1 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

2 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

aich nin the

food

Danny LinPrincipal,

Analytics & Cognitive

How Companies are Using Disruptive Technologies to Win in the Meat Aisle

3 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Artificial Intelligence is the science of making machines do things that would require intelligence if done by men

Marvin Minsky

4 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

5 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

6 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

A I I N T H E F O O D C H A I N

7 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

8 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

9 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

10 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

11 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

12 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Today, we will discuss…A I I N T H E F O O D C H A I N

INGREDIENTSA “consumer grade”

overview of relevant AI technologies

MEALSAn exploration into high

impact opportunities across a grocer’s enterprise

CHEFSResearch, learnings, and

recommendations for those structuring and executing

Simple ingredients

14 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

BEEF, WATER, CONTAINS 2% OR LESS OF:

SALT, SODIUM LACTATE, SPICE,

HYDROLYZED SOY PROTEIN, PAPRIKA,

SODIUM DIACETATE, GARLIC POWDER,

SODIUM ERYTHORBATE, SODIUM NITRITE,

FLAVORINGS

BEEF, WATER, VINEGAR, SEA SALT,

SMOKED PAPRIKA, PEPPER, GARLIC,

CUMIN, CAYENNE

15 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

INGREDIENTS: BIG DATA, IOT,

UNSTRUCTURED DATA, EDGE

COMPUTING, ARTIFICIAL

INTELLIGENCE, MACHINE LEARNING,

AUTOMATION, AUGMENTED REALITY,

VIRTUAL REALITY, VOICE, CLOUD,

BLOCKCHAIN, APPLICATION PROGRAM

INTERFACES

WARNING: CONTAINS BUZZWORDS

INGREDIENTS: FAST, GRANULAR,

CONNECTED, SMART, INTUITIVE,

SIMPLE, CONSISTENT

CERTIFIED ORGANIC GROWTH

AND INEFFICIENCY FREE

16 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

A I I N T H E F O O D C H A I N

Simple AI ingredients

Machine Learning

ComputerVision

Physical & Software Robotics

ExpertSystems

Natural Language

Processing & Generation

17 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Machine LearningAbility of statistical models to develop capabilities and improve their performance over time without the need to follow explicitly programmed instructions

A I I N T H E F O O D C H A I N

Recipe Generation

IBM Watson

Autonomous Recruiting

Unilever

Dynamic Pricing

Perfect Price

18 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Whole Foods - Paleo

19 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Expert SystemsAn artificial agent which leverages pre-programmed expert knowledge to offer advice or make decisions

A I I N T H E F O O D C H A I N

Predictive Maintenance

Rockwell Automation

Retail Floor Sensors

Scanalytics

Smart Refrigerators

Samsung

20 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

21 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Computer VisionThe automatic extraction, analysis, understanding of, and engagement with images or videos

A I I N T H E F O O D C H A I N

‘Try On At Home’ AR

L’Oréal's Style My Hair app.

Virtual Merchandising

Tesco

Autonomous Check-Out

Amazon Go

22 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

23 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Natural Language Processing & GenerationThe automatic extraction, analysis, and generation of human language

A I I N T H E F O O D C H A I N

Speech Interface

Amazon Echo

Tone Analyzer

IBM

Sentiment Analysis

Sephora

24 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

25 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Physical & Software RoboticsThe science of designing, constructing, operating, and applying robots to solve human problems

A I I N T H E F O O D C H A I N

Robotic Beef Rib Cutting

Scott Automation

Robotic Process Automation

Blue Prism, Automation Anywhere, UI Path

Robotic Store Audits

Bossa Nova

26 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

Crafting exquisite “meals” in grocery

29 | Copyright © 2018 Deloitte Development LLC. All rights reserved.Money Ball | Columbia Pictures

30 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

31 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

A I I N T H E F O O D C H A I N

Winning in merchandising and sales

“Algorithmic Merchandising and Selling”

Leverage local customer data, comparable store data and machine learning algorithms to serve store managers recommended actions to drive revenue.

Other Recipes Machine

Learning

Spotlight Meal

Meal Examples

Cognitive Ingredients

• Dynamic optimized pricing

• Buzz to need displays

Natural Language

Generation

Airline Credit

Department and

In-Flight Service

Retailer In-Store

Ops Management

Recommendations

Food & Beverage

Local In-Store Sales

Consultants

32 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

A I I N T H E F O O D C H A I N

Winning in marketing and promotions

“Personalized messaging and content”

Leverage machine learning and natural language generation to deliver personalized messaging, offers, and content to customers at scale, while matching unique customer preferences

Other Recipes

• Customer behavior prediction

• Link inventory management systems with programmatic advertising

Spotlight Meal

Meal Examples

Cognitive Ingredients

Machine

Learning

Natural Language

Generation

33 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

A I I N T H E F O O D C H A I N

Winning in store ops and fulfillment

“Automated picking system”

Leverage physical robots to automate the picking process. Next Gen automated picking systems are small enough to install in stores, opening the door to same-day service for retailers

Other Recipes Physical and

software robotics

• Predictive maintenance

• Quality failure detection

• Inventory management item master robot

Spotlight Meal

Meal Examples

Cognitive Ingredients

Computer

Vision

Expert Systems

34 | Copyright © 2018 Deloitte Development LLC. All rights reserved.

aich nin the

food

Danny LinPrincipal,

Analytics & Cognitive

Questions?