can machine learning help drive value from assets?

CAN MACHINE LEARNING HELP

DRIVE VALUE FROM ASSETSGeorge W. Earle

Director, Global Commercial OfficeThoughtWorks Inc. Chicago, IL Produced by:

The Store Is Dying

Due to Corp. Inability to Incorporate Learning

Due to Intelligently Connected Retail

The Store Is Not Dead

WHAT I’LL COVERINTRODUCTIO

N to Problems that are becoming untenable?

SITUATION Requiring Machine Learning Capability if Possible

ACTIONS and Decisions to be Taken RE: Machine Learning

RESULTS of Asset Owners, Does ML Help?

POINTS to Take HomeKeyQUESTIONS

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INTRODUCTION

INTRODUCTION TO PROBLEMS IN TWO INDUSTRIES

INDUSTRIAL MACHINERYThoughtworks helps the

Machinery industries (Heavy Equip, Manufacturing, Utilities) with their Aftermarket Sales & Asset Operations challenges

AIRLINESWe also help the Airline industry with their Asset

Utilization challenges and in the future, Asset

Availability

From the 1800s through the present, there has been an accelerating evolution of interaction, networking and device technology, and the near future will bring interaction modes that are increasingly transparent and always available.

As industries migrate to these new technologies, enterprise technology ecosystems must incorporate them or risk losing their customer relationships to disruptive tech startups.

ASSETS (EQUIPMENT, DEVICES, CONTROLLERS) & IOT

What is being done with all this data? 1. Proverbial Heads promptly enter the sand - or2. Dismember and Analyze it to death - or3. Intelligently Connect and Feed-it-back

From the 1800s through the present, there has been an accelerating evolution of interaction, networking and device technology, and the near future will bring interaction modes that are increasingly transparent and always available.

As industries migrate to these new technologies, enterprise technology ecosystems must incorporate them or risk losing their customer relationships to disruptive tech startups.

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SITUATION

SITUATION REQUIRING MACHINE LEARNING CAPABILITY - 1

Equipment Aftermarket Situation 1

Client needed to provide equipment servicing opportunities for their dealers, based on pre-fixed schedules & equipment usage data

Existing solution wasn't scaling, didn't provide reliable answers

SITUATION REQUIRING MACHINE LEARNING CAPABILITY - 2Equipment Servicing Situation 2

Airlines have 100s+ planes with unplanned maintenance events

Different Airlines have different unplanned maintenance rates 2.5 Zettabytes / year

are not going to be BI analyzed

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ACTIONS

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ACTIONS AND DECISIONS TO BE TAKEN RE: MACHINE LEARNING

MACHINE LEARNING IS NOT

ACTIONS AND DECISIONS TO BE TAKEN RE: MACHINE LEARNING

What is all the fuss about?

Current solutions don’t adjust, use estimates, intuition, and numerical analysis.

Machine Learning mathematics use equations that through SW can self adjust.

So Machine Learning isn’t a fad, since it is modern mathematics.

“Use of algorithms will … [be] part of tomorrow’s management vocabulary as, say, profit”

Ram Charan – Executive Consultant, author of the bestselling book, Execution

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MACHINE LEARNING BASICSStatistics have fixed parameters. Machine

Learning models have self-adjusting parameters.

Supervised Unsupervised Reinforcement

MachineLearning

ACTIONS AND DECISIONS TO BE TAKEN RE: MACHINE LEARNING

One dim regression underestimates risk, hides

insight

Phase 1.0 - 4.0 Strategy

Accumulation Stage – Big Data 1.0

Prediction Stage - Insight2.0Prescription Stage – Behaviour 3.0Machine Collaboration - Action4.0

McKinsey & Company

RESULTS

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RESULTS OF ASSET OWNERS, DOES ML HELP? Equipment Aftermarket Situation 1

1 Created scalable solution that provided reliable predictive answers

2 Forecasted servicing time for customers using arithmetic progression + sales feedback

3 Success measured in dealer take-up

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RESULTS OF ASSET OWNERS, DOES ML HELP? Equipment Servicing Situation 2

1 Application* receives real time engine, aircraft data, flight plans

2 Optimizes fuel economy, anticipates maintenance, avoids downtime

3 Success from carrying optimal fuel level, pre-positioning parts ahead

*MS Azure/ Rolls Royce

KEY POINTS TO TAKE HOME

WHAT ADVANCED ASSET OPPORTUNITES ARE CLEAR AND

PRESENT?You are acquiring a ton of data and can’t get the right insights• Focus on the 1.0 to 4.0 strategy to

output intelligent data and analytics• Augment staff Subject Matter

Expertise with intelligent analytics• Tie analytics for intelligent Actions

directly to dramatic improvement in financial KPIs

• Look for partners who create competitive & personalized solutions

DATA

INSIGHTS

ACTIONS

QUESTIONS

Questions?

George W. EarleDirector Global Commercial

Office ThoughtWorks Inc.

Gearle@thoughtworks.com

George W. Earle Director Global Commercial Office

ThoughtWorks Inc.Gearle@thoughtworks.com

DRIVE VALUE FROM ASSETS