Mars Session | Blockchain + AI In Retail Industry

Mars Session | Blockchain + AI In Retail Industry

Oct 31st 2018| Investment By:Sakura
You can put raw data into Blockchain - most of solutions are made like that.BUT!!! data in retail contains lots of mistakes and already is manipulated.

Time: October 31,2:00 PM(Beijing Time)  October 30,11:00 PM(PST)

Group: Mars Blockchain Global Community

Sharing Guest: Alex Isaiev,  Co-founder/CEO of OSA

Session Host: Sakura, Master of Mars Blockchain Global Community,Head of the Mars Finance International Website.

Sakura:Hi, dear friend, are you ready to start our activity?

Alex Isaiev: Hello!

Sakura: Hello, welcome to our community. You know, when I learned that you want to improvisational performance, I think you are a very thoughtful person, and I like this pattern very much.

I hope we will have a tacit cooperation.

Alex Isaiev: Yes, Lets start and have a wonderful time.

Sakura: So, let's get started

Alex Isaiev: You will list a first questions or you would like me to introduce myself? please advice

Sakura: Let's first introduce you and your project. Who is Alex? How came up with OSA idea?

Alex Isaiev: I am Alex:) and human - son of the loved planet Earth

I have 17 years of experience in consumer product retail, working in 57 countries, I am a very lucky person to be able to collect various experiences in Supply Chain, Marketing, Trade marketing and Key Account Management.

Before my job in consumer product retail from manufacturer side, I had created 5 different startups (retail, auto spare part distribution, fish & seafood distribution, catering service, real estate agency, etc). It was a great experience, I made 3 successful exits and 1 project was closed and 1 project is still is ongoing.

How I came to the idea of OSA? long story...

All we do - we create the value by solving the PAINs.

Sakura: You can take your time

Alex Isaiev: During my career in consumer product retail, all years I was fighting against the key issue of today’s retail: low level of Product Availability at shelf-level. Any position I was execution in Japan Tobacco (JTI), I met same issue. Being marketing person, I was investing millions of dollars to develop the brand, to produce the product, to promote it, to list it in retail stores….and then all efforts are waste, as at last mile my loved product could be simply not available…..and consumer selects other brand and I lose money as manufacturer, or consumer goes to another shop, then retailer lose the money. Today industry is losing over 500 Billion USD a year. I was dreaming to create a solution to address that pain and we succeed, after 2,5 years of R&D, $4mln invested - we succeed and developed unique B2B solution. We are the best in the world today how dress the product availability issue in real time.

Then I met another pain - as a consumer: I am on diet (not eating salt and sugar) and its a nightmare to find my products in the stores. On top of that I search for healthy products for my daughters. I need to read the tiny text on all packagesI loosing hours and hours. Then I was shocked, then found the ingredients which may initiate Cancer, or other diseases.

The great news is, that in OSA we have all required technologies to provide with services for consumers like me or you. Now we are developing B2C digital assistant.

And finally, our customers (big brands, like Coca-Cola, Metro, Nestle, Mars, Loreal.etc) came to us and asked for additional services. Our team is 100+ people and we can not develop solutions for all issues in retail:). I am big fan of Decentralization and we have decided to create decentralized marketplace of real life application based on blockchain and driven by AI. We will share our technological infrastructure (Big Data, AI, Blockchain, Smart Contracts) with other startups all around the world to develop new applications.


Alex Isaiev: I started to work as of 12th years old...that time my Grandfather told me: first, you give! then people will give you back. I remember it well and it works 1000%

On top of the importance of Chinese retail (second biggest in the world), China is very active player in blockchain and AI. I have not seen at any country I have visited, so many team of developers and so many implementations, like in China. I am convinced, that China is leading now in AI-solutions implementation and will lead with blockchain ones for sure. As we have mission to create the major case of real life application uniting Blockchain and AI, - we are here:)

Sakura: Well, great story, please go ahead and give it to us

Alex Isaiev: I spent almost 7 months in China and I completely changed my perception of the ,market and China

Sakura: So what do you think now?

Alex Isaiev: I met lots of intelligent and hard working professionals! Great place!

Our business: We had successful meeting with Auchan (big retail chain), also successful pitch to P&G (we were selected as top solution) and we agreed to create Blockchain&AI laboratory with HKUST

More to come soon:)

We are looking for strong local partners with whom we can deploy the service B2B and B2C

Alex Isaiev: So what do you think now? I became China's ambassador, telling people around the world - the true story of China. and I love to do that

Sakura: China also welcomes you very much. We are a very tolerant country

Alex Isaiev: Its true - We are a very tolerant country

thank you for that!

