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@daniel_gebler
@picnic
How Picnic became the Supermarket in your Pocket
Our Value Proposition
Groceries
+
Mobile Home On-Time Lowest Price
+ + + =
Our Mobile Shopping Ecosystem
10s of cities
100s of suppliers
1,000s of local products
10,000s of global products
100,000s of customers
3 Challenges
30 Articles in 3 Minutes
The Mobile Shopping Challenge
The Mobile Shopping Solution - Bulk recommendations
• Set of 4, 8 or 12 articles
• Buy all with a single tap
• 1-click shopping for half of your basket
• Purchase confidence >90%
• Covering repetitive & boring items
Challenges of bulk recommendations
Precision challenge
• 90% single item precision  28% precision for 12 items
• 90% precision for 12 items  99% single item precision
• Factor 10 better recommendations required!
Item challenge
• Seasonal availability
• Seasonal variations
• Event-based buying patterns
Our Shopping Time Journey
0
50
100
150
200
250
300
350
400
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17
Sessiontime(inseconds)
2
1
3
Formalization of the Challenge
PR(next= |hist=(( ,t-4),( ,t-7),( ,t-9)))
Input Hidden Layers Output
Monday
(wk -2)
Friday
(wk -2)
Wednesday
(wk -1)
Tomorrow
Solution 1: Deep Recurrent Neural Network (LSTM)
• Item likelihood to buy
• Cat likelihood to buy
• Next 7 days
• Item/cat buying interval
• Order history (articles, dates)
• Normalized quantities
• Days between orders
x 1
x 2
x 0
x 3
x 0
x 1
x 2
x 2
x 0
x2
x 1
x 1
Item - Item
relations
Item - Day
relations
Itemset - Day
relations
y2
x1
x2
x3 y3
y1
z2
z3
z1
50%
Shallow data
Small training set
Pre-Training
Solution 2: RFM-based order prediction
Get last 10 orders
Select top items
(80% orders)
Rank by
[freq, qty]
Display best items
(min 4, max 12)
…
| | |
Filter by
seasonality
… …
… …
… …
Result: Big and Deep data for optimal RFM prediction parameters
65%
70%
75%
80%
85%
90%
0 20 40 60 80 100 120 140
Precision
Number of orders
Big data
(lack of depth)
Big & Deep data Deep data
(lack of breadth)
BIG DATA
Insights from scale of
collected data points
(large sample)
Insights from depth of
stories (small sample)
DEEP DATA
DEPTH OF INSIGHTS
N
Summary: Deep Learning requires both Big Data and Deep Data
1000s of suggestions each week
The Co-Creation Challenge
Step 1: Create Visibility, Encourage Accountability, Celebrate Success
Step 2: ML-based classification of product suggestions
Customer input
(free text)
Picnic Retail Platform
(storage)
Force.com
(processing & analytics)
Zendesk
(Customer feedback)
Picnic Retail Platform
(status update)
Azure ML
(NeuralNet classification)
Result: Auto-classification 3 out of 4 suggestions
Insufficient training
data
Max 91% accuracy
Data Science is the MVP for AI Products
The Distribution Challenge
99% on-time delivery
1% no show
5-star rating
Formalization of the Challenge
Tdrop = Carea + C1 + Cambient|chilled·Nambient|chilled + Cfrozen·Nfrozen + Tdelta
Fitness Measure
RMSE =
σ 𝑖=1
𝑛
∆𝑇 𝑑𝑟𝑜𝑝
(𝑖)2
𝑛
Adjusted drop time deviation
• Asymmetry (early vs. late)
• Error filtering
Normalization
• Time of day
• Driver
• Vehicle
Calibration process
▪ Daily update (params)
▪ Weekly review (params)
▪ Monthly review (model)
▪ Granularity (PC6 vs. address)
Parametrization
▪ Init by defaults (avg. optima)
▪ Household size
▪ Proximity House vs. Street
▪ City Maturity
▪ Hub Maturity
▪ Runner Maturity
Result: 50% improvement after 10 drops, oscillating convergence
-10
-5
0
5
10
20 40 60 80
DropTimedeviation(inseconds)
Drop time deviation
Moving average
Creating a mobile super service
@picnic
@daniel_gebler

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Picnic Big Data Expo

