Establishing a Center of Excellence for Data Mining

Establishing a Center of Excellence for Data Mining in Egypt

By: Aref Rashad

I- Introduction

The convergence of computer resources connected via a global network has created an information tool of unprecedented power, a tool in its infancy. The global network is awash with data, uncoordinated, unexplored, but potentially containing information and knowledge of immense economic and technical significance. It is the role of data mining technologies arising from many discipline areas to convert that data into information and knowledge. It is our premise therefore that data mining technologies lie at the heart of the information revolution providing the mechanism for creating information and knowledge.

These we contend are the commodities that increasingly are driving regional, national and global economies.

Data mining is characterized generally by the exploration and exploitation of large collections of opportunistically collected data whose internal structure is unknown and unmodeled a priori. Data set size and complexity are usually key parameters in data mining. Data quality and algorithmic complexity are concomitants that impact upon the success of data mining efforts.

Conventional methods are usually quite successful with tiny or small data sets. Analysis in these regimes usually focuses on statistical optimality, extracting maximal information from each observation. Medium to large data sets begin to severely tax traditional methodologies.

Computer modeling is the use of computers to create abstract models of real life objects, organizations, situations, or systems. A computer model is dynamic in nature and it helps to examine the behavior of the system under study in order to analyze and enhance its performance.

The data mining and data modeling field is an arena with major economic and scientific impact on Egypt. The potential impact is both short term, because the proposed center is in effect a meta center bringing together groups already doing work in the area which are able to rapidly respond both individually and jointly to short-term needs, and also long term, because the research agenda is clearly driven by deep scientific issues which as they are addressed will position the economy of Egypt to become a national and global leader in the area.

II- Centre of Excellence Concept and Strategy

A- Prelude

Admitting that: "where there is a need, there is a market" and that "survival is for the fittest", this chapter starts with a brief identification concerning the "need" for initiating the subject CoE, including: (i) market challenges, which create market needs that exhibit the unique opportunity of establishing an entity/CoE capable of satisfying essential needs,

(ii) degree of CoE's "fitness" to capture such opportunity, which depends mainly on boosting its "competitive strength" and on the "strategic orientation" of such strength towards opportunities exhibiting high "market attractiveness", and (iii) CoE's strength as the resultant of potential contributions by "Potentiators" (viz., the stakeholders of the subject research Mission). On these bases, this chapter proceeds to identify: (a)- the

CoE's environmental constraints or the "External trends and conditions" from which research funding can be attained, (b)- our "vision" for the CoE is presented which paves the way for a logical derivation of (c)-the "Mission Statement". Then, it concludes with the identification of the attributes sufficient for accomplishing the subject Mission.

Market Challenges

For their own survival, all developing countries have suddenly realized their essential need to face, without any delay, many challenges. In what follows practical examples are cited to stress the pressing need to initiate a network of IT-based centers-of-excellence emanating from the subject CoE, in serving the best interest of the Egyptian economy.

1- The acceleration with which market changes are occurring. A good example is that seconds, not minutes, can now make a great difference in the value of financial instruments in world markets.

2- The abundance, accessibility and speed of communicated information (e.g., INTERNET). If this fact is not properly utilized, traders and investors can no longer maintain their initiative.

3- The impact of universal utilization of computer models. For example, "Bench Marks" are readily available to provide a sort of "universal" reference that can provide impartial measure for production efficiency. Ignoring to utilize such reliable sources can easily deflate any producer of his competitive advantage.

4- Emergence of a wide variety of trading markets, e.g., "Futures", "Options", "Swapping" and the like. As a result, prices may differ drastically with the type of the market; and therefore, price saving can be quite significant. As an example, investors involved in multiple-currency projects can not possibly ignore hedging, for minimizing their risk, e.g., through swapping instruments available as Futures contracts of the Currency markets.

5- The unprecedented rates with which the technology is advancing and the new products are being launched. As a direct consequence of the stress on innovation via R&D, only one of the world-leading conglomerates may offer over 100,000 products belonging to over 100 technologies, and may launch more than one new product, each and every day. This simply implies that, with the absence of R&D capabilities, most producers shall continually be facing eminent threats to their market survival. The least to be done is to possess the proper capabilities to predict the impact of drastic changes in the life span and cycle of their products. Besides, their information and management systems must allow for timely course corrections.

6- The impact of the GATT Agreement and the expected threats during the transition

period leading to its full implementation. Obviously, competition shall be extremely

severe especially in facing volume producers with the economies of scale in their

favor. Most producers are now convinced that delaying or evading the GATT

implementation is not a solution. For becoming