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What?s the Buzz Word ? (Part 1)
Data Ware-Housing
A data warehouse is a structured extensible environment designed
for the analysis of non-volatile data, logically and physically transformed
from multiple source applications to align with business structure, updated
and maintained for a long time period, expressed in simple business terms,
and summarized for quick analysis. To meet the challenges of a competitive
& volatile market, banks need to have latest & up-to-date data for
effective risk management of new markets, formulation of strategies, for
Asset-liability Management etc. Therefore, the Data Ware Housing project
needs to be implemented at the earliest.
Data Mining
The reports and queries of the summary tables of the Data
Warehouse are adequate to answer many ?What? questions in the business. The drill
down into the detail data provides answers to ?Why? and ?How? questions. This
is referred to as ?Data Mining?. A data-mining user starts with summary data
and drills down into the detail data looking for arguments to prove or
disprove a hypothesis. The Bank needs to select appropriate tools of
data-mining so as to understand the behaviour of business units such as
customers and products.
Knowledge Management
Knowledge Management is a systematic and organized attempt to
generate knowledge within an organization that can transform its ability to
store and use knowledge for improving performance. In an economy where the
only certainty is uncertainty, the one sure source of competitive advantage
is knowledge. When markets shift, technologies proliferate, competitors
multiply, and products become obsolete almost overnight, successful companies
are those that consistently create new knowledge, disseminate it widely
throughout the organization and quickly embody it in new technologies and
products.
How quickly an organization picks up cues from the environment
(both opportunities and threats) applies this knowledge, capitalises on it,
and creates value out of this application of knowledge will determine its
competitiveness. That is, how fast a company knows what it needs to know, and
what it knows, and how fast it can bridge this gap between what it needs to
know and what it knows, will provide the company an edge over all others. The
Bank needs to select and adopt appropriate technological solutions for implementation
of the knowledge Management project.
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