Computer Vision: Coming to a Store Near You - Brent Biddulph

1. COMPUTER VISION:
COMING TO A STORE
NEAR YOU
Brent Biddulph,
Managing Director,
Retail & Consumer Goods
Cloudera

2. © 2019 Cloudera, Inc. All rights reserved. 2
TOPICS TO BE
COVERED
• Retail Industry Trends
• Business Drivers
• Use Cases
• Potential Impact

3. Supply
Chain Agility
Industry
Convergence
New Digital
Disruptors
Commerce
AnywherePersonalized
Interactions
Distinctive Product
DevelopmentCustomer Centric
Merchandising
Data Perishability
(Real-time Actions)
Health, Home,
Hospitality
Regulatory & Tariffs
Data Privacy,
Security
Re-Imagining
Stores
China Innovation
TRANSFORMATIONALFORCESINRETAIL
Subscription
Services
Omni-channel
Fulfillment

4. © 2019 Cloudera, Inc. All rights reserved. 4
• Localized Assortment
• Promotional Planning &
Forecasting
• Price Optimization
• Demand Forecast
Accuracy
• Distinctive Products
(private label)
CUSTOMER CENTRIC
MERCHANDISING
• Click and Collect
• In-Stock Management,
Real-Time Response
• Frictionless Commerce
• Dynamic Pricing
• Traffic Flow, Dwell Time,
Conversion Analysis
• Workforce Optimization
• Loss Prevention
REIMAGINING
STORES
KEY BUSINESS DRIVERS IN RETAIL & CONSUMER GOODS
PERSONALIZED
INTERACTIONS
• Customer Profiles
(segments of one)
• Omni-channel Customer
Insight, Journeys, Paths
• Deliver Relevant and
Contextual Content,
Recommendations
• Social Media and Call
Center Listening with
Intelligent Response
• Inventory Visibility
• Fulfillment Network
Strategy, Cost to Serve
• In/Outbound Route
Optimization
• Product Shrink, LP
• Vendor Collaboration
(CPFR, Returns,
Markdowns)
SUPPLY CHAIN
AGILITY

5. © 2019 Cloudera, Inc. All rights reserved. 5
86%

6. © 2019 Cloudera, Inc. All rights reserved. 6
Mobile
Apps
ESLs,
Robots
Autonomous
Vehicles
Magic
Mirrors+
Shelf, Bin,
& Rack
Sensors
Surveillance
CamerasCompetitive
PricingSatellite
Images
Logistics &
Asset
TelematicsIn Home
Devices Frictionless
Checkout
RFID
Streams
SINGLE VIEW
OF CUSTOMER
FRICTIONLESS
COMMERCE
UBIQUITOUS
FULFILLMENT
RELEVANT
INTERACTIONS
OPERATIONAL
EFFICIENCY
Streaming Capabilities Enable New Insights, Right-Time Response
NEW DATA SOURCES EXTEND RETAIL INTELLIGENCE

7. © 2019 Cloudera, Inc. All rights reserved. 7
BUSINESS IMPROVEMENT
OPPORTUNITIES FOR
COMPUTER VISION IN-STORE
• Enabling Frictionless Commerce
• Improving Operational Efficiencies
• Improving Customer Experiences
• Reducing Fraud & Shrink
$410B
“AI / IOT ECONOMIC VALUE-
ADD IN RETAIL BY 2025, WITH
SOME OF THE MOST VALUABLE
USE CASES DRIVEN BY
STREAMING VIDEO
ANALYTICS.”
(MCKINSEY)
REAL-TIME PROCESSING –IMPROVED ACCURACY – DEEPER INSIGHTS

8. © 2019 Cloudera, Inc. All rights reserved. 8
Amazon Go Store
• Computer Vision (100s
of cameras on shelves, ceiling)
• Sensor Fusion (cameras,
shelf scales)
• Deep Learning (advanced
pattern recognition, 100s of
algorithm’s)
ENABLING
FRICTIONLESS
COMMERCE

9. © 2019 Cloudera, Inc. All rights reserved. 9
ENABLING
FRICTIONLESS
COMMERCE
Alibaba’s HEMA store
• Robots, apps, facial
recognition and
overhead conveyor
belts for fulfillment
delivery
• Using facial recognition
customers can pay
using their face - no QR
code nor credit card
swipe required

10. © 2019 Cloudera, Inc. All rights reserved. 10
IMPROVING
OPERATIONAL
EFFICIENCIES
Improve Footfall
Precision, Insights
• Improve in-store traffic
(footfall) accuracy
• Capture exterior ‘walk-
by’ (e.g. mall) traffic
• Capture anonymous
demographics (gender,
age, families)
• Enhance conversion
and customer service
measurement, actions
Insert foot traffic graphic

11. © 2019 Cloudera, Inc. All rights reserved. 11
CV OPPORTUNITY: IMPROVE OUT OF STOCK RESPONSE
24%

12. © 2019 Cloudera, Inc. All rights reserved. 12
IMPROVING
OPERATIONAL
EFFICIENCIES
Out-of-Stock &
Merchandising
Execution
• Out-of-Stock
Notifications
• Price and Promotion
Compliance
• Schematic & Display
Compliance
Photo Source: Retail Technology Corp.

