1.
Introduction
Knowledge
Managers in any organization need to integrate Information Systems
Strategies with Business Strategies in order to attain their vision and
mission .The dividend yield a victory over their competitors through
connection and interaction with their environment. Therefore, performing
surgery on management overhead does not need to be macheted in a dark
room instead it requires transparency as suggested by Strassmann (1995).
First, one must gain acceptance from those who know how to make the
organization work well. Second, the organization must elicit their
cooperation in telling them where the cutting will do the least damage.
Third, employees must be willing to share with the organization insights
about the removal of an existing business process that will improve
customer service.
The
redesigning of an organization's processes is variously called business
re-engineering, business process re-engineering, business process
design, business redesign and so on. A useful working definition of BPR
is given in Smith (1996) as the fundamental rethinking and radical
redesign of an entire business - its processes, jobs, organizational
structure, management systems, values and beliefs.
BPR helps
rethinking a process in order to enhance its performance. Academics and
business practitioners have been developing methodologies to support the
application of BPR principles. However, most methodologies generally
lack actual guidance on deriving a process design thereby threatening
the success of BPR (Selma et al, 2003). Indeed a survey has proved that
85% of BPR projects fail or experience problems (Crowe et al, 2002).
Data Mining
(DM) is a field that has recently attracted the attention of various
researchers and organisations. According to Mena (1999) “Data Mining is
the process of discovering actionable and meaningful patterns, profiles
and trends by sniffing through your data using pattern recognition
technologies such as neural networks, machine learning and genetic
algorithms”. DM tools can answer business questions that traditionally
were too time consuming to resolve. They search databases for hidden
patterns, finding predictive information that experts may miss because
it lies outside their expectation.
Given the
amount of management attention that has been devoted to the notion of
BPR, it is not surprising that a number of tools and techniques (both
human and computer based) have emerged to support it. Tools that support
BPR can conveniently be categorized into two sets: those that help
analyze and model the business from a process perspective, and those
that help plan the workflow of the business. Any or all of these tools
may be supported in software. The need to deploy Data Mining Technique
to BPR was carried out, and it was discovered that the hidden knowledge
generated by Data Mining tools can serve as a basis for knowledge
managers in organizations to redesign the whole business process so as
to suite the current business development and challenges and to remain
at competitive level with other business organisations.
Therefore,
in this study the following research questions need to be investigated.
1.
Educational background of the DM users
2.
Which organization uses DM techniques?
3.
Do
you for see any relationship that may exist between DM and BPR?
4.
How
are relevant BPR data obtained?
5.
What categories of Knowledge Managers will use DM techniques for BPR?
6.
What are the likely consequences, if DM succeed, making BPR a good KM
tool?
We begin in
section 2 by defining knowledge management (KM) and specifying KM
strategies. Section 3 briefly overviews Data Mining (DM) techniques as a
major tool in our study. In section 4, we outline factors, importance
and mistakes of BPR. Section 5 presents a framework for data mining as a
technique for knowledge management in Business Process Redesign. Finally
in section 6, we synthesize those expectations into a set of
conclusions.
2.
Knowledge Management (KM)
Knowledge is
an expensive commodity, which if managed properly is a major asset to
the company. Knowledge is a complex and fluid concept. It can be either
explicit or tacit in nature. Explicit knowledge can be easily
articulated and transferred to others. In contrast tacit knowledge,
which is personal knowledge, residing in individual’s heads, is very
difficult to articulate, codified and communicate (Gupta and McDaniel,
2002). Although KM has achieved a level of popularity among firms
worldwide, it has no unique or standardized definition. For the purpose
of this paper, we define KM as a systematic process of finding,
selecting, organizing, distilling and presenting knowledge in a way that
improves the organization’s interest. A key objective of KM is to ensure
that the right knowledge is available at the right time in a manner that
enables timely decision-making (Hariharan, 2002).
KM
encompasses the way that organizations function, communicates, analyze
situations, come up with novel solutions to problems and develop new
ways of doing business. It can also involve issues of culture, custom,
values and skills as well as relationships with suppliers and customers.
