Virtual Manager System for Retail Fraud Detection and Layout Optimization

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Solution Overview

Problem

Retailers face challenges in maintaining profitability due to factors like 'sweethearting' and inefficient store layouts, which existing solutions fail to address effectively, and lack automatic detection of recurring issues and appropriate escalation within the organizational hierarchy.

Innovation Solution

A virtual management system that acquires and processes event data from various sources, including POS terminals and video surveillance, using machine-learning algorithms to identify fraudulent activities and optimize store layouts, and escalates alerts through a predefined management hierarchy based on event frequency and recurrence.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If a team of managers is employed to cover all opening hours, then fraudulent activity can be monitored, but operational costs increase significantly

Engineering Contradiction:

Improvefraud detection capabilityVSAvoidoperational cost

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The system enables self-monitoring through automated data collection from POS terminals and video surveillance that continuously track transactions and customer behavior without human intervention, allowing the retail unit to detect fraudulent activity independently

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

Manual monitoring by managers is replaced with an automated electronic system that collects data from POS terminals, correlates it with video surveillance footage, and automatically identifies fraudulent patterns through pre-defined rules, substituting mechanical human labor with automated technology

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Reliability

If POS-video correlation is used to identify fraudulent activity, then sweethearting can be detected, but additional value such as layout optimization and recurring issue detection is not provided

Engineering Contradiction:

Improvefraud detection accuracyVSAvoidfunctional capability

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system performs multiple functions beyond fraud detection: it analyzes customer movement patterns to optimize store layout, identifies recurring issues that indicate managerial problems, and provides comprehensive monitoring across all retail units, making a single system that handles diverse retail management needs

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Loss of information

If manual monitoring is used to identify problems, then issues can be detected, but automatic identification of recurring problems and escalation to appropriate management levels is not achieved

Engineering Contradiction:

Improveproblem detection capabilityVSAvoidautomated escalation capability

Core Design Contradiction:

Loss of informationVSExtent of automation

Solution Approach 1:

The system continuously monitors for recurring problems and automatically escalates notifications through the management hierarchy based on pre-defined rules, creating a closed-loop feedback system where repeated issues trigger progressive escalation to higher management levels without manual intervention

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

Pre-defined rules are established in advance that automatically trigger escalation protocols when specific patterns of recurring problems are detected, allowing the system to take preliminary automated action before human managers need to intervene

Inventive Principle:

Principle #10Preliminary action

4Ease of operation

If the retail estate is divided into regions with multiple management levels, then organizational structure is improved, but correlation between problem occurrence and escalation to appropriate hierarchy level is not achieved

Engineering Contradiction:

Improveorganizational structureVSAvoidescalation correlation accuracy

Core Design Contradiction:

Ease of operationVSLoss of information

Solution Approach 1:

The system divides the retail estate into geographic regions and organizational units, with each segment having its own data collection and analysis capabilities, allowing problems to be tracked and escalated within the appropriate hierarchical segment rather than requiring centralized processing for all units

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS10593169B2Virtual manager with pre-defined rules to generate an alert in response to a specified event

Publication Date: 2020.03.17 EVERSEEN LTD

AI summary

A virtual management system comprises video cameras, and various other sensors that acquire event data indicative relating to the processing of stock. This data is passed to a local data collection device that aggregates the event data and passes it via a network to a number of remote data processing modules. The event data is allocated to each of the data processing modules based upon their assigned tasks by a virtual manager agent. A data processing module receives the aggregated event data from the local data collection device via a network and processes the event data according to a set of pre-defined rules. The data processing module generates an alert in response to the processing of the event data indicating that a pre-defined event has occurred, and transmits the alert to a remote device associated with an employee.