Sakura: I have learned that OSA is a blockchain +AI project. However, in my mind, there is a big difference between the two technologies. For example, AI is more inclined to deal with probability events, while blockchain seeks accurate results

Alex Isaiev: I met here number of very good personalities and met my today's friends:)

Sakura: And how are these two techniques applied in the OSA?

Alex Isaiev: Thank you for question

We believe in synergy. in our case: BigData+AI+Blockchain+Smart Contract

Sakura: You are welcome Please continue to

Alex Isaiev: As result we deliver: additional sales, additional profit and cost optimization

Example: you can put raw data into Blockchain - most of solutions are made like that

BUT!!! data in retail contains lots of mistakes and already is manipulated

Sakura: Yes, I agree, So what's your solution?

Alex Isaiev: We use AI to identify "anomalies", clean the data, makes it correct and generate the prescriptions for the business how to improve the situation

On top of that - we do NOT! record data into blockchain (if we record - big data will become HUGE data) as it does not have any economical reason

Sakura: It's a great solution to get two technologies together to do one thing. We call it to1+1>2.

Alex Isaiev: We create HASH and hash is recorded in Blockchain. and it runs two times - raw data and trustful data

As result - We create reliable data and then secure it from manipulation

Alex Isaiev:Smart Contract functionality allows us to optimize business process

as result - deliver additional profit and optimize the costs

Honestly speaking, I am not fan of:"technologies"

we have only one title for all employees in our flta structured company - Value Creator

Sakura: So what do you think it should be

Alex Isaiev: and to create value you MUST understand the business first. Indicate the pain and then use technologies to solve the pain

today its AI...tomorrow who knows

We had very hard first 2,5 years, we tested and developed 3 different platforms...none was good enough...

Sakura:Yes,Good results always involve a lot of pain

Alex Isaiev: and finally we succeed - we succeed when our Data Science and IT teams worked in retail for weeks....they were angry in the beginning, but it gave them unique knowledges - how retail processes work

Sakura: It is an important practice

Alex Isaiev: most of companies avoid it, unfortunately

Sakura: So what do you think is the most difficult part of the development process?


Alex Isaiev: We believe in Business Model. we are leaving in technological and data driven world. As an example, we have developed solution with technological competitive advantage for 2 years

Technologies are developing very very fast

Sakura: Yes, the world is always updating

Alex Isaiev: today we are leading - tomorrow - somebody in garage creates the better version:)

What's why, we decided to focus on business model

Alex Isaiev: our business model allows retailer and shopper get the service for free and big brand is paying for service, but same time optimizing its current cost

Next stage - it decentralized market place. When I think about decentralization - I feel the great power

bigger that Amazon or Alibaba..or...

Sakura: Oh, that must be a huge project

I'm looking forward to the chance to experience it in the future

Alex Isaiev: In development - the main mistake we made - is to focus on development and development:), you think that ok - we finish next sprint and we will get better result and again and again. The main task " to check the ground" with business and what is value for user.

and here Scrum methodology helped us a lot

as well as self-management teams approach

For IT and DS guys to think businesses result - is nonsense, right?

I proud that our teams are first of all think "Value creation for user"

Sakura: Yes,I know that you are the CEO of the OSA project, and in my opinion, you are still a very young leader. As a leader, how do you show your charisma and make the team more dynamic

Alex Isaiev: Having guys in the team like Don Swann (VP of Walmart) or Rick Orlof (CSO of Apple) is a great help, of course

Sakura: Talent acquisition is very important for the development of an enterprise,I think so

Alex Isaiev: Yes,I know that you are the CEO of the OSA project, and in my opinion, you are still a very young leader. As a leader, how do you show your charisma and make the team more dynamic?1. STAY TRUE ( I am as I am); 2. LOVE - is our company value and our philosophy: we love what we do, think LOVE than you think about colleague or partner. Our MANTRA is: GO FORTWARD WITH LOVE!

You know the famous expression: culture eats strategy on breakfast!

the main thing is to create and maintain the strong culture

our culture is based on three values: Trust, Love, Courage

Sakura: Yes, very true, culture gives people a visceral power, and that's a very powerful force

Alex Isaiev: and if you read historical books (I love reading) or watch the movies: the main characteristic of the leader is: DEAD GAME

Sakura: I'm very interested. Can you explain it in detail

Alex Isaiev: FIGHT TILL THE END. SHOW example and go go go and miracle comes:)

Sakura: Speaking of leaders, do you know Jack Ma?