13. © 2019 Cloudera, Inc. All rights reserved. 13
CV OPPORTUNITY: IMPROVE MERCHANDISING EXECUTION INSIGHTS
$174B

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Advertising &
Promotional
Execution:
• Proximity Marketing
• Audience and Shelf
Conversion Insights
• Day-Part Promotional
Execution
IMPROVING
OPERATIONAL
EFFICIENCIES

15. © 2019 Cloudera, Inc. All rights reserved. 15
IMPROVING
CUSTOMER
EXPERIENCES
In-Store Customer
Engagement:
• Identify VIPs, ensure
high-touch experience
(aka ‘clientel-ing’)
• Understand, respond
(anonymously) with
proactive customer
service opportunities

16. © 2019 Cloudera, Inc. All rights reserved. 16
CV OPPORTUNITY: REDUCING MERCHANDISE RETURNS
…IN MERCHANDISE IS RETURNED TO
RETAILERS EACH YEAR. AS MUCH AS 40% OF
ONLINE CLOTHING PURCHASES ARE
RETURNED.
SOURCE: NRF
$260B

17. © 2019 Cloudera, Inc. All rights reserved. 17
“Help Me, Help You”
• Simplifying the dressing
room experience
• Assist to complete the
‘look’ via cross-sell of
matching shoes,
accessories
• Reduce likelihood of
returns
IMPROVING
CUSTOMER
EXPERIENCES

18. © 2019 Cloudera, Inc. All rights reserved. 18
CV OPPORTUNITY: REDUCING FRAUD & SHRINK
“IN RETAIL INDUSTRY SHRINK,
(LOSS OF INVENTORY RELATED
TO THEFT, SHOPLIFTING, ERROR, FRAUD)”
…DIRECTLY IMPACTING THE
BOTTOM LINE.
SOURCE: NRF
$46.8B

19. © 2019 Cloudera, Inc. All rights reserved. 19
Loss Prevention in
Self Checkout
• Combining streaming
video with live POS
data (sensor fusion) to
determine if all items
are properly scanned…
• …send alerts to the
central cashier where
exceptions occur –
ultimately reducing
fraud / shrink.
REDUCING
FRAUD AND
SHRINK

20. 20
The use cases for CV are
promising…driving
meaningful business
impact, even creating new
revenue models
Frictionless Checkout
Loss Prevention
Customer Insights Customer Engagement
Dynamic Merchandising
Source: Ahold/Delhaize
Source: Caper
Source: Orbital Insight
Source: Aura visionSource: Trigo-vision
Neighborhood Insights Traffic & Conversion Autonomous Delivery

21. 21© Cloudera, Inc. All rights reserved.
COMPUTER VISION: CONSIDERATIONS
Approach considerations
• Purchase a point solution for the desired functionality
• Options: entire solution or just components
• Consideration: Black Box IP, Data Security
• Outsource development to design and implement a custom
solution using your existing data platform, infrastructure
• Consideration: IP Rights
• Implement the solution yourself
• Ensure current data platform, technology can support Edge to AI
• Consideration: Speed to Market, Metadata Extensibility
Assuming a compelling use case has been identified and key business
and IT stakeholders will be engaged throughout the process…
DIFM
DIY

22. 22© Cloudera, Inc. All rights reserved.
Deployment considerations
• Design considering current infrastructure for streaming data,
privacy and security, and ML model development iteration
• Method to feed data into model(s)
• Methods to interpret model output(s)
• System to chain together multiple models
• Ease of end-to-end operationalization at scale
• Translate from model output to human interpretable results
• Seamlessly move from test/learn to production
• Business use case requirements for streaming data (ingest, process, response)
COMPUTER VISION: CONSIDERATIONS
Assuming a compelling use case has been identified and key business
and IT stakeholders will be engaged throughout the process…

23. © 2019 Cloudera, Inc. All rights reserved. 23
Data Sources
From Edge to AI…
Data Ingest
Data Process,
Refine, Prep
Data
Discovery
Advanced
Analytics (ML/AI)
Enterprise Security, Governance, Controls (On Premise, Hybrid, Cloud)
Applications
Connected
Consumers
CLOUDERA ENTERPRISE DATA PLATFORM
Third –party

24. © 2019 Cloudera, Inc. All rights reserved. 24
ENABLING BUSINESS ANALYTICS & INSIGHTS
REAL-TIME
STREAMING
ENGINE
CENTRALIZED DATA
PLATFORM
ANALYTICS &
DATA WAREHOUSE
DATA SCIENCE/
MACHINE LEARNING
STORAGE & PROCESSING
ANALYTICS & INSIGHTS
Stream
Ingest
Ingest – Data
at Rest
Deploy
Models
BI
Solutions
SQL Predictive
Analytics
• Model Building
• Model Training
• Model Scoring
Actions &
Alerts
[SQL]*
Real-Time
Apps
STREAMING DATA
SOURCES
Clickstream
Video
Sensors
Social
ENTERPRISE DATA
SOURCES
CRM
Supply
Chain
Price &
Promo’s
POS Labor
Omni-
Inventory
From Edge to AI…

25. THANK YOU…