can machine learning help drive value from assets?
TRANSCRIPT
CAN MACHINE LEARNING HELP
DRIVE VALUE FROM ASSETSGeorge W. Earle
Director, Global Commercial OfficeThoughtWorks Inc. Chicago, IL Produced by:
The Store Is Dying
Due to Corp. Inability to Incorporate Learning
Due to Intelligently Connected Retail
The Store Is Not Dead
WHAT I’LL COVERINTRODUCTIO
N to Problems that are becoming untenable?
SITUATION Requiring Machine Learning Capability if Possible
ACTIONS and Decisions to be Taken RE: Machine Learning
RESULTS of Asset Owners, Does ML Help?
POINTS to Take HomeKeyQUESTIONS
5
INTRODUCTION
INTRODUCTION TO PROBLEMS IN TWO INDUSTRIES
INDUSTRIAL MACHINERYThoughtworks helps the
Machinery industries (Heavy Equip, Manufacturing, Utilities) with their Aftermarket Sales & Asset Operations challenges
AIRLINESWe also help the Airline industry with their Asset
Utilization challenges and in the future, Asset
Availability
From the 1800s through the present, there has been an accelerating evolution of interaction, networking and device technology, and the near future will bring interaction modes that are increasingly transparent and always available.
As industries migrate to these new technologies, enterprise technology ecosystems must incorporate them or risk losing their customer relationships to disruptive tech startups.
ASSETS (EQUIPMENT, DEVICES, CONTROLLERS) & IOT
What is being done with all this data? 1. Proverbial Heads promptly enter the sand - or2. Dismember and Analyze it to death - or3. Intelligently Connect and Feed-it-back
From the 1800s through the present, there has been an accelerating evolution of interaction, networking and device technology, and the near future will bring interaction modes that are increasingly transparent and always available.
As industries migrate to these new technologies, enterprise technology ecosystems must incorporate them or risk losing their customer relationships to disruptive tech startups.
9
SITUATION
SITUATION REQUIRING MACHINE LEARNING CAPABILITY - 1
Equipment Aftermarket Situation 1
Client needed to provide equipment servicing opportunities for their dealers, based on pre-fixed schedules & equipment usage data
Existing solution wasn't scaling, didn't provide reliable answers
SITUATION REQUIRING MACHINE LEARNING CAPABILITY - 2Equipment Servicing Situation 2
Airlines have 100s+ planes with unplanned maintenance events
Different Airlines have different unplanned maintenance rates 2.5 Zettabytes / year
are not going to be BI analyzed
12
ACTIONS
13
ACTIONS AND DECISIONS TO BE TAKEN RE: MACHINE LEARNING
MACHINE LEARNING IS NOT
ACTIONS AND DECISIONS TO BE TAKEN RE: MACHINE LEARNING
What is all the fuss about?
Current solutions don’t adjust, use estimates, intuition, and numerical analysis.
Machine Learning mathematics use equations that through SW can self adjust.
So Machine Learning isn’t a fad, since it is modern mathematics.
“Use of algorithms will … [be] part of tomorrow’s management vocabulary as, say, profit”
Ram Charan – Executive Consultant, author of the bestselling book, Execution
15
MACHINE LEARNING BASICSStatistics have fixed parameters. Machine
Learning models have self-adjusting parameters.
Supervised Unsupervised Reinforcement
MachineLearning
ACTIONS AND DECISIONS TO BE TAKEN RE: MACHINE LEARNING
One dim regression underestimates risk, hides
insight
Phase 1.0 - 4.0 Strategy
Accumulation Stage – Big Data 1.0
Prediction Stage - Insight2.0Prescription Stage – Behaviour 3.0Machine Collaboration - Action4.0
McKinsey & Company
RESULTS
18
RESULTS OF ASSET OWNERS, DOES ML HELP? Equipment Aftermarket Situation 1
1 Created scalable solution that provided reliable predictive answers
2 Forecasted servicing time for customers using arithmetic progression + sales feedback
3 Success measured in dealer take-up
19
RESULTS OF ASSET OWNERS, DOES ML HELP? Equipment Servicing Situation 2
1 Application* receives real time engine, aircraft data, flight plans
2 Optimizes fuel economy, anticipates maintenance, avoids downtime
3 Success from carrying optimal fuel level, pre-positioning parts ahead
*MS Azure/ Rolls Royce
KEY POINTS TO TAKE HOME
WHAT ADVANCED ASSET OPPORTUNITES ARE CLEAR AND
PRESENT?You are acquiring a ton of data and can’t get the right insights• Focus on the 1.0 to 4.0 strategy to
output intelligent data and analytics• Augment staff Subject Matter
Expertise with intelligent analytics• Tie analytics for intelligent Actions
directly to dramatic improvement in financial KPIs
• Look for partners who create competitive & personalized solutions
DATA
INSIGHTS
ACTIONS
QUESTIONS
George W. Earle Director Global Commercial Office
ThoughtWorks [email protected]
DRIVE VALUE FROM ASSETS