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Eiti Kimura / Flávio Clésio @Movile Brazil, June PRACTICAL MACHINE LEARNING MODELS TO PREVENT REVENUE LOSS PAPIS.io Connect 2017

Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

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Page 1: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

Eiti Kimura / Flávio Clésio@Movile Brazil, June

PRACTICAL MACHINE LEARNING MODELS TO PREVENT REVENUE LOSS

PAPIS.io Connect 2017

Page 2: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

ABOUT US

Flávio Clésio

• Core Machine Learning at Movile• MSc. in Production Engineering (Machine Learning in Credit Derivatives/NPL) • Specialist in Database Engineering and Business Intelligence• Blogger at Mineração de Dados (Data Mining) - http://mineracaodedados.wordpress.com• Strata Hadoop World Singapore Speaker

flavioclesio

Page 3: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

ABOUT US

• Software Architect and TI Coordinator at Movile• Msc. in Electrical Engineering• Apache Cassandra MVP (2014/2015 e 2015/2016)• Apache Cassandra Contributor (2015)• Cassandra Summit Speaker (2014 e 2015)• Strata Hadoop World Singapore Speaker

Eiti Kimura

eitikimura

Page 4: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

Movile is the company behind of several apps that makes the life easier

WE MAKE LIFE BETTER THROUGH OUR APPS

Page 5: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

● The Movile's Platform Case

● Practical Machine Learning Model Training

● Results and Conclusions

AGENDA

Page 6: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

MOVILE'S SUBSCRIPTIONAND BILLING PLATFORM IN ITS SIMPLEST FORM● A distributed platform

● User's subscription management

● MISSION CRITICAL platform: can not stop under any circumstance

Page 7: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

REVENUE LEAKAGE LOSSES IMPACT ALONG THE DAY

● 1 Hour Outage: Dozens of thousands of BRL

● 3 Hour Outage: Some hundreds of thousands of BRL

● 12 Hour Outage: Millions of BRL

Page 8: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

How can we check if platform is fully functional based on data analysis only?

MAIN PROBLEM: MONITORING

Tip: what if we ask help to an intelligent system?

Page 9: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

● 230 Millions + of billing requests attempt a day● 4 main mobile carriers drive the operational work

HOW DATA LOOKS LIKE?

Page 10: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

DATA AND ALGORITHM MODELING

Sample of data (predicting the number of success)

featureslabel/target

# success carrier_weight hour week response_time #no_credit #errors # attempts

61.083, [4.0, 17h, 3.0, 1259.0, 24.751.650, 2.193.67, 26.314.551]

SUPERVISED LEARNING

Linear Regression

Page 11: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

● Linear Model with Stochastic Gradient (SDG)

● Lasso with SGD Model (L1 Regularization)

● Ridge Regression with SGD Model (L2 Regularization)

● Decision Tree with Regression Properties (Not CART)

TESTED ALGORITHMS USING SPARK MLLIB

Page 12: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

MODELING LIFECYCLE

Training Data

Testing Data

Feature Extraction

Train

Score

Model

Evaluation

Dataset

Page 13: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

http://spark-notebook.io/

SPARK NOTEBOOK

Page 14: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

Machine Learning Tested Model Accuracy RMSE

Linear Model With SGD 44% 1.64

Lasso with SGD Model 43% 1.65

Ridge Regression with SGD Model 43% 1.66

Decision Tree Model 96% 0.20

TIME TO EVALUATE THE RESULTS

Page 15: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

WATCHER-AI INTRODUCTION

Hi I'm Watcher-ai!It is nice to see you here

Page 16: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

WATCHER-AI ARCHITECTURE

Page 17: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

Avoid to Lose more than U$ 3 Million Dollars preventing leakage

Saved more than 500 working hours

Recovery Time drops from 6 hours to 1 hour

Page 18: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

• Automatic refeed and training using collected data. Analyse more data to predict

possible errors with carrier

• Notify more people and specific teams (more complex problems)

• Refactory to be more generic, so other teams can add their own algorithm

• Why not interact with Watcher to guide the analysis?

• Don't limit your mind, there is a lot to keep improving...

IT IS JUST A WARM UP

Page 19: Practical machine learning models to prevent revenue loss — Eiti Kimura and Flávio Clésio (movile) @PAPIs Connect — São Paulo 2017

THANK YOU!

@eitikimura eiti-kimura-movile [email protected]

@flavioclesio fclesio [email protected]

github.com/fclesio/watcher-ai-samplespapis-2017-brazil