  • 1. @daniel_gebler @picnic How Picnic became the Supermarket in your Pocket
  • 2. Our Value Proposition Groceries + Mobile Home On-Time Lowest Price + + + =
  • 3. Our Mobile Shopping Ecosystem 10s of cities 100s of suppliers 1,000s of local products 10,000s of global products 100,000s of customers
  • 5. 30 Articles in 3 Minutes The Mobile Shopping Challenge
  • 6. The Mobile Shopping Solution - Bulk recommendations • Set of 4, 8 or 12 articles • Buy all with a single tap • 1-click shopping for half of your basket • Purchase confidence >90% • Covering repetitive & boring items
  • 7. Challenges of bulk recommendations Precision challenge • 90% single item precision  28% precision for 12 items • 90% precision for 12 items  99% single item precision • Factor 10 better recommendations required! Item challenge • Seasonal availability • Seasonal variations • Event-based buying patterns
  • 8. Our Shopping Time Journey 0 50 100 150 200 250 300 350 400 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Sessiontime(inseconds) 2 1 3
  • 9. Formalization of the Challenge PR(next= |hist=(( ,t-4),( ,t-7),( ,t-9)))
  • 10. Input Hidden Layers Output Monday (wk -2) Friday (wk -2) Wednesday (wk -1) Tomorrow Solution 1: Deep Recurrent Neural Network (LSTM) • Item likelihood to buy • Cat likelihood to buy • Next 7 days • Item/cat buying interval • Order history (articles, dates) • Normalized quantities • Days between orders x 1 x 2 x 0 x 3 x 0 x 1 x 2 x 2 x 0 x2 x 1 x 1 Item - Item relations Item - Day relations Itemset - Day relations y2 x1 x2 x3 y3 y1 z2 z3 z1
  • 11. 50%
  • 15. Solution 2: RFM-based order prediction Get last 10 orders Select top items (80% orders) Rank by [freq, qty] Display best items (min 4, max 12) … | | | Filter by seasonality … … … … … …
  • 16. Result: Big and Deep data for optimal RFM prediction parameters 65% 70% 75% 80% 85% 90% 0 20 40 60 80 100 120 140 Precision Number of orders Big data (lack of depth) Big & Deep data Deep data (lack of breadth)
  • 17. BIG DATA Insights from scale of collected data points (large sample) Insights from depth of stories (small sample) DEEP DATA DEPTH OF INSIGHTS N Summary: Deep Learning requires both Big Data and Deep Data
  • 18. 1000s of suggestions each week The Co-Creation Challenge
  • 19. Step 1: Create Visibility, Encourage Accountability, Celebrate Success
  • 20. Step 2: ML-based classification of product suggestions Customer input (free text) Picnic Retail Platform (storage) Force.com (processing & analytics) Zendesk (Customer feedback) Picnic Retail Platform (status update) Azure ML (NeuralNet classification)
  • 21. Result: Auto-classification 3 out of 4 suggestions Insufficient training data Max 91% accuracy
  • 22. Data Science is the MVP for AI Products
  • 23. The Distribution Challenge 99% on-time delivery 1% no show 5-star rating
  • 24. Formalization of the Challenge Tdrop = Carea + C1 + Cambient|chilled·Nambient|chilled + Cfrozen·Nfrozen + Tdelta
  • 25. Fitness Measure RMSE = σ 𝑖=1 𝑛 ∆𝑇 𝑑𝑟𝑜𝑝 (𝑖)2 𝑛 Adjusted drop time deviation • Asymmetry (early vs. late) • Error filtering Normalization • Time of day • Driver • Vehicle
  • 26. Calibration process ▪ Daily update (params) ▪ Weekly review (params) ▪ Monthly review (model) ▪ Granularity (PC6 vs. address) Parametrization ▪ Init by defaults (avg. optima) ▪ Household size ▪ Proximity House vs. Street ▪ City Maturity ▪ Hub Maturity ▪ Runner Maturity Result: 50% improvement after 10 drops, oscillating convergence -10 -5 0 5 10 20 40 60 80 DropTimedeviation(inseconds) Drop time deviation Moving average
  • 27.
  • 28. Creating a mobile super service @picnic @daniel_gebler