Introduction

About the company

H20.ai is completely open source machine learning and artificial intelligence platform that
helps developers and data scientists to provide scalability to their models. It was founded in
2011 and since then it has found significant popularity in different industries and is used by
over 18000 organisations globally and is extremely popular in both R and python
communities.

Key features of H2O:

 Leading algorithms: Algorithms developed from scratch for a wide variety of use
cases and for both supervised and unsupervised approaches.

 Access from R, Python and more: The biggest advantage is that it uses common and
popular programming languages such as R and Python that everyone can use and a
graphical interface notebook that requires minimal coding.

 AutoML: The AutoML tool can be used to automate the machine learning workflows
and training and tuning of models within a user specified time limit.

 Distributed, in memory processing: In memory processing is present with fast

sterilization between nodes and clusters to support massive data sets.

 Simple Deployment: The ai platform is simple to deploy on models for fast and
accurate scoring in any environment.

Core Values:

 Community powered

 Freedom to innovate

 Customer empathy

 Do good
Company Logo

Major Customers
 Commonwealth Bank

 AT&T Telecom

 UCSF Health

 AES Energy

 Iffco-Tokio

 Eplison
Major Partners
 Snowflake
 AT&T
 Microsoft

SWOT ANALYSIS

Objective of SWOT Analysis

The objective of SWOT analysis is to evaluate information related to an organisation or
individual and figure out the strategic options available based on the information available.
Strengths and weaknesses are internal while opportunities and threats are external.
SWOT stands for strengths, weaknesses, opportunities and threats.
SWOT Analysis of H2O.ai
Strengths:
 Advanced computing capabilities: The AI platform of H2O has advanced machine
learning capabilities that is scalable and a powerful tool for data scientists and
developers. It allows for computing large datasets and build scalable machine learning
models.

 Wide use case: The machine learning platform is used in a wide variety of industry
and it has proved to be useful in multiple industries. It has been used in the financial
sector by companies to detect fraud, it is used by the government sector to transform
government operations.

 Automatic Machine Learning: The AI platform helps to automate machine learning

models and build scalable models without significant human intervention. Its simple
easy to use model allows non experts to also leverage machine learning algorithms.

 Open source platform: It is an open source platform with the objective of

democratising AI and ensuring that AI is available to all the users thus improving the
processes of their organisations.

Weaknesses
 Limited flexibility: The platform has limited flexibility in terms of usage and mostly
used with platforms such as Python and R thus offering limited flexibility.

 User adaptability: The AI platform is user friendly but still the users need to have an
understanding of the platform and the way its full potential can be leveraged. For that
continuous training and development of the staff is required. Users who are deficient
in technical knowledge may find it difficult to leverage the technical capabilities of
the platform.
Opportunities:
 Increase in demand for AI: There is a growing demand for AI tools across
industries. Thus, leveraging AI to automate tasks and build scalable models has
become the need of hour for the organisations across industries. Thus, the platform
has an opportunity to leverage the demand of machine learning models from different
industries.

 Expanding the user reach: The platform can increase its user base by successfully
demonstrating its capabilities across industries. It can showcase it capabilities to users
across industries by demonstrating its past success with the organisations it has
worked for. Thus, it can create an ecosystem of successfully demonstrated projects for
future reference of its potential customers.

Threats:
 Rise in competitors: There has been a significant rise of competitors who are
investing in AI platforms and thus, there is a threat that may take up the market share
of H2O.ai and thus, they have to continuously upgrade their offerings and build
sustainable relationships with their clients in the long run.

 Threat of misusing: There is an inherent threat of misusing AI for vested interests.

Thus, the platform needs to be extremely careful that the employees are given training
on using artificial intelligence ethically and about the potential dangers of using
artificial intelligence for vested interests.

 Job loss: There may be opposition from the employees of the organisations which are
clients of H2O.ai about the potential job loss of employees and a significant reduction
in workforce. Thus, there may be an opposition from adopting the platforms in their
organisations.

