Machine learning (ML) techniques are rapidly evolving, both in academia and practice. However, enterprises show different maturity levels in successfully implementing ML techniques. Thus, we review the state of adoption of ML in enterprises. We find that ML technologies are being increasingly adopted in enterprises, but that small and medium-size enterprises (SME) are struggling with the introduction in comparison to larger enterprises. In order to identify enablers and success factors we conduct a qualitative empirical study with 18 companies in different industries. The results show that especially SME fail to apply ML technologies due to insufficient ML knowhow. However, partners and appropriate tools can compensate this lack of resources. We discuss approaches to bridge the gap for SME.
Forecasting intermittent and lumpy demand is challenging. Demand occurs only sporadically and, when it does, it can vary considerably. Forecast errors are costly, resulting in obsolescent stock or unmet demand. Methods from statistics, machine learning and deep learning have been used to predict such demand patterns. Traditional accuracy metrics are often employed to evaluate the forecasts, however these come with major drawbacks such as not taking horizontal and vertical shifts over the forecasting horizon into account, or indeed stock-keeping or opportunity costs. This results in a disadvantageous selection of methods in the context of intermittent and lumpy demand forecasts. In our study, we compare methods from statistics, machine learning and deep learning by applying a novel metric called Stock-keeping-oriented Prediction Error Costs (SPEC), which overcomes the drawbacks associated with traditional metrics. Taking the SPEC metric into account, the Croston algorithm achieves the best result, just ahead of a Long Short-Term Memory Neural Network.
Digitalization increases the pressure for companies to innovate. While current research on digital transformation mostly focuses on technological and management aspects, less attention has been paid to organizational culture and its influence on digital innovations. The purpose of this paper is to identify the characteristics of organizational culture that foster digital innovations. Based on a systematic literature review on three scholarly databases, we initially found 778 articles that were then narrowed down to a total number of 23 relevant articles through a methodical approach. After analyzing these articles, we determine nine characteristics of organizational culture that foster digital innovations: corporate entrepreneurship, digital awareness and necessity of innovations, digital skills and resources, ecosystem orientation, employee participation, agility and organizational structures, error culture and risk-taking, internal knowledge sharing and collaboration, customer and market orientation as well as open-mindedness and willingness to learn.
Demand forecasting intermittent time series is a challenging business problem. Companies have difficulties in forecasting this particular form of demand pattern. On the one hand, it is characterized by many non-demand periods and therefore classical statistical forecasting algorithms, such as ARIMA, only work to a limited extent. On the other hand, companies often cannot meet the requirements for good forecasting models, such as providing sufficient training data. The recent major advances of artificial intelligence in applications are largely based on transfer learning. In this paper, we investigate whether this method, originating from computer vision, can improve the forecasting quality of intermittent demand time series using deep learning models. Our empirical results show that, in total, transfer learning can reduce the mean square error by 65 percent. We also show that especially short (65 percent reduction) and medium long (91 percent reduction) time series benefit from this approach.
The time has come : application of artificial intelligence in small- and medium-sized enterprises
(2022)
Artificial intelligence (AI) is not yet widely used in small- and medium-sized industrial enterprises (SME). The reasons for this are manifold and range from not understanding use cases, not enough trained employees, to too little data. This article presents a successful design-oriented case study at a medium-sized company, where the described reasons are present. In this study, future demand forecasts are generated based on historical demand data for products at a material number level using a gradient boosting machine (GBM). An improvement of 15% on the status quo (i.e. based on the root mean squared error) could be achieved with rather simple techniques. Hence, the motivation, the method, and the first results are presented. Concluding challenges, from which practical users should derive learning experiences and impulses for their own projects, are addressed.