT
or social networks.
STRATEGY
7. Implement Demand-Driven KM: An effective
Building a knowledge management strategy
KM strategy includes stimulating demand for
from the ground up might seem daunting, but
knowledge. Encourage users to ask questions,
it’s a classic eating-the-elephant-one-bite-at-a-
submit queries, and search. In this way, you will
time process. Breaking it down into smaller
be able to identify in-demand content and be
activities and identifying the right team
more efficient in knowledge capture.
members to help implement the strategy will
8. Augment Through Technology: Take your KN make your initiative much more manageable.
strategy to the next level. Consider how cognitive
Here are the key steps to start with:
computing and artificial intelligence (AI) can
enhance human capabilities for observation, Identify Your Needs
analysis, decision making, processing, and
responding to people and situations. Start by documenting the challenges your
organization is trying to address and how a
How do you develop a knowledge management knowledge management strategy will help you
strategy? resolve them. Examples might include:

An effective knowledge management strategy Knowledge lives in many different repositories.

should: → We need one central repository for company-
wide knowledge.
 Contribute to overall organizational goals
Employees waste hours per week trying to track
 Balance people, processes, and technology
down information. → We need a searchable
 Build timely organizational capabilities
platform that reduces the time it takes to find
information.
 Knowledge is lost when employees leave the Explore business value and prioritize
company or move to a new role. → We need opportunities
clear processes to have employees document
Based on your knowledge audit, identify what
and share their knowledge.
value an effective KM strategy could bring to
Set Goals and KPIs your business. Then prioritize actions to deliver
that value.
Once you know what challenges you’re trying to
solve, you can start setting goals around them.
Your goals should be SMART: specific,
Establish a Cross-Functional Knowledge
measurable, attainable, relevant, and time-
Management Team
bound. You should also determine your key
performance indicators (KPIs). These will be Identify stakeholders from different teams who
metrics that help you measure your success. For understand the value of knowledge
example, if you have a goal around reducing the management and are interested in working
time employees spend searching for cross-functionally to improve your company’s
information, one of your KPIs might be average KM efforts. Make sure they have the bandwidth
hours saved per employee per month. (and willingness) to commit to participating in
your KM initiative, and then establish a regular
Map Existing Knowledge and Gaps
cadence for the team to meet. Make sure each
Conduct a knowledge audit to identify all your meeting is as productive as possible by
organization’s knowledge assets, where they assigning action items based on your goals.
live, and who has access (consider bringing
. Create a knowledge management
together a team to divide and conquer this
framework
project). This will help you identify current
obstacles (e.g., are some teams unable to access Knowledge management frameworks are
certain assets that they need?), come up with a structures created to help you plan, design,
plan to migrate assets to a centralized location, optimize and scale company knowledge so
and uncover knowledge gaps that you need to information can be distributed efficiently. A
fill through new content creation. knowledge management framework provides
you with the process in which all of your for developing capabilities that support
company’s existing information will come knowledge flow, sharing, and creation.
together. When building your framework, you’ll
Business Intelligence
need to decide which information is made
available, how it is documented, and how it will
BI (Business Intelligence) is the platform for
be accessed.
business analytics, which includes finished

Define your knowledge management plan architecture for company data analysis, models
formation and compilations of hypotheses.
Show how you plan to align KM to your
organization’s overall strategy and goals. Define According to a platform choice, it is necessary
the value proposition for enhancing the flow of to be convinced that:
knowledge across your organization. Set clear
objectives and goals that will be easily the BI platform can work with your data sources,

understood throughout your organization. can load data files and necessary databases

Identify the resources and budgets you will use

the BI platform can transform the loaded data to
for developing strategic and implementation KM
the necessary models (possible to work)
plans and assign governance roles and
responsibilities.
the BI platform can support different facilities for

Develop your knowledge management combining data in a complex data model

strategic plan and roadmap for

the BI platform can support reports creation and
implementation
visualization by means of the built-in toolkit
Ready to get started? It’s important to define
your KM priorities and how they link to overall Web Analytics

business priorities. Decide how you will clearly

What is Web Analytics?
communicate critical knowledge management
initiatives and measure their progress. Create Web analytics which analyzes your website
and share an implementation plan and roadmap data aims to improve your web presence.
Mainly, it means increasing your overall web
 traffic, including the number of visitors, total Personalize the site to customers who visit it
visits, and page views. Collecting data can lead repeatedly.
to innumerable insights into your business but
only if you have the right tools in place to Monitor the amount of money individual

derive valuable information from it. customers or specific groups of customers

Additionally, web analytics helps optimize your spend.

website’s performance.
Observe the geographic regions from which the

• (OR) most and the least customers visit the site and
purchase specific products.
• What is web analytics?

Predict which products customers are most

• Web analytics is the process of analyzing the
and least likely to buy in the future.
behavior of visitors to a website. This involves
tracking, reviewing and reporting data to WEB ANALYTICS PROCESS
measure web activity, including the use of a
website and its components, such as webpages, The web analytics process involves the
images and videos. following steps:

• Importance of Web Analytics Setting goals. The first step in the web
analytics process is for businesses to determine
• Web analytics enables a business to retain goals and the end results they are trying to
customers, attract more visitors and increase achieve. These goals can include increased
the dollar volume each customer spends. sales, customer satisfaction and brand
awareness. Business goals can be both
• Analytics can help in the following ways:
quantitative and qualitative.

 Determine the likelihood that a given customer

Collecting data. The second step in web
will repurchase a product after purchasing it in
analytics is the collection and storage of data.
the past.
Businesses can collect data directly from a
 website or web analytics tool, such as Google based on what users are searching for on its
Analytics. website.