Wiig (1997),
in his work said that organizations might pursue five different
knowledge management (KM) strategies:
1.
KM
as business strategy
2.
Intellectual asset business strategy
3.
Personal knowledge asset responsibility strategy
4.
Knowledge creation strategy and
5.
Knowledge transfers strategy.
This paper
presents business organizations with data mining techniques as an
approach that supports such knowledge creation, sharing and transfer
mechanisms.
3.
Data Mining techniques
Data Mining,
the extraction of hidden predictive information from large databases, is
a powerful new technology with great potential to help companies focus
on the most important information in their data warehouses. Data mining
tools predict future trends and behaviours, allowing businesses to make
proactive, knowledge-driven decisions. Most companies already collect
and refine massive quantities of data. The application areas of DM as
contained in recent literatures as corroborated in Jiawei (2003)
include: medical treatment/disease symptoms identification, retail
industry, telephone calling patterns, DNA sequences, natural disaster,
web log click stream, financial data analysis, bio-informatics, melody
track selection, content-based e-mail processing systems, analyzes of
data from specific experiments conducted over time, analysis of nation's
census database, and so DM techniques can be implemented rapidly on
existing software and hardware platforms to enhance the value of
existing information resources, and can be integrated with new products
and systems as they are brought on-line.
There are
three groups of DM users namely, Application users, Designers and
Theorists. It is usually common that the theorists based on some
principal assumptions usually formulate new ideas. Therefore, some users
are primarily interested in this group.
Those
concerned with the application of DM such as knowledge Managers which as
a direct result of their interest in DM research and design they are
referred to as the 'DM researcher /designer'. Finally, the respondents
concerned primarily with the using or solving problems, for which DM
offered an effective approach, are referred to as the "DM application
group.
The most
commonly used techniques in data mining are:
1.
Artificial Neural Networks:
this is a non-linear predictive model that learns through training and
resembles biological neural networks in structure.
2.
Decision trees: tree-shaped
structures that represent sets of decisions. These decisions generate
rules for the classification of a dataset.
3.
Genetic Algorithms: They are
optimization techniques that use process such as genetics combination,
mutation, and natural selection in a design based on concepts of
evolution. It tries to mimic the way nature works. It is an adaptive
heuristic search algorithm premised on the evolutionary ideas of natural
selection and genetics.
4.
Rule Induction: the extraction
of useful if-then rules from data based on statistical significance.
5.
Regression Methods: this tries
to identify the best linear pattern in order to predict the value of one
characteristic we are studying in relation to another.
3.1
DM tasks
Some of the
tasks solved by Data Mining are:
1.
Prediction: a task of learning
a pattern from examples and using the developed model to predict future
values of the target variable.
2.
Classification: a task of
finding a function that maps records into one of several discrete
classes.
3.
Detection of relations: a task
of searching for the most influential independent variables for a
selected target variable.
4.
Explicit modeling: a task of
finding explicit formulae describing dependencies between various
variables.
5.
Clustering a task of
identifying groups of records that are similar between themselves but
different from the rest of the data.
6.
Market Basket Analysis:
processing transactional data in order to find those groups of products
that are sold together well
7.
Deviation Detection: a task of
determining the most significant changes in some key measures of data
from previous or expected values.
3.2
Benefits of DM techniques to web
information management
A company or
an organization encompassing data mining techniques can enjoy a number
of benefits; these includes understanding customers’ behaviour, making a
judgement on the effectiveness of the company’s web site- if there is
one, and benchmarking marketing campaigns (Doherty, 2000 & Mena, 1999).
3.2.1
Understanding customers’
behaviour
The benefits
that fall under this category are summarized below:
1.
Establishing the probability of customers coming back to the company or
their web site.
2.
Calculating the number of new customers coming to the company or their
web site.
3.
3. Identify patterns relating either to navigation routes that
customers follow or to what they buy.
4.
Discover whom byes what and look for any cross-relationships between
clients.
3.2.2
Understanding the web
site’s strong points
In this
category, we can find the following benefits:
1.
Developing a better layout of the company’s web site.
