AI (artificial intelligence) is the simulation of human intelligence processes by machines, especially computer systems. These processes include learning, reasoning and self-correction. Particular applications of AI include expert systems, speech recognition and machine vision.
In the recent past, Artificial Intelligence and alternate data analytics have emerged as powerful ammunition in the arsenal of the firms fighting to generate alpha and reduce costs. Companies such as Google, Facebook, Microsoft, and others are also investing heavily in AI research, and the results are quite evident. The release of self-driving cars is just an example of rapid AI growth.
The rapid development of AI worldwide and its pervasiveness in everyday life has created some anxiety among the public. And it is not just in the form of walking and talking robots. The rise of AI has pervaded areas ranging from healthcare, retail, transport and banking to food and beverage as well as dating services.
Examples of AI Technology
- Machine learning is the science of getting a computer to act without programming. It is a type of artificial intelligence (AI) that allows software applications to become more accurate in predicting outcomes without being explicitly programmed. The basic premise of machine learning is to build algorithms that can receive input data and use statistical analysis to predict an output value within an acceptable range.
- Deep learning is a subset of machine learning that, in very simple terms, can be thought of as the automation of predictive analytics.
- Pattern recognition is a branch of machine learning that focuses on identifying patterns in data.
- Automation is the process of making a system or process function automatically. Robotic process automation, for example, can be programmed to perform high-volume, repeatable tasks normally performed by humans
- Machine vision is the science of making computers sees. Machine vision captures and analyzes visual information using a camera, analog-to-digital conversion and digital signal processing. It is used in a range of applications from signature identification to medical image analysis.
- Natural language processing (NLP) is the processing of human — and not computer — language by a computer program. One of the older and best known examples of NLP is spam detection, which looks at the subject line and the text of an email and decides if it’s junk. Current approaches to NLP are based on machine learning. NLP tasks include text translation, sentiment analysis and speech recognition
- Robotics is a field of engineering focused on the design and manufacturing of robots. Robots are often used to perform tasks that are difficult for humans to perform or perform consistently. They are used in assembly lines for car production or by NASA to move large objects in space.
AIOps (Artificial intelligence for IT operations)
AIOps is an umbrella term for the use of big data analytics, machine learning and other artificial intelligence technologies to automate the identification and resolution of common IT issues. The systems, services and applications in a large enterprise produce immense volumes of log and performance data. AIOps uses this data to monitor assets and gain visibility into dependencies without and outside of IT systems.
An AIOps platform should bring three capabilities to the enterprise:
- Automate routine practices
- Recognize serious issues faster and with greater accuracy than humans
- Streamline the interactions between data center groups and teams
Business Benefits of AIOps
- Insights into workloads that drive costs
- Eliminating the skills gap
- Provide application availability and eliminate customer frustration
- Avoid costly service disruptions and eliminate firefighting
- Increase business responsiveness
Drawbacks of AIOps
The cost incurred in the maintenance and repair of this system is very high. Programs need to be updated to suit the changing requirements, and machines need to be made smarter.
- Machines may not be as efficient as humans in altering their responses depending on the changing situations.
- AIOps demands trust in tooling, which can be a gating factor for some businesses.
- For an AIOps tool to act autonomously, it must follow changes within its target environment accurately, gather and secure data, form correct conclusions based on the available algorithms to match business priorities and objectives.
Humans program AI to make the smartest and most consistent decisions, but if AI meets an unexpected condition like when should the self-driving car stop to let a police vehicle through or an ambulance, it will not always do the right thing. So, human and machine must work together.
Blockchain is a distributed database that holds records of digital data or events using cryptography that makes them tamper-resistant. By allowing digital information to be distributed but not copied, blockchain technology created the backbone of a new type of internet.
The most popular application of blockchain technology is Bitcoin, a best-known cryptocurrency for which blockchain technology was invented. A cryptocurrency is a medium of exchange, such as the US dollar, but is digital and uses encryption techniques to control the creation of monetary units and to verify the transfer of funds.
Thought it was initially intended for financial transactions, businesses of all kinds are getting creative with the blockchain ledger, as it can be used to record, track, and verify trades of virtually anything that holds value. From ride-sharing to cloud storage to voting, companies in all industries are beginning to see blockchain’s potential.
The major innovation is that the technology allows market participants to transfer assets across the Internet without the need for a centralized third party.From a business perspective, it’s helpful to think of blockchain technology as a type of next-generation business process improvement software. Collaborative technology, such as blockchain, promises the ability to improve the business processes that occur between companies, radically lowering the “cost of trust.” For this reason, it may offer significantly higher returns for each investment dollar spent than most traditional internal investments.
5 characteristics that make Blockchain a promising technology
- Immutable: Data security concerns are addressed extremely well with Blockchain. With immutability a core characteristic, it becomes next to impossible to make any change or even alter the data after it is stored inside of a Blockchain.
- Hash Function: A hash is a one-way function that has multiple usages in decentralized systems and Blockchain. A hash function takes a specific input and runs an algorithm on it to produce a fixed length unique digital output called hash, hash value, digests or hash codes. The output length is fixed and smaller than the input. Every time the input is changed, the associated hash changes and makes the data unique. The mathematics behind the hash function ensures that there is no way to alter or change the original digital content. This ensures that the transaction is secure.
- Digital identity: While existing transaction system witnessed frauds and perils pertaining to the identity theft, Blockchain’s decentralization blended with unique digital ID for every transaction ensures that customers have more control over their personal information
- Peer to peer technology: Blockchain is considered to be one of the most effective peer to peer technologies. In a P2P network, interconnected peers or nodes are able to share resources with one another without using a separate server or centralized admin system. The DLT technology backed up by digital identities and digital currency eliminates the need for a central authority.
