Database Reference
In-Depth Information
CHAPTER TWO:
ORGANIZATIONAL UNDERSTANDING AND DATA
UNDERSTANDING
CONTEXT AND PERSPECTIVE
Consider some of the activities you've been involved with in the past three or four days. Have you
purchased groceries or gasoline? Attended a concert, movie or other public event? Perhaps you
went out to eat at a restaurant, stopped by your local post office to mail a package, made a
purchase online, or placed a phone call to a utility company. Every day, our lives are filled with
interactions - encounters with companies, other individuals, the government, and various other
organizations.
In today's technology-driven society, many of those encounters involve the transfer of information
electronically. That information is recorded and passed across networks in order to complete
financial transactions, reassign ownership or responsibility, and enable delivery of goods and
services. Think about the amount of data collected each time even one of these activities occurs.
Take the grocery store for example. If you take items off the shelf, those items will have to be
replenished for future shoppers - perhaps even for yourself - after all you'll need to make similar
purchases again when that case of cereal runs out in a few weeks. The grocery store must
constantly replenish its supply of inventory, keeping the items people want in stock while
maintaining freshness in the products they sell. It makes sense that large databases are running
behind the scenes, recording data about what you bought and how much of it, as you check out
and pay your grocery bill. All of that data must be recorded and then reported to someone whose
job it is to reorder items for the store's inventory.
However, in the world of data mining, simply keeping inventory up-to-date is only the beginning.
Does your grocery store require you to carry a frequent shopper card or similar device which,
when scanned at checkout time, gives you the best price on each item you're buying? If so, they
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