Artificial Intelligence

for Business
Prof M P Sebastian
 Evaluation Scheme
Assessment Percentage Description
Tool
Assignments/ 25% (hands on submissions: 12%, These components are required to check
class constructive contributions in and evaluate the students’ understanding
participation classes, class participation, etc.) of the concepts, application and
(Individual) techniques. The quizzes and tests will be
conducted on a regular basis.
Quizzes 20% (7 nos)
(Individual)
Project/ 25% (Group Report:10%, Individual These facilitate to assess student’s ability
presentation Presentation:7%, Individual to learn and analyze the
(Individual & Contribution:8%) business/managerial applications of the
Group) concepts learned in the classroom in a real
environment.
Case/ 30% (Individual case
Presentation Presentation:4% + Individual
(Individual & Discussion of all cases : 5% +
Group) Individual Case QA: 7*3=21%)

Plagiarism: Component wise/ course wise F as applicable by PGP rules.

Prof M P Sebastian, IIM Kozhikode 6/26/2021 2
 Evaluation Scheme…
Assignments/ class participation (25%)
 Hands on exercises in class (12%)
› Screen shots of the output to be submitted (by midnight of the same night).
› Session chats will be recorded.

Submissions on weblinks
AA: Anisha N K, aait4@iimk.ac.in

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 Evaluation Scheme…
Case Presentation
• 30% [case Presentation (individual): 4% + Discussion of all
cases (individual) : 5% + Case QA (individual): 7*3=21%]
• Questions will be given 72 Hrs advance (answers to be
submitted individually, by midnight on the previous day).
• The case facts are to be presented by the group for a
duration of 20 minutes (case questions/ answers not to be
presented), followed by the case discussion (chats will be
monitored).
• The presentation slides (by the group) need to be submitted
(in 12 Hrs advance).
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 Section A- Groups

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 Section B: Groups

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 Evaluation Scheme…
Group Project (25%), 7 groups
• The objective of this group project is to develop an AI application or business plan in AI in any three of the
following:
• (i) Automating business processes: Automation of digital and physical tasks, typically back-office
administrative and financial activities, using robotic process automation technologies, reading legal and
contractual documents to extract provisions using natural language processing, etc.
• (ii) Gaining insight through data analysis and machine learning: Use of algorithms to detect patterns in data
and interpret their meaning to predict what a particular customer is likely to buy, identify credit fraud in real
time and detect insurance claims fraud, analyze warranty data to identify safety or quality problems in
automobiles and other manufactured products, automate personalized targeting of digital ads, provide
insurers with more-accurate and detailed actuarial modelling, etc.
• (iii) Cognitive engagement: Engaging people using NLP Chatbots for 24/7 customer service, product and
service recommendation systems for retailers that increase personalization, engagement, and sales - typically
including rich language or images, health treatment recommendation systems that help providers create
customized care plans that take into account individual patients’ health status and previous treatments, etc.
• The project is expected to take care of the business needs in the post-covid world and suggest methods to
produce a business case to secure funding from agencies.
• The project requires an interim report (about 3 pages- deadline: 12th July 2021 in softcopy).
• 13th August 2021 is the deadline for submitting the final report (in softcopy - about 20 pages, ppts are not
accepted as project reports).
• Presentation of the project (for 20 minutes, another 5 minutes for discussion).
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 Project Report Outline (proposed)
• Group Member wise contribution
• Executive Summary:
• An Executive Summary is a clear, concise condensation of a business persuading the reader to spend
time understanding the business whether he/she is a venture capitalist or a banker. This section is
written last after completing the plan document. The Executive Summary should capture if the business
concept makes sense, if the business has been thoroughly planned, if management is capable of
handling the plan, if a market exists for the business and if the business incorporates competitive
advantage with realistic financial projections. The length of the summary should ideally be one side of a
page (A4size).
• Company information:
• This section essentially captures the business to be in and the objective/ mission of the company in
pursuing the business with a name given to the company. To identify the business as a legal entity e.g.,
private limited company or public limited company may also be highlighted here including the names in
the management of the company, location of the business/ headquarters and the milestones achieved so
far (if any).
• Industry Analysis:
• This section should highlight major players in the industry including its trends and strategic opportunities
existing in the industry. Most of this information should be supported with data and evidence. There
needs to be a mention of the growth rate of the industry as also its sensitivity to economic cycles and
macro-economic changes like recession. The industry level information on buyers and suppliers in the
industry, regulation if any and financial characteristics of the industry need to reflect here.
• The Market:
• The primary focus here is to define the target market, arriving at it from demographic and segmentation
detailed information and analysis. The focus here is to make an estimate of the potential size of the
market, psychographics and purchase pattern, including future and emerging trends if any. Here the
Business Plan needs to be clear about specific customer needs to be met by the product being sold and
the distribution channel and other means to reach these customers. Customer payment plans including
inventory details and cash flows needs to be highlighted/ estimated here.
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 Project…
• Marketing Plan:
• Here the focus is on reaching customers and delivering not only product and service but also expected value to the
customers. The Marketing Plan needs to capture
• How to make customers aware of products and services
• Message conveyed to customers about product, service or company
• Specific methods used to reinforce the message through advertising and media planning.
• Securing actual sales
• Essentially this section focuses on the 4-Ps of marketing namely Product, Price, Place and Promotion.
• The Competition:
• It is important to know who the competitors are, what their sizes are and how much market share they control. By
understanding, competitor strengths and weaknesses a Business Plan can highlight relative competitive position as
also the competitor product and service features customers prefer so as to identify ways and means to beat such
competition either by identifying weaknesses or novel ways to deliver superior value like use of internet. It is important
to understand what first mover advantage competitors have including captive customer base, factory, warehouse and
distribution as also stable internal operation and supplier advantage. The objective being to identify how a fair market
share can be obtained for the new business as also create barriers to entry of new competitors.
• Operations:
• This section of the Business Plan focuses on how the business is run internally. Beginning with the geographic location
of facilities including head quarters, plants,, warehouses, branch offices, showrooms (if any) etc. In production it can
include details of production plan including levels of automation, capacity utilization and productivity targets besides
issues of inventory control, supply and distribution, order fulfillment and customer service. There has to be mention of
R&D activities to be undertaken (indicative spending on R&D) and financial control. Modern issues of environmental
norms, safety and insurance regulatory issues if any need to be incorporated in this section. A sub section may be
added on technology choice keeping in mind technology development trends in the industry. Critical purchasing and
vendor/ supplier development issues may also be included in this section.

