Imagine you had a crystal ball that could predict the future. That would be rather amazing, your risks would be certain and ultimately your decision making would be simpler and easier. In gambling, you can’t know what the next coin flip is going to be however since we have an idea of how statistics works we know that it can either land on heads or tails. Roulette is a little more interesting – of the 32 numbers split 50/50 black and red those gambling on red or black think they have a 50/50 chance of winning – the reality is that those odds are made a fraction worse by the fact that 0 or sometimes 00 is colourless. That fraction of a difference over a very large data set ultimately gives the casino a mathematical advantage.
Gambling statistics aren’t new, in fact, they are now hundreds of years old. How do the statistics of gambling affect us in today’s modern era? This article is about predicting the next move, well really just giving you a slight edge to more accurately predict a possible outcome. In the context of gambling, you ultimately want to win. In the context of the business, you may want to predict which customers are likely to make a certain purchase or predict when your machinery needs a service or how to optimally distribute your resources.
How? This is the golden question. Gambling is a statistics dream – loads of reliable data. How do you get reliable data about your customers buying preferences or how to predict when your machinery isn’t running perfectly. The answer is sensors to measure critical factors throughout the entire workplace. If a sensor is placed on a machine that measures temperature and vibration. Your systems would pick up accurate operation times and the intensity at which the machine is running. Imagine the machine started running hotter than normal or its vibration increased above average. That information is now telling you your machine is doing something different. It may mean internal parts are wearing out or very simply that you need more oil in the gears to reduce the friction inside the machine which is what is causing the additional heat and vibration.
Accurately prediction these types of business issues is becoming more and more critical. Efficiency is an everlasting quest which has a massively positive outcome of increased profits. It is easy to see the benefits of predicting machinery issues – in my simple example above we were able to make a cheap adjustment – add oil – which resulted in the machinery parts lasting longer or not failing completely resulting in a complete shutdown.
Internet of things is a cog in a big wheel of modern technology. Artificial Intelegence, big data, and machine learning are other complementary technologies. Why? Reliable data is key to the success of the 4th industrial revolution technologies. Gambling data is easy – data on the world and everything around it is significantly more difficult. Internet-enabled sensors with ultra-long battery life is the answer. Those sensors collect data which is analysed and used to make predictions.
TechThrive is an electronics firm. Our team can build and maintain a multitude of sensors and devices that help businesses achieve success in the 4th industrial revolution.