2.
Identifying popular and non-popular areas of the web site.
3.
Personalizing online advertisement.
4.
Business Process Redesign (BPR)
When BPR is
used carefully, it can take organisations into a new realm of
competitive effectiveness. However, the redesign of individual processes
will always have a limited impact unless it is implemented as part of a
wider view of the organization as a whole and that wider view must take
root into the corporate culture. According to Wendy (1997), this is the
difference between business re-engineering and process re-engineering
since the first takes this wider perspective while the second is far
more focused.
The purpose
of this paper is to present a data mining technique that would allow
business practitioners, senior managers and decision makers in
organisations to extract useful, relevant, previously hidden knowledge
from the organisation’s database which after careful management of this
knowledge yields the much knowledge needed to actualize the Business
Process Redesign (BPR).
Ascari et
al, (1995) found that certain factors are common to all BPR initiatives.
Common features are:
1.
The
need for IT solutions tailored to fit the business
2.
The
focus on processes
3.
The
intent to use a pilot project approach
4.
The
need for top management commitment
5.
The
need for the communication of plans
The
importance of other factors however, varied by whether the organization
was competitively successful or was in a crisis situation. Features
strongly sought by those in a competitive crisis were:
1.
The
need for a refocusing on the customer
2.
The
need to create coherent incentive programme
3.
An
emphasis on training
4.
The
redefinition of jobs
5.
The
need for cross-functional teams
6.
The
move towards empowerment
Kotter
(1995) identified what he saw as the eight key mistakes that
organisations engaged in BPR make. They are:
1.
Not
establishing a great enough sense of urgency
2.
Not
creating a powerful enough guiding coalition.
3.
Lacking a vision.
4.
Under-communicating the vision by a factor of ten.
5.
Not
removing obstacles to the new vision.
6.
Not
systematically planning for and creating short-term wins.
7.
Not
anchoring changes in the corporation’s culture.
4.1
The BPR framework
The idea
behind a framework is to help practitioners by identifying the topics
that should be considered and how these topics are related (Alter,
1999). In this perspective the framework should identify clearly all
views one should consider whenever applying a BPR implementation
project.
For BPR, we
suggest to use the framework described in figure 1. It is derived as a
synthesis of the WCA (Work-Centred-Analysis) framework (Alter, 1999),
the MOBILE workflow model (Jablonski and Bussler, 1996), the CIMOSA
enterprise modeling views (Berrot and Vemadat, 2001) and the process
description classes of (Seidmann and Sundarajan, 1997). In this
framework, six elements are linked as shown in figure 1.

Figure
1: Framework for BPR implementation (Adapted
from Selma et al, 2003)
4.2
Methodology
4.2.1
Sample
Surveys were
administered to 207 Computer Science Students covering some academic
institutions in the southwestern Nigeria.
Participation in the data gathering exercise was voluntary after the
researchers had explained the importance of the study to the Students.
The participants returned 190 useable responses (64.9 % male, 35.1%
female) and 16 questionnaires either were not filled or contain missing
data. Thus, the response rate was 92.27%. All participants are in
full-time employment with University and Research Institutes, Banks,
Insurance, Ministries of Science & Technology, Accounting and Business
Consultancy firms. A total of 32 work organizations were represented,
with no more than nine participants from an organization type. The
significance of this heterogeneous sample is that the respondents are
not uniformly influenced by the contextual constraints of any single
organization (Ronssean & Fried, 2001). The mean age of the participants
was 36.39 years (SD = 6.19 years), 74.3% were married. 68% of the
respondents use primary data as their source of BPR data while 32% rely
on secondary data.
The scale
design phase of the questionnaire used focuses on construct validity and
reliability, operational issues investigating whether the scales chosen
are true constructs describing the events or merely artefacts of the
methodology itself (Campbell & Fiske ,1959 ; Cronbach, 1971). The
process started by arranging the selected items in a questionnaire
format in preparation for data collection. The items were arranged in
random order to reduce bias. The response options for some of the
question items, anchored on a five-point Likert scale, ranging from (1)
strongly disagree to; (5) strongly agree.
