Knowledge: the key to organisational survival

Abstract

In modern business the acquisition and management of information has become a competitive force. It can be argued that this has always been the case. Critical in the gathering of information and its analysis is the use of statistics, yet there remains a huge element of distrust amongst senior management in the use of statistical tools. Some of the reasons for this will be discussed in this paper and the issue of the need for statisticians to take more responsibility for bridging this gap will be raised. A theme of this paper is how recent trends in knowledge discovery and data mining (KDD) may be instrumental in breaking down traditional barriers between analysts and managers. Case studies from the use of KDD in customer relations management are presented, from which guidelines for the acquisition and management of information will be given. Some cautionary pointers, such as the need to look beyond current customer bases and to speculate in possible organisational and market futures, will also be given. Case studies will be drawn from the areas of contract electronic manufacture, education and financial retailing.