The Game Changer for Data Analytics: Why paretos AI sets new standards

Many organizations shy away from using AI-driven decision-making because it can be complicated and very expensive. We believe that Decision Intelligence should be a basic for all and not just a privilege for some.

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July 12, 2022
minutes read
Data Science

Our message is that anyone can make good decisions at any time. We democratize data analytics with paretos and, with the high performance of our technology, overtake even state-of-the-art algorithms of tech giants like Facebook.

AI-based Data Analytics mine the riches hidden within the digital economy

Data is similar to natural resources – it’s no use to anyone unless it’s mined and utilized. If companies fail to implement a strategic data management strategy they run the risk of overlooking valuable assets. The International Data Group predicts that by 2025, 175 zettabytes (ZB) of data will exist worldwide (compared to the necessary memory space for a 90-minute movie, just one ZB is equivalent to around two trillion movies!).

The volume of data usually generated by a company can already be far too large to be fully exploited using conventional analytics solutions. Primarily, companies can gain results-oriented insights from their valuable data sets with the help of automated decision-making. AI-based decision intelligence platforms are capable of analyzing and correlating even the most complex data which not only serves as a basis for identifying specific decision-making needs, but also for identifying alternative solutions and making forecasts. Today, it is practically compulsory for businesses to embrace this relationship between humans and machines in order to remain competitive.

Conventional data analysis is complicated and far too expensive

Conventional “old-school” software tools for processing smart data are too complicated and far too expensive to be utilized by many companies. They require hard to find data specialists to operate them (according to a Bitkom study, 96% of companies with data-driven business models have problems with staffing corresponding positions) and, even worse, because the rapidly growing development of new technologies is forever having to adapt to constantly changing markets, software has to be retired or upgraded at increasingly shorter intervals. To combat these problems, cloud solutions and AI-based data analytics platforms cost less and can be customized to meet the specific needs of businesses and their customers. The only problem here is that most systems are designed in such a complicated way that only analysts or data scientists are able to utilize them. 

paretos – the game changer for data analysis

This is where paretos steps in. The German tech start-up turns analytics for businesses into solutions that are as easy to access and integrate as an email. With the help of an AI-based software-as-a-service tool, companies ranging anywhere from startups to midsize businesses to huge corporations can perform extensive data analysis without prior knowledge or expertise of data science.

At the heart of our software is the “Socrates” optimization algorithm, which was specially developed for dealing with highly-complex models. It’s based on several years of research at the Munich University of Applied Sciences and has been validated by the renowned Massachusetts Institute of Technology (MIT), among others. Developed further by paretos, it outperforms even state-of-the-art algorithms from tech giants like Facebook. The AI-based, self-learning set of algorithms is designed not only to find the trade-offs of interacting factors much faster than other systems, but also generates far more optimal solutions.

The groundbreaking approach of paretos software for data analytics is based on five core capabilities that provide innovative solutions to well-known problems:

  • Comprehensive data analytics for any company, from SMEs to corporations
  • The handling of highly complex and multiple target variables
  • No large integration and start-up costs
  • “Socrates” works faster, more accurately and more reliably than previously existing algorithms of large US tech companies
  • High degree of automation in contrast to previous solutions

paretos democratizes the process of data analysis

No more bad decisions! Thanks to its easy-to-use SaaS cloud application, paretos democratizes the process of data analysis and forecasting. Teams and organizations can use it to independently manage dynamic and complex data-driven decision-making processes. Prior knowledge is not necessary for users of the paretos platform – anyone can make good decisions at any time. Instead of expensive business intelligence solutions and the use of data scientists, paretos gives companies the opportunity to tackle their Smart Data initiative autonomously and cost-effectively. Easy-to-understand workflows enable insight analyses of existing company data. Thanks to the fully automated and integrated workflow, manual iterations are not necessary and the models are easily and quickly scalable.

Easy to to use: Integration using common file types

Integration is already possible with small sets of data, but paretos software handles the analysis of extremely large amounts of data. Import and export of data is easily done via modern interfaces (API), connectors to common business tools (ERP, BI, CRM, Data Warehouse or even store systems) or simple export or file formats (Exel, .csv). The output is also visualized in a browser-based, no-code user interface so that each user can individually configure the application components most relevant to them. Results can then be easily exported or automated back into the company’s tools via the interface. The software is designed for all use cases, including:

  • Customer Recommendations
  • Product Recommendations
  • Dynamic Pricing
  • Warehouse Optimization
  • Impact Analysis
  • Forecasts
  • Scenario Creation
  • Sales Forecasts
  • Marketing Mix Optimization

Based on customer data, it generates a series of optimized forecasts and decision proposals from which all employees can then draw the correct conclusions for their respective departments.

Companies optimize their KPIs thanks to paretos

Targeted optimization using the self-learning paretos algorithm makes companies infinitely more efficient and competitive. Thanks to reinforcement learning, the underlying software is able to fully automate three of the most complex challenges in the business and marketing context, among others:

  • Targeting customers using personalized product recommendations, cross-selling options and impact analysis (Customer Recommendations)
  • Dynamic Pricing of products and services in response to market changes
  • Efficient inventory management to dynamically optimize logistics processes and resource planning (Warehouse Optimization)

For example, the German E-Commerce Retailer SNOCKS established an intelligent price management system within a very short time with the help of paretos AI. This allows the company to control its discount prices in a data-driven manner and adjust them according to demand. Also, one of Europe’s largest parcel delivery companies was able to achieve a prediction accuracy of up to 95% on its expected parcel volumes after just five months of using paretos software. The increasing volume of available analyses and automated forecasts allows companies to create more precise deployment plans and, thus, sustainably save on operating costs whilst, at the same time, incorporating CO balance targets into their decisions.

The paretos founders combine their expertise for Deep Tech

After studying mechanical engineering in Karlsruhe, CTO Fabian Rang had already established himself a firm place within the Daimler universe. After three years at his secure job at the Stuttgart-based carmaker, he decided to study for a doctorate in systems engineering and mathematics. After studying programming in Lisbon he then found the opportunity to put his methodological knowledge to practical use where he perfected his optimization approaches in various projects before founding paretos with Thorsten Heilig.

CEO Thorsten Heilig also has a weakness for digital technologies, but his fascination is more towards the strategic examination of the topics of organizational and product growth, agile transformation and change management. That’s why, as a co-founder of various companies as well as a systemic management coach or, most recently, as COO at moovel/REACH NOW, a Daimler subsidiary for inventing innovative mobility concepts, he is so passionate about finding new ways, methods and technologies that can be used by everyone and anyone. With paretos, he aims to democratize AI-based technology so that every organization is able to make better strategic business decisions.

We are the leading AI-based decision intelligence platform for effective, data-driven decision-making processes in companies. No more bad decisions!
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