- Distributed ledger: A Blockchain is a Distributed ledger which is open to everyone. The unique characteristic of distributed ledger is its ability to make the data invulnerable to cybercrime or hacking. A distributed ledger is linked to a network of computers and in case someone wishes to tamper the data, he/she needs to change the data on every computer of that network. This makes it immutable.
We see three constant trends related to blockchain that will shape its development.
- Incumbents focus on protecting their intellectual property as they explore new collaborative opportunities with customers, suppliers, and competitors.
- Large financial institutions will need strategic plans to set parameters for technology risk taking.
- Market participants will start to develop the processes that surround the transactional layer.
A freight forwarder also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods. A forwarder does not move the goods but acts as an expert in the logistics network. These carriers can use a variety of shipping modes, including ships, airplanes, trucks, and railroads, and often multiple modes for a single shipment. For example, the freight forwarder may arrange to have cargo moved from a plant to an airport by truck, flown to the destination city, and then moved from the airport to a customer’s building by another truck.
Mobility has a huge impact on freight forwarding and serves as a solution for the major problems faced by the freight forwarders such as timely and safe delivery to the customers.
Some of the mobility solutions for freight forwarding are:
- Consignment scheduling based on the availability of drivers and transports
- Automatic routing solution
- Asset tracking
- Reefer monitoring
- Environment-friendly driving alert and monitoring of carbon emission (Green logistics)
Pretail (also referred to as pre-tail, pre-retail, pre-launch, or pre-commerce) is a sub-category of e-commerce and online retail for introducing new products, services, and brands to market by pre-launching online, from creating an interest waitlist of signups before launch to collecting reservations or pre-orders in limited quantity before release, realization, or commercial availability. Pretail includes pre-sale commerce, pre-order retailers, pre-launch marketing services, incubation marketplaces, crowd funding communities, and demand chain management systems. Retailers today are increasingly pre-tailing to test, promote, and monetize consumer demand in the initial phase of the new commerce pipeline as first introduced in a 2012 Forbes article. Consumers engaging in Pretail are known as early adopter, fan, backer, supporter, or presumer (pre-launch consumer).
Pretail demand is growing in consumer retail: electronics, movies, music, video games, books, fashion, software apps, connected devices, cars, toys, cosmetics, art, events, etc. This trend is being driven by companies to enhance new product development, better organize product releases, lower market risk, and increase early fan adoption. Large companies such as Amazon and Apple are pre-tailing new products to measure demand, manage supply chain market dynamics, and monetize fandom anticipation. Small companies are embracing crowd-funding platforms such as Kickstarter and Indiegogo before product realization to test product-market fit, fund manufacturing, and build fandom community. Consumer involvement with products and services pre-launch is becoming mainstream according to industry experts on consumer behavior trends. Kickstarter and Indiegogo are the major market players
India is one of the fastest emerging countries in m-wallet market. In the FY 14-15 alone, the revenue from m-wallet is 130% more than that of the previous year (survey says). It is expected that in the year 2022, $11.5 billion revenue will be generated by Indian m-wallet market. Currently, m-wallet for telecom and broadcasting vertical is the most used and most highly revenue generating one followed by banking vertical. But in the upcoming years, banking is expected to be the fastest growing vertical with the highest CAGR (Compound Annual growth rate)
INDIAN MOBILE WALLET MARKET TRENDS
- 89% consumers carry at least one merchant loyalty program in their card
- 78% customers are “frequently” or “sometimes” influenced by coupons
- 60% customers use it for comparison shopping
- 58% people feel wallet-based ticket management is very appealing
- 56% people do their bank activities using mobile wallet
- 56% people want location-based services and offers.
- 54 % people prefer alerts about coupon expirations etc.
- 51% use mobile for some purchase or other
- 41% people already use electronic receipts
- 20% people carry their phones but not wallets
REVENUE GENERATION MODELS
Dis-intermediation is the removal of intermediaries from a process, the cutting out of the middleman. In this case, wallets remove the middle men for Telecom, DTH, and companies. Now companies can give higher commissions
3.2 CONTENT SPONSORSHIP
A particular and distinct section of content located on a Web site that is sponsored often by a single advertiser. Often the sponsored content will coincide with the subject matter as well as the target demographic of the Web site. Paytm and freecharge do it through coupons. The huge customer base these sites (Paytm, Freecharge, etc) have will tempt the marketers to invest.
Example: Pepsi Paytm cash for Every One and half litre beverage bottle purchased.
3.3 DIVERSIFICATION OF RISK
For example; Paytm is now also into selling products, Bus Tickets). They outperform Competitors by using Percentage of Profits earned in other business which the parent company or other domains (Bus tickets, Products etc.) has, are channeled in the form of discounts to the Customers to keep them coming
MOST PREFERRED FEATURES OF MOBILE WALLETS:
- Location-based services (location awareness)
- Comparison shopping
- Loyalty programs
- Virtual receipts
- Digital coupons
- Secure transaction
- Speedy, one-click payment
- Transfer money from wallet to wallet and wallet to bank using mobile number or mail id
- Recharge and pay bills
- Online shopping and payment
- Request money, pay retail outlets, pay for tickets (movie, transport), hotel booking etc.
- Send gifts (e-gifting)
- Find nearby outlets (for cashless retail payments such as m-pesa)
- Issue credit or debit cards (only if authorized by RBI)
- Load wallet through cards, net banking, IMPS merchants etc.
- View transaction history, rewards etc.