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When we ask Google about recommendation systems, it defines them too narrowly as “a subclass of information filtering system that attempts to predict the ‘rating’ or ‘preference’ that a user would assign to an item.” However, I believe, recommender systems are systems that assist users in discovering items that they may be interested in.

Recommender systems are among the most visible and successful practical applications of Artificial Intelligence and Machine Learning technology. Such systems now accompany us in our daily online lives, such as on e-commerce sites, media streaming platforms, and social networks. They assist us by suggesting items that are supposed to be of interest to us and thus likely to be inspected, consumed, or purchased. Recommendations are typically designed to serve a specific purpose and create a specific value for the consumer and the provider.

The business value of recommenders and their reports:

Recommender systems claim to reduce churn while increasing sales. However,  you might be wondering how they measure their actual success. What is it that you should also consider? And what metrics should you take into account when you’re building your recommendation system?

Companies rarely share specifics about how they profit from the use of recommendation technology and how frequently their customers adopt recommendations. In a blog post, Netflix revealed that “75% of what people watch is from some sort of recommendation,” and YouTube reports that 60% of home screen clicks are on recommendations. As a result, they estimate the annual business value of recommendation and personalization to be more than USD 1 billion.

The way companies measure the effects and business value of a deployed recommender system is determined by a variety of factors, including the application domain and, more importantly, the company’s business model. In this case, the goal could be to increase the number of time users spend using the service. Increased engagement is also a common goal for businesses with a flat-rate subscription model, as engagement is often viewed as a proxy for retention. A recommender’s impact can be more direct in other domains. 

The corresponding goals are to either directly promote sales via the recommender or to influence consumer behavior toward more profitable items. The underlying business models and objectives determine how companies measure the value of a recommender in all of the cases mentioned. In that context, relevant business metrics include sales or revenue, click-through rates (CTR), higher user engagement, and customer retention rates.

The figure shows an overview of the global market insight of businesses that uses recommendation systems.

1. Click-through rates-The click-through rate (CTR) helps to measure how many clicks are generated by the recommendations. The CTR is a critical metric in the recommendation. According to the study, personalized recommendations resulted in a 38% increase in clicks on average. Furthermore, recommender proved to be beneficial for longer user sessions, resulting in a 35% increase in CTR.
2. Conversion rates– When compared to the previously used “naive” algorithm, the experimenters report an 89% increase in “add-to-wish list” actions after introducing a new similar-item recommendation algorithm on the page that users see after losing an auction. The study discovered that using alternative recommendation strategies can increase the conversion rate to an external marketplace by more than 90% on a different, much smaller marketplace for electronic gadgets. According to the survey, 93% of businesses see an increase in conversion rates as a result of recommendations.
3. ROI– According to Mckinsey, Netflix’s revenue increased by 32.3%, while  Amazon’s revenue increased by 21.11% in a year.
4. Engagement– In various application domains, higher user engagement is considered to lead to increased levels of user retention, which often directly translates into business value. Several real-world studies of recommender systems have found that the presence of a recommender increases user activity.The study discovered that when recommendations were displayed on the page, visit lengths were 2.5 times longer. According to the market analysis , user activity and sessions have increased by 80%.

According to researchandmarket, the global recommendation engine market reached a value of US$ 2.7 billion in 2021. Looking forward, the market is projected to reach US$ 16.3 billion by 2027.

 Are recommendation systems worth it?

Typically, online businesses do not share detailed information about how they profit from the use of recommendation systems and how frequently their end users follow the recommendations. According to the findings, recommendation engines provide greater business value and have a large potential for personalization and suggestion. As a result, recommender systems are one of the most prominent success stories of artificial intelligence and machine learning in practice, frequently resulting in significant benefits for businesses.

Makoro™ brings the power of recommendations to the manufacturing supply chain. 

Makoro™ recommendations consistently improve asset and process performance – providing secure access to your plant predictions, insights, and recommendations from any device, anytime, anywhere. It is an important component of your remote operations strategy, allowing your operations personnel to make better, faster, timely, compliant and consistent decisions about plant operations remotely.

Moreover, the Recommendation Dashboard shows in real-time your operations gains from Makoro™’s recommendations and insights.

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While embarking on #smartmanufacturing manufacturers are confronted with the best strategy for Digital Transformation as this article (below) suggests.

Makoro™ uses applied artificial intelligence to solve transformational problems in the manufacturing supply chain.

Makoro™ AI differentiates itself in Enterprise Asset Management and Asset Performance Management spaces through its AI-powered predictive asset performance management for asset manufacturers, owners, and operators. Makoro™ AI lets you connect to all operations and IT data sources and transforms data to recommendations in minutes – recommendations that power higher asset uptime, lower maintenance costs, and higher workforce engagement.

