From physical world to online business

..or how to teach computers to do the human work

Stanislav Majlath 25.10.2016

Agenda

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• How we build our webshops

• How we should build our webshops

• Human versus computer

• Future view

How we build our shops

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How we SHOULD build our shops

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How we SHOULD build our shops

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The importance of the online store

• Primary source of income in the future

• Great company presentation

• Serves unlimited amount of people

• Potentially costs less with significantly better impacts

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Collaborative filteringNeighbor-based algorithms

Calculates the similarity between two objects

• User-based algorithm

• Find users who share the same rating patterns with the active user and calculate a

prediction

• Item-based algorithm

• Build a matrix of items determining relationships between pairs

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Memory based Model based

Hybrid

Memory based approach

r ratingu useri itemu’ user in the setU set of top usersN number of users in set

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In user based approaches, the value of ratings user u gives to item i is calculated as an aggregation of some similar users' rating of the item where U denotes the set of top N users that are most similar to user u

who rated item i

Let's do a small exercise

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?

Let's do a small exercise

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?

Let's do a small exercise

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?

Let's do a small exercise

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Human versus Computer

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Model based approach

• Computer learns by itself by using training data

• Data mining

• Machine learning - real time

• Different algorithms

• Bayesian networks

• Neural embedding models

• Clustering models

• Latent semantic models

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Summary

• Finding patterns easily

• Making predictions easily

• Autonomous salesperson

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Thank You

www.frosmo.com

Stanislav MajlathSenior Web Application developer - Competence Coach

stanislav.majlath@frosmo.com