1. SYSTEMS Analytics – present & future
PG Madhavan, Ph.D.
Chief Algorist
Syzen Analytics, Inc.
Seattle, WA, USA
2. Practical Framework for Prescriptive Analytics
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Prescriptive Analytics is NOT “one and done”
Need “closed-loop” solution.
TRACKING solution much like “flu shots”
Treat, monitor, update & treat again over time.
“SYSTEMS Theory” is the natural approach.
Systems Analytics Roadmap!
Models
ad hoc
State-space Models
Network Models
Spatio-temporal Models
2015
2016
2017
2018
GROUP
Recommendation Engine
Closed-loop &
Real-time Social Network
Integration
“Global Effects”
1. Retail Chains: In USA & India with many 100 stores
2. Consumer Product Goods firms: Majors in USA
3. Retail technology OEMs: Global leaders
8. Recommendation Engine – for Groups
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Behavioral Segmentation Projometry™
Local Store Shopper Sub-population in DSGs
Local Store PROPORTIONAL
Assortment Shares
Systems Analytics
Algorithms
(non-standard)T-log
Segregated
DOMINANT Shopper Groups (DSGs)
Based on
Purchase DATA
9. Systems Analytics – Retail Commerce
11
Figure 3: Canonical model of Retail commerce DEMAND chain.
10. Systems Analytics - Introduction
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Model: Structure Learning Algorithm Objective
Perceptron Perceptron nodes Perceptron Algorithm
Find g f
Logistic Regression Multiple Regression Gradient Descent
Neural Network Multiplayer Perceptron Back Propagation
SYSTEMS State-space Kalman Filter
Table 1: Systems Analytics and how it fits within ML taxonomy.
11. Systems Analytics for Retail Merchandising
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LIF-ML Framework
1. We have a framework for a
closed-loop Analytics solution.
2. We have a framework for real-
time Analytics.
• Goal-seeking solution that
improves and delivers results
over time.
• Time period may be days or
milliseconds depending on
the application.
16. 1818
Article link & Contact Information
“Future of Analytics – a definitive Roadmap”
http://www.jininnovation.com/FutureofAnalytics_Reformat.pdf
Editor's Notes
Talking Points
Neuroscience
AI a fool’s errand! Airplanes.
IA not AI
Analytics, ML, Data Science
Big Data
ML – generalize from experience
LIF-ML (Learning with In-band Feedback)
Canonical business problem
Business man – Pragmatic & Optimal solutions
One and done – Goal-seeking & Tracking solutions
Recommendation Engine – for Groups
Behavioral Segmentation problems
Systems Analytics – motivated by Goal Seeking & Tracking solutions
Systems Analytics – ML framework, Closed-loop, Real-time
Social Network – isolated, graph theory, spatial & temporal
Single scalar to track – IoT
Source models – COUPLING
Random Field Theory
Pulling it all together
Roadmap – system parameters as features, closed-loop, real-time
Basic theories & Base algorithms in hand