What is it?
SpatialAL(Automated Learning) is a tool that plugs into our other products that performs automated machine learning to predict profitability, turnover etc. for things like potential new store locations etc.
How it works
- The profitability of a store is driven by a number of factors, some of them environmental.
- We don’t have access to all the factors that lead to success or failure (for instance if the store is in a busy isle of the shopping centre) but we put in all the factors that we do have access to (NLI, demographics, day-night population etc.) and this is aggregated into the territory of each store. (Existing and new sites).
- Using Machine Learning we take all the variables and let the computer analyze them and find patterns and see which variables influence profitability and calculate a fit for that.
- The more data we put into the Machine Learning algorithm the more accurate or better our fit is likely to be.
- To test our fit, we run the current stores through the algorithm and test the variance.
- The variance between predicted and actual will test whether you have relevant factors in your data.
- Once this test is successful, we apply this model to all the new store locations to predict profitability.