Data Mining from Business Standpoint Part.1

Author : Gladys Novanda, AF. Utami

The Relevance of Data Mining Usage to Blibli’s Business Strategy The concept of data mining is related to how it is used as a tool to collect data before it is analyzed as essential information to an organization on a daily basis. Data mining implements advanced data analysis to discover patterns that came from various data, as well as patterns that provide relevant knowledge in order to predict future outcomes. Talking about data mining concept, there are six main techniques used in data mining, including classification, regression, clustering, dependency model, anomaly detection, and summarization. According to business perspective, data mining is considered as a process to develop large data into a meaningful pattern, in which a company can apply data mining to improve their business and create a better competitive advantage among other competitors. In other words, data mining is widely used by the company to strengthen their market position, improve customer experiences, as well as bring up optimal decisions that lead to the company’s efficiency at the end of the day by obtaining the data, usually from the customers. Referring to the status quo, we can see a rapid development of e-commerce in Indonesia. E-commerce basically sees a growing need for data mining and its potential for them.

Hence, many e-commerce in Indonesia try to create a great experience for their customers in a systematic way where they extract information from data that produces pattern and prediction through product search, product recommendation, and many more related to customers’ preferences. One of the examples of successful and progressive e-commerce in Indonesia that utilizes data mining in their business strategy is Blibli dot com. According to their website, Blibli is one of the pioneers of online shopping mall that is committed to safe, convenient, easy, and fun online shopping experience anywhere, anytime. Blibli brings hundreds of thousands of product selection of 15 categories