Knowledge Management and Decision Support System

6463 Words Jul 9th, 2011 26 Pages
Decision Support Systems 31 Ž2001. 127–137 www.elsevier.comrlocaterdsw

Knowledge management and data mining for marketing
Michael J. Shaw a,b,c,) , Chandrasekar Subramaniam a , Gek Woo Tan a , Michael E. Welge b c Department of Business Administration, UniÕersity of Illinois at Urbana-Champaign, Urbana, IL, USA National Center for Supercomputing Applications (NCSA), UniÕersity of Illinois at Urbana-Champaign, Urbana, IL, USA Beckman Institute, UniÕersity of Illinois at Urbana-Champaign, Room 2051, 405 N. Mathews AÕenue, Urbana, IL 61801, USA b a

Abstract Due to the proliferation of information systems and technology, businesses increasingly have the capability to accumulate huge amounts of customer data in large databases.
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Developments in database processing w6,13,15,28x, data warehousing w16,18x, machine learning w4,12,25x and knowledge management w2,14,24x have contributed greatly to our understanding of the data mining process. More recent research on data mining and knowledge discovery w20,26,27x has further enhanced our understanding of the application of data mining and the knowledge discovery process. But, most research has focused on the theoretical and computational process of pattern discovery and a narrow set of applications such as fraud detection or risk prediction. Given the important role played by marketing decisions in the current customer-centric environment, there is a need for a simple and integrated framework for a systematic management of customer knowledge. But, there is a surprising lack of a simple and overall framework to link the extraction of customer knowledge with the management and application of the knowledge, particularly in the context of marketing decisions. While data mining studies have focused on the techniques, customer relationship studies have focused on the interface to the customer and the strategies to manage customer interactions. True customer relationship management is possible only by integrating the knowledge discovery process with the management and use of the knowledge for marketing strategies. This will help marketers address customer needs based on what the marketers know about
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