Slide 1: Artificial Intelligence & Innovation
ARTIFICIAL INTELLIGENCE & INNOVATION
Slide 2: Summary
SUMMARY 1. STRIVE FOR OPERATIONS EXCELLENCE THROUGH AI 2. INNOVATION AI & INNOVATION 2
Slide 3: Summary
SUMMARY 1. STRIVE FOR OPERATIONS EXCELLENCE THROUGH AI 2. INNOVATION AI & INNOVATION 3
Slide 4: AI and Innovation simplified – illustrative
AI AND INNOVATION SIMPLIFIED – ILLUSTRATIVE DATA SCIENCE KERING AND ARTIFICIAL INNOVATION INTELLIGENCE TEAM'S FOCUS Kering AI Image Recognition factory's focus AR & VR Chatbot Assistants Industrialization Blockchain Disruptive materials Delivery 4.0 5G Voice Commerce Adoption Proof of concept Awaren
Slide 5: AI is bringing a wide scope of game-changing applications
AI IS BRINGING A WIDE SCOPE OF GAME -CHANGING APPLICATIONS Topic extraction PLANNING Deep learning & OPTIMIZATION Translation Classification Predictive analytics LANGUAGE MACHINE PROCESSING LEARNING Machine vision EXPERT VISION SYSTEMS Image recognition Speech to text Text to speech SPEECH ROBOTICS
Slide 6: The AI factory relies on a large range of data sources
THE AI FACTORY RELIES ON A LARGE RANGE OF DATA SOURCES SALES DATA CRM DATA Sales in value Client contact Product volumes Segmentation Sales location and date Purchase behavior Opt-in/Opt-out PRODUCT DATA WEBSITE DATA Price Web views Style Color & Size Online Conversions Product Attributes SUPPLY DAT
Slide 7: AI will bring a competitive advantage to brands
AI WILL BRING A COMPETITIVE ADVANTAGE TO BRANDS: HENCE, WE ARE LEVERAGING THE BEST CAPABILITIES AND TALENTS TO ACCELERATE 2018 2019 2020 Phase 1 Phase 2 Phase 3 Prototyping & validating opportunities Building capabilities Scaling up & industrializing Implementing opportunities BUILD A UNIQUE TEAM IM
Slide 8: We prioritized AI projects among a large spectrum on the value chain
WE PRIORITIZED AI PROJECTS AMONG A LARGE SPECTRUM ON THE VALUE CHAIN DESIG N BUY ING PRO DUCT IO N LO G IST ICS ST O RE M ARKET ING SALE S & M ERCH . LAY O UT Buying Supply chain Trend Demand CRM & Markdown I P product P S Replenishment & Store-to-Store S C prediction planning clienteling optimizati
Slide 9: Focus on supply chain: Pythagoras project
FOCUS ON SUPPLY CHAIN PYTHAGORAS PROJECT: ASSIST PLANNERS IN OPTIMIZING STORE REPLENISHMENT STRATEGIES LIVE IN JUNE 2019 EXPECTED BENEFITS • Assist planners in optimizing product quantities to ship to stores in order to reduce What? inventory shortages and overstocks INCREASED FORECAST ACCURACY • St
Slide 10: Pythagoras results are very encouraging
PYTHAGORAS RESULTS ARE VERY ENCOURAGING FORECASTS VS. REAL SALES COMPARISON PRO DUCT CAT EG O RY A, EURO PE Pythagoras forecast Current forecast Real adjusted sales 2/12/18 9/12/18 13/1/19 20/1/19 27/1/19 10/2/19 17/2/19 24/2/19 10/3/19 17/3/19 24/3/19 31/3/19 3/2/19 3/3/19 18/11/18 25/11/18 16/12/1
Slide 11: Focus on pricing project: find the optimal markdown level
FOCUS ON PRICING PROJECT: FIND THE OPTIMAL MARKDOWN LEVEL OBJECTIVE: LIVE IN H2 2019 EXPECTED BENEFITS • Find out the optimal markdown level for each product What? • Start with women’s and men’s shoes in Europe for new 2019 Fall season HIGHER SALES • Develop new AI-driven price-sensitive sales forec
Slide 12: AI will have a wide impact on a large range of Kering activities
BEYOND SUPPLY AND SALES, WE BELIEVE THAT AI WILL HAVE A WIDE IMPACT ON A LARGE RANGE OF KERING ACTIVITIES AI CAPABILITIES LEGAL CUSTOMER SERVICE • Counterfeit detection • Inbound message ranked by priority • Trademark tagging Planning & Optimization • Personalized e-mail on product images _ proposit
Slide 13: Artificial Intelligence & Innovation
ARTIFICIAL INTELLIGENCE & INNOVATION 1. STRIVE FOR OPERATIONS EXCELLENCE THROUGH AI 2. INNOVATION AI & INNOVATION 13
Slide 14: Innovation at Kering
INNOVATION AT KERING OUR MISSION • Have a 360° view of key innovation trends • Prioritize key disruptions • Drive value by integrating disruptions into our business (through proof-of-concept and investment) AI & INNOVATION 14
Slide 15: Innovation governance
INNOVATION GOVERNANCE KERING INNOVATION ADVISORY BOARD Gucci Saint Laurent Alexander McQueen Balenciaga INNOVATION EXPLORERS W&J brands Kering Eyewear Bottega Veneta EXTERNAL NETWORK OF KEY PARTNERS AI & INNOVATION 15
Slide 16: Innovation roadmap
INNOVATION ROADMAP 1 DISRUPTIONS IMPACTING OUR 2 TECHNOLOGIES IMPROVING VALUE 3 ENABLERS BUSINESS MODEL TO CUSTOMERS & OUR PERFORMANCE M AT E R I AL D I S R U P T I O N S I N - S TO R E / O N L I N E / I N N O VAT I O N E C O S Y S T E M C L I E N T S E RV I C E S S E T- U P NEW BUSINESS MODELS In-s
Slide 17: Innovation funnel
INNOVATION FUNNEL INVESTIGATION EXPERIMENTATION PROJECT LIVE 1 2 3 4 IDEAS POC MVP ROLLOUT • Test feasibility • Assess tech/solution maturity • Test fit with • Roll-out at small scale • Run in production FOCUS • Assess what is at stake business need • Maximize learnings • Deploy • Identify features
Slide 18: Retail voice assistant
RETAIL VOICE ASSISTANT 1 2 3 4 IDEAS POC MVP ROLLOUT TOPIC Voice & Text assistant to help Client Advisors with retail procedures in order to maximize selling time on the sales floor BENEFITS FOR THE USER • Save time: Get an easy and immediate access to complex procedures • Better serve: Provide answ
Slide 19: Blockchain use cases being explored
BLOCKCHAIN USES CASE BEING EXPLORED 1 2 3 4 IDEAS POC MVP ROLLOUT AUTHENTICATION AND OWNERSHIP SUPPLY CHAIN TRACEABILITY & EFFICIENCY Blockchain: early stage technology but high disruption potential Various projects in progress to test where Blockchain brings the most value Agile approach to enable:
Slide 20: How will we measure our success?
HOW WILL WE MEASURE OUR SUCCESS? World-class ecosystem accelerating innovation vision and projects at Kering Houses Through business impact POC or MVP run with proven positive impact on business practices Deep expertise serving Kering Houses for a particular project AI & INNOVATION 20