What Role Does Data Mining Play for Business Intelligence (BI) in Somalia? Interview with Mohamed Ibrahim Former Minister of Post and Telecommunication of Somalia.
The objective of the interview is to gain an understanding of data mining. We live in the age of massive data production. If you think about it – practically every gadget or service we are using creates a lot of information. Data Mining can be used in many different sectors of business to both predict and discover trends. It is a proactive solution for businesses looking to gain a competitive edge. In the past, we were only able to analyze what a company’s customers or clients had done, but now, with the help of Data Mining, we can predict what customers will do.
Data mining is any activity that involves gathering data in one place in some structure. For example, putting together an Excel Spreadsheet or summarizing the main points of some text. Data mining is all about processing data and extracting valuable and relevant insights out of it.
Data mining can help spot sales trends, develop smarter marketing campaigns, and accurately predict customer loyalty.
Data mining is applied in various industries from telecom and retail solutions to marketing, manufacturing, and health care. Standard applications include customer profiling, customer purchasing patterns, fraud detection, churn management, and credit scoring.
Barriers to data mining in Somalia
1. Despite these examples, data mining has not entered the corporate mainstream in Somalia. Data mining as a part of business intelligence is not known in Somalia. What are the reasons for this and what are the barriers to data mining in Somalia?
Thanks for the opportunity to share my thoughts on Data Mining and Business Intelligence with the Somali ICT community. Well, where to start? I have not been to Somalia lately and to be honest, I do not follow what is going there very closely, so my comments might be very general and more global than local.
Corporate mainstream in Somalia? This is a very interesting phrase, and will not dwell on it. However, for those who are interested in corporations… here is a video I would recommend: The Corporation – Documentary – YouTube. I do not think we have a corporate culture in the Somali business environment.
Technological business solutions, in general, are not used in Somalia to advance businesses or even to manage them, for a variety of reasons. I could mention the education level of our business people is a major reason for this. Historically our business people were traders, they were and are still good at trading; buying and selling a commodity, stuff such as goods for home use, foodstuff, etc. We do not have corporate culture as such. This is not a deliberate negative comment regarding our business people. But rather an honest observation. We moved from selling animals and crops, etc. among ourselves to traveling into the Arabian Gulf; exporting goats and importing clothes and shoes, etc. So this is the reality of our business foundation.
In a nutshell, the business model was: From that basic trade to a few Yemeni shopkeepers in Hamarweyne importing the same basic stuff and the Somali shopkeepers buying them and reselling them in other parts of the country. This has been the case until the collapse of the government, 1990.
After the collapse of the Somali government, a new kind of entrepreneur modified the old business model into a slightly more complicated method, taking advantage of the absence of rule of law and government taxes, etc. In this era, some technological solutions appeared, but in a chaotic way that seems to exist up to today.
With that brief(est) overview, let me share my views on Business Intelligence.
In Somalia, there was no immediate need or requirement for Business intelligence (BI)
as a data-driven Decision Support System (DSS) that combines data gathering, data storage, and knowledge management with analysis to provide input to the decision-making processes of businesses. Why? because the level of education was not there, nor was there an immediate need for this. The market system in Somalia is very distorted. It is what some call the ‘sellers’ market, in Somalia, there is more demand for goods than supply, therefore, there is no urgent requirement or serious competition to force business people to find ways to capture a bigger segment of the market, lower prices, etc.
So this might be the reason for the lack of interest in BI in Somalia. Why bother to invest in a technical solution if your business horizon is limited or have not to grow big or expand your business? The ambition is not there. However, that does not mean this will not change in the near future as more and more Somalis from the diaspora move back home to do business.
The term BI originated decades ago, before that many of its characteristics were part of what the then IT industry used to call the executive information systems. To be fair to our business people in Somalia, Business intelligence really emphasizes analysis of large volumes of data about the business entities and their operations, which require an investment in IT infrastructure. This might not exist in the Somalia of today. Business intelligence uses a large database, typically stored in a data warehouse or data mart, as its source of information and as the basis for sophisticated analysis. This might not exist at the moment, but that does not mean our business people should not start developing this. For example, they can start with analyzing ranges from simple reporting to slice-and-dice, drill down, answering ad hoc queries, real-time analysis, and forecasting.
