MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY)
BANGALORE
MDBS
CIA-2
SUBMITTED BY
CHIRANJIVI M R
2228607
ARTIFICIAL INTELLIGENCE
INTRODUCTION
In contrast to the natural intelligence exhibited by humans and animals, artificial intelligence (AI)
is intelligence demonstrated by machines. Any system that senses its environment and takes
actions to maximise its chances of attaining its goals is considered an intelligent agent, and the
study of intelligent agents is what AI research is referred to as. Today, Artificial Intelligence is
used to suggest what you want to buy and where you want to buy digitally.
Different types of AI
Artificial Intelligence has various types, but it is mainly categorization into two types :
Narrow AI
A sort of AI known as narrow AI is capable of intelligently carrying out a certain task. In the
field of artificial intelligence, narrow AI is the most prevalent and readily available AI. In Narrow
AI, it is evident in speech and voice recognition of Alexa which is a virtual assistant for
google. Here, the machines only know how to do a job or assigned work.
GENERAL AI
An intelligence called general artificial intelligence (GAI)., if it is capable of doing any
intellectual job as effectively as a person. The goal of general AI is to create a system that is
intelligent enough to think like a person on its own.
STRONG AI
Strong AI is a degree of system intelligence where computers are capable of outperforming
people in any task thanks to their cognitive abilities. It results from general AI. Strong AI has
the capacity to understand, reason, solve puzzles, make judgements, plan, learn, and
communicate on its own, among other crucial features.
Reactive Machines
The most fundamental forms of artificial intelligence are robots that are only reactive. Such
artificial intelligence systems don't retain memories or past experiences for future use. These
machines just concentrate on the present situation and respond in the best way they can.
Limited Memory
Machines with a small amount of memory can temporarily store some data or memories of the
past. These devices can only access saved data for a short time. One of the best instances of
Limited Memory systems is self-driving automobiles. These vehicles can retain information for
road navigation, including the speed limit, distance to other vehicles, and recent speeds of those
nearby.
Theory of Mind
Theory of Mind AI will connect socially with humans and comprehend human emotions, people,
and opinions. Although this kind of AI robots has not yet been built, researchers are working
hard to advance their capabilities.
Self-Awareness
Self-awareness is the Future of artificial intelligence. They will be extremely clever and possess
consciousness, feelings, and self-awareness. These devices will be more intelligent than a human
mind.
COCO COLA AND THEIR TECHNOLOGY
Coco-cola, it is a beverage company selling soft drinks manufactured by Coco-cola company to
it’s consumers in over 150 countries. Daily more than 1.9 billion people consume their soft
drinks, some of their famous brands are coke, diet-coke, zero-coke, also fanta, sprite.
Since, it is a very large scale company, the amount of data generated by the company will be very
high from manufacturing, distributing, marketing, sales and importantly customer satisfaction. It
depends on good data-driven master plan to make business plans at the top level. When CocaCola's chief big data officer, Esat Sezer said in 2012 that "Social media, mobile applications,
cloud computing, and e-commerce are combining to give companies like Coca-Cola an
unprecedented toolset to change the way they approach IT," he was one of the first
internationally recognised brands outside of the IT market to discuss big data. Big data provides
you with the intelligence to tie it all together behind the scenes.
Greg Chambers, global director of digital innovation said “As humans, we build emotional
connections to machines and with products,” Chambers said during the session. “We will do this
in new and exciting ways. You should enjoy the process of acquiring a Coke as much as you
enjoy consuming a Coke.”
Coco-cola are also following up big companies, like apple and google and trying to develop some
“virtual assistant” for their customers like for example I would be able to order any soft drink
blend from any machine. It is very exciting for customers to use such a thing in near-by malls
and stores.
Requirement for choosing and Implementing Technology
Cola company manufactures about 4% of all soft drinks which is taken worldwide. The red and
white logo is very famous among people,. For example, almost 70-80% of people on this planet
can identify coco-cola logo. Maintaining that brand valve will play a very important role for the
company which takes huge hard work and also a big investment.
Coca-Cola will be having a huge data in understanding their customers like why are they buying
and also if they switch to some other brand, data will be required to know why they have
switched. A wide variety of Coca-Cola products are available. The time when gaining people's
preference for Coke over Pepsi was the primary measure of success is long gone.
