Embedded analytics and digital transformation
- 1. 1 Embedded Analytics and Digital Transformation Guha Athreya Bhagavan
- 2. 2 Embedded Analytics Opportunities at the confluence of AI and BI Accelerating democratization of data Business process transformation Multi-disciplinary framework Best Practices Based on 43 Embedded Analytics Implementations across 8 Industries
- 3. 3 Help people work smarter Provide relevant information as needed for every day decisions Embed predictive capabilities into processes and tools EMBEDDED ANALYTICS A FEW COMMON EXAMPLES • GPS Navigation • Devise Maintenance • Wearable tech • Search Engines • Recommender Systems
- 4. 4 BUSINESS INTELLIGENCE (BI) Aids decision-making by providing data views of business operations and involves ETL, warehousing, reporting etc. ARTIFICIAL INTELLIGENCE (AI) Automates the mundane by predicting, classifying, prescribing etc. using deep learning frameworks
- 5. 5 THE CONFLUENCE OF AI AND BI Opportunity 1 Accelerate Democratization of Data Opportunity 2 Transform Business Processes BUSINESS INTELLIGENCE (BI) ARTIFICIAL INTELLIGENCE (AI)
- 6. 6 Democratization of Data Why? Even today, managers frequently argue over facts. Sometimes this creates a culture of compromise masked by collaboration. How? The key is to define ease of access from the user’s point of view. What? A single source of truth for rich data available on demand in an interactive and intuitive format. AI based voice and or touch interfaces and make data accessible to non-technical users Frequent users of data are more likely to adopt sophisticated algorithms
- 7. 7 Why? Delivering personalized value to customers requires decentralized decision making. How? Redefine BI and AI efforts as Business Process Transformation programs. What? Re-engineer the process – includes changing the sequence of steps and scaling human expertise. Business Process Transformation Example: Information Retrieval Systems
- 8. 8 Query Rule Based IR System User Many Results, Some Relevant Embedded Analytics and Process Transformation Information Retrieval (IR) Example LEGACY User identifies the answer Query Machine Learning enabled IR System User Few Results, High Relevance EMBEDDED ANALYTICS User chooses best of pre-selected options
- 9. 9 Embedded Analytics and Process Transformation Stock to Demand Lifestyle Trigger Multi Brand CRM ROI Uplift Category Wallet Omni-Channel Category Wallet Value Based Selling Tools Market STP Strategy Category Wallet Omni Mix Optimization Tele Cadence Learn Find Sell Diversify by NPD Omni-Channel Lookalike Prospect Forecasting in Recession ROI Uplift Lookalike Prospect Test Mining Preferences Stock to Sell Lifestyle Trigger Engagement in Recession New Rules Omni-Channel Dynamic Taxonomy Local Availability Personalize Real Time Market STP Strategy Re-configure Cross Sell Lookalike Employee Sentiment Store Brands Personalize Real Time Market STP Strategy Market STP Strategy Choice Based NPD Learn Find Sell Tele Cadence VA-VE Price Share Cross Sell Lookalike Test, Learn, Engage Learn Find Sell 43 Examples Stock to Demand Lifestyle Trigger Multi Brand CRM ROI Uplift Category Wallet Omni-Channel Category Wallet Value Based Selling Tools Market STP Strategy Category Wallet Omni Mix Optimization Tele Cadence Learn Find Sell Diversify by NPD Omni-Channel Lookalike Prospect Forecasting in Recession ROI Uplift Lookalike Prospect Test Mining Preferences Stock to Sell Lifestyle Trigger Engagement in Recession New Rules Omni-Channel Dynamic Taxonomy Local Availability Personalize Real Time Market STP Strategy Re-configure Cross Sell Lookalike Employee Sentiment Store Brands Personalize Real Time Market STP Strategy Market STP Strategy Choice Based NPD Learn Find Sell Tele Cadence VA-VE Price Share Cross Sell Lookalike Test, Learn, Engage Learn Find Sell ExcellentGoodPoor
- 10. 10 Process Re-engineering DIGITAL RANSFORMATION | EMBEDDED ANALYTICS FRAMEWORK | C.I.R.C.L.E. OF SUCCESS CuriosityC Logical Reasoning L Rigor, RecursionR Scientific Methods Empathy E InnovationI Collaboration C Design Thinking 1. Desired Future State 2. Current State & Gaps 3. Development 4. Testing & Integration 5. Tracking AI BI
- 11. 11 Curiosity can help define a good problem statement and ensure that insights generated are useful to the business EXAMPLE – What is the target variable ‘y’ to predict? Business problem: What to stock? y -> Expected revenue Context: Products vary in size y -> Expected revenue per unit of space allocated More context: Risk of cannibalizing lower cost channels y -> Expected revenue per unit of space allocated, from orders originated in channel Even more context: Product margins vary y -> Expected $ GP per unit of space allocated, from orders originated in channel Curiosity
- 12. 12 • DND • Lost Cause • Sure Fire • Persuadable Targeting for Profitability Transformed Process Who can we persuade? Where can we find them? What should we offer them? The profitable growth problem Direct Marketing Process What did we do last year? How can we make it better? Who should we target? Combinatorial Creativity : Combining common ideas in new and creative ways Innovation
- 13. 13 Rigor Situation Problem Resolution Recession caused by housing market crash Example 1 Unpredictable credit losses for auto lender Big Data e.g. Zip+4 unused new housing inventory New application portal. CSAT survey. Example 2 Lower satisfaction scores Email invite vs. intercept Use with caution – Useful in some situations
- 14. 14 Collaboration Teams working in silos Cross Functional Team Example 1 Example 2 Monolith Tech Stack Micro-Services Outcome
- 15. 15 Logical Reasoning Confirmation bias Status quo bias Sunk cost fallacy Deductive reasoning - Make connections, understand Inductive reasoning - Generate hypotheses Abductive reasoning - Make conclusions
- 16. 16 Empathy Situation Problem Find More, Sell More High Precision, Low Accuracy Resolution First Accuracy Then Precision Active involvement of expert users during development is critical! Low Risk Tolerance “Do no harm” mandate
- 17. 17 https://www.surveymonkey.com/r/EmbeddedAnalyticsAI Best Practices in Embedded Analytics
- 18. 18 Links for more detailed information https://magazine.cioreview.com/ magazines/April2019/Business_Int elligence/ https://www.youtube.com/watch?time_con tinue=2&v=_Vw8pDd7uaA https://www.linkedin.com/pulse/embedded-analytics- digital-transformation-ai-bi-athreya-bhagavan/