Managing campaigns and promotions effectively is vital for the fashion retail industry. While retailers invest a lot of money in campaigns, customer retention is often very low. At innovative retailers, data-driven methods, aimed at understanding and ultimately optimizing campaigns are introduced. In this application paper, machine learning techniques are employed to analyze data about campaigns and promotions from a leading Swedish e-retailer. More specifically, predictive modeling is used to forecast the profitability and activation of campaigns using different kinds of promotions. In the empirical investigation, regression models are generated to estimate the profitability, and classification models are used to predict the overall success of the campaigns. In both cases, random forests are compared to individual tree models. As expected, the more complex ensembles are more accurate, but the usage of interpretable tree models makes it possible to analyze the underlying relationships, simply by inspecting the trees. In conclusion, the accuracy of the predictive models must be deemed high enough to make these data-driven methods attractive.

Being able to accurately predict several attributes related to size is vital for services supporting online fitting. In this paper, we investigate a data-driven approach, while comparing two different supervised modeling techniques for predictive regression; standard multiple linear regression and neural networks. Using a fairly large, publicly available, data set of high quality, the main results are somewhat discouraging. Specifically, it is questionable whether key attributes like sleeve length, neck size, waist and chest can be modeled accurately enough using easily accessible input variables as sex, weight and height. This is despite the fact that several services online offer exactly this functionality. For this specific task, the results show that standard linear regression was as accurate as the potentially more powerful neural networks. Most importantly, comparing the predictions to reasonable levels for acceptable errors, it was found that an overwhelming majority of all instances had at least one attribute with an unacceptably high prediction error. In fact, if requiring that all variables are predicted with an acceptable accuracy, less than 5% of all instances met that criterion. Specifically, for females, the success rate was as low as 1.8%.

We show how an exploratory tool for association rule mining can be used for efficient multi-objective optimization of marketing campaigns for companies within the fashion retail industry. We have earlier designed and implemented a novel digital tool for mining of association rules from given basket data. The tool supports efficient finding of frequent itemsets over multiple hierarchies and interactive visualization of corresponding association rules together with numerical attributes. Normally when optimizing a marketing campaign, factors that cause an increased level of activation among the recipients could in fact reduce the profit, i.e., these factors need to be balanced, rather than optimized individually. Using the tool we can identify important factors that influence the search for an optimal campaign in respect to both activation and profit. We show empirical results from a real-world case-study using campaign data from a well-established company within the fashion retail industry, demonstrating how activation and profit can be simultaneously targeted, using computer-generated algorithms as well as human-controlled visualization.

Successful use of probabilistic classification requires well-calibrated probability estimates, i.e., the predicted class probabilities must correspond to the true probabilities. The standard solution is to employ an additional step, transforming the outputs from a classifier into probability estimates. In this paper, Venn predictors are compared to Platt scaling and isotonic regression, for the purpose of producing well-calibrated probabilistic predictions from decision trees. The empirical investigation, using 22 publicly available datasets, showed that the probability estimates from the Venn predictor were extremely well-calibrated. In fact, in a direct comparison using the accepted reliability metric, the Venn predictor estimates were the most exact on every data set.

Conformal prediction is a learning framework that produces models that associate witheach of their predictions a measure of statistically valid confidence. These models are typi-cally constructed on top of traditional machine learning algorithms. An important result ofconformal prediction theory is that the models produced are provably valid under relativelyweak assumptions—in particular, their validity is independent of the specific underlyinglearning algorithm on which they are based. Since validity is automatic, much research onconformal predictors has been focused on improving their informational and computationalefficiency. As part of the efforts in constructing efficient conformal predictors, aggregatedconformal predictors were developed, drawing inspiration from the field of classification andregression ensembles. Unlike early definitions of conformal prediction procedures, the va-lidity of aggregated conformal predictors is not fully understood—while it has been shownthat they might attain empirical exact validity under certain circumstances, their theo-retical validity is conditional on additional assumptions that require further clarification.In this paper, we show why validity is not automatic for aggregated conformal predictors,and provide a revised definition of aggregated conformal predictors that gains approximatevalidity conditional on properties of the underlying learning algorithm.

