Managing Data Mining Technologies in Organizations: Techniques and Applications

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Parag C. Pendharkar

Pennsylvania State University at Harrisburg,
USA

IDEA GROUP PUBLISHING

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Copyright © 2003 by Idea Group Inc.

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Library of Congress Cataloging-in-Publication Data

 Pendharkar, Parag, 1968- Managing data mining technologies in organizations : techniques and applications/Parag Pendharkar. p. cm. 

ISBN 1-59140-057-0 (hardcover)

ISBN 1-59140-083-X (ebook)

1. Data mining. I. Title.

QA76.9.D343 P46 2002

006.3—dc21

2002014742

British Cataloguing in Publication Data

A Cataloguing in Publication record for this book is available from the British Library.

About the Authors

Parag C. Pendharkar is an assistant professor of information systems at the Pennsylvania State University at Harrisburg, USA. Dr. Pendharkar received his doctorate in management information systems from Southern Illinois University at Carbondale. Dr. Pendharkar's work has appeared, or was accepted, for publication in Annals of Operations Research, Communications of ACM, Decision Sciences, Computers & Operations Research, Interfaces, European Journal of Operational Research, Expert Systems with Applications, Intelligent Systems in Accounting, Finance and Management, Omega, as well as several other journals. Dr. Pendharkar has consulted with several airline, container shipping, mining, health care, and governmental agencies on yield management, information systems, and scheduling issues.

Witold Abramowicz is currently the chair of the Department of MIS at the Poznan University of Economics, Poland. His particular areas of interest are information filtering to MIS, information retrieval, and applications of knowledge discovery in MIS. He received his M.Sc. from the Technical University of Poznan, Poland, Ph.D. from the Wroclaw Technical University, Poland, and habilitation from the Humboldt University in Berlin, Germany. He worked for three universities in Switzerland and Germany for 12 years. He chaired seven scientific international conferences and was a member of the program committees of 69 other conferences. He is an editor or coauthor of 11 books and 69 articles in various journals and conference proceedings.

William Acar (Dipl. Ing., M.A.Sc., University of Waterloo, Ph.D., Wharton-University of Pennsylvania) is an associate professor of management and information systems at Kent State University, USA. The author of numerous published articles, Dr. Acar has developed a causal mapping method for the analysis of complex business situations called CSM (comprehensive situation mapping) and coauthored a book on organizational learning entitled Scenario-Driven Planning (Quorum Books). His method is now being used to codevelop a computerized GDSS for solving strategic problems. Dr. Acar has published in many journals, including the Strategic Management Journal, INFOR, Decision Sciences, OMEGA, Information Systems, the Journal of Management, Behavioral Science, Strategic Change and INTERFACES.

Rahul Bhaskar finished his Ph.D. from the University of Wisconsin-Madison. He has worked in various organizations including Manugistics, Inc., and Cisco Systems, Inc, USA. His research interests include decision support systems, customer relationship management systems, etc. He has published research in various academic and industry journals. He is presently an associate professor at California State University.

Paul Calder earned his Ph.D. in 1993 from Stanford University, where he was one of the developers of the InterViews user interface toolkit. He is currently a senior lecturer in computer science at Flinders University, South Australia, and is the author of two book chapters and 19 journal and international conference papers in the areas of data visualisation, graphical user interfaces, and object-oriented software design.

José María Cavero has an M.Sc. in computer science (Madrid Technical University) and a Ph.D. in computer science (King Juan Carlos University). He is a teaching assistant at the Department of Experimental Sciences and Engineering of King Juan Carlos University (Madrid, Spain). He teaches Data Base Design and Information Security. He is coauthor of a book and he has published several papers in national and international conferences. His research interests include object-oriented database design, conceptual modeling, data warehousing and web modeling. His e-mail is <[e-mail]>.

Aaron Ceglar earned his first class B.I.T. (Hons) from Flinders University, South Australia, in 1999. He is currently a doctoral candidate at Flinders University, researching subjective mining and interactive knowledge discovery.

Chi Kin Chan is an assistant professor in the Department of Applied Mathematics, The Hong Kong Polytechnic University. He received his Ph.D. in management science from Lancaster University, UK. He has published in journals such as European Journal of Operational Research, Annals of Operations Research and International Journal of Operations and Production Management. His current research areas include inventory control, supply chain management, forecasting and evolutionary optimization.

