This uses the latest generation of Big Data and Machine Learning, available through Artificial Intelligence systems. In the center of excellence, Steering Lab is working with 150 experts, working in Budapest and Munich, and implementing projects for clients in any part of the world. Based on a company's digital data analysis, Steering Lab creates qualitative and quantitative models and offers solutions for different business challenges: from sales growth, to product development, productivity gains, cost reduction, development and implementation of cross-selling strategies and so on.
The value of a consulting project, including the Steering Lab solutions, averages between 100,000 and 200,000 euros, and its duration may vary from three to six months, depending on the complexity, the themes and the amount of data to be analyzed.
Steering Lab uses databases that contain digital information about the company, such as: number of transactions, sales and customers, value of acquisitions and profits, figures related to the industry to which the customer belongs.
"Through the Steering Lab, we provide our clients with all the necessary knowledge and tools to transform data into predictive models, decision making, optimization and learning. We have developed the center of excellence Steering Lab in about two years, building successful projects for key clients in areas such as pharmaceuticals, petroleum, banking, FMCG or energy companies. We considered that, in the context of the acute need to increase digitization, it is the best time to apply the Steering Lab solutions in Romania, "said Kurt Weber, General Manager of Horváth & Partners Romania.
The representatives of Horváth & Partners decided to promote more intensively on the domestic market the services provided by this center of excellence and in the context of the slow evolution of Romania, in terms of the business digitalization index.
According to European Commission (EC) statistics, Romania ranks last in terms of company digitization, and in 2019 it advanced only two positions. But our country has a great potential in terms of the percentage of companies using strictly Big Data. Thus, 11% of companies active on the local market use Big Data solutions, while the EU average is 12%.
Horváth & Partners experts say that 2019 may be the beginning of an accelerated growth of Romania in the segment of digitization and integration of solutions that use Artificial Intelligence to improve the performance of companies and overall economic development at the local level.
Steps to running a project within the Steering Lab include defining the customer's challenge or need, collecting and processing digital business data, statistical evaluation and algorithm determination as well as extracting conclusions. The main tools used by Steering Lab are: Business Radar, through which companies benefit in real time and in a personalized way, a look at the whole business environment; Dynamic Pricing and Demand Management models, through which prices are optimized, cross-selling and up-selling strategies are being developed, promotional campaigns and appropriate responses to new competitors' products and services are planned; Risk models that can quickly detect fraud and a company can avoid or better prepare for potential seizures; System and Process Optimization, which uses real-time planning systems with exceptional response to all logistics, production and service processes; Predictive Analysis, through which databases can be processed that can exceed 100 million text documents and make forecasts based on them; Systems of Artificial Intelligence.
Among the major benefits that the use of Steering Lab can bring to a business are:
- Proposing appropriate solutions, in the correct and timely manner, with a two times higher accuracy compared to those provided by expert teams in the field;
- Making real-time forecasts of sales, costs and pricing with great accuracy; an example of this is to reduce prediction errors from 17% to 13% over a 6 month period for a pharmaceutical industry customer;
- Analyzing the shopping cart and determining, depending on the value of the vouchers, how to attract new customers;
- Design and implementation of facial and gesture recognition platforms.
"The Steering Lab is perfectly suited to any company that wants to increase its performance or to identify and correct certain strategy errors, by resorting to a system that can do things that no team of experts, no matter how good, can do it in the same time and the same results, " pointed out Kurt Weber.