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Improving the Odds of Product Launch (NPD) Success with Image Recognition

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Image recognition

Recently ParallelDots organized a webinar where we had a detailed discussion on how to Improve the Odds of Product Launch (NPD) Success with Image Recognition. The event was a great success with an audience of over 200 attendees from 5 continents. This blog consolidates the key points discussed during the webinar.

The guest speakers of the webinar were:

  • Robert W. de Bruin, Ex-President and General Manager, Reckitt Benckiser Health
  • May Kwah, Ex-Vice President Marketing, Unilever
  • Neerja Sewak, Ex-Chief Operating Officer, Suntory

The webinar was moderated by Maks Mukundun, ParallelDots CEO for the South East Asia division.

WHY IS NPD IMPORTANT?

“New product development and launch is the lifeblood of a company”

Robert W. de Bruin.

In the fast-paced world today, the consumer needs and wants are evolving rapidly. It thus becomes a matter of staying relevant for companies to constantly bring innovation, launch new segments, refresh existing brands, and improve consumer engagement with the company. The market leaders act proactively by shaping consumer needs rather than playing a catching up game with their competitors. Thus, by providing a larger portfolio of products to choose from, they not only consolidate their position further as a brand of choice but acquire new customers as well.

Innovation is expensive!
Data on new product launches reveals a bitter truth with 75% of all new product launches in the Consumer Goods Industry failing within a year. Three-quarters of company investments not giving the desired ROI makes product innovations extremely expensive. However as discussed above, with the undeniable importance of NPD for FMCG companies, making this expense becomes a necessary evil.

image recognition

WHY IS RETAIL EXECUTION IN NPD IMPORTANT?

Stakeholder Management is crucial.
Usually, we talk about the 6Ps of NPD: Product, Proposition, Pricing, Pack Size, Promotion, Place. Companies can still have 5 Ps under their control by doing in-depth research. “However, there is one P which is beyond everyone’s control – Place”, says May Kwah. NPD Teams can define a planogram but in reality, FMCG companies don’t own the place where that planogram has to be executed. Retailers have a big role to play in enabling execution and till the time they invest their trust in the product, it won’t find facings on the shelf. Hence, it is important to bring such stakeholders early into the pipeline.

During the development and launch phase, It is critical for Marketing, Sales, and Operations to establish effective collaboration. “Working from silos only brings more inefficiencies into the system. If brand managers don’t coordinate efforts among themselves, salesforce can quickly get overwhelmed with contradicting priorities and may end up de-prioritizing execution for the new product”, says Neerja Sewak. Furthermore, companies really need to ensure that their salesforce has an early buy-in for the new product. Ultimately it is the sales team that ensures execution and is responsible for realizing all the KPIs determined for Launch Success. If they are not confident about the product, on-ground execution can quickly fall apart. 

Launch Assumptions are validated only during the execution phase
Kwah shared that many companies define the planogram several months before launch. By the time the launch date arrives, the on-shelf realities change so much that the planogram no longer seems to be relevant. Similarly, there are so many assumptions and projections that companies make during the process. A lot of these calls are informed by detailed research on existing scenarios. However, it is naive to believe that market scenario, consumer needs, competitor initiatives would remain constant all this while. Instead, the reality is far from it.

“Best products and marketing strategies fail if they are not executed properly”

Neerja Sewak

The real task is in the execution of the product and one can never be complacent about it. Consider a scenario when your competitor launches a new product almost at the same time as yours. Better retail execution from its end might see your product losing facings on the shelf, and ending up becoming a minor shareholder of the shelf. Such factors can really derail all preparations.

Companies that have complex categories with many SKUs create shelving patterns to manage them in-stores. For example, Reckitt Benckiser for its Infant Nutrition category arranges shelves in a manner that guides a new mother through the entire post-natal experience. This only highlights that perfect store plans and shelving plans are critical to the success of the NPD.

“NPD is one shot at success”

Maks Mukundan

A product has a short timeframe to prove its worth on the shelf and in retail execution time is money. When you place the product on the shelf, retailers want your product to move off the shelf. If they don’t see the movement in 3 months they can delist it. Once that happens, for a brand the chance of coming back and reviving itself becomes only bleaker.

When the rubber hits the road that’s when it really matters.
Anyone who has been a part of new product development in FMCG companies understands how extensive this exercise is, spanning over many months and involving multiple organization functions to function together in sync. We have already explored that the low success rate of new products makes the entire process very expensive for companies. Thus, a lot rides on making them successful. These factors make these launches extremely high-pressure scenarios for those involved. We have seen how retail execution becomes an important part of NPD launch and ensuring its success. It is in these situations that gaps in execution are highlighted even more prominently and thus, retail execution becomes critical for the NPD execution.

image recognition

HOW IS NPD RETAIL EXECUTION MONITORED TRADITIONALLY?