4.3
Results and discussion
Due to the
scope of this research work, all the respondents either have theoretical
or practical knowledge of Data mining techniques. Some criteria are used
to determine knowledge manager's idea of DM. Their knowledge about
relevant BPR data, theoretical or practical knowledge of DM. The
Knowledge Manager's ability to describe any of these criteria gives him
a score of one (1) mark. So, a knowledge manager who can explain all two
(2) criteria has a score of (2) while one who cannot explain any of the
criteria has a score of zero (0)
Table
1: Percentage distribution of KM was on their
knowledge of DM techniques
|
Knowledge Score |
Percentage ratio |
Interpretation |
|
0
1
2 |
28.0
41.0
31.0 |
Very poor
Average
Good |
As shown
above, twenty-eight percent of the respondents had very poor knowledge
of DM and thus scored zero.
The majority
of the respondents scored forty-one percent, while over seventy-two
percent had above average knowledge of DM.
This implied
that twenty-eight percent of respondents have below average knowledge of
DM. The more reason for having larger proportion having the DM knowledge
is that most of the respondents work in IT department of their various
organizations.
Table
2: Analysis of Respondent’s View on the use of
DM for BPR
|
|
Questions |
Strongly
Disagree |
Disagree |
Neutral |
Agree |
Strongly
Agree |
Total |
|
1 |
I foresee a
relationship that may exist between DM and BPR |
1 |
5 |
12 |
36 |
136 (71.6%) |
190 |
|
2 |
There would be
consequences
if DM actually
succeeds in
making BPR with
KM |
5 |
14 |
3 |
61 |
107(57.4%) |
190 |
|
3 |
DM can affect
the power within
the
organization and the power
of the
organization |
5 |
3 |
13 |
56 |
113(59.5%) |
190 |
In table 2 ,
it was discovered that 71.6% of the respondents strongly foresee a
relationship between DM and BPR this a greater proportion .This called
for more research in this area while 57.4% of the respondents strongly
suspected consequences when DM actually succeeds in making BPR with KM.
This will eventually affect the power within the organization and the
power of the organization.
5.
The DM/BPR framework
In order to
achieve our purpose for this paper, it is very important to explain how
the DM/BPR tool shown in figure 2 will extract and transfer the
much-needed knowledge necessary for implementing the new business. Data
on past business processes including vision, technology, management,
sales, services, accountability and leadership is accumulated over time
in a database. A clear understanding of this is required after which
careful examination and analysis is carried out to organize the data in
order to suit our purpose. The DM model (Algorithm) is then built which
could be a neural network model, genetic algorithm model, association
models, decision tree models, clustering model or regression models as
the case may be. The selected model is tested on the data to yield
fruitful DM results previously unknown to managers and decision makers
in the organization. The top managers and decision-makers take this new
knowledge and implement on the BPR framework described in figure 1 to
activate the new business process.

Figure
2: DM/BPR Framework
5.1
DM as a technique for knowledge management
in BPR
5.1.1
Getting the relevant data
As it was
formerly stated that DM is the extraction of hidden predictive information
from large databases, allowing businesses to make proactive,
knowledge-driven decisions. Most companies already collect and refine
massive quantities of data. Data management today is required of the
ability to extract interesting patterns from large and raw data to help
decision-making. The importance of collecting data that reflect your
business or scientific activities to achieve competitive advantage is
widely recognized now. Powerful systems for collecting data and managing
it in large databases are in place in all large and mid-range companies.
However,
the bottleneck of turning the data into success is the difficulty of
extracting knowledge about the system you study from the collected data.
For instance, there is an unprecedented growth of the use of World Wide
Web for commercial and scientific purposes in the past few years, most
especially in the commercial sector where people are encouraged to conduct
all their transactions online. This coupled with the advances in
communication technology resulted in the accumulation of data on the
Internet. This data, which indicates the user’s behaviour is kept in files
specially, created for that purpose called, log
files.