Conformal classiers output condence prediction regions, i.e., multi-valued predictions that are guaranteed to contain the true output value of each test pattern with some predened probability. In order to fully utilize the predictions provided by a conformal classier, it is essential that those predictions are reliable, i.e., that a user is able to assess the quality of the predictions made. Although conformal classiers are statistically valid by default, the error probability of the prediction regions output are dependent on their size in such a way that smaller, and thus potentially more interesting, predictions are more likely to be incorrect. This paper proposes, and evaluates, a method for producing rened error probability estimates of prediction regions, that takes their size into account. The end result is a binary conformal condence predictor that is able to provide accurate error probability estimates for those prediction regions containing only a single class label.

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We are witnessing the beginning of a seismic shift in retail due to digitalization. However, what is meant by digitalization is less clear. Sometimes it is understood as means for automatization and sometimes it is regarded as equal to e-commerce. Sometimes digitalization is considered being both automatization and e-commerce trough new technology. In recent years there has been an increase in Internet and mobile devise usage within the retail sector and e-commerce is growing, encompassing both large and small retailers. Digital tools such as, new applications are developing rapidly in order to search for information about products based on price, health, environmental and ethical considerations, and also to facilitate payments. Also the fixed store settings are changing due to digitalization and at an overall level; digitalization will lead to existing business models being reviewed, challenged and ultimately changed. More specifically, digitalization has consequences for all parts of the physical stores including customer interface, knowledge creation, sustainability performance and logistics. As with all major shifts, digitalization comprises both opportunities and challenges for retail firms and employees, and these needs to be empirically studied and systematically analysed. The Swedish Institute for Innovative Retailing at University of Borås is a research centre with the aim of identifying and analysing emerging trends that digitalization brings for the retail industry.

An ensemble is a composite model, combining the predictions from several other models. Ensembles are known to be more accurate than single models. Diversity has been identified as an important factor in explaining the success of ensembles. In the context of classification, diversity has not been well defined, and several heuristic diversity measures have been proposed. The focus of this thesis is on how to create effective ensembles in the context of classification. Even though several effective ensemble algorithms have been proposed, there are still several open questions regarding the role diversity plays when creating an effective ensemble. Open questions relating to creating effective ensembles that are addressed include: what to optimize when trying to find an ensemble using a subset of models used by the original ensemble that is more effective than the original ensemble; how effective is it to search for such a sub-ensemble; how should the neural networks used in an ensemble be trained for the ensemble to be effective? The contributions of the thesis include several studies evaluating different ways to optimize which sub-ensemble would be most effective, including a novel approach using combinations of performance and diversity measures. The contributions of the initial studies presented in the thesis eventually resulted in an investigation of the underlying assumption motivating the search for more effective sub-ensembles. The evaluation concluded that even if several more effective sub-ensembles exist, it may not be possible to identify which sub-ensembles would be the most effective using any of the evaluated optimization measures. An investigation of the most effective ways to train neural networks to be used in ensembles was also performed. The conclusions are that effective ensembles can be obtained by training neural networks in a number of different ways but that high average individual accuracy or much diversity both would generate effective ensembles. Several findings regarding diversity and effective ensembles presented in the literature in recent years are also discussed and related to the results of the included studies. When creating confidence based predictors using conformal prediction, there are several open questions regarding how data should be utilized effectively when using ensembles. Open questions related to predicting with confidence that are addressed include: how can data be utilized effectively to achieve more efficient confidence based predictions using ensembles; how do problems with class imbalance affect the confidence based predictions when using conformal prediction? Contributions include two studies where it is shown in the first that the use of out-of-bag estimates when using bagging ensembles results in more effective conformal predictors and it is shown in the second that a conformal predictor conditioned on the class labels to avoid a strong bias towards the majority class is more effective on problems with class imbalance. The research method used is mainly inspired by the design science paradigm, which is manifested by the development and evaluation of artifacts. 

