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Forward Looking Machine Learning Algorithms

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What is derivzero?  In analytics we are often looking for the optimal solution and that often happens where the derivative is zero or flat.  derivzero uses data and ML/AI to find where these optimums occur.  For example, what price will maximize sales?  With price on the x-axis and sales on the y-axis, this typically happens at one point and that is where the derivative is zero. 

 

But running a grocery store is not that simple because today's retailers are having to juggle more than just sales.  Specifically, where should a retailer be setting prices to maximize gross margins and net income?  How about units and market share?  The challenge is many of these key financial measures usually do not align so focusing on one often comes at the expense of another. 

 

To further complicate matters, different parts of business are focused on driving different metrics.  For example, a CMO might be interested in driving market share, sales, and units, which generally only happens with lower prices. In contrast, the CFO is generally more focused on gross margin and net income which usually happens with increasing prices.  Unfortunately, many regional and local supermarkets are struggling and not understanding how to balance financials across the silos is only accelerating their underperformance.  The data and algorithms exist to help retailers find the optimum solutions that both the CFO and CMO can agree upon.  The solution is often where the derivzero!​​​

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