There are entry-level solutions available in the market suitable for Somali businesses. They should contact IT solution vendors, or engage the Somali tech community in the diaspora to acquire or develop analysis tools, starting with basic but most useful dashboards. From here they might like to acquire or get it developed for them, BI modules which include business performance measurement (BPM), business activity monitoring (BAM), and later on expand this from being a staff tool to being used by people throughout the organization (BI for the masses) making BI techniques and findings embedded into business processes.
Data Mining is a very specialized field within the ICT sector. It is the discovery of interesting, unexpected, or valuable structures in large datasets. However, to do data mining the businesses must first have a large amount of data to work on, i.e. mine, analyze, investigate, etc. It is the process of analyzing massive volumes of data to discover BI that helps companies solve problems, mitigate risks, and seize new opportunities. This branch of data science derives its name from the similarities between searching for valuable information in a large database and mining a mountain for ore. Both processes require sifting through tremendous amounts of material to find hidden value.
It is an interesting field as many know solutions work on well-established models and in some cases outcomes can be anticipated. What makes data mining interesting is its discovery journey, it is looking for links and associations that are not necessarily obvious to decision-makers, analysts, and sometimes even for highly technical people. There are many well-known techniques used and it is a fast-expanding field which takes advantage of the increased computing power, graphical and visualization platforms.
So what are the barriers? In Somalia, as I have said many times in the past, our major challenge was and still remains to be a lack of education. Period. Enhancing the quality of education in Somalia is the first important and urgent step necessary not only to expand business opportunities but also to build functioning government institutions.
2. Data mining success may be hampered by both technical and non-technical barriers. The success of data mining projects depends as much on business knowledge as on technological knowledge. Knowing your target audience is at the center of any business operation. Data mining brings customer segmentation to a completely new level of accuracy and efficiency. What should be the basic knowledge to get into data mining for Somali businesses?
Basic education in IT, I mean the bits and bytes level is a good start. This is step one. The ICT industry is fast-moving and it is always accelerating towards introducing more sophisticated systems, and yet at affordable prices ins some sectors. Many in Somalia use the latest smartphones, Ipads, or other basic home or office PCs. However, there are many levels of using any technical gadget or software. BI and Data mining are more sophisticated tools that require a higher level of understanding, not just the use of computers but a lot more than that. Basic knowledge might be understanding the value of data and collecting, manipulating, and understanding what the data is telling you. They say data is the new oil…and I believe so. Knowing the value of data and the need to acquire it carefully and appreciating its value is a prerequisite in using Data Mining applications.
Some points for successful delivery
3. In general, we have seen data is of poor quality and used minimally if at all in Somalia. To resolve the problems of poor data quality Data mining requires skills not typically found in IT departments and data warehouses. You need the skills of a machine learning expert, a data scientist, and a business analyst to frame the problem in a way that makes sense. For this reason, cross-functional teams should interact closely with the business units to carry out data mining. Do you have other points for successful delivery?
There are a lot of useful terminologies here… poor data quality? As I have said earlier, it is important to capture the data that is required for the business one is engaged in, not just any data. You can only work with whatever data you have captured, you can’t make it up. So data quality is very important. So how do we ensure capturing good data? The answer is identifying the issue we are dealing with, ‘the what’ part of the problem and then solving ‘the why?’ part… this might sound or look so obvious- BUT a lot of projects as they say fail at the beginning not at the completion phase. What are we looking for and why? What data do we need to find a solution for what problem?
This is all very easy to say or write, BUT universities existed for thousands of years and are busy today solving some of the basic and (not so basic anymore) problems that humanity faced since time immemorial… we are getting there, and all these new skills Artificial Intelligence, Machine Learning, and what keeps data scientist and business analyst busy are all part of the big picture problems we are trying to solve.
