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- Traditional Retail Merchandising and Planning Is Dead – AI Is the Next LevelAugust 29, 2018
- AI Is to POS What the POS Was to Cash RegistersAugust 29, 2018
How “System Mindfulness” is changing the FMCG Industry
- May 07, 2018
- By Daniel Palmer
We often think of robots and artificial intelligence in one of two ways: either mechanical robots that complete manual actions for us, like the machines you find on an assembly line, or we envision a total replacement for a human, a fully functioning being that can think, reason, and maybe even feel. Current AI solutions are like those assembly line robots – they each have one job, and they can only do that one job. The key to driving the next wave of innovation is to build “System Mindfulness”.
Humans have a sixth sense called “Proprioception” or “Kinesthesis”. It is the sense of position and movement produced by the nervous and connective tissue systems. The future lies in such systems of solvers communicating with each other. An example of this is the systemic video game. This video gives a great example of how developers have made it possible to have extraneous parts of a system interact with and react to each other by issuing outputs and receiving inputs. In this way, the system is actually mindful, it has “Proprioception”.
How this relates to HIVERY and our AI solutions
The video game industry is one of the few that has already tapped into and taken advantage of system mindfulness. But the options are literally endless for where this technology can be applied, and the FMCG industry is no exception. HIVERY’s vending machine analytics and other projects in development (planogram, promotions and category management), has already proven that artificial intelligence can fundamentally change the FMCG industry. Being able to digest and report data quickly is not enough, you have to understand how changes in one aspect of the business directly affect outcomes of other parts – and this is what HIVERY has done. Read more about it here.
What does mindfulness look like in retail?
There are 4 P’s in retail: product, price, promotion and placement. We have developed separate “solvers” to optimize each one. When these components are connected, like the nerves and connective tissues in our bodies are connected together, these parts simultaneously and interdependently work in a “mindful” way to ensure they make the overall optimal recommendation to achieve the instructed objective. In this case, the objective of driving more profit.
We think of our solvers as muscles in the body. Each muscle can grow and get stronger independently but they work together to achieve the objective set by the brain. In retail, the objectives are set by the executives, and our products connect the muscles to the brain. We couple cutting edge algorithms (muscles) with elegant UX design (nerves) to not replace human intelligence but to augment or amplify it.
Fundamentally, these solvers work as independent “microservices” – each of them taking in and interpreting massive amounts of data to solve a narrow question. Each service individually can grow and develop in sophistication based on the needs/objectives of the situation. Then by carefully connecting parts of the answers from one solver to the others a new “System Aware” solution can be derived. Even simple solvers layered in this way create sophistication and intelligence. This is the entire unique idea behind System Mindfulness, and it is what makes HIVERY technology so unique.