Carmen Costilla has a Ph.D. and an M.Sc. in telecommunication engineering (Madrid Technical University). She is an associate professor at the Telematic Systems Engineering Department (Madrid Technical University). Since 1982, she has led the Database Research Group at this department, where many European (Sprit and Cost-11 actions), national (TIC area), industrial (bank, telecommunication and energy industry) and institutional (Parliament of Madrid and "Ministerio de Industria") database projects were carried out. All of them involved databases with different functional (distributed, interoperable and/or federated) architectures. At this department, she is responsible of database academic courses (graduated, doctoral and related masters) and teaches in different database forums (Spanish institution and industry). She is the author of two database textbooks, and has published several database papers. She is a member of ACM, IEEE and other Spanish associations. Her e-mail is <[e-mail]>.

Bahador Ghahramani is an associate professor of information systems and quantitative analysis (ISQA) in the School of Information Science and Technology (IS&T) at the University of Nebraska at Omaha (UNO), USA. Prior to joining the academia he was a Distinguished Member of Technical Staff (DMTS) in AT & T-Bell Laboratories. His work experience covers several years of academics, industry, and consulting. Dr. Ghahramani has presented and published numerous papers and is an active participant and officer of various national and international organizations and honor societies. He holds five patents, the "Eye Depth Testing Apparatus," "A Method for Measuring the Usability of a System and for Task Analysis and Re-engineering," "A Method for Measuring the Usability of a System," "Electronic Depth Perception Testing Systems Apparatus for Conducing Depth Perception Tests," and "Emergency Marker System, Marker Device, Components Therefore and Methods of Making the Same." Dr. Ghahramani also maintains copyrights on five other AT&T designs. Dr. Ghahramani received a Ph.D. in industrial engineering from Louisiana Tech University; an M.B.A. in information systems from Louisiana State University; an M.S. in industrial engineering from Texas Tech University; an M.S. in applied mathematics and computer science from Southern University; and a B.S. in industrial engineering from Oklahoma State University.

Karim K. Hirji is a services practitioner with IBM Canada Ltd. focusing on delivering value to clients by helping them build their business intelligence, CRM/Siebel and rapid application development capabilities. He specializes in providing business/technical consulting and project management expertise to a broad base of Canadian and North American companies mainly in the financial services sector. Mr. Hirji holds an M.B.A. (with distinction) from Carleton University-Eric Sprott School of Business, an M.A.Sc. from the University of Waterloo, and a B.Sc. (Coop) from Simon Fraser University. He is also a PMI-certified project manager. Mr. Hirji performs applied business research as a team member of the Research Program in Managing Technological Change, Eric Sprott School of Business and Department of Systems and Computer Engineering, Carleton University. His current research interests include project management, enterprise application integration, and technology and innovation management.

Michael Hu is professor of marketing, Graduate School of Management, Kent State University, USA. He earned his Ph.D. in management science/marketing from the University of Minnesota. He has published extensively in the areas of marketing, marketing research, international business and neural networks. His articles have appeared in the Journal of Marketing Research, Marketing Letters, the Journal of International Business Studies, Annals of Operations Research, European Journal of Operational Research, Decision Sciences, the Journal of the Operational Research Society and many others.

Sudhakar Kuppuraju is a key executive and part of the leadership within Harley-Davidson Motor Company, USA. Sudhakar graduated from Pennsylvania State University, USA, in May 2000 with an M.B.A. focusing in leadership areas. He is also an alumnus from Oklahoma State University, where he graduated with an M.S.M.E. during in Fall 1990, majoring in heat transfer and fluid flow. From 1991 through 1996, he worked with Volvo Truck North America as a product engineer; he was also a scientist (1984–1989) with Defense Research & Development with the Government of India, Ministry of Defense.

Roderick L. Lee is an M.S.I.S. student in the School of Business Administration at the Pennsylvania State University at Harrisburg, USA. He received his B.S. in marketing and information systems, and an M.B.A. from the same department in 2000 and 2001, respectively. His research interests focus on community informatics (CI)—a multidisciplinary field for the investigation and development of social and cultural factors shaping the development and diflfusion of new information technologies and the effects upon community development, regeneration and sustainability.

Esperanza Marcos is an associate professor at the Department of Experimental Sciences and Engineering in the King Juan Carlos University (Madrid, Spain). She teaches Advanced Data Bases and Data Base Design and Information Security. She also teaches masters courses on software engineering. She received a Ph.D. in computer sciences from Politechnical University of Madrid (Spain) in 1997. Marcos has been a visiting scholar at the Telecom University (Paris, France). She is coauthor of a book and she has published several articles and books chapters. Her research interests include object-oriented database design, conceptual modeling, web modeling and design and methodologies for software engineering research. Her e-mail address is <[e-mail]>.

