You've Data Mined. Now What?

Michael Brydon, Andrew Gemino
2008 Communications of the Association for Information Systems  
Data-mining technologies are within the grasp of many organizations. Commercially available data-mining packages make it relatively easy for firms to transform their data resources into predictive models. Yet, despite technological advances, the precise manner in which data-mining output should be incorporated into an organization's decision-making processes remains unclear. This paper attempts to clarify the role of data mining by situating it within the context of Simon's model of decision
more » ... ing. We use a complex decision problem from the video game development industry to illustrate several practical challenges managers face when using data-mining output as a decision making input. We then show how some of these challenges can be overcome by incorporating data-mined predictive models into a conventional decision-analytic formulation of the problem. and M.Eng. and B.Eng. degrees in Engineering Management from the Royal Military College of Canada. His research interests lie at the intersection of decision theory, economics, and computer science and include computational economies, decision-theoretic valuation of real options, and markets for public goods such as knowledge and open source software. Recent articles have appeared in Decision Support Systems, Information and Technology Management and Data Mining and Knowledge Discovery.
doi:10.17705/1cais.02233 fatcat:g3ki3emkardqbmkzzoyj5utbpm