The state of the art and practice for AI and Machine Learning (ML) has matured rapidly in the past few years, making it an ideal time to take a look at what works and what doesn’t. In this webinar, we will present an overview of AI-infused applications in two industries: Manufacturing Retail Participants will learn to look for characteristics of business processes and of data that make them well - or ill - suited to AI-augmentation or automation.

1. APRIL 12, 2018
Transforming Manufacturing and Retail
Machine Learning At Work
Adrian Bowles, PhD
Founder, STORM Insights, Inc.
Lead Analyst, AI, Aragon Research
info@storminsights.com

2. IMAGINE…

3. A RATIONAL APPROACH TO DESIGN & TRANSFORMATION
FORM
Derived from Notes on the Synthesis of Form,
Christopher Alexander, Harvard University Press,1964.

4. FORM
CONTEXT
Derived from Notes on the Synthesis of Form,
Christopher Alexander, Harvard University Press,1964.
“We want to put the context and the form into effortless contact or frictionless coexistence.”*
A RATIONAL APPROACH TO DESIGN & TRANSFORMATION

5. A RATIONAL APPROACH TO DESIGN
FORM
CONTEXT Changing Customer
Expectations/Demands
The Actual Customer Experience.
FIT
Derived from Notes on the Synthesis of Form,
Christopher Alexander, Harvard University Press,1964.
“We want to put the context and the form into effortless contact or frictionless coexistence.”*

6. Supervised Unsupervised
Deep
General
Reinforcement
Learning by example,
using training data.
Strategies based
on performance
feedback.
Discovers patterns based
on experience with data.
Biologically-inspired ML approach.
Leverages simple processing units - analogous to neurosynaptic elements organized in layers
that collaborate to solve complex problems.
ML IS THE KEY FOR DIGITAL TRANSFORMATION

7. DEEP LEARNING (SIMPLIFIED…)
Visible Layer
Hidden Layers
Output Layer
Input: Observable Variables
HIGHABSTRACTIONLOW
Output
Pixels
Depth
of the
Model
Edges
Object
Shapes/Parts
Object Class
Brightness/
Contrast
Geometry
Rules
Features
to
Extract
Methods
1. Feed Forward
2. Back-Propagate
(adjust weights)

9. MANUFACTURING PROCESSES AND TRENDS
Planning
Product Design
Production
Operation
Maintenance
Inventory Management
AI, ML, Digital Twins
Automate!
Disintermediate
Global supply chain optimization

10. GE
Blog By Bill Suh
Chief DigitalOfficer, GE
CEO, GE Digital

11. GE
A digital twin is a model that
uses data about the physical
asset to simulate performance
in different scenarios - before
construction and during
operation.

12. BOEING
Using Mixed Reality for product design
and maintenance
Microsoft Azure cognitive and IOT services for
Predictive Maintenance
Fuel Optimization…

13. GENERAL MOTORS

14. GENERAL MOTORS
First the robots starting
making our cars,
then they started talking
among themselves to get
smarter,
Now they are learning to drive
them.

15. 6 PAGES OF JOB LISTINGS FOR AUTONOMOUS DRIVING ML ENGINEER JOBS?
Source: Waymo

17. REVEALING SEARCH FOR “SHOPPING”

18. RETAIL IS HARD
In business for 27 years.
Closing 5/25/2018
“Cracker barrel and nuts and
bolts don’t pay the rent.”
“Amazon has been a big
game changer and
everything we sell can be
purchased online.”
Jimmy Izzo, Owner

19. RETAIL PROCESSES & DRIVERS
“Half the money I spend on advertising is wasted; the trouble is I don't know which half.”
John Wanamaker (1838-1922)
Purchasing
Inventory Management
Product placement within stores - optimize based observation of traffic patterns
Customer Service
Marketing
Security/Loss prevention
Changing Consumer Habits & Expectations
More choices, consumers more educated, doing online research
How do retailers reach the right people at the right time to get results?

20. WALMART
Analytic throughout the
supply chain was just the
beginning.

21. WALMART

22. WALMART - SAMPLE JOB LISTINGS, MAY 9, 2018

23. KROGER
In business for 135 years.
#1 global supermarket
chain by revenue
Over $110B revenue
400,000 employees
~2,800 stores
Focus on freshness and customer experience
Streaming analytic and historical data
Heat sensors to track in-store activity for
resource allocation
Video analytics

24. THE NORTH FACE
Source:
https://www.thenorthface.com/xps

25. THE OLD BEER AND DIAPERS CORRELATION IS SO LAST CENTURY
Digital Transformation
Merger with Aetna
More personalization (and coupons)
Analytics combining data from CVS
and Aetna to support treatment of
chronic conditions

26. URBN
Urban Outfitters
Terrain
Anthropologie
Free People
BHLDN
The Vetri Family (restaurants)
>3.5B annual sales
Using ML for
Logistics Optimization
Fraud Detection
Product Recommendations & Personalization

27. URBN
Opportunities:
Leverage customer data across brands.
Use AI in the Contact Center to guide agents,
Use AI IRL to guide customers.

28. HOW TO REINVENT WITH AI
Where does your enterprise value natural intelligence?
Identify these roles, augment them with AI

29. HOW TO REINVENT WITH AI
Where does your enterprise value natural intelligence?
Identify these roles, augment them with AI
Where does your enterprise value fast, repetitive action?
Identify these roles, automate them with AI

30. HOW TO REINVENT WITH AI
Where does your enterprise value natural intelligence?
Identify these roles, augment them with AI
Where does your enterprise value fast, repetitive action?
Identify these roles, automate them with AI
Where does your enterprise have data with hidden value?
Find this data, mine it for insights with AI

31. GOOGLE HA THE RIGHT ATTITUDE…

32. adrian@storminsights.com
Twitter @ajbowles
Skype ajbowles
KEEP IN TOUCH
Upcoming SmartData Webinar
June 14 Natural Language Processing:
From Chatbots to Artificial Understanding with Affective I/O
COMING SOON…
AGEOFREASONING.COM
BOOK, VIDEOS, PROFESSIONAL SERVICES
WWW.AGEOFREASONING.COM