Wai Yin Mok is an assistant professor of information systems at the University of Alabama in Huntsville, USA. From 1999 to 2001, he was an assistant professor of information systems at Utah State University. From 1996 to 1999, he was an assistant professor of computer science at the University of Akron in Ohio. He was an assistant lecturer of computing at Hong Kong Polytechnic from October 1992 to August 1993. His papers appeared in journals such as ACM Transactions on Database Systems, IEEE Transactions on Knowledge & Data Engineering, and Data & Knowledge Engineering, and Information Processing Letters. He serves on the editorial review board of the Journal of Database Management. He received a B.S., an M.S., and a Ph.D. in computer science from Brigham Young University in 1990, 1992, and 1996, respectively.

Sudhir Nanda is a quantitative analyst at T. Rowe Price Associates in Baltimore, Maryland, USA. Dr. Nanda received his Ph.D. in finance from the University of Massachusetts in 1993. He has published several papers in academic and practitioner journals.

Marek Nowak received his M.Sc. degree in physics in 1979. He worked in the Institute of Physics at the Technical University of Poznan from 1979 to 1986. In 1986 he joined the Poznan University of Economics, Poland. His recent research interests are focused on Bayesian networks wrapped in decision support systems. These works, carried out in the Department of Management Information Systems of the university, have been concluded recently by submission of Ph.D. proposal in this field.

Wan Kai Pang obtained his Ph.D degree in statistics from the University of Southampton (UK) in 2000. He has been working in the Department of Applied Mathematics at the Hong Kong Polytechnic University for almost 20 years as a lecturer in statistics. His current research interests include computational statistics, Markov chain Monte Carlo methods, statistical reliability and Bayesian modelling.

David Paper is an associate professor at Utah State University, USA, in the Business Information Systems Department. He has several refereed publications appearing in journals such as Journal of Information Technology Cases and Applications, Communications of the AIS, Long Range Planning, Creativity and Innovation, Accounting Management and Information Technologies, Journal of Managerial Issues, Business Process Management Journal, Journal of Computer Information Systems, and Information Strategy: The Executive's Journal. He has worked for Texas Instruments, DLS, Inc., and the Phoenix Small Business Administration. He is currently consulting with the Utah Department of Transportation. His teaching and research interests include database management, e-commerce, business process reengineering, and organizational transformation.

Mario G. Piattini holds a Ph.D. and M.Sc. in computer science (Madrid Technical University), a CISA (ISACA), and an M.Sc. in Psychology (UNED). He has been director of the development department of SiE and partner and founder of Cronos Iberica, S.A., where he has been director of the Training and Methodologies and Research and Development departments. He has also worked as consultant in various organizations and companies like Ministerio de Industriay Energía, Ministerio de Administraciones Públicas, Ministerio de Interior, Siemens-Nixdorf, Unisys, Hewlett-Packard, Oracle, ICM, Atos-Ods, etc. He is an associate professor at the Escuela Superior de Informática of the Universidad de Castilla-La Mancha at Ciudad Real, where he leads the Alarcos Research Group, specialized in information systems, databases and software engineering. He has authored several books on these subjects, as well as a hundred papers in national and international conferences and magazines. He belongs to various professional associations (ACM, IEEE-CS, ISACA, PMI, ACTA, ATI, ALI, AII-Madrid, OAI, Ada-Spain, AEC, AENOR, etc.) and he is a member of the DINTEL Foundation. His e-mail is <[e-mail]>.

John Roddick earned his Ph.D. in 1994 from LaTrobe University and has more than 50 publications in a number of areas of computing but specialises in the field of data mining and database systems. He is affiliated with Flinders University, South Australia. He has chaired both Australasian and international conferences and workshops. He is currently the editor-in-chief of the Journal of Research and Practice in Information Technology and the series editor of the Conferences in Research and Practice in Information Technology.

James A. Rodger is an associate professor of management information systems at Indiana University of Pennsylvania, USA. He received his doctorate in M.I.S., from Southern Illinois University at Carbondale in 1997. Dr. Rodger teaches Network Administration, System Architecture, Microcomputer Applications and Intro to MIS at IUP. He has worked as an installation coordinator for sunquest information systems and presently does consulting work on Telemedicine Connectivity for the Department of Defense and Management Technology Services, Inc. Dr. Rodger has published several journal articles related to these subjects. His most recent article, "Telemedicine and the Department of Defense," was published in Communications of the ACM.

Adolfo Sánchez has an M.Sc. in computer science (Universidad Politécnica de Madrid) and an M.Sc. and Ph.D. in telecommunication engineering (Universidad Politécnica de Madrid). From 1996 to 2000 he taught CASE technology at C.E.U. From 1989 to 1990 he worked at CERN (European Center for Nuclear Research) in Geneva, Switzerland, as a technical assistant. He is cofounder and partner of Cronos Iberica, S.A., which is a company specialized in the implementation of the latest information technologies for the Spanish Public Administration and for large enterprises. Today the company employs 60 IT specialists and has income forecasts close to 500 MPtas. He is vice-president of Cuore (Spanish Oracle User Group). His e-mail address is <[e-mail]>.

