IRM & Stock Market


3 Δεκ 2013 (πριν από 4 χρόνια και 7 μήνες)

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IRM & Stock Market

Kirk Williams

CIS 450

November 4, 2003

On the Menu Today…

Integration of IRM and the US Stock

We are in the transition from a
conventional economy to a knowledge
based economy.

On the Menu Today…

Stock Market

Information Resource Management

Correlation between the Stock Market
and Information Resource Management

Stock Market & Information Resources

Integration of IRM and Stock Market

IRM, Stock Market, and E

What is the Stock Market?

Marketplace for buying and selling securities

Two types of Stock Markets in US:

Securities Exchanges


American Stock Exchange

Midwest Stock Exchange

Pacific Stock Exchange

Philadelphia Stock Exchange



What is Information Resource

Information Resource Management is an
emerging discipline that helps managers
asses and exploit their information assets
for business development. It draws on the
techniques of Information Science
(libraries) and information systems (IT

Building a Knowledge Management Infrastructure by Dr. Guy
Alain Amoussou, 2003

Goals of Information Resource

The goal of IRM is to manage knowledge
to support strategic business objectives.

Manage resources such as hardware,
software, telecommunications, and

Reduce inefficiency & paperwork

Importance of Information
Resource Management

In this global, knowledge
based economy,
corporate success depends on managing
information, transforming it into explicit
knowledge, and capitalizing off of it

Utilize all components from IT and IS to
support business processes

What is Information Resource

Apply management techniques to
Information on an organizational level.

Policies, standards, processes for
managing the organization’s data,
information, and knowledge as strategic
business resource.


What is the correlation between the Stock
Market and Information Resource

Let’s find out!!

Stock Market & Information


Data Management

Mobile Data Mining




Traditional stock exchanges are centralized. The
exchange is located in a single physical place,
and all data (both market and trades) flow
through a single system. The centralized system
is responsible for transaction reporting and
exchanging assets. Electronic exchanges, like
the NASDAQ, allow remotely located traders to
connect with the centralized system.

An Internet Multicast System for the Stock Market by N. F. MAXEMCHUK and D. H.
SHUR, 2001.


Multiple Data Sequences

Dedicated Access Lines & Private

High Bandwidth Requirement

Network Engineering with primary goal of
preventing data loss

Telecommunication Issues:


Denial of service

Authorized service for transmission and



Data Management

Stock Markets and brokers require real
time data access and is the ultimate in
data management.

Brokers deal with the public over public
and private networks

Public portfolio access can be interactive,
customizable, and dynamic

IRM Data Management Research

Stock market / data management research
is improving IRM processes

IRM Data Management Research

Clustering of data sets with similar attributes
using Euclidean mathematics.

Clustering is perhaps the most frequently used
data mining algorithm, being useful in it’s own
right as an exploratory technique, and also as a
subroutine in more complex data mining
algorithms such as rule discovery, indexing,
summarization, anomaly detection, and

Data streams II: Clustering of streaming time series is meaningless

by Jessica Lin,
Eamonn Keogh, Wagner Truppel,2003.

Mobile Data Mining

The emergence of powerful mobile devices with
reasonable computing and storage capacity is
ushering an era of advanced data and
computationally intensive mobile applications.
Monitoring and mining time
critical data streams
in a ubiquitous fashion is one such possibility.
Financial data monitoring, process control,
regulation compliance, and security applications
are some possible domains where such
ubiquitous [data] mining is very appealing.

Contributed articles on online, interactive, and anytime data mining: MobiMine:
monitoring the stock market from a PDA by
Hillol Kargupta, Byung
Hoon Park, Sweta
Pittie, Lei Liu, Deepali Kushraj, Kakali Sarkar
, 2002

Mobile Data Mining

Stock Market IRM is not a traditional client
server model

Efficiently represent and communicate the data
mining objects over wireless networks

Changing Human Computer Interaction for
mobile devices

Minimal power/CPU consumption for compact

Again, Security.

Mobile Data Mining

The graphical techniques for designing interfaces
on desktop systems do not apply well to
handheld devices. Screen resources are limited;
often screens are black and white to reduce cost
and power consumption. Memory and
processing power are much reduced from
desktop systems.

Overcoming the Lack of Screen Space on Mobile Computers

by Stephen Brewster,

Mobile Data Integrity

Fair exchange protocols establish fairness and
ensure that both participants can engage in the
exchange without the risk of suffering a
disadvantage (e.g., losing their money without
receiving anything for it). In general, fair
exchange protocols require the continuous
availability of an external
trusted third party
(TTP), a dedicated site which is trusted by both
participants. Implementations of TTPs for fair
exchange have been proposed to be based on
carefully secured Internet hosts in order to
establish trust.

Supporting fair exchange in mobile environments

by Holger Vogt, Felix C. Gärtner,
Henning Pagnia, 2003.


Stock Market IRM are web
based systems

What is the language widely used to
implement this?

XML ensures data structure in data


Data Warehouses

Data quality and data integrity are issues

Stock markets have Centralized data
warehouses serving hundreds of
thousands of other servers

Distributed systems

Massive amounts of Data Archiving across
multiple systems

Data integrity is an issue in any distributed

Source Data Analysis

Database Structure doesn’t always match contents

Thorough data analysis


The point is, ladies and gentleman, is that


for lack of a better word

is good. Greed is
right. Greed works. Greed clarifies, cuts through
and captures the essence of the evolutionary
spirit. Greed, in all of its forms

greed for life,
for money, for love, knowledge

has marked
the upward surge of mankind. And Greed

mark my words

will not only save Teldar
Paper but that other malfunctioning corporation
called the USA.

