DIGITAL TRANSFORMATION

Since the early 80's GDP growth of many large economies stably

slows down

Dotted lines show the average level for the six countries.

Source: Oxford Economics

FRANCE

ITALY

GERMANY

JAPAN

USA

UK

Real GDP growth (%, average annual growth over the period)

Efficiency of labor and capital decreases

A key indicator of how effectively the economy uses capital and human resources is the Total factor productivity (TFP).

Changes in TFP over the past 10 years

Total factor productivity (%, average annual growth over the period)

Source: The Conference Board, Total Economic Database

FRANCE

ITALY

GERMANY

JAPAN

USA

UK

WE ARE ON THE THRESHOLD OF THE NEW REVOLUTION

The speed of changes is increasing sharply

The world is actively changing, the speed of change is growing. The most

accurate forecast: the changes will be constant, and their speed will increase

Источники: Yale, Standard&Poor’s, CB Insights, McKinsey

Over the past 35 years

50% of the leading

companies became

bankrupt or were

absorbed

Over the past 50 years

The term of stay in the list of

leading companies has

decreased from 67 years

to 15 years

The main reason is new

technologies,

2020

Over the next 10 years

33% leading

companies will not exist

and in the future it

will be artificial

intelligence

2019

Startups will overtake Amazon, Google,

IBM, Microsoft in advancing "The

economy of artificial intelligence"

30% business of leading companies will

be cannibalized by new platforms of

artificial intelligence

20% companies will have

specialists in the management of

neural networks

Companies using artificial

intelligence will be 4 times

more likely to achieve success.

Today

NEW TECHNOLOGIES PRACTICE RESULT

THE USA MARKET

Big Data technologies brought:

10% increase in sales

49% growth in sales during the holidays

+15 p.p. ROI in promo activities

Source: McKinsey Company

has brought the usage of advanced

analytics technology in supply chain

management for the last 5 years

19% growth in revenue

Source: McKinsey Company

The role of artificial intelligence in the future

Artificial Intelligence (AI) will double the annual growth rates

of leading economies, including Russia

Baseline AI steady state

Sweden Netherlands Germany Austria France Japan Belgium Spain Italy

Source: Accenture и Frontier Economics

Real gross value added (GVA) (%, growth)

United States

United

KingdomFinland

AI will greatly accelerate labor productivity growth in

developed economies

Sweden

Finland

United States

Japan

Austria

Germany

Netherlands

United Kingdom

France

Belgium

Italy

Spain

Source: Accenture и Frontier Economics

The difference in% with the baseline in 2035.

37%

36%

35%

34%

30%

29%

27%

25%

20%

17%17%

12%

11%

Artificial Intelligence

The factor of future success in retail is

usage of

IDS predicts that by 2019 the world market of cognitive IT-platforms and applications will

grow to $ 1.6 billion .

EVOLUTION OF ANALYTICAL APPROACHES

Sense

ComprehendArtificial

Intelligence

Act

Recognition

the media

Understanding

texts

Expert

systems

RECOGNITIONIMAGE

● Mathematical preparation

● Machine learning

● Programming

● Communicative

Who Data Scientist is?

A universal player!

Mathematics and Statistics

Subject area -business expertise

Machine

learning

Data Scientist

Statisticalresearch

Data processing

Computer science

Required item of

undamaged goods

visually

physically and

psychologicallyavailable on the shelf for

the buyer

To determine the availability of goods on the shelf,

Artificial Intelligence

looks at the shelf with the eyes of the buyer

Artificial Intelligence must accurately determine both the

expected demand and the likelihood of the absence of

goods on the shelf

The value of OSA Hybrid Platform is based on two

technological areas

Big Data Machine Learning

2

0

Value Created by OSA Hybrid Platform:

+5,4%in turnover growth

NEW TECHNOLOGIES PRACTICE RESULT

Business case:

increase in sales of beer category

Soccer game?Planning beer stocks for the

expected demand

Example

2

3

NO expected sales Rain started!

Planning beer stocks for the next soccer

game

Now we have taken into account the weather conditions

NO expected sales

Sell-out in a competitive store for a

related product

2

6

Is it possible to use traditional methods to take into

account more than 100 changing factors for 10,000stores with an assortment matrix of 7,000 SKU with

details up to an hour?

This is 70 000 000 interconnected pairs SKU + STORE +

internal and external factors + 24 hours work + 7 days a

week + the previous hour affects the current demand ...

Artificial Intelligence

helps to solve problems proactively

Sales growthArtificial

Intelligence

Technologies used to solve this

business problem

● Big data decision

● Real time processing

● Machine Learning

● Neural networks

But we went further:

now the machine will learn the machine

Simulation Newlamteaches to understand

the work of the store and the demand

Neural network "Couple" knows everything about the goods in a particular

store

Thank you!