Murali Shanker is an associate professor in the College of Business at Kent State University. He received his Ph.D. from the Department of Operations and Management Science at the University of Minnesota. His research interests are in simulation, parallel processing, IS strategy, data mining, and artificial neural networks. He has published in journals like IEEE Transactions, Annals of OR, and the INFORMS Journal on Computing.

Girish Subramanian is currently an associate professor of computer information systems in the School of Business at the Pennsylvania State University at Harris-burg, USA. He teaches both undergraduate and graduate information systems courses in the areas of database management systems, data warehousing, software engineering, and data communications. He received his Ph.D. in computer information systems from the School of Business at Temple University. His current research interests include data warehousing, application of data mining in software engineering, use of rapid application development in data warehousing, and global software development. In his recent sabbatical research, he was involved with industry in the areas of data warehousing and global software development. He has numerous research publications in academic journals such as Communications of the ACM, Journal of Management Information Systems, Decision Sciences, The Journal of Systems and Software, and Journal of Computer Information Systems, among others.

Joanna Sztykiel is a Ph.D. student at the Poznan University of Economics, Poland. She has an M.A. from the GdaDsk University of Technology, where she studied solid-state physics. Since 1996 her interests have centered on executive information systems and artificial intelligence. Recent projects concern real-world applications of probabilistic networks in normative expert systems specially for economics issues, including a probabilistic expert system supporting credit risk management process. The system is being created at the Department of Management Information Systems of the Poznan University of Economics.

Kenneth B. Tingey is a doctoral student at Utah State University, USA, in the Business Information Systems Department. He has over 25 years experience in industry, working as a venture capital fund founder and general partner, entrepreneur, general and line manager, and executive staff assistant. He is founder, chairman, and CEO of Open Net Corporation, an enterprise software developer. His academic credentials include a master's degree in Pacific international affairs from the University of California, San Diego, a master of business administration from Brigham Young University, a bachelor of arts in music education from Utah State University, and a baccalaureate major in accounting from Brigham Young University. His professional affiliations include Strategic Information Division of Ziff-Davis Publishing Company, the Ventana Growth Fund, and Sunrider International. In addition, he has conducted many business consulting and systems development projects on contract with direct selling companies, software development companies, and government contractors. Mr. Tingey has engaged in many enterprise-level systems development projects with special emphasis on requirements of supporting the mission of institutions by means of information processing models and information technology tools. Mr. Tingey is the author of Dual Control, a book on the need to support top-down policies and horizontal processes in a unified system environment.

Marvin D. Troutt is director of the Center for Information Systems, Management and Information Systems Department, and a professor in the Graduate School of Management at Kent State University, USA. He holds a Ph.D. in mathematical statistics from the University of Illinois at Chicago. He has worked as an actuary and achieved the A.S.A. designation from the Society of Actuaries. He has also worked in institutional research and support. He is an associate editor of Decision Sciences. His publications have appeared in such journals as Management Science, Journal of the Operational Research Society, European Journal of Operational Research, Operations Research, Decision Support Systems, Naval Research Logistics, Mathematical Programming and Decision Sciences.

Heung Wong is an associate professor in the Department of Applied Mathematics, The Hong Kong Polytechnic University. He received his Ph.D. in statistics from the University of Hong Kong. He has published in journals such as Biometrika, Annals of Operations Research, Canadian Journal of Statistics, Annals of the Institute of Statistical Mathematics, and Computational Statistics and Data Analysis. His current research areas include time series modeling, forecasting, and computational statistics.

Acknowledgments

I would like to acknowledge the help of all involved in the collation and review process of the book, without whose support the project could not have been satisfactorily completed. A further special note of thanks goes also to all the staff at Idea Group Publishing, whose contributions throughout the whole process from inception of the initial idea to final publication have been invaluable.

Most of the authors of chapters included in this also served as referees for articles written by other authors. Thanks go to all those who provided constructive and comprehensive reviews.

Special thanks also go to the publishing team at Idea Group Publishing. In particular to Michele Rossi, who continuously prodded via e-mail for keeping the project on schedule, and to Mehdi Khosrowpour, whose enthusiasm motivated me to initially accept his invitation for taking on this project.

In closing, I wish to thank all of the authors for their insights and excellent contributions to this book. I also want to thank all of the people who assisted me in the reviewing process. In addition, this book would not have been possible without the ongoing professional support from Mehdi Khosrowpour and Michele Rossi at Idea Group Publishing.

Parag C. Pendharkar, DBA
Middletown, Pennsylvania, USA
July 2002

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