All data shown in this presentation is accessible at appanion.com/usecases 06th February 2019 Appanion@meetup.ai Hamburg Introduction to the Appanion approach of seizing and prioritizing AI use cases based on an analysis of over 1,000 use cases across 40 different industries for the German market.

1. THE IMPACT OF AI USE CASES
ON THE GERMAN ECONOMY
meetup.ai Hamburg @ WunderMobility - 06.02.2019

2. 2
WHY DO WE INVESTIGATE
THE AI IMPACT?

3. 3
PRODUCTIVE AI ADOPTION REQUIRES PRIORIZATION
AND FINANCIAL BACKING OF USE CASES
EARLY MAJORITYINNOVATORS EARLY ADOPTERS LATE MAJORITY LAGGARDS
TIME
0 - 3% 4-17% 18 - 50% 51 - 84% 85 - 100%
Prioritization
Financial resources
Does it
work?
Does it provide
value?
Does it scale?
Is it better than
any other solution?
Can‘t I exist
without it?
ADOPTIONRATE

4. 4
HOW TO MEASURE THE AI IMPACT?
Cost reduction Revenue increase Output efficiency Risk avoidance
Customer acquisition Customer loyalty Strengthening the USP Speed of action

5. 5
AI INFLUENCES ALL ENTERPRISE FUNCTIONS
Marketing and sales Supply chain and production Finance Operations
Customer acquisition & lead generation Yield optimization Smart expenditure and accounting Task automation
Social media channel management Predictive maintenance Expense and income reporting Robotic Process Automation (RPA)
Market research & behavior analytics Yield simulation and optimization Analytics-driven accounting Autonomous cybersecurity systems
Automated social & PR analytics Energy and throughput efficiency Smart investing Task augmentation
Content creation Intelligent quality control Robo advisory Monitoring and assisted decision-making
Pricing and marketing budget allocation Procurement and spend analytics
Dynamic pricing optimization Logistics network optimization Risk management IT & administration
Marketing spent optimization Supply chain optimization Risk modeling Workforce productivity and efficiency
Sales forecasting Autonomous transportation Regulatory compliance & SLAs Collaborative robots
Customer value optimization Smart vehicle routing and fleet management Risk scoring and valuation Knowledge management
Retargeting & personalization Warehouse optimization Fraud and debt analytics Translation, transcription, protocolling
Product recommendation engine Demand forecasting Fraud detection Contextual search and data generation
Context aware marketing Inventory optimization Billing and debt collection Data Management
Churn reduction Data cleaning & validation
Anticipatory CRM and upselling HR Product development Data labeling
Customer service management Analytics-driven hiring and retention Product Engineering
Chatbots and intelligent routing Analytics-driven hiring Product development cycle optimization
Biometrical authentication HR retention management Product feature optimization
HR Performance and safety management
Performance and safety management
Building management and security
Marketing & sales
Supply chain & production
HR Product development
Finance
Risk management
Operations
IT & administration

6. 6
WE ANALYZED 46 USE CASES IN 40 INDUSTRIES
Marketing and sales Supply chain and production Finance Operations
Customer acquisition & lead generation Yield optimization Smart expenditure and accounting Task automation
Social media channel management Predictive maintenance Expense and income reporting Robotic Process Automation (RPA)
Market research & behavior analytics Yield simulation and optimization Analytics-driven accounting Autonomous cybersecurity systems
Automated social & PR analytics Energy and throughput efficiency Smart investing Task augmentation
Content creation Intelligent quality control Robo advisory Monitoring and assisted decision-making
Pricing and marketing budget allocation Procurement and spend analytics
Dynamic pricing optimization Logistics network optimization Risk management IT & administration
Marketing spent optimization Supply chain optimization Risk modeling Workforce productivity and efficiency
Sales forecasting Autonomous transportation Regulatory compliance & SLAs Collaborative robots
Customer value optimization Smart vehicle routing and fleet management Risk scoring and valuation Knowledge management
Retargeting & personalization Warehouse optimization Fraud and debt analytics Translation, transcription, protocolling
Product recommendation engine Demand forecasting Fraud detection Contextual search and data generation
Context aware marketing Inventory optimization Billing and debt collection Data Management
Churn reduction Data cleaning & validation
Anticipatory CRM and upselling HR Product development Data labeling
Customer service management Analytics-driven hiring and retention Product Engineering
Chatbots and intelligent routing Analytics-driven hiring Product development cycle optimization
Biometrical authentication HR retention management Product feature optimization
HR Performance and safety management
Performance and safety management
Building management and security