Makoro™ illustrates the power of #ArtificialIntelligence applied to solve the deep-domain problems of the manufacturing supply chain.

#MakoroAI #CodeDataIO #PredictiveRecommendations #NaturalLanguageRecommendations #PredictiveAssetManagement #ContinuousIntelligence

The manufacturing trends that we anticipate for 2022 will all serve manufacturers’ ongoing efforts to overcome obstacles, enhance procedures, and find efficiency. As with any new year, technology advancements, market demands, and corporate goals will dominate manufacturing industry trends.

The top 7 latest trends in manufacturing for 2022 are as follows:

1. Consumer-driven Manufacturing

Consumer preferences fluctuate at the same rate as technology advances, making it challenging for producers to respond rapidly enough to provide in-demand goods and services.

Modern clients want, at the absolute least, same-day delivery, customised goods and services, and transparent delivery systems. However, distinguishing your firm and being internationally competitive demand a degree of agility and flexibility that conventional business models are incapable of providing.

Rather than that, consumer-driven manufacturing is concerned with predicting the demands of consumers who will use your goods. However, how is this possible? By incorporating new technologies and capabilities into your current systems and software, such as data analytics, the internet of things (IoT), and artificial intelligence (AI), among others.

Manufacturers may boost operational efficiency and deliver goods to customers faster by using tactics such as digital quality control, asset location monitoring, and automated material replenishment. Users and stakeholders may tailor their digital interaction experiences using these tools.

2. Predictable and Reliable Supply networks

Manufacturers are confronted with a period of dynamic market supply and demand fluctuations. According to Deloitte, the majority of buying managers continue to face system-wide challenges as a result of increased customer demand, increasing material and freight prices, and sluggish delivery.

While disruptions are inevitable and expensive, many firms are developing methods to improve the predictability of supply chains and logistics. By replacing human operations with technology like as artificial intelligence, data analytics, and sensors, supply chain managers can discover trends, forecast purchase requests, and manage inventories more effectively.

According to Deloitte, “digital supply networks and data analytics can be effective facilitators of more flexible, multi-tiered disruption solutions.”

3. Connected services

While technology improves company processes, it also alters the products and services manufacturers can provide their consumers.

Connected services are extra offers centred on internet-connected objects such as healthcare gadgets, cars, hand tools, industrial, and even wind turbines. Capgemini notes in an evaluation of connected services in manufacturing sectors, “We see business models evolving toward pay-per-use and pay-per-output models, in which consumers pay not for the product itself but for the advantages it provides.”

Although the possibilities for connected services are limitless, some of the more well-known examples include remote management of equipment and machinery through car telematics, maintenance forecasting, smart home technologies, and automation.

Offering connected services improves the consumer experience and enable manufacturers to distinguish themselves from their competitors. Data collected at each stage of the client journey may be utilized to constantly enhance the quality of the goods and services you produce. Additionally, connected services provide consistent income streams and greater margins.

4. Intelligent factories

Smart factories, also known as digital factories or intelligent factories, include highly automated and self-adapting technology and machinery to maximize efficiency and adaptability. Sensors monitor goods and inventories, while cloud-connected machinery and equipment give real-time visibility into maintenance requirements.

Adidas is only one example of a company that is forward-thinking. Adidas’ “speed factory,” which aims to establish a factory of the future, is equipped with 3D printers, robotic arms, laser-cutting robots, and Internet of Things capabilities for fast creating mockups and digital copies. Adidas can rapidly print prototypes with the assistance of automation and robotics to satisfy changing customer expectations with shorter lead times.

5. Industry 4.0 and the emergence of the digital economy

We are in the midst of the fourth industrial revolution, sometimes known as Industry 4.0. While the third industrial revolution pioneered the development of digital technology, Industry 4.0 is defined by hyper-automation, the Internet of Things, smart factories, and big data. These breakthroughs have sparked the birth of a digital economy, a global economy built on digital technology.

According to TechTarget, “the fourth industrial revolution builds on the digital revolution by bridging the physical and cyberworlds.” Manufacturers have an infinite number of options to adapt business models, enhance processes, and complete jobs quicker and better than ever before.

The digital economy encompasses businesses, goods, and services that would not exist in the absence of advanced digital technology – such as Netflix, Spotify, Airbnb, Uber, and Lyft. And as technology advances, so does the competitive environment.

Do you remember Blockbuster Video? By introducing streaming services, Netflix was ahead of the digital curve, whereas Blockbuster trailed far behind. Today, only those who were alive in the 1990s remember Blockbuster, yet everyone appears to have a Netflix subscription.

