Published On: Mar 19, 2024
Photo: Amber McDonald
Integrating Artificial intelligence (AI) technologies into existing business processes and systems presents many challenges that must be addressed to unlock their full potential. One major hurdle is technical integration, encompassing compatibility and interoperability issues.
Organizational challenges, such as resistance to change and a lack of understanding of AI’s benefits, can hinder progress. Dmitrii Rykunov is an experienced Data Scientist with a unique approach to solving complex challenges. His vision and innovative methods bring a fresh perspective to implementing AI-enabled solutions.
While working at McKinsey & Company, Dmitrii Rykunov, a Data Scientist professional, developed a predictive anti-churn solution for a major grocery retailer while working at McKinsey & Company, increasing operating income by over $100M.
Holding a bachelor’s degree from one of the best universities in Russia, the Higher School of Economics, and studying Corporate and Organizational Strategy at the London School of Economics and Political Science, combined with years of practical experience in developing AI solutions, gives Mr. Rykunov a very rare angle on applications of AI to solve practical business problems.
EARLY CAREER SUCCESSES
In June 2017, Mr. Rykunov graduated from the National Research University and started his career in AI. “Upon completing my studies, I found the intersection of technical and business skills incredibly compelling. I became convinced that AI and machine learning could profoundly impact many significant business problems and processes.
This conviction drove me to pursue a career in applied AI, where I could merge technical acumen with strategic insight to make a difference,” reminds Dmitrii. Over the first three years as a Data Scientist, Dmitrii Rykunov spearheaded groundbreaking initiatives.
He conceived and implemented an innovative advertising targeting platform, propelling Yandex Media services to achieve a remarkable 25% increase in Return on Marketing Investment (ROMI) while maintaining the same budget.
Additionally, Dmitrii engineered a sophisticated predictive model for Raiffeisen Bank Russia, enabling precise projections of corporate clients’ loans and deposits at an individual level. This model significantly enhanced the bank’s Treasury’s balance sheet projection capabilities.
IMPACT AND INNOVATION AT MCKINSEY & COMPANY
In July 2020, Mr. Rykunov joined McKinsey & Company as a Senior Analyst (Senior Data Scientist), later transitioning to a Senior Business Analyst role focusing on AI projects. “One of the most memorable experiences of my career was working there with one of the largest banks in Pakistan,” says Dmitrii.
During that time, he developed a strategy for launching a digital-first subsidiary. “Spending a month in Karachi allowed me to immerse myself in the local culture and way of life. This trip has become one of my most cherished memories, and I am grateful for its lasting impression,” shares Mr. Rykunov.
During his tenure at McKinsey & Company in Russia, Dmitrii Rykunov played a crucial role in several impactful projects centered on implementing AI-driven solutions.
These projects spanned diverse sectors such as retail, banking, and quick-service restaurants, showcasing his expertise in leveraging AI to drive innovation and efficiency across industries.
For a significant grocery retailer in Ukraine, Mr. Rykunov spearheaded the development of an innovative AI-driven solution to optimize in-store product replenishment, focused on keeping products available in a store for people to buy.
“This project involved planning and leading the pilot implementation at one of the flagship stores,” says Dmitrii. As a result of the replenishment system, the retailer experienced a remarkable 2-time decrease in the average number of product items missing from the shelves at any given time, significantly enhancing the overall shopping experience for customers.
Mr. Rykunov’s other successful project was building a Customer Value Management (CVM) solution for a major grocery retailer in Russia. Dmitrii shares: “My journey to developing an analytical platform for CVM began with a deep dive into the client’s challenges.
I identified a key issue: the differing approaches to running marketing campaigns among the client’s advanced analytics teams significantly hindered the overall development of the CVM practice. This realization sparked the idea of creating a unified system for planning, running, and measuring marketing experiment results.”
Collaborating closely with business owners, Mr. Rykunov proposed and developed the system, which ultimately became a pivotal part of the client’s operations.
One of the standout moments in Dmitrii’s career was creating an AI-driven anti-churn strategy. He pioneered a method that targeted individual customers with personalized communications, such as tailored discounts. “By leveraging advanced algorithms and data analytics, I created a predictive model to forecast customer visits’ probability and timing accurately.
This model helped to identify potential churn early and enabled the client to optimize their marketing efforts and improve customer retention,” explains Dmitrii. This work substantially increased the client’s operating income by over $150M annually. After this remarkable step, Mr. Rykunov developed an automated marketing campaigns management system, reducing time spent on analytics by 70%.
The implemented solutions directly impacted the retail industry, prompting significant retailers in Russia, such as X5 Retail Group, Magnit, and Lenta, to adopt similar methods. These innovations significantly improved customer service and became a new standard in the field, replacing older manual processes based solely on educated guesses.
As a part of McKinsey & Company, Dmitrii Rykunov has also played a key role in developing an AI-driven approach to maximize the value of a loyal customer program for a major international quick-service restaurant chain.
“By establishing connections with regional business executives and technology leaders, I developed a solid strategy and implementation plan,” shares Dmitrii.
These actions resulted in securing funding for the initiative from the client’s board of directors and an invitation to support the subsequent implementation phase, with an expected impact on Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of more than 5%.
This work highlights Mr. Rykunov’s ability to drive strategic initiatives that deliver significant financial impact and garner support from key stakeholders.
TRANSFORMING INDUSTRIES AND SHAPING FUTURE PROSPECTS
Dmitrii Rykunov’s pioneering work at the intersection of artificial intelligence and business has reshaped industries, demonstrating AI’s transformative power in solving complex business problems and driving strategic growth.
His innovative projects at McKinsey & Company have delivered tangible results and set new industry benchmarks. Dmitrii’s unique blend of technical expertise and business acumen makes him a standout figure in applied artificial intelligence.
His work has paved the way for greater AI integration into business processes, promising endless possibilities for transformation and advancement in the future.
