ChatGPT falls short in this area, but without most people realizing it, alternative approaches have emerged. One of the earliest forms to appear on the business scene was co-authored with: John DC Little at MIT. Few algorithms had been developed to mimic PhD econometricians in the way they detect trends, fluctuations, and anomalies in massive datasets such as those produced by optical scanners in grocery stores.
To put the intelligence into action, the “authoring” or “generating” layer of the algorithm writes notes to marketing managers. For example: “Your competitor has a promotion in Cleveland that seems like a tactical experiment. You have three useful options: 1. Watch and learn. or 3. Move your product to the end of the aisle to get your share in Cleveland.”
The final layer is distribution. The memo is sent to the manager in real time by email, text message, or other means.this article Little highlights how the technology was implemented at Ocean Spray Cranberries, a fruit processing cooperative.
INSEAD’s commitment to AI-powered business intelligence
Full disclosure: I am Little’s academic “grandson.” His student, Leonard Roddish, chaired my dissertation at the Wharton School. At INSEAD, former Director of Executive Education Arnold De Meyer has given the TotoGEO AI Lab a small budget to create executive education materials tailored to each individual participating in the two-week program. . A common subject covered was strategic planning, but for example, a participant in the semiconductor industry would receive course material focused on that industry, while another participant in the same room would receive material on the toothpaste industry.
done. No matter how obscure the participants’ industry (such as copper oxychloride), the course program was of maximum relevance and impact. We received feedback from participants such as, “Can I meet the analyst who created the materials?” With this encouragement, we set out to enhance his AI-powered approach.
The idea is simple. Prior to his university career, he worked estimating the market potential of cellular networks in small geographic areas. These estimates were found to be useful for optimized modeling of cell sites. I have also worked in the Caribbean, Asia, Africa, and the Middle East, estimating the export potential of companies, some of which manufacture lesser-known products such as shower curtain rings and toilet seats. there was. Naturally, the more obscure a product is, the less information about it will be published. Just google the market potential of shower curtain rings in Sri Lanka.
Foreign direct investment in such countries is hampered by the lack of data necessary to conduct full due diligence. In fact, information asymmetries between buyers and sellers have long been cited as the reason why companies are unable to sign very important contracts. The problem is particularly acute for small underserved communities, especially those in emerging economies. AI algorithms can mitigate these asymmetries by focusing on the long tail of traditionally remote products, thereby increasing opportunities for investment, employment and value creation within these regions. can.
INSEAD’s TotoGEO AI Lab has set out to create algorithms that leverage a variety of economic theories (proposed by and others). John Maynard Keynes, Franco Modigliani, Milton Friedman, Irving Fisher, etc.) Extrapolate from a sparse dataset. This involves accurately estimating consumption of a particular product category in one country, making necessary adjustments for local conditions, and then applying that consumption pattern to other countries. Once the quote is generated, the algorithm processes the entire content creation value chain, including all metadata, marketing materials, and distribution. Maid Co., Ltd. was an early distributor. Others soon followed.
Our algorithm-generated reports cost less than US$1,000 for even obscure products, covering markets in all countries and cities. Even if the data is not readily available online, the algorithm faces a “data desert” (i.e. only sparse data available, or only “dirty” data available for use in its raw form). Imitate economists who are
Uber’s pitch deck and other reactions
Over the years, hundreds of Fortune 500 companies have purchased one-off surveys or subscribed to TotoGEO’s algorithmically-generated entire catalog. Perhaps the most interesting is Uber (then he was known as UberCab), whose now famous 2009 report cites him in one of our reports. pitch deck:
