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CIPS June20th2017

BigDataandDataAnaly'csinProcurement

subscrip'ondata|machinelearning|analy'csSaaS|ac'onableinsights

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Big Vision? AI

Source:Internet2

“AIisthenewelectricity.Justaselectricitytransformedeveryindustry,AIwilldothesame.“

AndrewNg,VP&ChiefScien'stofBaidu

Digitalisation is nothing new Our business changes in waves

1

2 3

4

Networking & Mobility Devices such as smartphones, tablets and mobile Internet. Mobile networking is becoming omnipresent.

IoT & Virtualisation Physical things are merging with the cloud. Smart data, virtual realities and virtualised systems and networks.

Artificial Intelligence Machines learn and make autonomous decisions. Intelligent analysis of enormous quantities of data. Robotics. Blockchain.

…? It is not yet possible to predict what the future will bring. One thing is clear: The next wave is on its way.

2003 today 2020 2030

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Big Data 4 V’s SOME DEFINITION

Source:BigData,Pintrest4

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Amazon is “sensing” demand BIG DATA ANALYTICS EXAMPLE

AmazonshoppurchaseSocialmedia,searchfeeds

CustomercomplaintsCallcenterlogs

Returnslogs

Warrantyissues

Source:Forbes,SupplyChainsAndAr'ficialIntelligence:AskJeffBezos,June2016

•  What?•  When?

•  Why?•  How?

5

“contextualawareness”ofdemand

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PredicGve modeling for engine servicing BIG DATA ANALYTICS EXAMPLE

RFID,Geoloca'onofinventorySocialmediafeeds

CustomercomplaintsCallcenterlogs

Returnslogs/Warrantyissues

Source:IBM,BigDataAnaly'csanditsImpactonSupplyChainManagement,2015

•  Iden'fybusinesscontextandpa]ern•  Prevalentcomplaintonaproductline

•  Getthesen'mentscoring•  Decideuponinterven'on•  No'fyrelevantlinkinSupplychain

6

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Early warning supplier risk monitoring BIG DATA ANALYTICS EXAMPLE

Execu've,ManagementChangesFacili'esexpansion,Assetacquisi'on

Regulatory,Li'ga'onandPatentsFinancialRestructuring,Bankruptcy

Financing,Investment,Funding,M&A

Awards,ProductRecalls

Source:Firstrain.com,Solu'ons/Risk;D&BSupplyManagementSolu'ons

•  Analyzemillionsofcompanies•  Iden'fyvendorrisksearlier•  Con'ngencyplanning•  Monitorproduc'on-relatedissues

•  Alertproductteamsfordisrup'ons

•  Offertherightbusinessterms

7

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100CELSIUSAIPredic'vecustomer

analy'csDEUTSCHE TELEKOM GERMANY

8Source:Digi'za'onofDTCustomerSrvice,CEMSummit,London,Jan2017

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Customer senGment monitoring SWISSCOM

9Source:WiekünstlicheIntelligenzundmenschlicheFähigkeitenzusammenspielen,Swisscom

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Where to play? BUSINESS CASE

Source:ChartStrategy&,PwC10

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100CELSIUSAIPredic'vecustomer

analy'csTECHNOLOGY

Thinking through AI roll-out Training§  Feedcustomerinterac'ons+respec5ve

sa5sfac5onleveltotheAI§  AIlearnstomakepredic'onsbyiden'fying

pa]ernswhichcorrelate

Produc5on§  Feednewdatawithunknowncustomer

sa'sfac'on§  AIassignscustomersa'sfac'onscore§  Scoresareaggregatedwithstructured

datatoprovidemeaningfuloverviews

CallorEmailorAgentSummary

PredictedCustomerSa'sfac'on

TrainedModel

CallorEmailorAgentSummary

GivenCustomerSa'sfac'on

+ =

TrainedModel

+ =

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Which capabiliGes? APPLICATIONS

Source:CBInsights,May201712

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AI talent war ACQUI-HIRE

Source:CBInsights,May201713

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Make or buy AI strategy OPEN SOURCE

Source:PressRelease,Web14

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Make or buy AI strategy AMAZON EXAMPLE

Source:AmazonAIservices,June201715

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THANK YOU !

16

100 CELSIUS AI

HervéFluGoherve@100-celsius.comTel.+41792277422

www.100-celsius.com

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17

100 CELSIUS AI

Our Team

HervéFluGoMBAIMD,Co-FounderB2Bmarke'ng&salesexpert

MauriceGonzenbachMSc.ETH,Co-FounderFullstackandMachineLearningEngineer

PascaldeBurenMSc.ETH,Co-FounderBackendandMachineLearningEngineer

§  EPFLProf.Jaggi|MLResearch §  ZHAWDr.MarkCieliebak|MLSomwareResearchnetwork

§  MehdiMegdiche|SrMarke'ngExec

§  VincenzodiLorenzo|DataScien'st

§  MemberofTMForum|IndustryAssocia'onTelcoNetwork

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Award winning Deep-Learning technology

§  Recurrentneuralnetworkson'meseries

§  BasicprinciplesdevelopedduringMScThesisatETH

§  Technology(onNLPapplica'on)won1stplaceamong35industry/universityteams

•  Churnmodelaccuracyonpubliclyavailabledata:85%

BACKUP

Stateoftheartdeeplearningsystem

18

+ / -

Network Parameters

Intermediary Results

Convolution (1) with added bias and activation function

Max Pooling (1) Convolution (2) with added bias and activation function

Max Pooling (2) Softmax

S 2 Rd⇥n

F1 2 Rm1⇥d⇥h1

F2 2 Rm2⇥m1⇥h2

C1 2 Rm1⇥n+h1�1 C2 2 Rm2⇥q+h2�1

Cpool 1 2 Rm1⇥q C

pool 2 2 Rm2⇥1

P (y = j) 2 RK

W 2 Rm2⇥K

(transposed visualization)

x3

x2

x1b1 2 Rm1

b2 2 Rm2

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§  E-Sales&e-careBots

§  BI-Bots

§  CustomerSa'sfac'on/NPS+

Customer applicaGons MACHINE LEARNING SOLUTIONS

NATURALLANGUAGEPROCESSING1

19

§  Churnpredic'on&uplim

§  Cross&upselling

§  NextBestOffer

1.Winningcontribu'ontoSemeval2016interna'onalnaturallanguageprocessingcompe''oninthetaskoftwi]ersen'mentanalysis,https://aclweb.org/anthology/S/S16/S16-1173.pdf

STRUCTUREDDATAANALYTICS

TechnologyStackSelfdeveloped&opensourcesomwareMachinelearningtechnologiesincl.convolu'onal/recurrentneuralnetworks

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Customer retenGon @ mid-market Telco

20

OPPORTUNITY

DATAEXCHANGEExcel

DIRECTMARKETING70/mth

CHURNRATE12-15%/yr

“Weseetheopportunitywith100CelsiusAItoaccelerateourinnova'oninthisfieldwith an AI-powered intui've SaaS plasorm for new (partner and 3rd party) salesopportuni'esandchurnreduc'ondedicatedtoTelecomOperators.”

ErikMeijer,DeutscheTelekomAG,GroupInnova;on

Source:Customermee'ngs

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Digging deeper ARTIFICIAL INTELLIGENCE

21