Traditional methods for monitoring execution have proved to be redundant and expensive. Collecting data manually is time consuming, inaccurate, and there is a risk of things falling through the gap. By the time the data reaches the management (almost after a month), it is too late and the data is insufficient for the management to intervene and quickly change implementations on-ground.

OVERCOMING THE LIMITATIONS OF TRADITIONAL METHODS WITH IMAGE RECOGNITION

All the speakers mentioned that ideally, they would need a solution that is less time consuming and easy to use for sales reps and merchandisers to capture data. The data must provide a real-time, visual representation of the shelf to make the reporting more fact-based and to enable quick and effective corrective actions.

In case of new product launch, being able to monitor the movement of the product on the shelf at least for the first 1 month of the launch on key outlets and high-velocity stores may result in highly effective execution. The live data from the shelf may even improve the gaps in planogram and in-store marketing initiatives.

They also agreed that some kind of automation enables in-store measurement to be captured within a few minutes would be ideal. This would ensure that the whole process becomes much faster and the reps are able to cover more stores in one day. It would be further beneficial if quick monitoring can translate to making the data available seamlessly to the decision-makers and ensuring that everyone from the reps to the store owner could be quickly instructed to fix the gaps in the execution strategy.

HOW SHELFWATCH HELPS IMPROVE YOUR NPD EXECUTION?

ParallelDots offers ShelfWatch as an image recognition solution for the FMCG/Retail Industry. The core methodology is as follows. Images are clicked using a handheld device either by the sales reps, the merchandiser or in some cases a third-party auditor. The images are then uploaded to the ShelfWatch cloud server for analysis. Within a few minutes, the sales reps get actionable insights to take the necessary corrective measures. This data also helps the management team measure their execution strategy and gauge how the products are performing on the shelf.

Deploying ShelfWatch is easy and hassle-free. Even for new launches, no extra effort is needed. With low training set-up time, one good quality image of the SKU is all it takes to set up ShelfWatch for product recognition. The training takes less than 48 hours to complete and then ShelfWatch is ready to provide insights from the real-world.

As NPDs are time-sensitive, ShelfWatch’s agile AI training methodology ensures that new SKUs are learned very fast and sales reps are instantly alerted. This is one aspect where Shelfwatch really shines out when compared to other Image Recognition solutions in the market. Most Image Recognition vendors will take 90–120 days setup time during which they collect and manually annotate data. This is an expensive and time-consuming process and does not scale well for new product launches or during peak promotions time.

Shelfwatch’s algorithm is trained in such a manner that it automatically analyzes the images to give out a comprehensive analysis involving KPIs like out-of-stock, share-of-shelf, planogram compliance, etc.

IMPORTANCE OF IMAGE RECOGNITION SOLUTION

Unless companies have the ability to monitor all elements of success coming to life on the shelf, they risk burning a lot of money on interventions that might not be working up front leaving very little to recoup and readjust down the line.

Robert rightly stated that there is a huge level of difference between average and great execution. Many companies don’t give it the full focus that it deserves. He takes Reckitt Benckiser’s example to explain this further. Traditionally, RB has prided itself on retail execution ability. There were some high-margin, low-velocity brands that were not doing well in the market. RB made strategic acquisitions solely on its ability to execute better. For example, its execution of Dr. Scholl and Durex followed by supreme execution changed the fortunes for these brands.

Today, new age cutting edge technologies like Image Recognition are proving to be game-changers in retail execution providing a powerful tool for FMCG and Retail Industry to improve their top lines. More and more companies are adopting and embracing this change which is now proving to be inevitable.

Want to see how your own brand is performing on the shelves? Click here to schedule a free demo for ShelfWatch.

Reashikaa Verma is the Content Marketing Manager at ParallelDots. When not blogging about the benefits of the image recognition technology in retail, she divides her time between reading, binge-watching, and petting dogs
Latest posts by Reashikaa Verma (see all)

Source: https://blog.paralleldots.com/featured/improving-odds-of-product-launch-success-with-image-recognition/

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Deep Learning vs Machine Learning: How an Emerging Field Influences Traditional Computer Programming

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When two different concepts are greatly intertwined, it can be difficult to separate them as distinct academic topics. That might explain why it’s so difficult to separate deep learning from machine learning as a whole. Considering the current push for both automation as well as instant gratification, a great deal of renewed focus has been heaped on the topic.

Everything from automated manufacturing worfklows to personalized digital medicine could potentially grow to rely on deep learning technology. Defining the exact aspects of this technical discipline that will revolutionize these industries is, however, admittedly much more difficult. Perhaps it’s best to consider deep learning in the context of a greater movement in computer science.

