LANIT works for a percentage
Datana, a new company of the LANIT Group, offers customers artificial intelligence to reduce costs. The company accepts payment in the form of a share of the savings due to the use of its solution.
The development of the Datana product began at the end of 2017 as an R’n’D project of the LANIT Digital Solutions Department. During this time, the department has accumulated experience in “Industry 4.0” technologies, as well as industry expertise in metallurgy. The system that the company offers to the market contains pre-configured mathematical models that are trained in the process of working on real data. In addition to creating and supplying the Datana product, the company will continue to engage in research activities in terms of optimizing production technologies, digitalizing production and technological processes of enterprises. The new company was headed by the head of the Digital Solutions Department, Vladimir Zakharov.
“The estimated savings on only one unit of metallurgical production, for example, an arc furnace or a bucket furnace, achieved when implementing our solution, amounts to hundreds of millions of rubles per year. Now, for the owners of enterprises, this is lost money that we can help them find. The volume of the target market for the product in Russia alone is estimated at tens of billions of rubles a year, ” says the CEO of Datana.
The principle of operation of the new technology is explained by Alexander Ovchinnikov, a leading business architect of Datana: “For example, at the plant, the specific electricity consumption for an arc steel furnace before the introduction of Datana was 400 kW / h per ton. With the help of Datana, we modeled the process of steel smelting in a furnace based on physico-chemical, thermal processes, as well as statistical data using machine learning algorithms. Then, in real time, we gave the operator recommendations on the optimal management of this process, which led to a reduction in specific electricity costs by 50 kW / h. We have converted the absolute values (50 kW/h) into rubles in accordance with the plant’s purchase prices for electricity — for example, 3 rubles per kW / h. We multiplied this figure by the volume of steel production in the furnace (for example, 1 million tons per year). The result was an annual amount of savings for the plant — 150 million rubles. We take a percentage of the savings.”
This is a relatively new business model for AI solutions, which is called service fee/revenue sharing — revenue sharing, or commissions from services. “If we increase the efficiency of production, we can claim to share the profit from the economic effect. We help the company save 100 million rubles a year and we want to get a percentage of this amount. Such a scheme requires careful study. It is necessary to record all the nuances and details on paper. For example, what will happen if our decision negatively affects the operation of the unit, leads to its downtime? Or how can we prove that it was our decision that led to success, and not a change in technology or technological process? ” – says Ovchinnikov.
“LANIT continues to enter new markets and follow trends. A complex and useful product has grown in the group of companies, which will help industrialists achieve significant cost savings through data analysis. According to our calculations, we can talk about tens of millions of dollars. Many large enterprises are now considering the possibility of working with their own data array. However, not all enterprises have enough expertise, so the Datana team was able to quickly interest the players of the relevant market. Now the company is already implementing two pilot implementations, ” says Philip Gens, President of the LANIT Group of Companies.