Consider improvements in healthcare device production. Historically, blood glucose metres were battery-operated, analogue devices that lacked internet connectivity. Nowadays, the majority of these technologies are completely integrated into the digital world. Manufacturers get new information, consumers can monitor their own health, and healthcare practitioners can better satisfy their patients’ requirements.

6. Circular Economy

Manufacturers are expected to supply items quickly and on a global scale, putting an inevitable strain on our environment. According to the World Economic Forum, manufacturing in the United States accounts for 23% of the country’s direct carbon emissions, whereas European production generates 880 million tonnes of carbon dioxide each year.

This is because factories have historically operated on a linear “take-make-trash” paradigm that is based on fossil fuels, over output, and waste. However, an increasing number of firms are embracing the circular economy, a sustainable model that maximizes efficiency at every step of production.

The circular economy makes use of cutting-edge technology such as artificial intelligence and machine learning to automate processes, simplify operations, and boost efficiency. Each step of production is subjected to recycling, refurbishment, and remanufacturing procedures in order to decrease waste and expenses, hence lowering a company’s carbon footprint. Additionally, digitizing processes provide real-time information that enables firms to stay on top of their sustainability targets.

7. Hyperautonomy

Hyperautomation is defined as “a business-driven, disciplined methodology that businesses utilize to swiftly discover, vet, and automate as many business and information technology activities as feasible.”

Hyperautomation is enabled by the coordinated use of technologies such as artificial intelligence (AI), sensors, machine learning, robotic process automation (RPA), low-code development platforms, and business process management (BPM) tools. This tendency is prevalent across previously segregated processes such as engineering, manufacturing, and system and software management in information technology.

Manufacturing occurs in highly compartmentalized settings, and many firms continue to depend on manual, time-consuming procedures. Hyperautomation automates formerly manual procedures and increases operational transparency. While technology takes care of routine but critical duties, your human staff can concentrate on more challenging responsibilities, such as fostering innovation.

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The transformation from linear plant setups to dynamic and interconnected systems is one of the greatest challenges for manufacturing today.

The Industrial Internet of Things (IIoT) is accelerating the pace of change around connecting machines, yet less than 30% of manufacturers have extensively adopted Industry 4.0 technologies.

Unfortunately, current asset management tools do not recommend solutions, they simply show views of data from assets, maintenance, and operations.

And that data is not enough to drive asset performance.

You need to look beyond data so you can deliver a faster value for your business.

Makoro™ takes asset performance beyond data, reports, and dashboards. It correlates and analyzes data from machines, and enterprise, and operations systems and recommends solutions to improve asset performance and lower maintenance costs, and drive workforce adoption.

See what Makoro™ can do for your business – schedule a demo.

Partner with us, let’s solve problems together. There is plenty of hype around #predictivemanufacturing. Solve some real problems and #makeanimpact with #makoroai.

As #hannovermesse2019 wraps up #codedataio is focusing on showcasing the beauty and prowess of #codaai for  #industrialautomation and #industrialtransformation using #augmentedanalytics at #hannovermesse2020, April 20 through 24, 2020. See you there. Details on our participation to follow.

The supply chain has become more complex as products flow up and down from/to various points more frequent basis. Numerous parties participate in the product supply chain and possess a wealth of knowledge and data. Industries must maintain product quality in order to safeguard their brand and to compete better. A rapid recall of a product can save a person’s life when a product that is directly tied to their health is discovered to be contaminated or of poor quality. In this instance, the producers must pinpoint the source of the problem and the product’s position. These are some of the challenges that necessitate product visibility across the supply chain. And traceability is a system that enables the resolution of all of these concerns. Traceability refers to the ability to track an entity’s history, application, or location throughout the supply chain using recorded identification.

Challenges faced during implementation 

One of the major challenges faced in implementing Traceability is the technology & data

While technology is expanding its reach while there are still a lot many warehouses still operate with paper at the integral points, although RFID chips and scanners are now conveniently available.

Among the factors impeding technology adoption include company executives’ lack of knowledge,the belief that it is a fad, and a desire to wait for wider acceptance before committing. Even company executives who see it as a promise are hesitant to spend money and effort in it due to the absence of industry-wide standards and processes. 

Thus, for it is to be effective, it is necessary for everyone in a typical supply chain business to be convinced of its benefits; key stakeholders must be on board and see the value in using it. As a result, market acceptance is a critical issue to address.

Complex worldwide supply chains, entail a large number of unrelated actors—producers, brokers, transporters, processors, wholesalers, retailers, and consumers—who may lack trust in one another. This has a significant impact on the level of collaboration. For instance, these players may be reticent to exchange data and/or engage in direct relationships or intermediaries that would facilitate the transmission, validation, and reconciliation of data across multiple parties. Business frameworks that enable coordination among these numerous participants are essential.

