Consumer Products. Watson Summit Denmark. Hosts: Michael Jepsen, Consumer Industry Leader, IBM Nordic Trevor Davis FRSA, Distinguished Engineer, IBM
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1 Consumer Products Hosts: Michael Jepsen, Consumer Industry Leader, IBM Nordic Trevor Davis FRSA, Distinguished Engineer, IBM Nov 07, 2017 Watson Summit Denmark
2 Agenda Trends in the consumer industry & how Watson can help you win in the marketplace Project SWITCH: the human factors that affect consumers' conversion to different product forms P&G Q&A Watson is for all: Start-up Neuroapplied creating actionable insights for powerful brand stories
3 Trends in the Consumer Industry How Watson can help you win in the marketplace Trevor Davis FRSA Distinguished Engineer Nov 07, 2017
4 Trends Technology forces Cloud & flexible service delivery Explosion of data Urbanization Regulatory shifts Pervasive inter connectivity Mobile & social Consumer Industries Security risks Changing Consumer & customer expectations Watson / Consumer Industries/ Nov 07 Competitive forces Relentless focus on cost Skill shortages New entrants Sharing economy
5 What if Watson could Help you innovate faster and more effectively Create more relevant & meaningful brand experiences Reveal hidden insights throughout your value chain Augment the knowledge & expertise of your people
6 Project SWITCH The human factors that affect consumers' conversion to different product forms Nats Esquejo Section Head, P&G Fabric & Home Care Modelling & Simulation
7 Project Switch Modelling Form Dynamics in Consumer Goods Markets
8 Objectives 1. Generate new insights to better understand the human-related factors that affect form dynamics, volume and value share growth for 3 key laundry markets (UK, China, Brazil) 2. Create models/ algorithms to predict conversion tendencies of each key market.
9 What do we mean by form In its simplest definition, form = physical form of the actual product itself: Powder Liquid Gel Tablet (Powder) Pods (Liquid tablet, Pouch)
10 Project Switch Team Consortium of four organizations Funded by Innovate UK Project Start: April 2016 Project Ends: Dec 2017
11 Durham University: Facts and Figures Member of the Russell Group of leading research intensive UK universities A world top 100 University 25 Departments and Schools in 3 Faculties Over 200 undergraduate and 120 postgraduate courses Undergraduate, 4500 postgraduate students Ranked 4th in the UK The Times, The Sunday Times and the Guardian University Guides 2017 Ranked 9th for graduate prospects in the UK and 34 th in the world for employer reputation World Class research facilities and outputs
12 MARKET & CONSUMER INSIGHTS, CONSULTANCY AND DATA INVESTMENT MANAGEMENT A major part of WPP, the world s largest marketing communications group 2nd >50% 17/20 14 billion We are the 2 nd largest research company in the world and the number 1 in all the BRICS markets We work with over half of the companies in The Fortune 500 We have been working with 17 of our Top 20 clients for over 20 years (the other 3 didn t exist 20 years ago!) Our 5 year old archive contains 14 billion social & traditional media posts from 124 countries & in 86 languages 80 million 5.5 million 1,200 92% & 96% We conducted over 80 million consumer conversations across the world last year We have 5.5 million online panelists in 38 countries We provide the retail trends of today and prepare for the realities of tomorrow with analysis of over 1,200 key retailers across 135 markets We conducted brand and communications research for 92 of the world s largest 100 advertisers. We also track 96% of all global advertising spend across all media types Kantar Worldpanel is the global expert in shoppers behavior. Through continuous monitoring, advanced analytics and tailored solutions, Kantar Worldpanel inspires successful decisions by brand owners, retailers, market analysts and government 12 organizations globally.
13 80bn turnover 380,000 employees A company reinventing itself for the modern era in cloud, analytics, cognitive, mobile, and security to power the emerging needs of modern business IBM Watson is the AI platform for business
14 Procter & Gamble A Company of Leading Brands
15 Project Switch Overall Workplan Knowledge Compilation Consumer Immersion Hypothesis Validation Data Source Identification Model Building Consortium Share, Literature Search Focus Group Discussions Household Panel Questionnaire Internal, External Architecture, Modelling Tools Factors Drivers Predictors Quantify Project Ongoing UK Done Brazil Done China Done UK Done Brazil On-going China Aug/ Sept Ongoing UK On-going Brazil Aug/Sept 17 China Oct/Nov 17
16 What Influences Purchase Behaviour? Purchase Behaviour Market Factors what manufacturers control. This includes product performance, quality, brand equity, advertising, in-store execution elements, etc. Underlying/ Latent Individual Factors factors that affect an individual consumer s sensitivity to being influenced by the Market Factors. Social & Cultural Values social values are the beliefs/ norms held by the consumer that influences her daily actions, including purchase of products Demographics, Micro- & Macroeconomic Factors these include size of household, income, Consumer Price Index, etc.
17 Switch Platform Architecture Underlying Model
18 A novel approach Putting together disparate data algorithmically, using a variety of tools from basic statistical analysis, to cognitive computing techniques, and theoretical economic frameworks, to predict the likelihood that a household would buy a product for a given set of market conditions. Training the models on 2015 & 2016 data, validating against 2017 data.
19 Analytics Traditional analytics via Custom scripts Big data analytics via
20 Watson Application: Consumer Journey Diagrams
21 Watson Application: Online Comments Analysis
22 Challenges Data Availability Highly variable quality across markets Different timescales Insufficient granularity in many cases High Correlation/ Interaction Across Variables Typical issue with observational data
23 Project Switch: a first step towards operationalizing analysis and modelling of consumer goods markets.
24 Any questions?
25 Watson is for all: Start-up Neuroapplied creating actionable insights for powerful brand stories Trevor Davis FRSA Distinguished Engineer Nov 07, 2017
26
27
28 Architecture
29 More in next 10 years than past 50 Watson can help make sense of a VUCA world Watson isn t just for multinationals
30 Questions? Michael Jepsen, Consumer Industry Lead, IBM Mobil tel:
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