DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION NISPAcee Concerence 10-12 April 2003, Bucharest, Romania Martin Gramatikov Public Administration Department, University of Sofia [email protected] 1 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Roadmap Data Mining Concept (cid:122) Data Mining and Decision-Making (cid:122) Real-world Applications (cid:122) Constraints (cid:122) Opportunities (cid:122) 2 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Data Mining: Concept Branch of applied mathematics, which allows us to sift through large (cid:122) amounts of structured or unstructured data in attempt to find hidden patterns and/or rules. A mean for discovery of contextual meaningful knowledge which (cid:122) increases the substantial or procedural knowledge of the targeted processes Rules, patterns, regularities and other trends hidden in the data (cid:122) 3 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Data Mining in Public Administration Increase in processing power (cid:122) Development in the DM and KDD fields (cid:122) Proliferation of databases in the PA (cid:122) Demand for turning data into knowledge (cid:122) Public organizations as learning organizations (cid:122) Implementation of ICT makes it easier to record (cid:122) and store transactional and substantive information 4 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Applications of Data Mining in Public Administration policy making (cid:122) policy implementation (cid:122) policy evaluation (cid:122) targeting of specific groups (cid:122) customer-centric public services (cid:122) improved efficiency of PA (cid:122) 5 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Employment of Data Mining in PA law enforcement (cid:122) public health (cid:122) social security (cid:122) urban planning (cid:122) education (cid:122) public procurement (cid:122) 6 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Data Mining and Decision-making theory Bounded rationality (cid:122) lack of comprehensive information (cid:122) information uncertainty (cid:122) limits on human cognitive and processing capabilities (cid:122) DM provides for alleviation of the environmental (cid:122) uncertainty DM confirms the bounded rationality model - the (cid:122) principle of parsimony 7 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Satysficing and parsimony 5-10% of collected data in commercial (cid:122) organizations is being analyzed methods for data reduction (cid:122) forward entry (cid:122) backward removal entry (cid:122) forward stepwise method (cid:122) backward stepwise method (cid:122) 8 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Data Mining in the Bulgarian PA is knowledge discovery possible in highly (cid:122) irrational environment historical development (cid:122) limited application - lack of data collection (cid:122) procedures, technical and human capacity undermined black-box culture in the Bulgarian PA (cid:122) 9 DATA MINING TECHNIQUES AND THE DECISION-MAKING PROCESS IN THE BULGARIAN PUBLIC ADMINISTRATION Implementation of Data Mining: the case of profiling Customs Administration (cid:122) Hazard Administration (cid:122) mining historical data to create classification, (cid:122) characteristics and association rules for “high-risk profiles” 10
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