Jan 23, 2009

Data Mining in Economic Crisis

In this time of economic turmoil the whole world is slowly plunging into recession. We have seen bailouts from governments worth billions of dollars for giant companies in US, Europe and Asia. The businesses are finding hard times to operate and so ability to make smarter and intelligent business decisions are imperative to overcome in such harsh conditions.

Businesses who have already invested in business intelligence solutions will be in a better position to undertake right measures to survive and continue its growth. However, many may argue that most of the giant companies were using Data mining and BI solutions but still could not avoid the collapse. The important thing to note here is that data mining solutions provides an analytical perspective into the performance of an organization based on historical data but the economic impact on an organization is linked to many issues and in many cases to external forces and unscrupulous activities. The failure to predict this does not undermine the role of data mining for organizations but on the contrary makes it more important especially for regulatory bodies of governments to predict and identify such practices in advance and take necessary measures to avoid such circumstances in future.

1 comment:

Paty said...

Hi, can you summarize the main challenges in data mining? specifically: dm can be used in social networks? how?

thanks.

ps. thank you for the information.