Defining Deep Learning as a Subset of Machine Learning

Machine learning and deep learning are essentially two sides of the same coin. Deep learning techniques are a specific discipline that belong to a much larger field that includes a large variety of trained artificially intelligent agents that can predict the correct response in an equally wide array of situations. What makes deep learning independent of all of these other techniques, however, is the fact that it focuses almost exclusively on teaching agents to accomplish a specific goal by learning the best possible action in a number of virtual environments.

Traditional machine learning algorithms usually teach artificial nodes how to respond to stimuli by rote memorization. This is somewhat similar to human teaching techniques that consist of simple repetition, and therefore might be thought of the computerized equivalent of a student running through times tables until they can recite them. While this is effective in a way, artificially intelligent agents educated in such a manner may not be able to respond to any stimulus outside of the realm of their original design specifications.

That’s why deep learning specialists have developed alternative algorithms that are considered to be somewhat superior to this method, though they are admittedly far more hardware intensive in many ways. Subrountines used by deep learning agents may be based around generative adversarial networks, convolutional neural node structures or a practical form of restricted Boltzmann machine. These stand in sharp contrast to the binary trees and linked lists used by conventional machine learning firmware as well as a majority of modern file systems.

Self-organizing maps have also widely been in deep learning, though their applications in other AI research fields have typically been much less promising. When it comes to defining the deep learning vs machine learning debate, however, it’s highly likely that technicians will be looking more for practical applications than for theoretical academic discussion in the coming months. Suffice it to say that machine learning encompasses everything from the simplest AI to the most sophisticated predictive algorithms while deep learning constitutes a more selective subset of these techniques.

Practical Applications of Deep Learning Technology

Depending on how a particular program is authored, deep learning techniques could be deployed along supervised or semi-supervised neural networks. Theoretically, it’d also be possible to do so via a completely unsupervised node layout, and it’s this technique that has quickly become the most promising. Unsupervised networks may be useful for medical image analysis, since this application often presents unique pieces of graphical information to a computer program that have to be tested against known inputs.

Traditional binary tree or blockchain-based learning systems have struggled to identify the same patterns in dramatically different scenarios, because the information remains hidden in a structure that would have otherwise been designed to present data effectively. It’s essentially a natural form of steganography, and it has confounded computer algorithms in the healthcare industry. However, this new type of unsupervised learning node could virtually educate itself on how to match these patterns even in a data structure that isn’t organized along the normal lines that a computer would expect it to be.

Others have proposed implementing semi-supervised artificially intelligent marketing agents that could eliminate much of the concern over ethics regarding existing deal-closing software. Instead of trying to reach as large a customer base as possible, these tools would calculate the odds of any given individual needing a product at a given time. In order to do so, it would need certain types of information provided by the organization that it works on behalf of, but it would eventually be able to predict all further actions on its own.

While some companies are currently relying on tools that utilize traditional machine learning technology to achieve the same goals, these are often wrought with privacy and ethical concerns. The advent of deep structured learning algorithms have enabled software engineers to come up with new systems that don’t suffer from these drawbacks.

Developing a Private Automated Learning Environment

Conventional machine learning programs often run into serious privacy concerns because of the fact that they need a huge amount of input in order to draw any usable conclusions. Deep learning image recognition software works by processing a smaller subset of inputs, thus ensuring that it doesn’t need as much information to do its job. This is of particular importance for those who are concerned about the possibility of consumer data leaks.

Considering new regulatory stances on many of these issues, it’s also quickly become something that’s become important from a compliance standpoint as well. As toxicology labs begin using bioactivity-focused deep structured learning packages, it’s likely that regulators will express additional concerns in regards to the amount of information needed to perform any given task with this kind of sensitive data. Computer scientists have had to scale back what some have called a veritable fire hose of bytes that tell more of a story than most would be comfortable with.

In a way, these developments hearken back to an earlier time when it was believed that each process in a system should only have the amount of privileges necessary to complete its job. As machine learning engineers embrace this paradigm, it’s highly likely that future developments will be considerably more secure simply because they don’t require the massive amount of data mining necessary to power today’s existing operations.

Image Credit: toptal.io

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Source: https://datafloq.com/read/deep-learning-vs-machine-learning-how-emerging-field-influences-traditional-computer-programming/13652

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Extra Crunch roundup: Tonal EC-1, Deliveroo’s rocky IPO, is Substack really worth $650M?

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For this morning’s column, Alex Wilhelm looked back on the last few months, “a busy season for technology exits” that followed a hot Q4 2020.

We’re seeing signs of an IPO market that may be cooling, but even so, “there are sufficient SPACs to take the entire recent Y Combinator class public,” he notes.

Once we factor in private equity firms with pockets full of money, it’s evident that late-stage companies have three solid choices for leveling up.

