Beginner’s guide to Chatbots – a driver for Digital Transformation

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We are living in a century where technology dominates lifestyle;Digital Transformation with Big Data, IoTArtificial Intelligence(AI) are such examples.

Over the past six months, Chatbots have dominated much of the tech conversation, the next big gold rush in the field of online marketing.

Chatbots are built to mimic human interaction, making them seem like an actual individual existing digitally. It could live in any major chat product (Facebook Messenger, Slack, Telegram, Text Messages, etc.), powered by basic rules engine or NLP and AI.

Chatbots have helped in conversation commerce in real time such as booking a cab or ordering a bouquet of flowers or pizza. Consumers will benefit from chatbots through personalization, and this is where social media plays a big part.

Here are a couple of other examples:

  • Weather bot: Get the weather whenever you ask like Poncho
  • Grocery bot:  Help me pick out and order groceries for the week like Yana, MagicX
  • News bot:  Ask it to tell you whenever something interesting happens like TechCrunch, CNN
  • Personal finance bot: It helps me manage my money better like Abe

A chatbot for an airline will function fundamentally differently from a banking bot.

People are now spending more time in messaging apps than in social media and that is a huge turning point. Messaging apps are the platforms of the future and bots as over 90% of our time on mobile is spent on messaging platforms like Facebook messenger, Whatsapp, Wechat, Viber etc.

Typically business need to answer following questions to create a bot:

  • Do you need a constant communication back and forth with the consumer?
  • What are customers’ expectations for the interaction?
  • How will the bot act?
  • What happens when the bot fails?

Chat bots have to be great at answering questions, this is usually how they are challenged, and IBM’s Watson is probably the best question and answer system.

There are several advantage of Chatbots:

  • 24×7 availability – A bot exists digitally unlike a human being, and can thus be pressed into service continuously without any interference
  • Faster response time than humans, coupled with an AI, chatbot’s machine learning and multi-tasking abilities make it a highly efficient virtual assistant
  • Bots allow for a two-way, personalized interaction between the consumer and a brand
  • Saves Resources – Employing a chatbot to handle basic customer interactions can free up valuable human resources without a decline in productivity

Tacobot Allows to order Taco Bell even more quickly.

KLM has a customer service bot that’s able to check your flight status and let you know if it’s been delayed.

Interacting with software at a human level is becoming more mainstream from digital assistants like Google Home, Google Now, Apple Siri.

Going forward people will not be able to tell the difference between human and machine.

Sandeep Raut

7th Rank in Global Top 100 Digital Transformation Influencers Delivered speech at India Analytics & Big Data Summit at Bangalore on "How Machine Learning is helping in Digital Transformation" on 4th Feb 2016 Delivered Thought Leadership speech at Unicom - India Analytics & Big Data Summit on "Big Data Analytics disrupting industry" Delivered speech at IIT Mumbai on "Analysing Big data for disruptive innovation" Delivered a keynote speech at Rizvi College of Engineering on "Fraud Detection & Prevention using Analytics" • Director for Digital Transformation in Syntel. • Has more than 29 years of IT Services / Consulting / Off-shoring experience • Over 18 years in Business Intelligence space. • Had helped organizations in establishing the BI-Analytics Services CoEs. • Had spearheaded several marquee accounts and was significantly instrumental in building new business for the practice as well. • Had successfully initiated, mentored & deployed various strategic consulting services & solutions like Digital Transformation, BI Strategy Planning, BI Offshorization, BI Development/Deployment, Campaign Management, Inventory Optimization which resulted into multi-million dollar business. • Had developed & managed Customer relations with Global players across USA, UK & Asia Pacific. Specialties: Digital Transformation, BI & Big Data Analytics Banking and Financial Services, Healthcare LifeSciences, Insurance, Retail Manufacturing - Supply Chain Management

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