
|

|

|

|

 |
| Tech Update CRM |
 |
Data mining: Digging user info for gold
By Rachel Konrad
Special to ZDNet
February 9, 2001

[an error occurred while processing this directive] |
You like science fiction books, and Amazon.com
wants to sell them to you. So why does the e-commerce
giant peddle DVDs, Q-Tips and Valentine's Day
chocolates when you click on its site?
The answer is simple, scientists say: Amazon.com and most
other e-tailers have yet to perfect a practice known
as "data mining," the use of statistical analysis to
uncover hidden patterns in otherwise random
information.
Experts predict data mining will be one of the most
revolutionary developments of the next decade, key to
delivering a "personal Web," tailored to an
individual's preferences, by identifying a useful
structure in collected information and analyzing it in
real time. The influential MIT Technology Review
recently hailed data mining as one of the 10 emerging
technologies that will "change the world."
But some academics warn that mainstream mining merely
"dumbs down" the sophisticated craft--and may result
in screwy conclusions. Already, analysts are
cautioning potential investors that the volatile
segment may be unduly hyped.
"A lot of people think, 'I'm just going to put this in
the hands of the marketer and we'll get the secret
sauce,'" said Bob Moran, a managing vice president at
the Boston-based Aberdeen Group. "But there's no such
thing as 'secret sauce.' Data mining is all about
pushing back the gray zone. It's never entirely
uncovering the black and white." | [an error occurred while processing this directive] | r is simple, scientists say: Amazon.com and most
other e-tailers have yet to perfect a practice known
as "data mining," the use of statistical analysis to
uncover hidden patterns in otherwise random
information.
Experts predict data mining will be one of the most
revolutionary developments of the next decade, key to
delivering a "personal Web," tailored to an
individual's preferences, by identifying a useful
structure in collected information and analyzing it in
real time. The influential MIT Technology Review
recently hailed data mining as one of the 10 emerging
technologies that will "change the world."
But some academics warn that mainstream mining merely
"dumbs down" the sophisticated craft--and may result
in screwy conclusions. Already, analysts are
cautioning potential investors that the volatile
segment may be unduly hyped.
"A lot of people think, 'I'm just going to put this in
the hands of the marketer and we'll get the secret
sauce,'" said Bob Moran, a managing vice president at
the Boston-based Aberdeen Group. "But there's no such
thing as 'secret sauce.' Data mining is all about
pushing back the gray zone. It's never entirely
uncovering the black and white."
But marketers who recognize its vast commercial
potential see data mining as more than black and
white. They also see green in the science's potential
to create higher margins and inflate revenue.
 |
 |
|
|
|
![]() |
|
[an error occurred while processing this directive] |
![]() |
 |
![]() |

|

|

[an error occurred while processing this directive]



|

|

|

|