Machine learning is a type of artificial intelligence that analyzes previously collected data and statistics to learn normal behavior. The purpose of machine learning is to promote positive customer experiences by learning what they like and automatically present the more desirable function or item.
If you use the Internet, chances are that you have already been subject to machine learning. Major companies such as Google, Facebook, and Amazon have already benefited from using this method on their customers. To better understand how machine learning works, let’s examine how much machine learning affects our everyday lives.
Whenever you check your email you may notice you get emails from your favorite stores telling you about products you might like based on previous purchases; or sometimes you might take one of those silly online quizzes that examines your Facebook profile; or maybe you receive an alert from your bank or an identity protection service due to unusual activity with your account(s). These are all examples of how machine learning works, because those companies have software that monitor your activity and, without manual programming, determine your normal activity and interests. As you might have noticed from these scenarios, machine learning is a predecessor of Internet of Things (IOT) in a way, with machine learning being a piece of the bigger IoT puzzle.
What are the new Dynamics Machine Learning features?
You might be thinking, “That’s all fine and dandy, but what’s in it for me as a manufacturing business owner?” I’m glad you asked, because for the first time ever Microsoft has made the power and benefits of machine learning available to any business that owns Dynamics 365 for the Cloud (online) and/or Dynamics CRM 2016.
It’s all made possible by Azure Cognitive Service’s integration with Dynamics 365 (online). Azure’s capabilities allow its users to utilize pre-built Machine Learning Application Program Interfaces (APIs) for product recommendation, customer churn prediction, and other APIs. Within the Dynamics 365 solution, the product catalog already has the basic ability to link various products together to try to cross-sell, upsell, and/or include a product’s accessories as recommendations.
In the past, small businesses would have a hard time trying to use machine learning because of a lack of data, but today Google’s Prediction API has made it possible for businesses of all sizes to get on the machine learning bandwagon.
How can Machine Learning benefit my manufacturing business?
Machine Learning is one of the many ways Dynamics 365 for Operations can add value to your business. One of its obvious functions is to enable your company to increase the total value of a sale. It can also improve customer service through speedy resolutions to customer cases using previous cases that deal with the same problem. But what you may not know is that predictive data analytics can also improve production rates and its overall quality.
According to a report by General Electric, predictive analysis can improve manufacturing efficiency by:
- As much as 20% of production capacity is recovered from the preventative maintenance of factory equipment, thus increasing their reliability.
- Comparing the business function infrastructure to business process needs, which improves efficiency by 2% and lowers material consumption by 4%.
- Predictable/reliable production volume allows finished goods' “cushions” to be reduced by 30% or more.
- Comprehensive quality data can be shipped with the product, thus reducing product malfunction by 20% and fulfilling customer traceability requirements.
Dynamics 365 for Operations is a step into the future of ERP and supply chain manufacturing. Part of that future is machine learning, and as Dynamics 365 makes it more available to mid-sized and even small businesses, it will continue to become the new standard for competitive manufacturing operations.
Clients First is an experienced Value Added Reseller that specializes in optimizing manufacturers, project-based manufacturers, MRO (maintenance, repair and overhaul), and professional services businesses through the power of all-in-one ERP solutions. Clients First implements and supports clients across the U.S.A. and in 11 other countries. Our team of experienced professionals are ready to help implement the best finance and operations solutions for your business today! Please contact our Texas sales team at 800.331.8382, or sales@clientsfirst-tx.com for more information on our offerings from Acumatica, NAV, Dynamics AX On-Premise, or Dynamics 365 for Operations. Or, contact our Minnesota sales team at 877-428-7205, or email info@clientsfirst-ax.com.
Sources: Microsoft, The Manufacturer