Research and development will be the top key to the success of Coca-Cola because it not only
helps with products but even helps in the understanding of consumers and brand valves. One of
the many compelling reasons Coca-Cola uses AI is the complicated interaction with purchase
patterns. Additionally, there are countless opportunities to apply AI throughout the value chain,
including in producing, supplying and transportation. But an organisation like Coca-Cola
prioritises improving the consumer and brand valve when using AI. The major advantages of AI
are for business processes that have a direct impact on these.
Different characteristics in how cola company uses AI for Vending
machine
To Form a good location for machines :
A good location is always an advantage for the company, location data will be required, such as
soccer, economic measures, and also information about competitors. Data comparison from
different machines is going to take place. After setting up the machine, knowing revenue data is
key. Basically, it is to verify how the machine is doing in comparison to the expectations as a
sales outlet.
After setting up the machine, sales data understanding plays an important role.
Its purpose is to verify how well the machine is doing in comparison to expectations as a sales o
utlet. Knowing the sales of drinks for a certain time period alone is insufficient for this.
Connectivity, which enables data about sales to pass instantly to the organisation, is thus a good
feature. However, there is a lot more to the impact of what Starbucks and others do when
assessing a store's performance. More individual insights on the transactions are a crucial activity.
The usefulness of rewards programs and apps in this scenario. This is where the smart vending
machine's second feature is useful. But only because the ordinary vending machine is a part of
the Internet of Things is it feasible. It is now a connected machine, as an example.
To capture loyal customers –
A company's rewards program should be integrated with an intelligent vending machine. The
machine should consider greater types of payments than just cash if the reward program allows
for payment. This is the moment during which Coca-Cola vending machines start to get
interesting. Customers who are using the "Coke On" smartphone app to purchase things in
Japan earn points when they do so. This provides Coke with all the benefits of typical customer
loyalty, notably customer preferences and purchase information. Furthermore, consumers
receive a monetary value for their points toward future orders from machines.
Coke tried a separate intelligent vending machine in markets like Australia. I was once more
developed to reward and honour loyalty while gathering client and sales data. Consumers in this
case could order drinks on their smartphones in advance and obtain them from the vending
machine. This type of innovation goes further than simple connectivity—this time, with both a
phone and the internet. It also relates to the machine's digital displays. The opportunity for AI
grows with connectivity and a display. This time, Coca-Cola gives the vending machine an
overflowing "smart" device by implementing Automation.
To show the brand and Product –
The use of vending machines as prominent signage locations to promote brands on posters is
really nothing new. These have advanced in functionality recently. The use of many, high-quality
images and videos at once is possible with digital displays.
Because of the intelligence integrated into the actual vending machine, Coca-Cola machines goes
much further than other vending machines. This idea goes all the way back over ten years to the
business's first "Freestyle" vending machines. Customers could select the exact beverage they
wanted from a wide range of options using the first Freestyle machines. The machine would
automatically produce the precise selection that also was picked. As a way, a machine could mix
and administer each variation of the main items in up to 200 distinct manners.
Furthermore, Coca-Cola will be users can customize each machine to its area using the new
artificial intelligence software. The vending machines will be able to promote products that are
good for the area as well as provide discounts and offers that are local to that machine by
analysing customer data and buying habits. The vending device's "mood" can also be modified
through artificial intelligence to ensure that it is fit for the region. As a result, a computer in a
gym, for illustration, may enable visitors to consume more water.
Managerial Implications
1. Leaving administration to AI
Managers usually spend their time managing administrative and controlling work, which is very
important to all companies. The use of AI will automatically reduce and also complete many
works for the managers.
2. Focus on Judgment Work
As we all know the essence of human judgment requires history, culture, emotions and attitudes,
so many judgments need more knowledge than what artificial intelligence can extract from data
alone. Hence, it is very important to have experience and enterprise knowledge in order to make
critical decisions for the business. So the top required for judgement is – Creative thinking,
Experimentation, data analysis and interpretation, strategy development in order to succeed as
manager in future.
3. Treat Intelligent Machines as “Colleagues”
As we all know there is no race in between a manager and an artificial manager, so managers
have to treat them as their colleagues. Intelligent machines can change and improve the kind of
labour, where they can also help with search and discovery operations, data-driven simulations,
and decision support. Also, the managers believe in the future they will rely on the advice of
intelligent systems when making business decisions. AI will always be and is there to help and
assist managers as an assistant and adviser, which also help them to communicate between them
in collegial ways.