Wall Street,1985

Integration of IRM and Stock

Stock Exchanges and IRM

Stock Market Oversight and IRM

Effects of IRM on stock market investing

Stock Exchanges and IRM

The Stock Market’s relationship with IRM
is one that entails finance, economics, AI,
psychology, and mathematics

Stock Market Oversight and IRM

Securities and Exchange Commission

The primary mission of the U.S. Securities and Exchange
Commission (SEC) is to protect investors and maintain
the integrity of the securities markets. As more and more
time investors turn to the markets to help secure
their futures, pay for homes, and send children to
college, these goals are more compelling than ever., 2003


Electronic Data Gathering, Analysis, and
Retrieval system

Historical 10
K and 10
Q reports

Millions of document transactions per
month, 2003

Effect of IRM on Stock Market

Overconfident investors overreact and
under react

This causes fluctuations in the stock

Effects of IT and IRM on the
Stock Market

The ubiquity of online trading services allows individuals to
trade without the need to consult a human broker. Also,
financial intermediaries and portals have emerged
offering market information and trading tips. This
information rich environment enhances the cumulative
and the individual knowledge of traders, thereby making
the market more informed and rational. However, the
availability of online trading avenues also introduces a
high number of uninformed traders into the systems,
thus introducing irrationality into the market.

Is more information better? The effect of traders' irrational behavior on an artificial stock
market by
Wei T. Yue, Alok R. Chaturvedi, Shailendra Mehta, 2000

Benefits of IRM in publicly traded

Productivity paradox

Companies that institute IRM increase their
value and their stock price

Firms that are high IT users are also more likely to
adopt work practices that involve a cluster of
organizational characteristics, including greater
use of teams and broader decision authority.

Intangible Assets: How the interaction of Computers and Organizational Structure Affects Stock
Market Valuations, Erik Brynjolfsson, Lorin M. Hitt, Shinkyu Yang, 1998

Corporate IRM Implementation




Outsourcing IRM experts

IRM, Stock Market, and E

Rise and Fall of the Dot Com


Automated Consulting

Stock Market Simulation


Did eTrade cause the burst the eBubble?

DotCom: venture capitalists put up cash
and that helps a company go to a bank to
get backed to go public. Banks and
venture capitalists hype the stock, public
increasingly market
driven so buys stocks
in these worthless companies


Implementation of IRM / stock market
end is web based.

Traditional brokers like Price Waterhouse
have been forced into e
commerce to

Day Trading on the Web

Day Trading on the Web

Dynamic, Real
time stock quotes and

Use your Palm compatible device, WAP
enabled cell phone or Pocket PC to place
orders for stocks, get real
time stock
quotes and account balances, and check
order status and transaction history.



Automated Consulting


Maximize returns, minimize risk

Predictive Modeling: statistical techniques,
neural networks, genetic algorithms

Automated Consulting

Stock market systems are difficult to model

Piecewise Normalization of stock market indices

Indexing time sequences with Fourier Transform

Designing algorithms for stock market indices
based on historical data is NP

Discrepancy between the efficient market
hypothesis and empirical evidence

Stock Market Simulation

IRM Research

Stock Market Game Program

Virtual Stock Exchange


So if IRM is so good on the web, how did
places like Enron defraud their workers
from 401K benefits?

That’s accounting. This is IRM.

IRM & Stock Market

Today we saw how the Stock Market and
IRM coexist and support one another.


Amoussou, Guy
Building a Knowledge Management Infrastructure
. September 4, 2003

Brewster, Stephen.
Overcoming the Lack of Screen Space on Mobile Computers

Personal and Ubiquitous Computing

Volume 6 Issue 3: January 2002

Brynjolfsson, Erik. Hitt, Lorin M. Yang, Shinkyu.
Intangible Assets: How the interaction of Computers
and Organizational Structure Affects Stock Market Valuations.
Proceedings of the international
conference on Information systems
. December 1998
. 2003



Kargupta, Hillol. Park, Byung
Hoon. Pittie, Sweta. Liu, Lei. Kushraj, Deepali. Kakali Sarkar.
Contributed articles on online, interactive, and anytime data mining: MobiMine: monitoring the
stock market from a PDA
ACM SIGKDD Explorations Newsletter

Volume 3 Issue 2: January

Lin, Jessica. Keogh, Eamonn. Truppel, Wagner.
Data streams II: Clustering of streaming time series
is meaningless
Proceedings of the 8th ACM SIGMOD workshop on Research issues in data
mining and knowledge discovery:
June 2003.

Maxemchuk, N. F. Shur, D. H.

An Internet Multicast System for the Stock Market
ACM Transactions
on Computer Systems (TOCS)
. Volume 19 Issue 3: August 2001

Vogt, Holger. G
rtner Felix C. Pagnia Henning.
Supporting fair exchange in mobile environments
Mobile Networks and Applications.

Volume 8 Issue 2: April 2003.

Yue, Wei T. Chaturvedi,Alok R. Mehta , Shailendra.
Is more information better? The effect of traders'
irrational behavior on an artificial stock market
Proceedings of the twenty first international
conference on Information systems.
December 2000.