Article by : CA Sushil Adhikari on Thursday January 16, 2020
Over the years of the Business Industry, the industry has created its own data which is now the new oil of the world. And the funny thing is everyone has their own oil to generate business energy. Data is shaping the business framework all around the world and transition to Nepal and Nepal’s Business Industry is destined to arrive sooner or later. We all have witnessed the transition from manual bookkeeping to the use of accounting software and business intelligence. In the same way, business has changed its core strategy with the use of technology, like big tech giants are now the biggest advertising company around the world. In Nepal as well rise of the online marketing platform is clearly visible adoption of technological change. We can clearly see the trend, this is the time each business and business professionals need to update their technological skills.
Business professionals are responsible to take a business decision and many of those decisions are made on the basis of analytical review based on different interdependent variables, and here comes the catch, human brain has limitations, we might think better with five or six dependent variables but not with 100s of variables. Even the best strategy makers around the world are supposed to think of only seven strategies at a time. Businesses can overcome these limitations through the use of Machine Learning Algorithms (MLA). Different MLA can be designed for different business problems. Using MLA for discovering hidden patterns, will shoot business into new dimensions.
Supervised Machine Learning Algorithms can be used for Classification problems, Regression Problems and Face as well as Customer behavior detections.
The major advantage of using a supervised machine learning algorithm is the prediction of variable outcomes and it could be diluted well with price predictions and trend forecasting in sales, retail, stock market, and e-commerce.
Fig: Visualization of Multi Linear Regression Analysis of Nepal Commercial Bank Price.
Here is the 3D visualization of share price with respect to EPS and PBV ratios, the red dots that are above the blue line are undervalued and those which are below the line are overvalued. The use of Supervised Learning is beyond our thinking. Anyone can come another day with a different idea.
Unsupervised machine learning is used now for exploring the structured pieces of information, increasing efficiency, clustering and finding biased data.
Clustering and Anomaly Detection are best used when we have large data sets. Industries like Banks, Insurance, E-commerce and Health sectors are the first adopter.
As a professional we should be prepared for the changing world, AI is an opportunity as well as a threat for all around the world depends on how we use it. As in 1900s, with the development of the transportation vehicle world has lost the animal transportation medium and created jobs for drivers who have the skill, in the same way, manufacturing automation has lowered the cost whereas it made a lot of people unemployed. I urge my fellow professionals to acquire machine learning and deep learning skills to adapt the changing scenario. It’s not that far when an A.I. can do accounting better than we are doing and write reports better than us.
For students, who are aiming to become business professionals it is the best time to have new skills added to their cv and get ahead of the aging civilization. Go explore the world sky is only limit.