Seeking more insight into these liquidity options, Alex interviewed:

  • DigitalOcean CEO Yancey Spruill, whose company went public via IPO;
  • Latch CFO Garth Mitchell, who discussed his startup’s merger with real estate SPAC $TSIA;
  • Brian Cruver, founder and CEO of AlertMedia, which recently sold to a private equity firm.

After recapping their deals, each executive explains how their company determined which flashing red “EXIT” sign to follow. As Alex observed, “choosing which option is best from a buffet’s worth of possibilities is an interesting task.”

Thanks very much for reading Extra Crunch! Have a great weekend.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist


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Use discount code ECFriday to save 20% off a one- or two-year subscription


The Tonal EC-1

Image Credits: Nigel Sussman

On Tuesday, we published a four-part series on Tonal, a home fitness startup that has raised $200 million since it launched in 2018. The company’s patented hardware combines digital weights, coaching and AI in a wall-mounted system that sells for $2,995.

By any measure, it is poised for success — sales increased 800% between December 2019 and 2020, and by the end of this year, the company will have 60 retail locations. On Wednesday, Tonal reported a $250 million Series E that valued the company at $1.6 billion.

Our deep dive examines Tonal’s origins, product development timeline, its go-to-market strategy and other aspects that combined to spark investor interest and customer delight.

We call this format the “EC-1,” since these stories are as comprehensive and illuminating as the S-1 forms startups must file with the SEC before going public.

Here’s how the Tonal EC-1 breaks down:

We have more EC-1s in the works about other late-stage startups that are doing big things well and making news in the process.

What to make of Deliveroo’s rough IPO debut

Why did Deliveroo struggle when it began to trade? Is it suffering from cultural dissonance between its high-growth model and more conservative European investors?

Let’s peek at the numbers and find out.

Kaltura puts debut on hold. Is the tech IPO window closing?

The Exchange doubts many folks expected the IPO climate to get so chilly without warning. But we could be in for a Q2 pause in the formerly scorching climate for tech debuts.

Is Substack really worth $650M?

A $65 million Series B is remarkable, even by 2021 standards. But the fact that a16z is pouring more capital into the alt-media space is not a surprise.

Substack is a place where publications have bled some well-known talent, shifting the center of gravity in media. Let’s take a look at Substack’s historical growth.

RPA market surges as investors, vendors capitalize on pandemic-driven tech shift

Business process organization and analytics. Business process visualization and representation, automated workflow system concept. Vector concept creative illustration

Image Credits: Visual Generation / Getty Images

Robotic process automation came to the fore during the pandemic as companies took steps to digitally transform. When employees couldn’t be in the same office together, it became crucial to cobble together more automated workflows that required fewer people in the loop.

RPA has enabled executives to provide a level of automation that essentially buys them time to update systems to more modern approaches while reducing the large number of mundane manual tasks that are part of every industry’s workflow.

E-commerce roll-ups are the next wave of disruption in consumer packaged goods

Elevated view of many toilet rolls on blue background

Image Credits: Javier Zayas Photography (opens in a new window) / Getty Images

This year is all about the roll-ups, the aggregation of smaller companies into larger firms, creating a potentially compelling path for equity value. The interest in creating value through e-commerce brands is particularly striking.

Just a year ago, digitally native brands had fallen out of favor with venture capitalists after so many failed to create venture-scale returns. So what’s the roll-up hype about?

Hack takes: A CISO and a hacker detail how they’d respond to the Exchange breach

3d Flat isometric vector concept of data breach, confidential data stealing, cyber attack.

Image Credits: TarikVision (opens in a new window) / Getty Images

The cyber world has entered a new era in which attacks are becoming more frequent and happening on a larger scale than ever before. Massive hacks affecting thousands of high-level American companies and agencies have dominated the news recently. Chief among these are the December SolarWinds/FireEye breach and the more recent Microsoft Exchange server breach.

Everyone wants to know: If you’ve been hit with the Exchange breach, what should you do?

5 machine learning essentials nontechnical leaders need to understand

Jumble of multicoloured wires untangling into straight lines over a white background. Cape Town, South Africa. Feb 2019.

Image Credits: David Malan (opens in a new window) / Getty Images

Machine learning has become the foundation of business and growth acceleration because of the incredible pace of change and development in this space.

But for engineering and team leaders without an ML background, this can also feel overwhelming and intimidating.

Here are best practices and must-know components broken down into five practical and easily applicable lessons.

Embedded procurement will make every company its own marketplace

Businesswomen using mobile phone analyzing data and economic growth graph chart. Technology digital marketing and network connection.

Image Credits: Busakorn Pongparnit / Getty Images

Embedded procurement is the natural evolution of embedded fintech.

In this next wave, businesses will buy things they need through vertical B2B apps, rather than through sales reps, distributors or an individual merchant’s website.

Knowing when your startup should go all-in on business development

One red line with arrow head breaking out from a business or finance growth chart canvas.