A significant difficulty in traceability is ambiguity in product information, which results from the recording of ambiguous and unclear product features that are difficult to track. This might be a result of inefficient and largely manual record-keeping, supply chain complexity, or identification lag time. Particularly difficult is the process of blending or comingling ingredients, or the utilization of a raw resource to generate a semi-finished or final culinary product. Traceability issues can also develop when items change their IDs or ownership, are repackaged, or transit international boundaries using different naming and labeling procedures.

Why Traceability is important in the current world

Having complete information on a product from conception to completion is critical for any business’s success. A traceability system is the finest instrument for obtaining and disseminating that information. It enables all supply chain actors to add value to the manufacturing and distribution processes. From product planning through disposal, and therefore to accomplish innovation in the product design process. Several of the system’s primary benefits are listed below

1. Transparency: To plan and act effectively, supply chain actors must be aware of the product’s know-how status. The product’s users must be informed of all pertinent information, such as the product’s ingredients, processing history, date of manufacturing, and country of origin. The entire manufacturing process, from conception to completion, should be accessible, allowing actors to access this information at any time. Traceability contributes to supply chain transparency
2. Quality Control: Customer happiness is critical for a business to remain competitive. The consumer is satisfied when they have trust in using the product and can obtain all necessary information about it. The company’s quality control method must be zero-tolerance throughout the product manufacturing process. Whenever a quality-related issue is brought to the attention of any actor along the supply chain, appropriate and immediate action must be made to enhance the design and manufacturing process in order to implement the necessary corrective actions in the subsequent lot or batch of production. To accomplish this, the players must trace back the supply chain and determine where and when production failures happened. A traceability system that includes a capability for tracing back helps actors manage the quality control process.
3. Decrease time to market: A traceability system keeps track of all pertinent information at each stage in the supply chain, establishing a link between all divisions within a business, from order processing to inventory management, processing, packing, warehousing, and despatching. This information enables actors to act in a timely manner, ensuring that all required products are made and delivered on time. This contributes to the total cost reduction of the manufacturing process, hence increasing the company’s profit.
4. Combating Product Counterfeiting and defending brand: A company develops a brand over time by producing novel products, maintaining a high standard of quality, and thereby garnering client happiness. This brand will vanish in an instant when counterfeit products bearing the same trademark but with inferior quality enter the market. Traceability enables the tracking of the original product along the supply chain, assisting actors in combating product counterfeiting.
5. Increased SCM efficiency: Traceability systems contribute to supply chain management process efficiency by decreasing costs, primarily logistics, by giving complete information from product conception to retail in the market. This enhancement fosters collaboration among supply chain actors, thereby strengthening their economic and technical capabilities.
6. Strengthen relationships with consumers: As previously stated, customer happiness is critical to corporate success, and satisfaction is obtained when we communicate with customers. The more information we supply to customers, the more connected they will get with the product and its producers. With an effective traceability system in place, consumers may access product-related information at any time, assisting actors in maintaining contact with them.
7. Increase competence: Knowing a customer’s purchasing behavior enables a business to make the goods on time and launch it appropriately in the market. A retailer’s traceability database enables him to determine which products are sold in what quantity and during what season. Similarly, he is aware of the type and brand of the goods sold and can thus determine the quantity of a particular product to order at what time to suit the customer’s expectations. This assists him in developing the confidence necessary to compete against competitors. It may also be a source of competitive advantage for supply chain partners, as traceability systems aid in increasing SCM efficiency by resolving product safety issues. It also assists the company in comprehending its logistic system and enabling them to create high-quality items on time.

Increasingly competitive marketplaces require businesses to have agile, effective, and efficient supply chain management processes. To accomplish this, businesses must have access to product data and information throughout the supply chain. They can track the location of products downstream and the processing history and other treatment of products upstream in the supply chain using an automatic traceability system. However, today’s supply chain is complex, with all actors geographically distributed throughout the world. They lack familiarity and trust with one another and hence are averse to sharing critical information on a global scale. This is a significant obstacle to creating an effective traceability solution. 

Businesses that invest in powerful traceability capabilities will be able to deliver the right product to the right location at the right time. All this with the appropriate level of customization and speed—all at a competitive price. Additionally, they will be able to meet critical sustainability expectations and regulatory needs from stakeholders. Additionally, they will be more resilient to supply and demand shocks. These capabilities will drive significant growth and profitability, as well as enable the development of new business models.

Based on the article here we could argue that the number of objects an average human can hold in working memory is 7 ± 2. Or maybe this number has gone up dramatically in this day and age – I have to remember at least 13 passwords at any point in time, and of different complexities and rules.

78% of C-level executives do not have a real-time view of inventory across their supply chain channels, with 50% of them believing they do not have the right platforms or technology in place to support expanded fulfillment options. Which one are you?