New technology should not be reserved for new business problems
In the last few years, AI-capabilities has increased dramatically; cloud computing, machine learning, pricing on CPUs and GPUs have all matured to enable innovative new solutions. We believe strongly that AI should not be used exclusively for new challenges such as face recognition, virtual personal assistants, and recommendation engines for TV streaming services. They should be put to use in solving classic business challenges too.
In retail, promotions have a substantial effect on revenue and profitability alike. Some promotions are very successful, some of them are costly mistakes. Small challenge though; which one is which?
Some main business questions around promotions for retailers:
What campaigns are contributing to and what are diluting my profit?
Which supplier is driving my category, who is just shuffling my sales around, driving their own market share?
If I want to try something new, can I know beforehand what the results might be?
At Formulate we provide AI-powered analytics that use state of the art technology and answer these common, important, and classic questions.
We start with the overlap of two important segments:
1) structured data that retail by nature of doing business is generating, and storing carefully – transaction logs, product hierarchy and price info
2) Retail business needs that are truly top of mind, and bottom line, within retail – promotional effect; volume, revenue and profit.
We believe that retailers benefit from focusing on these two. Data in its structured and annotated form is gold, but as useful and core to any business taking care of good data is, turning that data into insights by developing powerful analytics is core to just a few.
Formulate’s core is
2)Retail science and research
We merge decades of retail research with the latest data science, data engineering, and cloud computing technologies available. All to arrive at machine learning algorithms that can turn terabytes of retailer’s data into actionable business insights.
The powered of collaboration
We are proud to be partnering with leading retailers in the Nordics to answer old questions in a new way. When combing our strengths, operational decisions such as “what campaigns should not be repeated?” and “what could be done instead to improve the business?” can be made with new level of insights.
To read more on the exact components of Formulate’s analytics, check out this earlier blog post.