Case 1.1: CBinsights, How is CBinsights using AI

Case Study 1

Read “Case 1.1: CBinsights” and write an essay that answers the following questions:

1. How is CBinsights using AI and big data to revolutionize the business sector?

2. What are the services that CBinsights provides and how do they help businesses make strategic decisions?

3. What are the different AI technologies that CBinsights uses to process their data?

4. How does the Mosaic model and algorithms evaluate high-tech startups and what are the outputs that customers receive?

5. What are some popular businesses that have used CBinsights and how has it benefitted their organizations?

6. What are the advantages of using CBinsights for market research compared to traditional methods?

7. What is the role of machine learning and data mining in CBinsights' data processing?

8. How does CBinsights help venture capital and investment firms assess company data in new ways?

9. In what ways can CBinsights' services be applied to specific industries, such as finance or healthcare?

Requirements:

· There is no specific page requirement for your analysis. Instead, your work will be evaluated based on how thoroughly it addresses each of the questions that have been outlined for you.

· You must utilize proper APA formatting and citations throughout your paper. If you use any supporting evidence from external sources, it is imperative that you provide accurate citations for each reference.

· You must include a minimum of two sources from scholarly articles or business periodicals, aside from the course textbook. 

 

Case 1.1: CBInsights AI and usage of big data are ever present in society and growing and revolutionizing the business today. AI is being used in every business sector from market insights, customer and financial modeling in analytics, and risk management and fraud pre- vention. Venture capital and investment firms are able to assess company data through brand new ways that were not available to them before such as sales projec- tions and market potentials to better evaluate their risks and discover business opportunities. Here we provide the first case showing how AI is powering business and investment.

CBinsights is one of the major technology and innovation consulting companies that develop AI applications in marketing research. Businesses in different indus- tries can pay CBinsights in return for one of their products or services that they provide. A few of these services include industry analytics, patent analytics, market sizing, market map makers, etc. CBinsights uses machine learning, data mining, and algorithms to make strategic decisions about the market. They collect data concern- ing market size and related markets to give other businesses an idea of which mar- kets are growing, which ones are going down, and in which markets people are spending their money. This helps businesses get a better understanding of the poten- tial opportunities for market expansion. This also lets them know in which markets they should be investing more of their time and money. They collect data about investments, which helps them understand which markets look promising. Finally, they collect data about emerging markets, financial trends, and emerging AI startups so they can see which businesses could potentially start partnerships.

The way CBinsights processes this data is innovative. They receive 70% of their data from algorithms and the other 30% comes directly from investors. All of this data that they receive is unstructured data, meaning that there is a bunch of different data, and it is not organized. CBinsights then takes this data and uses machine learn- ing, data mining, and algorithms to transform this data into structured data. The structured data is the output, and it includes company names, investor names, dates, amounts of funding, patents, etc. (Company Mosaic). CBinsights uses many differ- ent AI technologies to process their data. Some of these technologies include machine learning, data mining, algorithms, market analytics, predictive analytics, and data visualization. All of these AI technologies are used to process and structure data that fits the customers’ needs. CBinsights claims that its secret weapon has been Mosaic, which is a series of proprietary machine learning algorithms devel- oped with initial support from the National Science Foundation (NSF). NSF grants totaled about one million from 2011 to 2013. The Mosaic algorithms would aggre- gate and synthesize information from disparate sources and programmatically  assess the health and likelihood of future success of emerging high-tech startups. The Mosaic algorithms evaluate the companies using the 4 Ms:

1. Momentum – how much traction does the company have? 2. Market – how healthy is the industry the company is in? 3. Money – what is the financial health of the company? 4. Management – who are the leaders of the company?

The outputs of Mosaic algorithms include both positive and negative criteria in a specific timeline (CBinsights, 2020).

Positive outputs include:

• Successful IPO • Acquisition with valuation that is greater than last private valuation • A $1B+ private market valuation (unicorn status)

Negative outcomes include:

• Bankruptcy/death • Asset sale • Acquisition (talent)

By examining the outputs of the Mosaic model and algorithms, CBinsights is able to assess if a high-tech startup is on the right track rising to unicorn glory or descend- ing into the pit of startup failure.

CBinsights provides many different services to its customers and so the output that customers receive varies depending on the service that they purchase. One of the outputs that customers might receive from CBinsights is information on the visualization of the moves that industry leaders are making and where the market is heading. They also might receive information on what industries are growing, where investors are placing their bets, and what businesses or markets show promising health and momentum based on their Mosaic scores. There are many popular busi- nesses that have used CBinsights to benefit their organization. A few of these busi- nesses are BuzzFeed, CitiBank, New York Times, IBM, Fortune, and GE. All of these businesses have used a multitude of services from CBinsights that have helped their marketing teams make strategic decisions.