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What is "Data Knowledge"
Let's take a quick example from the real world. We will not name companies, but if you know this industry, you should be able to figure out who we are talking about. Lets say you manage a chain of retail electronics stores. You get an email from the company president telling you to save money. You decide that you will go look at your data, and use data mining to make a good logical business decision. While it is true you have these data sets, you do not have good 'data knowledge' of these data sets. Lets say that you have a data set that includes a data field of 'employee pay'. This field lists your employees pay, including base pay and commission rates. Now, remember, you do not have a good deal of 'data knowledge', and just assumes that "I need to save money....so, I have noticed a correlation rbetween employee pay and employee length of employment. It seems that the longer we have had an employee on staff, the more it costs our company to pay them. Therefore, I will fire the longer termed employees since they are costing the company extra money and replace them with new, less expensive employees. This will save the company money and make the president very happy with me." Now, this is a huge mistake. What actually happened with this company was they replaced the higher cost employees with new low cost employees in an attempt to save money. This company within 3 months lost half its market share and was forced to close thousands of stores nationwide and is currently in the process of 'restructuring'. Now, had they known more and used proper 'data knowledge' with their data sets they would have found a correlation with employee experience and customer satisfaction. It turns out that when selling electronics, even tho it is a higher cost for the company to employ employees that have been staffed for a while, the customer actually enjoys buying electronics from employees who are well versed in what they are selling, not employees who are new and do not have the same amount of product knowledge. If you would like to see what Data Mining can do for your company, send us an email at Info@Launsby.com or call us at 1-800-788-4363 or 719-282-1143 for a free company overview. We also have an always growing dictionary of quality control terms. We have the following data mining terms currently, and are always adding more; Launsby Consulting offers a variety of tools on data mining; Launsby Consulting has been an industry leader in teaching data mining since 1991. To view our partial client list, just click here.
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