The Role of Data Mining in E – Services

Melania Trinanda Adelia 2401989700

The Role of Data Mining in E-Services

Data is a collection of facts that will be useful if it can be properly sorted to become information. Large amounts of data can only be analyzed using the help of a computer. One of these data analysis techniques is called data mining. Data mining is used to help know data and information about companies, clients or consumers and can facilitate in creating analytical-based offering strategies. Data mining is the process of analyzing data from a variety of perspectives to produce useful information and is used to discover hidden features and patterns of large and complex data sets. Data mining is divided into predictive and classification and prediction. As for the process, data mining can have 8 steps as Basket Analysis, Sales Forecasting, Database Marketing, Merchandise Planning, Card Marketing, Customer Loyalty, Market Segmentation, Product Production. According to Y.Y.Yao, data mining is an intermediate system between datasets and applications that converts data into usable knowledge. Michael Berry classifies data mining into two types: One type is data mining directed and the other is data mining is not directed. Directed data mining also called supervised data mining explains and categorizes data using the target field of the dataset and directional data mining also called unsupervised data mining finds patterns without proposed targets. There are many benefits of data mining, especially in terms of business. Cluster analysis of data mining is used to identify and group a particular cluster in a data set. For example, if a business wants to track sales and marketing for a specific geographic location, data mining will group data from within locations for analysis. This data mining technique is widely used with market segmentation to create more efficient marketing strategies. And to make sure that the promotions that are done target the right audience. It is used by some big names, such as Amazon who can target the right consumers with their ads. With data mining, companies can plan and analyze factual methods better. This is very helpful in many ways, one of which is to optimize marketing campaigns. Data mining can help companies understand the market to be targeted and make campaign efforts more personalized. In addition, the data mining process can also be used to detect possible fraud. As with the analysis of point of sale (POS) data helps companies to avoid transactions and false claims. In addition, data mining can also help improve the performance of a company’s human resources. This is very helpful for the human resource team to be able to assess behaviour and evaluate performance objectively. Data mining is very helpful for companies to be able to achieve strategic planning with more targeted. Without using data a strategy plan is only based on intuition and may reduce the level of factuality and success of a strategy. Data mining can help solve this problem. At this time, data mining is one aspect that is of concern to every company. The more data you have, the more information you can get. However, how to infer the data into useful and objective information? This is how data mining is needed.

Source: Yao Y.Y, “A Step Toward The Foundation of Data Mining”, Proc. SPIE 5098, 2003. Jeffrey L. Solka. “Text Data Mining: Theory and Methods.” Statist. Surv. 2 94 – 112, 2008. https://doi.org/10.1214/07-SS016