4 ways AI can increase your business profits magically
A business don’t just turn profitable. It takes hell lot of efforts, research and implementation to set up affordable pipeline. You need plan, strategies and knowledge to make things merrier. Well that’s totally another topic of discussion but today I am going to discuss about few ways that can instantly make you more money out of your business. So without further a do, lets start !
1. Reduce manpower
What if you can replace human eye with AI ? There are numerous tasks that just require visionary inspection such as security surveillance, monitoring manufacturing units, waste segregation etc. A lot of manpower is required to just monitor them and take actions if something goes wrong. Instead computer vision based smart CCTV cameras can detect anomalies , security threats, segregate waste into plastic – non plastic (for instance) etc and reduce human interference.
Some manufacturing plants equip manpower to check the quality of the product such as packaging defects, size, structure, color of the product etc. This can also be replaced by AI based computer vision systems that are trained to test the predefined parameters in quality check and thus reduce man power.
NLP based AI solutions can also perform admin tasks such as document classification, automate billing processes, data entry etc.
Such systems are costly but they are one-time investment and can work much better than humans as computers don’t get tired, neither do they need cigarette breaks or turn lazy after lunch break :)
Think In Bytes have developed a computer vision based pool surveillance drown detection system which has eradicated the need of pool guards across private pools and water-parks.
2. Sales prediction
A sales forecast predicts what a salesperson, team, or company will sell weekly, monthly, quarterly, or annually. Forecasting financial flow allows you to predict the funds you have coming in against your anticipated costs. These forecasts allow you to understand when you will have the funds available to wisely invest in growth without sacrificing much needed capital for your day-to-day business expenses. Sales prediction is not easy. It includes multiple scenarios based on your business such as seasonality, market condition, government policies, consumer demand, innovation in technology etc. Businesses usually spend thousands of dollars seeking financial advices for future planning. What about replacing the same with AI ?
AI based prediction algorithms understands your past data, forms correlation and patterns between different parameters and accurately predicts sales and overall profit. With just click of a button, you can view how your business is performing currently with respect to your annual or quarter goals. Do you want to expand locations, invest in a new application or hire additional staff? These can all be great investments to grow your business if you have the funds to invest in them. Accurate sales forecasting allows you to predict the funds you have coming in against your anticipated costs.
Consistent and accurate sales forecasting allows you to identify potential issues while you still have time to address them. By consistently reviewing your team’s pipeline you are likely to notice trends that are out of the norm. For instance, if your team is trending 40% lower than where they should be in sales at that point in the month you can start investigating what is causing this dip.
AI based prediction systems not only helps in better finance planning but can also reduce thousands of fees that you pay to your financial advisor.
3. Predictive Maintenance
One of the major recurring costs that businesses spare is maintenance cost to keep huge machineries up and running. But most of the maintenance is hard-scheduled without analyzing whether maintenance is needed or not. Such unwanted maintenance costs can be reduced using AI.
AI based predictive maintenance system can monitor machineries 24/7 and predict exactly when the machine would require maintenance or service. Such systems can also help in avoiding major accidents and thus prevent disruption of production line. Some complex machineries if disrupted, takes days or even weeks of repairing time which could incur huge business losses. IOT based sensor data can be used for analyzing machine condition and predict future states and maintenance requirements.
Think In Bytes have recently developed wind energy prediction system implementing AIOT – junction of AI and IOT where accurate wind energy forecast have reduced grid management costs and government penalties by 60%
4. Inventory Management
Let me start with an example of a famous car manufacturer – Toyota. Toyota had streamlined their JIT business model since its first adoption in the 1970s and after 15 years, it was truly optimised in every sense. However, in February 1997, a manufacturer they used for brake valves experienced a devastating fire which eradicated all stock and rendered them unable to supply Toyota. The manufacturing giant had to scramble to find an alternative supplier in the two days after, however shutting down supply for two days cost them $15 billion and 70,000 cars. Though this sounds horrific, it could have been significantly worse.
Hope this makes you understand how significant it is to maintain your inventory. Many experienced traders forecast consumer demand and stock up raw materials at a low cost and sell at the market price when demand goes up which helps them make huge profits. So, what if AI can help you bridge the gap between consumer demand and manufacturing supply ?
AI based prediction models can accurately tell you how much you need to stock up. You can also leverage computer vision based inventory management where cameras can detect items on the shelf and notify you when shelf is about to get empty. AI models can take into consideration different market parameters and recognise customer demand patterns and thus help you effectively manage your inventories saving extra costs and make you more profit !
In a nutshell
This techniques and methods may seem naive and doubtful at first sight but there has been numerous cases where AI has been proven to increase business ease and profits. According to Gartner’s survey of 2019, 37% organisations have started using AI which means 1 out of every 3 business use AI. The latest data shows that the market size of artificial intelligence was valued at $27.23 billion in 2019 (Fortune Business Insights, 2020). This figure is projected to reach $266.92 billion by 2027 – a nearly tenfold increase in just eight years !
Connect with Think In Bytes to discuss how can you bring ease and profits to your business using AI.
