Why AI-driven data categorisation is critical to your digitalisation journey

We had a high turnout for our recent webinar with Creactives, a firm that has 20 years of experience developing technologies to exploit the valuable information hidden inside business systems. Whether that data is structured, like from a PO, or unstructured, inside emails for example, it is essential that it is accurately classified and categorised in order to better understand your procurement processes, create reports, make good buying and business decisions, and importantly, steer your digitalisation process.

You can hear more about Creactives’ capabilities in the webinar here from Adriano Garibotto, Creactives’ Co-Founder.

In 2015 Creactives introduced AI into its technology development to allow users to explore deeper into their procurement processes. Our own Magnus Bergfors, VP European Research and Lead Analyst, gave a very practical and instructive presentation on why this was such an important move.

He gave a grass-roots explanation of data categorisation, the complexities of unifying it, and the common downsides of badly categorised data including what that can mean to an organisation’s overall efficiency. He began by explaining the different levels of analytics,* from descriptive to autonomous, and how good data categorisation is at the foundation of them, because an error at the first level will cascade up the chain. If the categorisation is wrong, it will result in wrong advice or recommendations, if the information is not categorised at all, you will not have enough data to feed the algorithms in the first place. He went on to explain the broader problems with advanced analytics and how an AI-driven, and non-invasive, technology can help solve them with its ability to recognise and identify patterns in large and complex data sets.

We then heard from Sebastian Kahlmeyer, Senior Vice President SCM Digitalization & Data Management, and Dominik Rheinheimer, Senior Manager SCM Digitalization & Data Management of Creactives’ customer Siemens, to get the real use-case scenario.  They gave an in-depth account of their digitalisation journey, their experiences of data categorisation as an essential part of it, and working with Creactives. They also explained the business benefits they had achieved through smart data and AI-driven automation.

There was a lot of interest from the audience, yielding a host of questions including:

  • How complex and time-expensive is it for a customer to implement an AI-driven categorisation system?
  • If AI classification has already been introduced in part of your system for reporting purposes, can the system be applied to the remainder?
  • What main challenges did Siemens face on their journey and how did they overcome them?
  • Can AI-driven categorisation offer a perspective on categories that traditionally are more difficult to categorise – like MRO?

To hear the answers to these questions, and to understand …

  • Why harmonised procurement data categorisation requires applied AI solutions
  • What potential the harmonisation and cleansing of procurement data offers and how you can determine ROI and
  • How to obtain full visibility of procurement data sets

… you can listen to the full webinar recording here.

 

* Earlier this year our advanced technologies analyst specialising in artificial intelligence, Michael Lamoureux, produced an excellent article on ‘The basics of analytics: 8 levels — and the AI leverage.’  He provides a basic look at the different levels of analytics — what they are, what to expect and what not to expect from each one, because as he says “not all analytics is created equal.” Read that here.

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