There is
therefore need to extract meaningful but hidden patterns from these large
files through data mining techniques. In a constantly changing business
environment, people or managers in various departments of industries or
organizations can make their organization become much more competitive if
they could get this vital information about their customer’s habits.
If this vital
information is gotten by managers responsible for the promotion of
company’s products, it would be possible to apply direct marketing
techniques to every customers so that no money is wasted in vain
advertisement. This could also lead to the alteration of the
organization’s web page layout to suit the new developments. All these
could be achieved through data mining.
According to
the webopedia encyclopedia of computing technology (The Webopedia’s web
site, 2000) a log file is defined as “a file that lists actions that have
occurred”. These files are generated by servers – a computer or a device
on a network that manages network resources – and contain a list of all
requests made to the server by the network’s users.
Information in
the log files has to be written in a specific format that will facilitate
the analysis of the file and instruct the computer as to how to read and
use it. Log files are generated and kept on web servers; there are a
variety of them in the market e.g. Apache web server (at the Apache server
Website, 2000).
5.1.2
Examine the Data
In addition to
the choice of the web server to take care of the user’s requests, there
are a wide variety of options as to how the data will be stored; that is,
there are varieties of formats in existence. The common log file formed
would be explained in this paper. A typical entry of this common log file
format might look like the line below:
83.172.199.21
- - [24/oct/2003:09:15:36 + 0100] “GET / ~ tom / business / P205 / src /
TicTacTve / docs / Board view.html HTTP / 1.0” 200 9436
The first
field – 83.172.199.21 is the host making the request (The Apache Webster,
2000: Perl Tutorial website, 2000), this is a symbolic name and in the
case it is not available, the IP address of the site making the request
can be gotten.
The second
field is the login name of the user who is making the request. Most
servers may not give this for security reasons, which is the reason why a
dash ( – ) is recorded in the log file.
The third
field comprises the full name of the person who is making the request, as
in the above case it is disabled in most servers and a dash ( – ) is
recorded. Note that if a request is made for a file that is password –
protected, then the user’s identity should appear in this field.
The next entry
in brackets comprises the data and the time the request was made and of
the format dd/m/yyyy and hh:mm:ss respectively. An obvious problem here is
that of the number of different time zones around the world. The time zone
used is the Greenwich Mean Time (GMT).
The next in a
set of double quotes after which a request is made to the server through
the relevant command GET. After which we have the specific file request,
which in the case of the above example is:
tom / business
/ P205 / src / TicTacTve / docs / Board view.html, under the directory of
tom.
The next entry
is the protocol – in which HTTP 1.0 is used in most cases. The next entry
is a three – digit code that shows the result of the request, that is, the
success or failure of the server to accommodate the request. The first
digit can take five values:
Table 3:
The meaning of the first digit of the status code (Adopted form Perl
Tutorials website, 2000)
|
Value of first digit |
Meaning |
|
1 |
Informational |
|
2 |
Success |
|
3 |
Further action
needed |
|
4 |
Mistake from the
person making the request |
|
5 |
Server’s failure |
A number of
sample codes and their meanings are shown below:
Table 4:
Some status codes and their meanings (Adopted from Perl Tutorials website,
2000)
|
Status code |
Description
|
|
200 |
OK |
|
204 |
No content |
|
301 |
Moved permanently |
|
302 |
Moved temporarily |
|
400 |
Bad request |
|
401 |
Unauthorized |
|
403 |
Forbidden |
|
404 |
Not found |
|
500 |
Internal server
Error |
|
501 |
Not implemented |
|
503 |
Service
Unavailable |
In table 4,
the code returned was 200, which means that the request was successfully
completed. The final entry of the log file’s format is the length of file
transferred and this is 9436 bytes for the above example.
5.1.3
Analysing web log files
Many log
analyzers have been developed today. Some of these can be downloaded from
the Internet as commercial program, freeware or shareware. Some examples
are: WebTrends, HitListPro, SurfStats, FastStats, Sawmill.
In the market
place, there is a large number of ready–made programs that help us analyse
the log files our server has generated. Their processes differ, some are
free and some sophisticated one can be bought at very high prices. The
choice depends on our organization’s special needs.