4. Work Like a Designer
For managers having creative skills of one's own is important, and managing others' creativity
may be even more crucial. So it is important to combine several concepts to create cohesive,
practical, and appealing solutions, where they incorporate design and creative thinking into their
teams and company's operations. As per many surveys, creative thinking and experimental skills
are very important as they must learn to adapt as AI increasingly replaces administrative labour if
they want to succeed.
5. Develop Social Skills and Networks
Managers have to realise the value of judgment in their work, but they deeply do not value the
social skills that they required for the need to network, coach, and collaborate to stand out in a
world where AI does many of the administrative and analytical duties they currently do. They
will use digital technology to access the expertise and judgement of their partners, clients, and
communities but they also need to be able to gather and integrate a variety of viewpoints,
insights, and experiences.
Social and Ethical Issues
Despite the pressure from its major competitors, the Coca-Cola Company is one of the leading
beverage companies in the world. The business had a number of ethical issues, which then in
turn undermined its reputation as a multinational company. The company has engaged in racial
discrimination, faked market analysis, altered earnings, and broken big contracts with
distributors. Also, Currently, Coca-Cola has many environmental and societal issues, through the
creation of their products, they have taken numerous measures to minimise damage to the
environment. Eco-friendly facilities and equipment help coco-cola to reduce environmental
issues. Also, coco-cola has a unique water-neutral development, which means every drop of
water used by the company will be replenished. Not every one would be knowing about this so
they have also started improving education. Where coco-cola has many programs, this includes a
scholarship programme that has awarded grants totalling more than 22 million dollars. While
many of its customers esteem Coca-Cola in great reverence, the company remains far from great.
The cost of the company's stock has really not altered in ten years. This is because the company
has ethical problems. For instance, a few kids in Belgium in 1999 got ill after drinking a CocaCola brand product. Also, there were many ethical issues in the company like worker’s
discrimination, worker’s right, and water privileges. In 1999, Coca-Cola was the victim of legal
proceedings as 1500 African American employees were charged the business with racial
discrimination. Regardless of the fact that the work was equal, they were paid since they
positioned this competition at the bottom of the pay grades. The salary gap was huge, there was
$26,000 less in pay annually. Coca-Cola created a cultural council and paid $approximately 200
million to resolve the racial discrimination suit in order to restore its reputation. These are just
two of the many ethical issues Coca-Cola has faced. Overall, Coca-Cola continues to try to keep
its ethical concerns to low in order to focus on growing its worldwide presence.
While in this period, the company began to run into various problems with its marketing in
European countries with anti-trust laws. They attempted to merge with a French business
named Orangina, but their excess competitiveness offended the other parties to the deal
which caused an issue. They were sued by the government of Italy because their threatening
methods proved to be too much for some other nations and also because obtaining a
competitive advantage looked to violate antitrust laws. The court battle was won by Italy, and
as a result, the company's competitive activities were investigated, which is never good for
business.
Methods to Mitigate the risks
The company has developed a comprehensive business risk management framework to
control risk and leverage opportunities across the teams. The company planning and value
development processes are motivated by dynamic risk management with opportunity. The
company has implemented a good strategic approach to business-wide risk management
approach that gives a common, integrated framework to control risk and leverage opportunities
across the teams.
The company strongly believes that business risk management is a strategic management
advantage for them, because they select selectively seize opportunities to increase opportunity
to exploit risks and also they are building business risk management in the company’s social
and culture fabric. The company repeatedly finds, analyzes, controls, and raises risks and
opportunities while assessing them against the risk. Where they seek to minimise vulnerability to
unforeseen events and find risk also to create a good environment for providing strategic
objectives.
Features of business-wide risk management system –
Team declarations regarding the strategic direction, morals, and values
Clear principles and business objectives
The process to find, and assessing serious risk that prevents the attainment of company goals
The use of management methods to reduce huge risks to a manageable level
Structured risk universe that is in the line with strategy pillars of customer relevance, cost
leadership, and customer preference
Continually searching for factors that could alter our risk profile for both our internal and
external surroundings
Implementation of steps to further incorporate risk management into the corporate structure
Organized risk management rules
Risk management integration in business planning procedures
By this approach, the company make sure that risks are recognised and displayed throughout the
company. Also by exchanging the best practices within the company, coco-cola aim for constant
improve.