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EMPOWERING MACHINE LEARNING
SOLVING THE FORECASTING DILEMMA Tom Stanek & Jonathan Prantner
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EMPOWERING MACHINE LEARNING SOLVING THE FORECASTING DILEMMA Tom - - PowerPoint PPT Presentation
EMPOWERING MACHINE LEARNING SOLVING THE FORECASTING DILEMMA Tom - - PowerPoint PPT Presentation
EMPOWERING MACHINE LEARNING SOLVING THE FORECASTING DILEMMA Tom Stanek & Jonathan Prantner 2 Tom Stanek Jonathan Prantner President Chief Analytics Officer 3 Leading applied artificial intelligence and data science company from Ann
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Tom Stanek President Jonathan Prantner Chief Analytics Officer
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Leading applied artificial intelligence and data science company from Ann Arbor, MI Services and solutions
- Leading Domo implementation and consulting firm
- Custom artificial intelligence kick-start program
- RXA Studio
- Media Optimization
- Voice of Customer
- Workforce Optimization
Over 70 different customers across North America, Europe, and Asia. 2019 Domo Innovative Partner of the Year
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3 KEY TAKEAWAYS Solve
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Provide Domo
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The Forecasting Dilemma
Now what?
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WE NEED TO KNOW WHAT ARE SALES WILL BE NEXT QUARTER
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SALES ARE FORECASTED TO BE BELOW BUDGET...
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…WHY?
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…AND HOW CAN WE CHANGE THEM?
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Sales Decomposition
A Primer
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WHAT IS A SALES DECOMPOSITION
Market Mix Models decompose sales Volume Decomposition Due-to Analysis
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MARKETING MIX FORECASTING
Forecasting Sales using:
- Sales
- Inventory
- Pricing
- Marketing
- External Influences
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USE A PREDICTION MODEL TO DECOMPOSE SALES
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USE A PREDICTION MODEL TO DECOMPOSE SALES
Predict with the overall model Isolate each variable
– Set the variable equal to zero – Predict with the reduced model – Calculate difference
Scale each component to the total
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GET THE CODE AT: https://rxa.io/Domo
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DEPLOYING IN DOMO
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DUE TO ANALYSIS
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DOMO GETS THE RIGHT INFORMATION INTO THE DECSION MAKERS HANDS
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MARKETING MANAGER
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What Matters to Them:
- Media Performance
- Optimization
- Web Traffic
- ROI
- Sales
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MARKETING MANAGER
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What They Can Control:
- Budgets
- Schedules
- Mix
- Strategy
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MARKETING MANAGER VIEW
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MARKETING MANAGER VIEW
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MARKETING MANAGER VIEW
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MARKETING MANAGER VIEW
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MARKETING MANAGER VIEW
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MARKETING MANAGER VIEW
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MARKETING MANAGER VIEW
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PRODUCTION MANAGER
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What Matters to Them:
- Inventory
- Costs
- Workforce
- Demand
- Sales
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PRODUCTION MANAGER
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What They Can Control:
- Inventory
- Suppliers
- Production Calendar
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PRODUCTION MANAGER VIEW
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PRODUCTION MANAGER VIEW
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PRODUCTION MANAGER VIEW
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PRODUCTION MANAGER VIEW
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External Influences
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WHY CONTROL DATA Accounts for external pressures Improves forecast Provides context
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SIMPLE WITH DOMO
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EXTERNAL PRESSURES
Unemployment Interest rates Construction Weather Consumer Confidence
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IMPROVES FORECAST
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Without Proper Control Data With Ready Signal Control Data
Control data can significantly improve accuracy of models, but is often underutilized based on required effort and knowledge.
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DOES A 60-DEGREE DAY MEAN FEWER MOTORCYCLE SALES?
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PRODUCTION MANAGER VIEW
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PRODUCTION MANAGER VIEW
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EXECUTIVE TEAM
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What Matters to Them:
- Sales
- Profitability
- Growth
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EXECUTIVE TEAM
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What They Can Control:
- Strategy
- Resources
- Budgets
- Competitive Positioning
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EXECUTIVE TEAM VIEW
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EXECUTIVE TEAM VIEW
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3 KEY TAKEAWAYS Solve
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Provide Domo
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THANK YOU
& join us at our virtual booth!