5.1.4
Evaluating web log files
The step that
follows the analysis stage is evaluation. Once the mining tools i.e. the
log analyzers have been applied, we have some result–which are figures
only a step away from fulfilling the initial goal of turning our raw data
into usable information. These results can then be analyzed by managers or
decision–makers in the organization or by experts brought in from outside
the company and valuable associations and patterns previously unknown to
them can be generated.
5.1.5
Building and testing DM
Models (Algorithms) to parse the log file
As discussed
above, there are a large number of packages available in the market place
that will perform the parsing and analysis of the log file for us. It is
also possible for someone to write his/her own program to do the same
task. There are two major benefits that can be enjoyed in doing that. They
are:
1.
Extensibility: this means the
user can extend, add or remove components from the program rather than
waiting for the next upgrade of the commercial program
2.
Customizability: this means a
user can write and perform his/her own queries and get the results of
choice rather than some general statistics e.g. one might be interested in
the nationality of customers that access our home page between a
particular time of the day.
5.1.6
Factors to consider in
writing your own program
There are two
factors to bear in mind.
§
Size of log files: a log file of
a medium sized company can be anything in size up to thirty or forty
megabytes or more. Note that, we need not load the whole file into memory,
as this would have some disastrous effects on the performance of the
computer. Loading and manipulating one line at a time better do it.
§
Speed of expected result: a
language that would perform these tasks quickly is needed and which will
give us the opportunity to perform the tasks we want at a very high speed.
For example, Perl, C++ etc are good for that kind of programs.
5.2
Consequences that may arise from the BPR
through DM and KM
Consequences
that may arise are:
1.
Predicting cross–sell opportunities and making
recommendations: whether you have a traditional
or web–based operation, you can help customers quickly locate products of
interest to them and simultaneously increase the value of each
communication with your customers.
2.
Identifying your best prospects and then retaining them as
customers: By concentrating your marketing
efforts only on your best prospects your organization will save time and
money; thus increasing effectiveness of your marketing operations.
3.
Segmenting Markets and personalizing communications:
it is possible now to identify distinct group of
customers, patients, students or natural phenomena that require different
approaches in their handling.
4.
Learning parameters influencing trends in sales and
margins: Now you can know what combination of
parameters is actually influencing trends in sales and margins and general
operations.
5.
Saving costs and time by:
streamlining processes (limiting the number of departments/people involved
in a single process), removing non-value adding activities and identifying
where systems support is inadequate.
6.
Conclusion
The process of
extracting knowledge hidden from large volumes of data (DM) has proved
very successful in solving many business or scientific problems to achieve
competitive advantage. As suggested in the DM/BPR framework, the DM model
can be deployed on the massive data collected from past business processes
of the organization which then yields the much needed previously unknown
knowledge and trends needed by top managers or decision makers in the
organization for effective business process redesigning.
The
unprecedented growth of the World Wide Web coupled with the recent
advances in the telecommunication networks has made possible the
transmission of large amounts of data in a short period of time –
resulting in the accumulation of data on the Internet. This data are
stored in files specially created for this purpose called – log files,
generated by servers showing list of actions that occurred e.g. user’s
behaviour at a particular organization’s web site. There are many data
mining tools in existence to turn the raw data in the log files to useful
information. Also, a customized computer program could be written to
achieve a better result. If these potentials are fully and properly
harnessed, decision–makers in organizations would be able to answer many
questions that have been difficult to answer in time past such as: what
goods should be promoted to the customer?, what is the probability that a
certain customer will respond to a planned promotion?, can one predict the
most profitable securities to buy/sell during the next trading session?,
will this customer default on a loan or pay back on schedule?
The proposed
DM/BPR framework transforms the old business into a new prospect oriented
business organization by carefully re-engineering the old system
incorporating the new discovered knowledge which helps the manager to make
wise and informed business decisions in the area of accountability,
business change management expertise, business process analysis, business
model design, business model implementation and others.
7.
Acknowledgement
The
contributions of the EJKM’s anonymous reviewers to this paper are
gratefully acknowledged
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