Image Credits: twomeows / Getty Images

There’s a persistent fallacy swirling around that any startup growing pain or scaling problem can be solved with business development.

That’s frankly not true.

Dear Sophie: What should I know about prenups and getting a green card through marriage?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie:

I’m a founder of a startup on an E-2 investor visa and just got engaged! My soon-to-be spouse will sponsor me for a green card.

Are there any minimum salary requirements for her to sponsor me? Is there anything I should keep in mind before starting the green card process?

— Betrothed in Belmont

Startups must curb bureaucracy to ensure agile data governance

Image of a computer, phone and clock on a desk tied in red tape.

Image Credits: RichVintage / Getty Images

Many organizations perceive data management as being akin to data governance, where responsibilities are centered around establishing controls and audit procedures, and things are viewed from a defensive lens.

That defensiveness is admittedly justified, particularly given the potential financial and reputational damages caused by data mismanagement and leakage.

Nonetheless, there’s an element of myopia here, and being excessively cautious can prevent organizations from realizing the benefits of data-driven collaboration, particularly when it comes to software and product development.

Bring CISOs into the C-suite to bake cybersecurity into company culture

Mixed race businesswoman using tablet computer in server room

Image Credits: Jetta Productions Inc (opens in a new window) / Getty Images

Cyber strategy and company strategy are inextricably linked. Consequently, chief information security officers in the C-Suite will be just as common and influential as CFOs in maximizing shareholder value.

How is edtech spending its extra capital?

Money tree: an adult hand reaches for dollar bills growing on a leafless tree

Image Credits: Tetra Images (opens in a new window) / Getty Images

Edtech unicorns have boatloads of cash to spend following the capital boost to the sector in 2020. As a result, edtech M&A activity has continued to swell.

The idea of a well-capitalized startup buying competitors to complement its core business is nothing new, but exits in this sector are notable because the money used to buy startups can be seen as an effect of the pandemic’s impact on remote education.

But in the past week, the consolidation environment made a clear statement: Pandemic-proven startups are scooping up talent — and fast.

Tech in Mexico: A confluence of Latin America, the US and Asia

Aerial view of crowd connected by lines

Image Credits: Orbon Alija (opens in a new window)/ Getty Images

Knowledge transfer is not the only trend flowing in the U.S.-Asia-LatAm nexus. Competition is afoot as well.

Because of similar market conditions, Asian tech giants are directly expanding into Mexico and other LatAm countries.

How we improved net retention by 30+ points in 2 quarters

Sparks coming off US dollar bill attached to jumper cables

Image Credits: Steven Puetzer (opens in a new window) / Getty Images

There’s certainly no shortage of SaaS performance metrics leaders focus on, but NRR (net revenue retention) is without question the most underrated metric out there.

NRR is simply total revenue minus any revenue churn plus any revenue expansion from upgrades, cross-sells or upsells. The greater the NRR, the quicker companies can scale.

5 mistakes creators make building new games on Roblox

BRAZIL - 2021/03/24: In this photo illustration a Roblox logo seen displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

Image Credits: SOPA Images (opens in a new window) / Getty Images

Even the most experienced and talented game designers from the mobile F2P business usually fail to understand what features matter to Robloxians.

For those just starting their journey in Roblox game development, these are the most common mistakes gaming professionals make on Roblox.

CEO Manish Chandra, investor Navin Chaddha explain why Poshmark’s Series A deck sings

CEO Manish Chandra, investor Navin Chaddha explain why Poshmark’s Series A deck sings image

“Lead with love, and the money comes.” It’s one of the cornerstone values at Poshmark. On the latest episode of Extra Crunch Live, Chandra and Chaddha sat down with us and walked us through their original Series A pitch deck.

Will the pandemic spur a smart rebirth for cities?

New versus old - an old brick building reflected in windows of modern new facade

Image Credits: hopsalka (opens in a new window) / Getty Images

Cities are bustling hubs where people live, work and play. When the pandemic hit, some people fled major metropolitan markets for smaller towns — raising questions about the future validity of cities.

But those who predicted that COVID-19 would destroy major urban communities might want to stop shorting the resilience of these municipalities and start going long on what the post-pandemic future looks like.

The NFT craze will be a boon for lawyers

3d rendering of pink piggy bank standing on sounding block with gavel lying beside on light-blue background with copy space. Money matters. Lawsuit for money. Auction bids.

Image Credits: Gearstd (opens in a new window) / Getty Images

There’s plenty of uncertainty surrounding copyright issues, fraud and adult content, and legal implications are the crux of the NFT trend.

Whether a court would protect the receipt-holder’s ownership over a given file depends on a variety of factors. All of these concerns mean artists may need to lawyer up.

Viewing Cazoo’s proposed SPAC debut through Carvana’s windshield

It’s a reasonable question: Why would anyone pay that much for Cazoo today if Carvana is more profitable and whatnot? Well, growth. That’s the argument anyway.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://techcrunch.com/2021/04/02/extra-crunch-roundup-tonal-ec-1-deliveroos-rocky-ipo-is-substack-really-worth-650m/

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What did COVID do to all our models?

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What did COVID do to all our models?

An interview with Dean Abbott and John Elder about change management, complexity, interpretability, and the risk of AI taking over humanity.


By Heather Fyson, KNIME

What did COVID do to all our models?

After the KNIME Fall Summit, the dinosaurs went back home… well, switched off their laptops. Dean Abbott and John Elder, longstanding data science experts, were invited to the Fall Summit by Michael to join him in a discussion of The Future of Data Science: A Fireside Chat with Industry Dinosaurs. The result was a sparkling conversation about data science challenges and new trends. Since switching off the studio lights, Rosaria has distilled and expanded some of the highlights about change management, complexity, interpretability, and more in the data science world. Let’s see where it brought us.

What is your experience with change management in AI, when reality changes and models have to be updated? What did COVID do to all our models?

 
[Dean] Machine Learning (ML) algorithms assume consistency between past and future. When things change, the models fail. COVID has changed our habits, and therefore our data. Pre-COVID models struggle to deal with the new situation.

[John] A simple example would be the Traffic layer on Google Maps. After lockdowns hit country after country in 2020, Google Maps traffic estimates were very inaccurate for a while. It had been built on fairly stable training data but now that system was thrown completely out of whack.

How do you figure out when the world has changed and the models don’t work anymore?

 
[Dean] Here’s a little trick I use: I partition my data by time and label records as “before” and “after”. I then build a classification model to discriminate the “after” vs. the “before” from the same inputs the model uses. If the discrimination is possible, then the “after” is different from the “before”, the world has changed, the data has changed, and the models must be retrained.

How complicated is it to retrain models in projects, especially after years of customization?

 
[John] Training models is usually the easiest step of all! The vast majority of otherwise successful projects die in the implementation phase. The greatest time is spent in the data cleansing and preparation phase. And the most problems are missed or made in the business understanding / project definition phase. So if you understand what the flaw is and can obtain new data and have the implementation framework in place, creating a new model is, by comparison, very straightforward.

Based on your decades-long experience, how complex is it to put together a really functioning Data Science application?

 
[John] It can vary of course, by complexity. Most of our projects get functioning prototypes at least in a few months. But for all, I cannot stress enough the importance of feedback: You have to talk to people much more often than you want to. And listen! We learn new things about the business problem, the data, or constraints, each time. Not all us quantitative people are skilled at speaking with humans, so it often takes a team. But the whole team of stakeholders has to learn to speak the same language.

[Dean] It is important to talk to our business counterpart. People fear change and don’t want to change the current status. One key problem really is psychological. The analysts are often seen as an annoyance. So, we have to build the trust between the business counterpart and the analytics geeks. The start of a project should always include the following step: Sync up domain experts / project managers, the analysts, and the IT and infrastructure (DevOps) team so everyone is clear on the objectives of the project and how it will be executed. Analysts are number 11 on the top 10 list of people they have to see every day! Let’s avoid embodying data scientist arrogance: “The business can’t understand us/our techniques, but we know what works best”. What we don’t understand, however, are the domains experts are actually experts in the domain we are working in! Translation of data science assumptions and approaches into language that is understood by the domain experts is key!

The latest trend now is deep learning, apparently it can solve everything. I got a question from a student lately, asking “why do we need to learn other ML algorithms if deep learning is the state of the art to solve data science problems”?

 
[Dean] Deep learning sucked a lot of the oxygen out of the room. It feels so much like the early 1990s when neural networks ascended with similar optimism! Deep Learning is a set of powerful techniques for sure, but they are hard to implement and optimize. XGBoost, Ensembles of trees, are also powerful but currently more mainstream. The vast majority of problems we need to solve using advanced analytics really don’t require complex solutions, so start simple; deep learning is overkill in these situations. It is best to use the Occam’s razor principle: if two models perform the same, adopt the simplest.

About complexity. The other trend, opposite to deep learning, is ML interpretability. Here, you greatly (excessively?) simplify the model in order to be able to explain it. Is interpretability that important?

 
[John] I often find myself fighting interpretability. It is nice, sure, but often comes at too high a cost of the most important model property: reliable accuracy. But many stakeholders believe interpretability is essential, so it becomes a barrier for acceptance. Thus, it is essential to discover what kind of interpretability is needed. Perhaps it is just knowing what the most important variables are? That’s doable with many nonlinear models. Maybe, as with explaining to credit applicants why they were turned down, one just needs to interpret outputs for one case at a time? We can build a linear approximation for a given point. Or, we can generate data from our black box model and build an “interpretable” model of any complexity to fit that data.