• The data mainly comes from Hypertext WEB ANALYTICS PROCESS(CONTD)

Transfer Protocol requests -- including data at
the network and application levels -- and can Experimenting and testing. Businesses need

be combined with external data to interpret to experiment with different strategies in order

web usage. For example, a user's Internet to find the one that yields the best results. For

Protocol address is typically associated with example, A/B testing is a simple strategy to

many factors, including geographic location help learn how an audience responds to

and clickthrough rates. different content.

• WEB ANALYTICS PROCESS(CONTD) Business Analytics

• Processing data. The next stage of the web Business Analytics is ...

analytics funnel involves businesses processing

While web analytics focuses on improving your
the collected data into actionable information.
website, business analytics helps to improve

• Identifying key performance indicators your entire business. There’s almost no limit to

(KPIs). In web analytics, a KPI is a quantifiable what you can use business analytics for. Using

measure to monitor and analyze user behavior Big Data, it helps you dive into the data related

on a website. Examples include bounce to your business processes, your customers,

rates, unique users, user sessions and on-site your employees and more.

search queries.
Web Analytics and Business Intelligence

• Developing a strategy. This stage involves

Business Intelligence solutions analyse
implementing insights to formulate strategies
increasing amounts of data coming from the
that align with an organization's goals. For
web.
example, search queries conducted on-site can
help an organization develop a content strategy
• Web Analytics solutions are equipped with analytics provides an industrywide
interfaces which are worthy of Business analysis that gives insight into how a
Intelligence. business is performing in comparison to
competitors.
• Incorporating Web Analytics into a Business
Intelligence Solution(Examples) • On-site web analytics

• Analyzing Drug Prescription Patterns On-site web analytics refers to a narrower focus
that uses analytics to track the activity of
• Predictive Analytics in the Insurance Industry visitors to a specific site to see how the site
is performing. The data gathered is usually
• Marketing Analysis
more relevant to a site's owner and can
include details on site engagement, such as
• Companies Using Analytic Scorecards
what content is most popular.

• Exploration and Analysis

• Categories of web analytics

• Export Companies Use Analytics

Two technological approaches to on-site web

• Categories of web analytics analytics include

The two main categories of web analytics are a) log file

off-site web analytics and on-site web

Log file analysis, also known as log
analytics.
management, is the process of analyzing

• Off-site web analytics data gathered from log files to monitor,

troubleshoot and report on the
The term off-site web analytics refers to the performance of a website. Log files hold
practice of monitoring visitor activity records of virtually every action taken on a
outside of an organization's website to network server, such as a web server,
measure potential audience. Off-site web email server, database server or file server.
b) page tagging. • Optimizely. Optimizely is a customer
experience and A/B testing platform that
Page tagging is the process of adding helps businesses test and optimize their
snippets of code into a website's HyperText online experiences and marketing efforts,
Markup Language code using a tag including conversion rate optimization.
management system to track website
visitors and their interactions across the • web analytics tools
website. These snippets of code are
called tags. • Kissmetrics. Kissmetrics is a customer
analytics platform that gathers website
• web analytics tools data and presents it in an easy-to-read
format. The platform also serves as
Web analytics tools report important statistics a customer intelligence tool, as it enables
on a website, such as where visitors came businesses to dive deeper into customer
from, how long they stayed, how they behavior and use this information to
found the site and their online activity enhance their website and marketing
while on the site. campaigns.

web analytics tools include the following: • Crazy Egg. Crazy Egg is a tool that tracks
where customers click on a page. This
• Google Analytics. Google Analytics is a
information can help organizations
web analytics platform that monitors
understand how visitors interact with
website traffic, behaviors and conversions.
content and why they leave the site
The platform tracks page views, unique
visitors, bounce rates, referral Uniform • ECRM Meaning: Marketing definition
Resource Locators, average time on-site,
page abandonment, new vs. returning • ECRM or Electronic Customer
visitors and demographic data. Relationship Management. Basically, this
tool is the 4.0 technology adaptation
of CRM to help companies approach and
 build customer relationships through • The benefits of ECRM
online channels such as websites, email,
etc… • E-CRM system allows both to:

• ECRM provides all records and histories of • develop and maintain new digital

interactions the organization has with its channels,

customers, payments, and information

• attract new prospects, namely visitors to
about products/services that interest
your site,
customers: it’s an effective way to
increase customer loyalty!
• convert these prospects into customers
and maximize revenue,
• The difference between CRM and ECRM

• retain customers and establish a long-

• What does CRM stand for ? If you are
term relationship of trust.
familiar with the concept of CRM, you will
know that this term hides a double
• E-CRM Technologies
meaning:

Chatbots: Chatbot is a computer program or an

• on the one hand, customer relationship
artificial intelligence that contains a
management,
conversation through auditory and textual
methods.
• on the other hand, customer relationship
management software, or CRM software.
Virtual Customer: A virtual customer handles
customers without requiring face-to-face
• ECRM is defined as a “subcategory” of
contact or online.
customer relationship management: CRM
relies on multi-channel marketing while
Interactive Voice Response The Interactive Voice
ECRM focuses on all web channels.
Response (IVR) system is an automated
telephony system with the capability to call and
• The benefits of ECRM
is relevant to the appropriate destination, as
well as interacts with callers.

Voice Over Internet Protocol

Voice Over Internet Protocol (VoIP) is the

transmission of multimedia and voice
content over Internet Protocol (IP)
networks. The research conducted by
Sheetal Jalendry et al (2015) is about a
detail review of VoIP.