Alex Isaiev: there is a dog - Pit Bull - as you know they are fighters. The main characteristic of the winner - called "DEAD GAME" - play till the death - meaning never give up, never give up

I love this man:)

Sakura: I have learned that OSA is a retail enterprise. In China, we have a famous entrepreneur named Jack Ma who proposed the concept of new retail, which means to integrate service and experience more deeply through technologies such as AI and big data. Do you agree with this idea

Alex Isaiev: especially the story behind and videos when Alibaba just was founded

Cool question!thank you!

Sakura: OK, let's share your feelings

Alex Isaiev: I will explain on following example:

Sakura: Of course,please~

Alex Isaiev:1. In the past shopper needed to waste time to go to the hundreds of stores to find the required product/material

2. Then, Amway came with direct sales. No more stores, but you have to pay for personal.

3. Then Websites and first versions of online shopping arrived. Shopper needed to surf the internet for hours....

4. Then era of PLATFORMS came: Alibaba, Amazon, Apple store...etc

these companies are the biggest worlds businesses. right?


5. We believe, that next is...


Alex Isaiev: cross-platform AI

shopper would not need to got to store, or waste time at Amazon

AI can do all job - FASTER, MORE EFFECTIVE

Sakura: So how do we do that?


Alex Isaiev: AI will know your profile, your health restrictions (diet), your requirements, and will be able to find the best fitting product, negotiate the best deal and arrange the delivery

As result shopper will get 3 benefits: 1. Save TIME; 2. Save MONEY; 3. Secure Health

As I am a fan of decentralization - my dream is decentralized AI

Sakura: what is decentralized AI

Alex Isaiev:How to create decentralized AIright! Im synergy with Blockchain and Smart Contract functionalities

Soon we will publish Responsible AI Manifesto - in order to establish certain rules and principles for AI developers worldwide

but in short, there re two examples

1. Big Platforms collects the data from consumer, use that data to earn more money from consumer.

Decentralized platform manage by SC - in our case - shares additional income generated by AI solution with consumers. and its done on public blockchain and automatically

Sakura: So what's the second one

Alex Isaiev: 2. The Machine Learning solution can be placed open sourced and with help of blockchain we can secure that exactly this solution was used for particular task. As an example, we declare that our AI cares first about  human health and product waste minimization. - if we just declare and its not implemented - you would never check. If we establish the rating system (trust) and control by BC functionality - then it can work

I think that there are great (still non-found) benefits of cross-integration of various technologies.

Sakura: YesThere are many more reasons to explore

So let's talk about video health issues, shall we?

I think it's also a very important thing for people

Alex Isaiev: Some time ago I was visiting number of hackatons arranged by business....I heard so many: " this would not work....and this would not work"....pity to see the disappointed eyes of developers. even now, when we meet some funds, the guys are challenging our existing solutions:) which already works and generate the revenue from the biggest worlds brands. JUSTDO IT

So let's talk about video health issues, shall we? What do you mean.

Sakura: As we known, OSA DC benefits three major parties: manufacturers, retailers, and consumers. could you clarify how benefits come in the context of healthy food?

Alex Isaiev: As per my observations, the health risks are the main issue in China which should be urgently be addressed

Sakura: sorryI made the food mistake video

Alex Isaiev: most of shoppers with whom I talked in China - shoppers do not TRUST the product provenance (origin) and product traceability

Sakura: Yes, it is a serious problem

Alex Isaiev: On top of that, even you have fully traceable supply chain - no one shopper knows what is in the product in reality and what these "blah-blah ingredient" means

OUR mission is to provide consumer with possibility to make conscious and educated decision

Sakura: Sowhat you are working on for further development?

Alex Isaiev:We have developed the technologies which allow us to: A). Create product catalogue, knowing all ingredients. B). Image Recognition which help you to select you product in real time; C). Product Rating system (decentralized) which is made abased on knowledge how ingredients influencing on health and based on shoppers feedback. Then we will enlarge rating system to cover retailers, manufacturers and logistic providers

the key idea is: today retail is like internet without Baidu....

we create AI-driven and blockchain based Digital Assistant which will play the role of Baidu + in one piece for consumer product retail

I have one sad story.....10 years I was pushing my oldest daughter to d-ring small bottle of kids milk produced by BIG BRAND....because they said in advertising, that its very healthy for stomach and for bones....

and then we hired the Sales Director of that BIG BRAND and she saw that I am using that milk d-ring. Shea asked - do you know how many spoons of sugar contains this drink? ....