Lastly, research has shown that if users have the chance to play with a model – that is, to poke it with trial values of inputs and see its outputs, and perhaps visualize it – they get the same warm feelings of interpretability. Overall, trust – in the people and technology behind the model – is necessary for acceptance, and this is enhanced by regular communication and by including the eventual users of the model in the build phases and decisions of the modeling process.

[Dean] By the way KNIME Analytics Platform has a great feature to quantify the importance of the input variables in a Random Forest! The Random Forest Learner node outputs the statistics of candidate and splitting variables. Remember that, when you use the Random Forest Learner node.

There is an increase in requests for explanations of what a model does. For example, for some security classes, the European Union is demanding verification that the model doesn’t do what it’s not supposed to do. If we have to explain it all, then maybe Machine Learning is not the way to go. No more Machine Learning?

 
[Dean]  Maybe full explainability is too hard to obtain, but we can achieve progress by performing a grid search on model inputs to create something like a score card describing what the model does. This is something like regression testing in hardware and software QA. If a formal proof what models are doing is not possible, then let’s test and test and test! Input Shuffling and Target Shuffling can help to achieve a rough representation of the model behavior.

[John] Talking about understanding what a model does, I would like to raise the problem of reproducibility in science. A huge proportion of journal articles in all fields — 65 to 90% — is believed to be unreplicable. This is a true crisis in science. Medical papers try to tell you how to reproduce their results. ML papers don’t yet seem to care about reproducibility. A recent study showed that only 15% of AI papers share their code.

Let’s talk about Machine Learning Bias. Is it possible to build models that don’t discriminate?

 
[John] (To be a nerd for a second, that word is unfortunately overloaded. To “discriminate” in the ML world word is your very goal: to make a distinction between two classes.) But to your real question, it depends on the data (and on whether the analyst is clever enough to adjust for weaknesses in the data): The models will pull out of the data the information reflected therein. The computer knows nothing about the world except for what’s in the data in front of it. So the analyst has to curate the data — take responsibility for those cases reflecting reality. If certain types of people, for example, are under-represented then the model will pay less attention to them and won’t be as accurate on them going forward. I ask, “What did the data have to go through to get here?” (to get in this dataset) to think of how other cases might have dropped out along the way through the process (that is survivor bias). A skilled data scientist can look for such problems and think of ways to adjust/correct for them.

[Dean] The bias is not in the algorithms. The bias is in the data. If the data is biased, we’re working with a biased view of the world. Math is just math, it is not biased.

Will AI take over humanity?!

 
[John] I believe AI is just good engineering. Will AI exceed human intelligence? In my experience anyone under 40 believes yes, this is inevitable, and most over 40 (like me, obviously): no! AI models are fast, loyal, and obedient. Like a good German Shepherd dog, an AI model will go and get that ball, but it knows nothing about the world other than the data it has been shown. It has no common sense. It is a great assistant for specific tasks, but actually quite dimwitted.

[Dean] On that note, I would like to report two quotes made by Marvin Minsky in 1961 and 1970, from the dawn of AI, that I think describe well the future of AI.

“Within our lifetime some machines may surpass us in general intelligence” (1961)

“In three to eight years we’ll have a machine with the intelligence of a human being” (1970)

These ideas have been around for a long time. Here is one reason why AI will not solve all the problems: We’re judging its behavior based on one number, one number only! (Model error.) For example, predictions of stock prices over the next five years, predicted by building models using root mean square error as the error metric, cannot possibly paint the full picture of what the data are actually doing and severely hampers the model and its ability to flexibly uncover the patterns. We all know that RMSE is too coarse of a measure. Deep Learning algorithms will continue to get better, but we also need to get better at judging how good a model really is. So, no! I do not think that AI will take over humanity.

We have reached the end of this interview. We would like to thank Dean and John for their time and their pills of knowledge. Let’s hope we meet again soon!

About Dean Abbott and John Elder

What did COVID do to all our models Dean Abbott is Co-Founder and Chief Data Scientist at SmarterHQ. He is an internationally recognized expert and innovator in data science and predictive analytics, with three decades of experience solving problems in omnichannel customer analytics, fraud detection, risk modeling, text mining & survey analysis. Included frequently in lists of pioneering data scientists and data scientists, he is a popular keynote speaker and workshop instructor at conferences worldwide, also serving on Advisory Boards for the UC/Irvine Predictive Analytics and UCSD Data Science Certificate programs. He is the author of Applied Predictive Analytics (Wiley, 2014) and co-author of The IBM SPSS Modeler Cookbook (Packt Publishing, 2013).