Data mining can answer business questions that traditionally were too time-consuming to resolve manually. We used to rely on using a range of statistical techniques to analyze data in different ways, users can identify patterns, trends, and relationships they might otherwise miss. They can apply these findings to predict what is likely to happen in the future and take action to influence business outcomes.
It is fair to say that we have come a long way in the use of ICT solutions. Businesses are now harnessing data mining and machine learning to improve everything from their sales processes to interpreting financials for investment purposes. As a result, data scientists have become vital to organizations all over the world as companies seek to achieve bigger goals with data science than ever before.
Direct improvements resulting from data mining implementation
4. A Direct improvement resulting from data mining implementation is improved sales leads, higher growth, and increased turnover in certain business areas. Is this true for Somalia?
This is true in many developed countries. However, this is not necessarily true in Somalia at this stage. However, there is no reason we should not change soon. Evidence from elsewhere around the world has shown Data mining and Artificial Intelligence have led to improved sales, more efficient processes, and other positive outcomes in different sectors of the market.
When used correctly, data mining can provide a profound advantage over competitors by enabling you to learn more about customers, develop effective marketing strategies, increase revenue, and decrease costs.
We must keep in mind that Data mining isn’t a new invention that came with the digital age. The concept has been around for over a century but came into greater public focus in the 1930s. Therefore new tools, techniques, and methodologies may appear soon, quantum computing is just one field I will mention to get our schools and universities to get excited about…
5. Can you give examples of Specific strategies resulting from data mining outputs?
There are a lot of case studies from around the world and any university student can find the necessary literature on this topic. However, I would like to mention that it is not only for trade and business reasons only, but Data mining can also be used for security and other projects that deal with fighting crime such as anti-money laundering and terrorism funding.
6. Can you give Somali businesses Practical recommendations in gaining experience with data mining?
First collect data, a lot of data. But make sure you inform people what data you are collecting and for what purpose. It is important and the right thing to do to get the consent of the people whose data is collected. Secure it, clean it, then buy or develop the necessary tools to study or mine the data. One must also be careful and must have other ways of checking and verifying the outcomes of data mining exercises.
Data mining was used to monitor actual or potential terrorists in Somalia which attracted media attention. The problem is that the media is more inclined to demonize any technology they don’t understand rather than try to explain.
Those who studied math, statistics, or business in college know the power of data mining because it has become a very popular business tool. In Somalia, for example, Data Mining’s predictive analysis capabilities were used what was called PARS (Piracy Attack Risk Surface), a statistical model of pirate behavior as modified by weather, shipping traffic patterns, and whatever inexplicable things the pirates have been doing lately. This showed the anti-piracy task force which areas to watch most carefully and warned merchant ships what areas they should be most alert in. As a result, pirate attacks dropped from a peak of 181 in 2009 to almost zero recently.
7. Exploiting new ICT technologies the exchange of information and knowledge serves as the basis for economic growth, employment, and the creation of wealth. The Information Society is also playing an increasingly significant role in promoting sustainable development and a healthy environment. As a former Minister of Post and Telecommunication, what advice do you have for the ICT revolution in Somalia?
Here is a speech I gave many years ago, and I feel this has stood the test of time.
https://www.itu.int/en/ITU-T/Workshops-and-Seminars/ifds/Documents/KeynoteSpeech-Mohamed-Ibrahim-V3.pdf .
https://tinyurl.com/qoxwu8m
As large-scale data processing technologies such as machine learning and artificial intelligence become more readily accessible, it is now possible to dig through terabytes of data in minutes or hours, rather than days or weeks, helping them innovate and grow faster. Therefore, my advice is to encourage Somali business people to invest seriously in robust IT infrastructure, providing reliable technical education, and upskilling the government employees. This will advance the ICT revolution in Somalia and lead to a better-performing economy and properly functioning government institutions.
Also READ: Make the Internet Your AI University