FIVE! can you imagine...five?! every morning

Sakura: Oh...This is a really bad thing

We urgently need to solve this kind of problem

Do you know what IBM has to say about food safety

Alex Isaiev: and our task now: move out lack of transparency in entire supply chain and create CONSUMER POWER by uniting billions of shoppers around the world

Consumer should get the power - and then business will adapt

IBM - yes, I heard

Sakura: Yes, transparency is important for consumers

Alex Isaiev: I did not want to comment, but ok

Sakura: Sure, we can just talk about the topics we are interested in

Alex Isaiev: Can you imagine that FOOD TRUST solution which should be controlled by consumer - can be realized on hyper-ledger - private blockchain?!

when I was reading that, I was thinking, that it's a joke. Sorry

Sakura: I can try to imagine it

But I don't quite understand it

Alex Isaiev: we will issue soon the "report" about this promoted solution.

Ok, I will explain. The solution you are asking is called FOOD TRUST

it said, that FOOD TRUST is very important for consumers

as most of consumers does not trust to labels organic and to real product quality

If it is important for consumer...then logically...consumer should control the product traceability and other important things, right?

Sakura:Yes, people are afraid because they have experienced too much cheating

Yes, power should be given to consumers

Alex Isaiev: I doubt much, that you will trust MORE to product X in chain Y if you get information that supply chain data is recorded in totally PRIVATE blockchain

which controlled by business which produce and supply the goods:)

On top of that there are other very strange approaches used in that solution, we will issue the specific paper soon.

in short, big names caught the hype

Sakura: Food safety is a big problem, and there are a lot of things that need to be addressed

Alex Isaiev:My recent meeting with 10 billion dollars retail chain in USA was started from the question: VP of retail chain asked us: please advice, do we need blockchain?

I was laughing:)

Food safety is a big problem, and there are a lot of things that need to be addressed - we do that, but we focus on practical solution and scalable ones...

Sakura: The answer is absolutely yes, right

Alex Isaiev: it's toooo much hype around Blockchain, AI, RFID,

The answer is absolutely yes, answer was NO

You know why?

Sakura: whyIsn't food traceability important. I really want to know

Alex Isaiev: We asked: do you have issue with trust inside your organization? do you have issues with stolen products? ......Do you work closely with manufactures and share the data to improve the supply chain? do you plan top provide reliable product data for shoppers?

they said no

then why you need blockchain?

The thing is, first - indicate the pain - then find solution

quite often - you just need to change the process and you get the benefit )and no need to use HYPE technology)

Sakura: I've learned that even if blockchain itself is very good, what technology does not make sense if the merchants themselves don't want to provide good service to consumers

Alex Isaiev: or consumer just does not demand it:)

we have educate consumers


Sakura: I see. So as a final question, it is exactly 10 years since the birth of BTC. Do you think that the 10 years have brought about any change

Alex Isaiev: Lets create win-win-win

10 years from now:)....

Alex Isaiev:

I will say what I want to see and then lets make it happen all together

Sakura: Yes, would it make a bigger difference

Alex Isaiev: Huge

Huge difference

1. Decentralization wave will destroy current economic paradigm.

I would surprise if you will find more than 5 of todays leaders In top 50 companies

Sakura: Technological developments will lead to new economic models

Alex Isaiev: 2. Experiencewill shift from touch and feelinto brain-connected solutions (AI/AR)

3. AI will replace up to 80% of jobs and this will dramatically change the HR landscape

Issue of empty boxes(shopping centers, factories) will rise a lot

AI will drive worlds GDP much

4. Unconditional income will come or some type of unconditional

But there is another scenario...which is not so optimistic

And the choice is in our hands today

Sakura: Talk about it

Because the world can not always be good, there will always be negative things, we should be prepared

Alex Isaiev: Blockchainers United:)

AI is smarter than any human in particular task

Sakura: Haha, it is really an unknown thing. Let's look forward to it together

Alex Isaiev: If AI will belong to few people - you know what will happen

Blockchain technology is a help here

Sakura: Will control the other majority?

Alex Isaiev: But we must to push to implement it in major areas of our lifes

OSA pushes hard in retail

Sakura: Yes, we need to work together

Alex Isaiev:Will control the other majority? ....we all controlled already . Its a fact

Sakura: Maybe it will change in the future. You're right. The future is in our hands

So this is the end of the Mars Session today, and in the end, please let me wish you a happy Halloween with your family.

Thank you very much for Mr. Alex's sharing, which has been very helpful to us all

Alex Isaiev: Thank you very much!!!


Go forward with love!!!