What did COVID do to all our models John Elder founded Elder Research, America’s largest and most experienced data science consultancy in 1995. With offices in Charlottesville VA, Baltimore MD, Raleigh, NC, Washington DC, and London, they’ve solved hundreds of challenges for commercial and government clients by extracting actionable knowledge from all types of data. Dr. Elder co-authored three books — on practical data mining, ensembles, and text mining — two of which won “book of the year” awards. John has created data mining tools, was a discoverer of ensemble methods, chairs international conferences, and is a popular workshop and keynote speaker.


 
Bio: Heather Fyson is the blog editor at KNIME. Initially on the Event Team, her background is actually in translation & proofreading, so by moving to the blog in 2019 she has returned to her real passion of working with texts. P.S. She is always interested to hear your ideas for new articles.

Original. Reposted with permission.

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Source: https://www.kdnuggets.com/2021/04/covid-do-all-our-models.html

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AI

The AI Trends Reshaping Health Care

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Click to learn more about author Ben Lorica.

Applications of AI in health care present a number of challenges and considerations that differ substantially from other industries. Despite this, it has also been one of the leaders in putting AI to work, taking advantage of the cutting-edge technology to improve care. The numbers speak for themselves: The global AI in health care market size is expected to grow from $4.9 billion in 2020 to $45.2 billion by 2026. Some major factors driving this growth are the sheer volume of health care data and growing complexities of datasets, the need to reduce mounting health care costs, and evolving patient needs.

Deep learning, for example, has made considerable inroads into the clinical environment over the last few years. Computer vision, in particular, has proven its value in medical imaging to assist in screening and diagnosis. Natural language processing (NLP) has provided significant value in addressing both contractual and regulatory concerns with text mining and data sharing. Increasing adoption of AI technology by pharmaceutical and biotechnology companies to expedite initiatives like vaccine and drug development, as seen in the wake of COVID-19, only exemplifies AI’s massive potential.

We’re already seeing amazing strides in health care AI, but it’s still the early days, and to truly unlock its value, there’s a lot of work to be done in understanding the challenges, tools, and intended users shaping the industry. New research from John Snow Labs and Gradient Flow, 2021 AI in Healthcare Survey Report, sheds light on just this: where we are, where we’re going, and how to get there. The global survey explores the important considerations for health care organizations in varying stages of AI adoption, geographies, and technical prowess to provide an extensive look into the state of AI in health care today.               

One of the most significant findings is around which technologies are top of mind when it comes to AI implementation. When asked what technologies they plan to have in place by the end of 2021, almost half of respondents cited data integration. About one-third cited natural language processing (NLP) and business intelligence (BI) among the technologies they are currently using or plan to use by the end of the year. Half of those considered technical leaders are using – or soon will be using – technologies for data integration, NLP, business intelligence, and data warehousing. This makes sense, considering these tools have the power to help make sense of huge amounts of data, while also keeping regulatory and responsible AI practices in mind.

When asked about intended users for AI tools and technologies, over half of respondents identified clinicians among their target users. This indicates that AI is being used by people tasked with delivering health care services – not just technologists and data scientists, as in years past. That number climbs even higher when evaluating mature organizations, or those that have had AI models in production for more than two years. Interestingly, nearly 60% of respondents from mature organizations also indicated that patients are also users of their AI technologies. With the advent of chatbots and telehealth, it will be interesting to see how AI proliferates for both patients and providers over the next few years.

In considering software for building AI solutions, open-source software (53%) had a slight edge over public cloud providers (42%). Looking ahead one to two years, respondents indicated openness to also using both commercial software and commercial SaaS. Open-source software gives users a level of autonomy over their data that cloud providers can’t, so it’s not a big surprise that a highly regulated industry like health care would be wary of data sharing. Similarly, the majority of companies with experience deploying AI models to production choose to validate models using their own data and monitoring tools, rather than evaluation from third parties or software vendors. While earlier-stage companies are more receptive to exploring third-party partners, more mature organizations are tending to take a more conservative approach.                      

Generally, attitudes remained the same when asked about key criteria used to evaluate AI solutions, software libraries or SaaS solutions, and consulting companies to work with.Although the answers varied slightly for each category,technical leaders considered no data sharing with software vendors or consulting companies, the ability to train their own models, and state-of-the art accuracy as top priorities. Health care-specific models and expertise in health care data engineering, integration, and compliance topped the list when asked about solutions and potential partners. Privacy, accuracy, and health care experience are the forces driving AI adoption. It’s clear that AI is poised for even more growth, as data continues to grow and technology and security measures improve. Health care, which can sometimes be seen as a laggard for quick adoption, is taking to AI and already seeing its significant impact. While its approach, the top tools and technologies, and applications of AI may differ from other industries, it will be exciting to see what’s in store for next year’s survey results.

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Source: https://www.dataversity.net/the-ai-trends-reshaping-health-care/

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