Discover Simple Stories for Complex Problems
Your company’s margins are shrinking and you're not sure why. But with Einstein Discovery in your toolbox, it's time to create a story that will give you answers!
- To go to the datasets screen, click Datasets.
Click the drop menu for the dataset you imported —APdist—, then
click Create Story. Analytics Studio launches the Story Setup
Based on the data in your dataset, Einstein Discovery suggests creating a story to
“Maximize the variable Margin.” The story is designed to answer a question: How do I
maximize margins? And that question lines up with the most pressing question you have:
What happened to lower our margins?
You can open the lists below I want to and the variable to see the other available selections. But in this case, Einstein Discovery is exactly right, so don’t make any changes.
The default story name is the same as the dataset name, but “APDist” isn't very descriptive. Change this to “Maximize Margins”. Keep the default App as “My Private App”.
Click Data Options. In the next screen, you tell Einstein which
fields to use to create the story.
You can de-select fields that you don't want used in the story. In this case, you want every field, so leave this page as it is.
Click Review Settings to confirm your selections for the
- Click Create Story.
Now sit back and watch as Einstein Discovery evaluates your data from just about every possible angle. This analysis usually takes a minute or two, so go ahead and take a stretch break.
When it’s done preparing the story, Einstein Discovery shows it to you.
The first visualization you see —a bar chart with highlights and explanatory text— is the first of many insights in the story. You can scroll through the list to explore other insights. Different products have significantly different margins. An Einstein Discovery insight doesn’t simply present some data, it also highlights what’s important about it. The blue bars show the products where the margins were significantly better or worse than the average margin (the orange horizontal line).
But that’s a discovery you could have made easily enough on your own. The question is, why? What’s the cause? There are more insights in the story — let’s focus on the product with the lowest margin, alternators.
- Scroll down to the insight “When Distributor is Nisizu, Product: Hybrid Motors and Lift
Supports do better”.
Great—looks like some products are returning good margins, particularly Hybrid Motors and Lift Supports, as the insight shows us. But it still doesn’t tell us why alternator margins are lagging so far behind, so let's keep going.
- In the Search story insights section, select Product - Alternators.
Scroll down to the insight with the title “When Product is Alternators, Distributor: Nisizu
and BDINC do worse”.
The new insight tells you that all distributors are under-performing with alternators, but there’s one that’s doing especially poorly: Nisizu. You suspect that this distributor’s poor performance has had a major impact on overall margins. Let’s take this one step further and find another insight that tells us why.
- From the Einstein Insights about menu, change What Happened to Why It
You see a new insight that supports what you already suspected: “Product is Alternators by itself explains -5.637 of the change in Margin.”
The waterfall graph reveals a new view of your data. The explanatory text says: “Distributor is Nisizu occurs 35.8% of the time globally but it changes to 52.8% when it is known that Product is Alternators.” In other words, Nisizu is responsible for more than 50% of your distribution deals for alternators! That explains a significant part of the drop in margins.
Now you have some ideas about what’s causing margins to fall. That’s great, but you need a solution, so the obvious question to ask next is “What can I do about it?” Einstein Discovery can help.
Select Predictions & Improvements. From Relating
to, click the X to clear Product - Alternators, and
select Distributor - Nisizu. From By
Changing, select Product.
From the insights that appear, scroll down to Predicted Margin by Product When Distributor is Nizizu.
We're interested in this insight because it mentions products and the distributor that we're interested in (Nisizu).
Wow! Looks like selling more belt drives through Nisizu has a huge impact on margin!
For more ideas to improve margin, click the X to clear the Relating
to menu and choose Distributor from the By
The first insight shows you cases where you can increase margin by changing to a different distributor.