 Bias due to bad data: The algorithmic models may be biased due to the data not
being refined or the model may be biased due to the biasness of the machine learning
scientist which may create inaccurate models with high scalability. This may lead to
decrease in trust on models created by artificial intelligence by the platform and may
result in loss of business for the platform.
Customer segmentation
Customer segmentation is the grouping of customers with shared characteristics like age,
occupation, gender, etc. The benefit of customer segmentation is that an organisation can
tailor its products or services according to the preferences of the customers based on their
segments. Each customer has a unique trait or preference and it is only possible to cater them
if the customers are grouped into segments
It is important to understand why customer segmentation is needed:
 It helps to get a competitive edge by offering services or products that are
personalised and cater to the needs of the individuals in a segment.

 With the help of segmentation, companies can target customers with campaigns that
are directed towards a particular segment and fulfils the needs of the customers in that
segment.

 The company can also design an email campaign where specific emails are sent to
only a particular segment according to their traits and preferences.

There are various segmentation models that are used to segment the customers and they are:
 Demographic segmentation: Here the customers are grouped according to their age,
gender, income, education and marital status.

 Geographic segmentation: Here the customers are grouped according to country,

state, city, and town.

 Psychographic segmentation: Here the customers are grouped according to

personality, attitude, values, and interest.

 Techno graphic segmentation: Here the customers are grouped according to mobile
use, desktop use, apps and software.

 Behavioural segmentation: Here the customers are grouped according to frequent

actions, product use, and habits.

 Needs based segmentation: Here the customers are grouped according to product or
service must haves and needs of specific customer groups.

 Values base segmentation: Here the customers are grouped according to the
economic value of specific customer groups on the business.
Customer segmentation for H2O.ai
 Artificial Intelligence and Machine Learning Professionals: Data science and
machine learning professionals have the technical knowledge and the background to
work on the platform and perform tasks that require high level thinking and statistical
knowledge. They have hands on experience in using machine learning platforms such
as R and Python and thus, can easily navigate through the platform created by H2O.ai.
H2O.ai provides vast pool of resources to work on the platform for the data science
professionals to create scalable algorithms as it provides an open source platform to
experiment and optimise models.

 Enterprises: This includes organisation that have large data sets to work upon and
gain insights from the data sets and make decisions based on the insights. They have
teams comprising of artificial intelligence professionals who build machine learning
models to identify patterns among their customers. These customers require platforms
that can automate the machine learning models once created by their team of
professional data scientists. Thus H2O.ai provides platform that can automate the
machine learning models and add scale to the models. The models are also
interoperable on platforms and thus can work on existing infrastructure that the
organisations currently have.

 Small enterprises: These are organisations who do not have the revenue to employ
highly talented machine learning data scientists and thus they need a solution that is
affordable and meets their business requirements. Thus the advantage of H2O.ai is
that they can offer affordable solutions to these small enterprises without requiring
expertise of their staff. Once the machine learning model has been built they can
automate the process for future tasks and thus they need a large team to manage the
process in future.

 Government Institutions: Government institutions can be a huge customer base for

the organisation as all the government entities are looking to automate their processes
and make their processes more efficient. Machine learning models can be effectively
used to draw better insight and improve the government delivery and make the system
more robust and streamlined. As the platform is easily operable, it will not require
expertise and anyone with an understanding of machine learning platforms can build
models with training from the organisation.
AIDA Model:
The AIDA model focuses on the cognitive stages a customer goes through while buying a
product or service

AIDA stands for:

 Attention: creating aware about the product or service to the customer

 Interest: creating interest about the benefits of the product or service and encouraging
the customer to research further

 Desire: If the customer likes the product or service then creating a sense of want in
the customer.

 Action: Engage the customer to take action and engage with the product by making a
phone call, trying a demo of the product.
AIDA Model on H2O.ai
 Attention: The first step is to create awareness about the platform among industry
professions. This can be done through organising industry conferences, offering demo
to the potential customers, fixing meetings with the C-suite of the potential customers
and helping them understand the benefits of the platform. They can also engage in
search engine optimisation so that anyone who want to automate their machine
learning processes can reach out to them as they have a good presence on the search
engines. They can also marketing campaigns to communicate their offering to the
potential customers by highlighting its benefits such as automating the workflow,
scalability, user friendly interface and interoperability

 Interest: After sufficient attention has been captured of the potential customers, the
next step is to generate interest among the customers. It can do so by conducting
webinars, writing blogs about the product, posting case studies about how the product
has helped its customers in the past and through these communication channels it
needs to highlight extensively the benefits of the platform in detail so that the
customers are clear about what the platform has to offer.

