Analysis and Design of Algorithm (3150703)

Assignment-1

Name: Patel Jatin Rajesh

5th -IT

Enrollment no.: 191200116035

Most people don't use the word algorithm every day. Many think it refers to
lines of code. Yet, algorithms are ubiquitous and there is an increasing
urgency of action around them.
Almost every company in the world realizes the importance of developing
algorithms that help them run their business. Algorithms are formulas—
sometimes digital, sometimes captured in a spreadsheet--that allow your
company to operate smarter and meet customer needs. The best algorithms
are proprietary; that is to say that only your company has the formula. When
computers advanced to a level of performance where they could compute
more complex algorithms, two exciting fields emerged at the frontier of this
new world: Machine Learning and Deep Learning. Both of these have then
become the doorway into a brand-new era of Artificial Intelligence (AI) which
is now changing the game for business success.

The new game of survival is simple. Organizations who adapt to the

evolution, will come out on top. Those who don’t, will quickly find themselves
lagging behind the competition. Let’s take a look into what Machine Learning,
Deep Learning, and AI are about, plus how ExOs are adapting and applying the
algorithms in these fields to stay ahead of the competition.

Machine Learning is the ability to accurately perform new, unseen tasks, built
on known properties learned from training or historic data, and based on
prediction. Or in simpler terms, machine learning is when algorithms parse
data, learn from that data, and then apply their learnings to make informed
decisions.

You can think of it like a computer that can essentially teach itself to
continually improve on performing an automated task based on analyzing the
results of past attempts. Given that computers can process huge amounts of
information at high speed, it can thus learn very fast.
To illustrate a simple example of machine learning in action, let’s go back to
the birth of machine learning. In 1956, when Arthur Lee Samuel didn’t want to
write a highly-detailed, lengthy computer program that could beat him in a
game of checkers, he created an algorithm instead.

This algorithm allowed the computer to play against itself over and over
again. The algorithm could then learn from the historic data and essentially
teach itself to perform against an opponent. The effectiveness of the
algorithm was proven when, in 1962, the computer beat the Connecticut state
champion in a game of checkers.

Fast-forward to today, and Machine Learning can be applied to help

organizations learn how to effectively serve their customers. A great
example of this is Netflix who used algorithms to improve its movie
recommendations.

Deep Learning on the other hand is a new and exciting subset of Machine
Learning based on neural net technology. Through a complex set of
algorithms, it allows a machine to discover new patterns without being
exposed to any historical or training data.

Leading startups in this space are DeepMind, bought by Google in early 2014
for $500 million, back when DeepMind had just 13 employees. Another
leading startup in this space is Vicarious, funded with investment from Elon
Musk, Jeff Bezos and Mark Zuckerberg.

Twitter, Baidu, Microsoft, and Facebook also heavily invest in this area. Deep
Learning algorithms rely on discovery and self-indexing, and operate in much
the same way that a baby learns first sounds, and then words, sentences and
even languages.
Most companies recognize that the explosion of data from sensors and
intelligent devices and new information from social media and other sources
make now the right time to invest in a more comprehensive algorithm
strategy. The truth is that most companies have a hard time managing the
streams of data that they already have, let alone handling new sources of data.
Algorithms are the key to making your current data useful and making smart,
timely decisions based on that data possible.
What has been missing thus far is focus on how to manage this critical resource and
the assets they produce. Markets will be won by companies that effectively create,
manage, and deploy algorithms for everything from customer demand sensing to
data cleansing to inventory management! Companies that are faster and smarter at
developing and managing algorithms are going to win in industry after industry.
And yet, almost all companies report difficulty in moving ahead for several reasons:
 No one owns algorithms. They exist across business units and functions.
No one is setting priorities and deciding where algorithms can make
customers the happiest. Few are aligning technology investments
against the most important algorithms.
 Algorithms exist in every company. They might not be backed by
accurate data. They might not be shared between business units. But
they exist and are being used to influence or drive some decisions.
 People know that a more data-based, analytically driven, algorithm
supported management process is required. They just want
management to be smart about setting priorities and getting algorithms
better every day.
It is amazing how much better decisions are when, for example, an algorithm
has analyzed the past eight years of purchasing data, ingested the latest social
media buzz, and considered customer usage patterns as reported back by a
sensor built into the product. Even the most experienced human demand
planner with an Excel tool (with macros) can’t compete!

For most companies, developing an organization, culture, and process driven

by algorithms requires transformational change. While Google, Amazon, and
Uber are great examples of digital natives that create and use algorithms;
some of the most interesting work is being done by sector-leading companies
such as Dell, Colgate-Palmolive, Under Armour, Li & Fung, Corning and
others.
All companies are different. They have different strategies within specific
industries, different degrees of automation, and distinctive approaches to their
customer. Still, there are a series of Universal Algorithm Action Steps that
apply across companies and industries. Here is what can usher in your
company’s Golden Age of Algorithms:
 Create an Algorithm Council comprised of representatives from Finance,
Supply Chain, Sales, Marketing, IT and HR. Why? Because all game-
winning algorithms exist across organizational boundaries, aka silos.
The Algorithm Council will prioritize the algorithms and back them up
with the necessary technology investment.
 Inventory all existing algorithms and prioritize them. Decide what
improvements can be made in investment and focus. It turns out that
most companies have a good start on algorithms and data. But not many
have managed and invested in the space. Invest, focus and execute the
great algorithms that you already have in-house.
 Develop a people strategy that will make all this happen. You are
probably missing some data-driven, systematic thinking, algorithm
producing people. Go out and hire them, contract for them or acquire
them. Now! Sometimes these people are called data-scientists. And train
your workforce in algorithm-driven decision-making.
Look at the world’s great supply chain companies like Dell, Colgate-Palmolive,
Li & Fung. They continue on this journey toward algorithms that will make
their customers not just satisfied, but happy--and keep their businesses
expanding and generating the profit that market leaders deserve.

Bibliography

 Why algorithms are the future of business success

(blog.growthinstitute.com)
 The Golden age of Algorithms (www.forbes.com)