Data war

For three years, Starbucks has collected customers’ image data. Its cameras analyzed the behaviors of every customer entering Starbucks coffee shop all over the world. By just changing the way of decorating coffee shops, the average revenue of each shop increased by 30 percent.

Truong Ba Toan, CEO of Western Digital Vietnam, told the story about Starbucks to show how ‘big players’ use AI to improve their business.

He said that the most important thing is knowing how to collect and use clean and accurate input data.

Ta Quang Huy, CEO of Hanwha Techwin Vietnam, spoke at a recent workshop discussing the potential of AI and image data analysis.

He spoke the success of a make-up chain thanks to the use of AI technology. AI cameras installed at its stores showed who bought products and which products they most favored. After the analyses, the business rearranged its booths, and changed its displays to fit shopping behaviors of each group of clients, including young clients aged 18-20, middle-aged and VIP clients.

The cosmetics chain has succeeded. It is now present in the four largest cities of Vietnam, including HCM City, Da Nang, Hanoi and Hai Phong.

Meanwhile, Andy Tran, CEO of Nova Technology, said Nova Group had an ambitious plan to develop a separate unit, making heavy investment in technology and AI to collect and use customers’ data. The group hopes sales will grow by 300 percent.

Prior to that, in May 2021, a group of investors, including Aibaba and Baring Private Equity Asia, spent $400 million to acquire 5.5 percent of shares of CrownX, the consumer and retail platform that owns Masan Consumer Holdings and WinCommerce (WCM). Under an agreement, WCM has become an essentials retailer on Lazada.

With the cooperation, WCM has synchronized 9 million existing customers with 20 million customers of Lazada to increase the capability of understanding customers thanks to data analysis.

Using AI

When should businesses begin using AI? The answer, given by Huy, is ‘as soon as possible’.

According to Huy, even small businesses should set up a small or medium system that could begin collecting data.

They need to learn every day also. For example, an AI camera, when seeing two motorbikes running side by side, may mistake them for a car. Software developers will have to redefine and update information about the objects so that AI can tell the difference between means of transport. More knowledge will be accumulated through the learning process.

During Covid-19, Western Digital’s hard disk drive manufacturing factory in Thailand faced problems related to logistics.

One hard disk drive is created from thousands of components. In order to solve the problem, the business decided to put AI chips on each container of goods.

Data about the itinerary of ships and the components the ships carried was analyzed. AI predicted how long the transportation delays would be because of Covid-19, so managers could use alternative solutions or use other ships.

The use of AI helps the operation costs of the hard disk drive decrease by 32 percent and increases productivity by 60 percent, which saves hundreds of million of dollars for Western Digital Thailand, according to Toan.

However, Toan stressed that the figures are results of a long process of collecting and analyzing data over the last 15 years, not only during pandemic months. So, if enterprises want to use AI, they should begin right now.

Deputy Director of VCCI (Vietnam Chamber of Commerce and Industry) HCM City Tran Ngoc Liem said AI and Big Data are the core factors of the 4.0 industrial revolution. If enterprises don’t utilize AI and don’t analyze data, especially image data, they will be defeated by rivals who carry out solutions to monitor consumer behavior.

Liem said AI can bring three things to businesses. First, it makes differences. Second, it optimizes benefits. Third, it helps build data culture.

According to P.A.T. Consulting’s CEO Phi Anh Tuan, much useful and cheap data exist nowadays and if businesses can exploit social networks, they will be able to collect data. This, plus with AI, will allow businesses to make the right decisions.

“Business units should build digital assets early. Collect useful data and simplify complex problems to start the game with AI,” Tuan said.

In related news, the Government in mid-2021 issued a national strategy on development and application of AI till 2030, under which Vietnam will become an AI hub in the region and the world. 

Tran Chung

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