 Desire: After generating sufficient interest, the next step is to generate sufficient
desire in using the platform. This can be through conducting free trial to customers
who have shown interest in the platform. During these sessions the platform can
answer all the queries of the customers and help them get accustomed to the platform
and when they use it themselves they can evaluate the platform better and make an
informed decision whether the platform will fulfil their business requirements.

 Action: The final step is to make the potential customers into paying customers. After
the action has been taken by the customers they can offer technical support to the
customers and offer a dedicated technical team to handle all the queries of the
customers and help them to utilise the platform to its maximum potential and help
them scale their business by building scalable models by leveraging the large data sets
of the customers.
Mckinsey 7 S Framework:
Mckinsey 7s Framework helps to analyse an organisation’s design and explains how
effectiveness can be achieved in an organisation through the interaction of 7 elements and
they are Structure, Strategy, Skill, System, Shared values, Style and Staff.

 Structure, Strategy and System together account for Hard S elements.

 Skills, staff, style and shared values are Soft S elements.

Application of Mckinsey 7s Model for H2O.ai:
 Strategy: Strategy may include the following:
 The strategy of the organisation is to provide advanced and automated machine
learning tools to organisations so that they can build scalable machine learning
models without much technical expertise of their technical team. Thus, make the
model easy to use and interoperable.
 The strategy is to provide an open source community and democratise the machine
learning algorithms so that anyone can learn from the community.

 Structure: Structure elements may include the following:

 The organisation has a decentralised structure that promotes a culture of innovation
and collaboration among its team members. The organisation values feedback and
likes to promote a friendly work environment for the overall wellbeing of the
employees.

 Systems: Systems elements may include the following:

 The organisation has able team members that handle the entire technological
development of its products. As artificial intelligence is a fast evolving field, it has
crowd sourced data science professionals from all over the world that help the
customers innovate in their complex business problems.

 Shared values: Shared values may include the following:

 The organisation is committed to build an open source AI platform that builds
scalable machine learning models for its customers.

 Skills: Skills may include the following:

 The organisation crowd source its data scientists from all over the world that helps its
clients to advance and automate the business processes by building scalable machine
learning models.

 Style: Style elements may include the following:

 The organisation has a transparent and an open culture and believes in diversity and
inclusivity of its team members.

 Staff: Staff elements may include the following:

 The organisation recruits data science professional from all over the world to help
their clients.
Conclusion:
The platform has been a leading provider of open source artificial intelligence and machine
learning platform that has been helping companies automate their machine learning models,
as the platform is scalable, easy to use, and interoperable and does not require much human
intervention.

The platform has been found to be useful in multiple industries across sectors such as finance
where it has been used for fraud detection by companies and understanding reasons for
customer churn, in government sector where it has been used to transform government
operations by automating their processes, in health sector where it has been used for getting
insights for patient transfer to ICU, in insurance sector, where it has been used for claims
management and fraud detection, in manufacturing sector, where it has been used to
preventive maintenance and transport optimization, in marketing sector, where it has been
used for content personalisation and lead scoring, in retail sector where it has been used for
assortment optimization to pricing optimization and in telecommunication sector where it has
been used for predictive customer support and predictive fleet maintenance.

The platform has created a niche for itself in the market by offering solutions such as
automating the workflow and less human intervention due to its easy to use technology
platform. It has also an open community that promotes collaboration and innovation.

The different types of industries utilise the platform highlights the platform’s flexibility and
ease of use. Every organisation is now data driven and the platform will continue to generate
interest among the organisations who want to automate their work flow and reduce human
intervention of business analysts and data scientists.

The platform continues to grow and find popularity among the organisations as it makes
organisations more robust and allows them to streamline their processes.

The organisation must continue with its core philosophy of democratising the AI platform
and there will be organisations and data science professions that will continue to be a part of
the growth story of the platform.
References:

https://h2o.ai/
https://hbr.org/
https://www.hubspot.com
https://www.investopedia.com/