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The digital transformation is happening at a breakneck pace and accelerating across industries. To keep up with the pace of change, businesses are transforming their operations to leverage software, data, AI and other emerging technologies.
Operations are the foundation of any business, but it’s often the first thing that comes to mind when we think about digital transformation. However, Operations have proven to be one of the most important pillars in different companies’ digital transformation journeys. It can have a significant impact on your business if you are not leveraging advanced operational tools or processes.
In this blog post, we will discuss everything you need to know about MLOps – What It Is and Why It Matters.
What is MLOps?
MLOps stands for Machine Learning Operations, which is the practice of embedding AI and ML-powered tools and technologies into the core business operations. It’s a powerful approach to operations management that focuses on automation, prioritization and standardization of business processes.
MLOps can help organizations tackle business challenges like
- high costs,
- low efficiency, and
- low customer satisfaction.
It’s a great approach to breaking down silos in organizations and enabling collaboration between groups. MLOps can be applied to all types of organizations, across all industries – no matter the size or sector. In fact, it can be applied to any process that has a measurable outcome. But it’s often used in financial services, travel and hospitality, insurance, or healthcare.
- Banks use MLOps to detect fraud on credit card transactions.
- Insurance companies use MLOps to detect fraudulent insurance claims.
- Retailers use MLOps to forecast demand.
Why MLOps Matters?
It’s no secret that new technologies are revolutionizing operations. Artificial intelligence (AI) and Machine Learning (ML) technologies are leading the charge. With the rising adoption of AI and automation in business, companies have started exploring ways to integrate AI and ML into their core business operations. From increased efficiency in workflow to better decision-making and forecasting – organizations are experiencing many benefits of MLOps. The benefits of applying AI and ML for operations are vast.
MLOps is a trend that is expected to have a big impact on businesses. According to a report, it is expected to grow by $4 billion in 2025.
When applied correctly, organizations can achieve significant improvements in customer experience, efficiency, and profitability.
For example, imagine a supply chain manager trying to forecast demand for a new product. They have historical data that shows demand for a similar product and forecasting models to predict the number of units they need to produce and ship. Now, imagine that manager being able to leverage machine learning to not only predict demand more accurately, but also optimize their forecasting model to be more precise. That’s when operations will truly go digital.
What does an MLOps implementation look like?
Operational processes are the backbone of any business. In order to successfully manage the day-to-day operations, it’s important to have a sound strategy in place. A well-executed operational strategy can help your business increase profit, manage resources (human/financial) more effectively, and provide a better customer experience.
MLOps can be applied to various operational processes. It depends on the business strategy and what operations they want to automate. Industries like retail, hospitality, transportation, and healthcare are already experiencing the benefits of integrating AI and ML into their core business operations.
Here are a few examples of how MLOps can be applied to operational processes:
- Logistics Operations: Logistical operations can be improved by using MLOps for optimizing the route, better forecasting inventory, and identifying risk factors associated with shipping.
- Supply chain management: Automated forecasting, inventory optimization, and inventory risk analysis can help supply chain management improve its operational effectiveness.
- Customer support: Customer support operations can leverage AI and ML to improve customer satisfaction by having a real-time view of the ticket status, predicting the next call, and routing the call to the correct agent.
- HR: HR departments can automate various administrative tasks by using AI and ML tools.
Enterprises across the globe have begun to adopt an operations approach focused on AI and ML technologies to their core business functions. This approach, known as Machine Learning Operations (MLOps), has the potential to significantly impact businesses by improving efficiency, increasing productivity, and generating new insights and revenue.
By adopting an MLOps approach, enterprises can automate many of their business functions and focus on applying advanced analytics to discover new insights or generate additional revenue from existing data assets.