7. 7
USE CASE CATEGORIES CAN INCLUDE
VARIOUS SUB-APPLICATIONS
Marketing and sales Supply chain and production Finance Operations
Customer acquisition & lead generation Yield optimization Smart expenditure and accounting Task automation
Social media channel management Predictive maintenance Expense and income reporting Robotic Process Automation (RPA)
Market research & behavior analytics Yield simulation and optimization Analytics-driven accounting Autonomous cybersecurity systems
Automated social & PR analytics Energy and throughput efficiency Smart investing Task augmentation
Content creation Intelligent quality control Robo advisory Monitoring and assisted decision-making
Pricing and marketing budget allocation Procurement and spend analytics
Dynamic pricing optimization Logistics network optimization Risk management IT & administration
Marketing spent optimization Supply chain optimization Risk modeling Workforce productivity and efficiency
Sales forecasting Autonomous transportation Regulatory compliance & SLAs Collaborative robots
Customer value optimization Smart vehicle routing and fleet management Risk scoring and valuation Knowledge management
Retargeting & personalization Warehouse optimization Fraud and debt analytics Translation, transcription, protocolling
Product recommendation engine Demand forecasting Fraud detection Contextual search and data generation
Context aware marketing Inventory optimization Billing and debt collection Data Management
Churn reduction Data cleaning & validation
Anticipatory CRM and upselling HR Product development Data labeling
Customer service management Analytics-driven hiring and retention Product Engineering
Chatbots and intelligent routing Analytics-driven hiring Product development cycle optimization
Biometrical authentication HR retention management Product feature optimization
HR Performance and safety management
Performance and safety management
Building management and security
Task augmentation
Monitoring and assisted decision-making
Healthcare Agriculture Legal

8. 8
HOW DO WE APPROACH
THE AI IMPACT?

9. 9
THE GROSS IMPACT OF AI
DIRECTLY AFFECTED VALUE CREATION THROUGH ADVANCED ANALYTICS OR MACHINE LEARNING
Additional AI-enabled
revenue from innovative
products and services
AI-impact on existing
revenues through
process automation
Direct costs from
infrastructure,
HR and R&D
AI-impact on existing
revenues through
decision-support
Substitution of revenues
within the industry
Gross Impact of AI
Cost
reduction
Revenue
increase
Quality
improvement
Investment Losses
KPI for the
extend of
industry change

10. 10
WHAT ARE
THE KEY FINDINGS?

11. 0
200
400
600
800
1000
1200
1400
1600
1800
2000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
AI-impact on total revenue
(Germany, in EUR billions)*
Machine Learning (gross impact)
includes the use of artificial neural networks and deep learning to
solve complex data science problems:
▪ Feed-forward Neural Networks
▪ Recurring Neural Networks
▪ Convolutional Neural Networks
▪ Reinforcement Learning
▪ Generative Adversarial
Neural Networks
11
28% OF VALUE ADDED WILL BE IMPACTED BY 2030
Sources: Estimations from Appanion based on the official VAT statistics of the Federal Statistical Office and
market indicators and forecasts from ZEW, McKinsey Global Institute, Statista and the Federal Statistical Office (2018)
Advanced Analytics (gross impact)
comprises a wide range of mathematical methods for analysis and
problem solving, without the use of neural networks:
▪ Classification
▪ Regression
▪ Clustering
▪ Markov process
▪ Monte Carlo
▪ Reduction of dimensionality
▪ Mathematical optimization
▪ Ensemble Learning /
decision trees

12. 12
MANUFACTURING WILL CONTRIBUTE OVER HALF OF
THE TOTAL AI IMPACT BY 2030 IN GERMANY

13. 13
ONE THIRD OF AI IMPACT IS ALLOCATED IN
SUPPLY CHAIN & PRODUCTION PROCESSES
Based on gross impact figures
Logistics network optimizationYield optimization Warehouse optimization
Demand forecasting
Inventory optimization
Supply chain optimization
Autonomous transportation
Smart vehicle routing and fleet management
Yield simulation and optimization
Energy and throughput efficiency
Intelligent quality control
Procurement and spend analytics
Predictive maintenance
16.8% 6.8% 7.4%

14. 14
TODAY, PREDICTIVE MAINTENANCE HAS THE BIGGEST
IMPACT - BUT THERE IS NOT ONE „KILLER-APP“
Demand forecasting
Autonomous transportation
Supply chain optimization
49,5
Yield simulation and optimization
Intelligent quality control
8,3
Predictive maintenance
Procurement and spend analytics
6,2Energy and throughput efficiency
9,1
Inventory optimization
91,0
Smart vehicle routing and fleet management 3,1
9,0
98,3
8,4
2,7
88,7
9,3
87,9
69,9
4,7
62,0
60,0
7,0
41,8
32,6
2019
2030
Gross AI Impact of supply chain and production use cases
(in EUR billion)
All figures available
at appanion.com

15. 15
THREE KEY TAKEAWAYS
FOR YOUR PERSPECTIVE ON AI USE CASES
1
2
3
Major AI impact comes from optimization - This requires a new mindset
for prioritizing and financing use cases!
Start by mapping your organization‘s value creation with the highest-
quality data assets.
The core value of AI comes from the utilization of machine data in
production and supply chain processes.

16. Tobias Bohnhoff
Founder
Mirko Schedlbauer
Founder
THANK YOU
mirko@appanion.com
lnkd.in/mirko-schedlbauer
@mirkoschedl
tobias@appanion.com
lnkd.in/tobias-bohnhoff
@tobiasbohnhoff