Machine Learning in Energy

Machine Learning in Energy

With an ever changing market place where does your pricing strategy align with technology? How often do you reprice your products? If it's less than per-deal you are likely losing margin. Pariveda has developed a Machine Learning approach to dynamic pricing that enables near continuous pricing. Read how we worked with a client to enable this capability. 

Predicting Bid Wins leads to Better Deal Pricing 

An oilfield equipment provider was concerned with wellhead price responsiveness during downturns in capital spending as a result of lower global oil pricing. They sought to build a predictive analytics solution which incorporated machine learning techniques to gain greater insight into the probabilities of winning opportunities.

Pariveda worked with the company to develop a cloud-based machine learning solution that used market conditions, customer information, and historical sales data to predict the win/loss probability across the pricing spectrum. The model was then converted into a web service and an Excel add-in was used to run data through it to produce a band of “valid” prices and their win probabilities. It used Jupyter Notebooks (powered by Python 3) extracted and transformed SAP data to feed the predictive Two-Class Boosted Decision Tree model.

Data-driven pricing decisions can now be made during the quote preparation process, enabling the bidding team to see what affect price changes have on win/loss probability for an individual deal. This new approach guides pricing, better informs sales and speeds up the quoting process. The Excel interface provides the marketing department with a mechanism to test various system configurations, market conditions, and customer segments. 

Pariveda's ML Methodology 

Our overarching principle in our AI/ML engagements is to help our clients build a sustainable AI/ML capability through a holistic view of the people, process, and technology required to support that capability. We partner with Amazon Web Services to deliver solutions that provide value. 

 

If you are looking for a partner to guide you along the Machine Learning journey, reach out to us at sales@parivedasolutions.com