En ensemble är en sammansatt modell som kombinerar prediktionerna från flera olika modeller. Det är välkänt att ensembler är mer träffsäkra än enskilda modeller. Diversitet har identifierats som en viktig faktor för att förklara varför ensembler är så framgångsrika. Diversitet hade fram tills nyligen inte definierats entydigt för klassificering vilket resulterade i att många heuristiska diverstitetsmått har föreslagits. Den här avhandlingen fokuserar på hur klassificeringsensembler kan skapas på ett ändamålsenligt (eng. effective) sätt. Den vetenskapliga metoden är huvudsakligen inspirerad av design science-paradigmet vilket lämpar sig väl för utveckling och evaluering av IT-artefakter. Det finns sedan tidigare många framgångsrika ensembleralgoritmer men trots det så finns det fortfarande vissa frågetecken kring vilken roll diversitet spelar vid skapande av välpresterande (eng. effective) ensemblemodeller. Några av de frågor som berör diversitet som behandlas i avhandlingen inkluderar: Vad skall optimeras när man söker efter en delmängd av de tillgängliga modellerna för att försöka skapa en ensemble som är bättre än ensemblen bestående av samtliga modeller; Hur väl fungerar strategin att söka efter sådana delensembler; Hur skall neurala nätverk tränas för att fungera så bra som möjligt i en ensemble? Bidraget i avhandlingen inkluderar flera studier som utvärderar flera olika sätt att finna delensembler som är bättre än att använda hela ensemblen, inklusive ett nytt tillvägagångssätt som utnyttjar en kombination av både diversitets- och prestandamått. Resultaten i de första studierna ledde fram till att det underliggande antagandet som motiverar att söka efter delensembler undersöktes. Slutsatsen blev, trots att det fanns flera delensembler som var bättre än hela ensemblen, att det inte fanns något sätt att identifiera med tillgänglig data vilka de bättre delensemblerna var. Vidare undersöktes hur neurala nätverk bör tränas för att tillsammans samverka så väl som möjligt när de används i en ensemble. Slutsatserna från den undersökningen är att det är möjligt att skapa välpresterande ensembler både genom att ha många modeller som är antingen bra i genomsnitt eller olika varandra (dvs diversa). Insikter som har presenterats i litteraturen under de senaste åren diskuteras och relateras till resultaten i de inkluderade studierna. När man skapar konfidensbaserade modeller med hjälp av ett ramverk som kallas för conformal prediction så finns det flera frågor kring hur data bör utnyttjas på bästa sätt när man använder ensembler som behöver belysas. De frågor som relaterar till konfidensbaserad predicering inkluderar: Hur kan data utnyttjas på bästa sätt för att åstadkomma mer effektiva konfidensbaserade prediktioner med ensembler; Hur påverkar obalanserad datade konfidensbaserade prediktionerna när man använder conformal perdiction? Bidragen inkluderar två studier där resultaten i den första visar att det mest effektiva sättet att använda data när man har en baggingensemble är att använda sk out-of-bag estimeringar. Resultaten i den andra studien visar att obalanserad data behöver hanteras med hjälp av en klassvillkorad konfidensbaserad modell för att undvika en stark tendens att favorisera majoritetsklassen.

This study introduces the conformal prediction framework to the task of predicting the presence of adverse drug events in electronic health records with an associated measure of statistically valid confidence. The imbalanced nature of the problem was addressed both by evaluating different machine learning algorithms, and by comparing different types of conformal predictors. A novel solution was also evaluated, where different underlying models, each model optimized towards one particular class, were combined into a single conformal predictor. This novel solution proved to be superior to previously existing approaches.