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 Project…
• The Management Team:
• Given that people ensure success of a company this section of the Business Plan describes the
organization and the key management team members. This includes key employees, Board of Directors,
Advisory Committee, Consultant and other specialists as also key management persons to be added
progressively. In defining key personnel, focus is on required skills that these individuals need to possess,
track record of these individuals as also management compensation and incentives including bonus
schemes to be offered. It is important to decide the Board of Directors structure, the nature of oversight
role they will have including the number and nature of independent members in the BOD. This section
defines the Organization Structure including reporting relationships, line of authority and informal
relationships. Focus on Corporate Social Responsibility of the organization (CSR) may also be included
here although the primary focus remain fulfilling the Mission of the organization.

• Personnel:
• While concerning with the recruitment and retention of employees with the right skills and experience in
the organization this section focuses on developing the Human Resource Policies of the organization
including meeting statutory government regulation of Provident Fund and Pension of employees.

• Financial Plan & Analysis:

• This section should give the numbers supporting your Business Plan decisions. It should highlight the
accounting principles to be adopted e.g. Cash or Accrual, and in the very least make sure to include
projected profit and loss and cash flow statements. Ideally it should include principles adopted for
depreciation, break-even analysis, sources and uses of funds and start-up costs. The investor here will
want to know projected cash flows and time taken to break even and register profit for the business.
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 • Risks and contingencies:
Project…
• Every business has risk of failure and so it is important to identify possible sources of this
risk of failure and then to develop contingency plans for them. Some of these risks include:
• Market Risk: Market will not respond to the business product or service because there is no need
for the product or the market is not mature for it.
• Competitive Risk: Possibility that competitive position will change dramatically, new competitors
will enter, and basis of competition will change
• Technology Risk: The technology currently prevalent in the industry and adopted by this business
becomes completely obsolete soon. What is the possibility of quickly adopting to the new
technology?
• Execution Risk: Failure to quickly roll out product to meet launch and sale target dates. It could be
due to either internal operational or external license/ permit reasons.
• Capitalization Risk: Miscalculation of funds requirement leading to cost and project capital over
runs.

• A preliminary analysis of the risks being faced can be done using the SWOT analysis
• Strength and Weakness of the organization as matched against the Opportunity and
Threats in the business environment.
• Appendices:
• Provide additional supporting documents that reinforce the Business Plan.
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 Schedule (Sessions 1 -9)

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 Schedule (Sessions 10-18)

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 Schedule (Sessions 19 - 24)

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