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EMC Journal Authors: William Schmarzo, Jason Bloomberg, Jordan Knight, Mat Mathews, Bruce Popky

Related Topics: Artificial Intelligence Journal, EMC Journal, Internet of Things Journal

Article

Winning the #ArtificialIntelligence War | @ExpoDX #IoT #DigitalTransformation

Artificial intelligence endows applications with the ability to automatically learn and adapt from experience

There is a war a-brewin’, but this war will be fought with wits and not brute strength. Ever since Russian President Vladimir Putin’s declaration that “the nation that leads in AI (Artificial Intelligence) will be the ruler of the world,” the press and analysts have created hysteria regarding the ramifications of artificial intelligence on everything from public education to unemployment to healthcare to Skynet.

Note: artificial intelligence (AI) endows applications with the ability to automatically learn and adapt from experience via interacting with the surroundings / environment. See the blog “Artificial Intelligence is not Fake Intelligence” for a more detailed explanation on artificial intelligence and machine learning.

The Fast Company article “How to Stop Worrying and Love the Great AI War of 2018,” projected that the AI battle would ultimately boil down between the “AI Big 6”:  Alphabet/Google, Amazon, Apple, Facebook, IBM, and Microsoft. However, there are other contenders worthy of consideration including GE, Tesla, Netflix, Baidu, Tencent, and Albaba.

But what are the characteristics of organizations that will be the ultimate winners in this Great AI War? What are the behaviors and actions that will distinguish those organizations that capitalize on this AI gold rush while others “fumble the future”?

I believe that the AI winners will have the following characteristics:

  1. Users, not purveyors, of AI technology
  2. Embrace open source for technology agility (independence)
  3. Mastery of Big Data (and no, Big Data is not dead)

Let me state my case.

#1 Users, Not Purveyors, of AI Technology
The Market Capitalization Leaderboard shown in Figure 1 offers important clues as to which organizations will likely be the AI winners. What will set these organizations apart will be not the selling of technology, but their ability leverage AI for “value capture.”

Figure 1: Marketing Capitalization Leaders as of May 26, 2017.

By the way, I think Kleiner Perkins was lazy in classifying “Industry Segment.” The market leaders are less purveyors of AI technology than they are users of AI technology.

  • Less than 10% of Amazon’s revenue comes from technology (cloud); $12B in cloud revenue out of a total revenue of $136B in 2016. So what Industry Segment are they in?
  • Google had quarterly revenues (Q1, 2016) of $26B of which digital media/advertising (search) represented $23B. Their “other” businesses (including Google Cloud) were only $3B. So what Industry Segment are they in?
  • Apple’s most recent quarterly (Q3, 2016) revenues were $42B out of which the iPhone (personal communications, information and entertainment) and the associated iPhone ecosystem (iTunes, Apple Music, App Store) comprised an aggregated $37.5B.
  • Finally, I’m not aware of any AI or data technologies that Facebook sells to the general market. Facebook generated $9.3B in revenue in Q2, 2017 of which $9.16B came from Ad revenue. So what Industry Segment are they in?

Mastering Value Capture. Just having the technology is not sufficient; it’s how you use the technology to derive and then drive new sources of customer, business, operational, and financial value that matters. Ultimately, the AI war is about “value capture.”

The companies listed in Figure 1 are trying to dominate markets, not technology. For example:

  • Apple (#1) seeks to dominate personal communications
  • Google/Alphabet (#2) seeks to dominate digital media, advertising and personal communications
  • Amazon (#4) seeks to dominate online commerce
  • Facebook (#5) seeks to dominate social media, and advertising

Each of these AI leaders seeks to extend their value capture capabilities into new markets, including transportation (autonomous vehicles), healthcare, finance, media, and entertainment.

Other market leaders are also moving aggressively to exploit the power of AI to capture more customer, products and operational value. JPM Morgan (#11) is focused on building an AI platform (see “JPMorgan Takes AI Use to the Next Level”) that will allow JPMC to dominate financial trading. And GE (#16) has made a strategic bet with their Predix platform (see “GE’S Big Bet on Data and Analytics”) as the platform for dominating the Industrial Internet of Things.

Microsoft (#3) is the one exception as Microsoft is a purveyor of technology. But even Microsoft is branching beyond just selling technology into trying to dominate markets such as digital media, entertainment, and social media where their AI “chops” can give them competitive advantages (see “The Jewel of Microsoft’s Earnings”).

#2 Embrace Open Source for Technology Agility (Independence)
AI leaders will exploit open-source business models to establish platform dominance/standardization, and create technology agility and independence. They will develop an enabling technology, and then give it away via open source. This enables them to encourage the growing community of developers, especially those up-and-coming developers in universities and research labs, to build out and create de facto standards around their enabling technologies.

Open Source Leaders. The Global AI winners are significant contributors to the artificial intelligence and machine learning open source communities. This includes developments such as Amazon Machine Learning, Google TensorFlow, Facebook Caffe2, Microsoft Azure ML Studio, Microsoft Distributed Machine Learning Toolkit, Facebook GraphQL, and Facebook Torch.

The leadership role that the “Great AI War” combatants are playing can be seen in many open source projects. For example, Torch is an open source machine learning library and scientific computing framework. The “official maintainers” of Torch are:

  • Research Scientist @ Facebook
  • Senior Software Engineer @ Twitter
  • Research Scientist @ Google DeepMind
  • Research Engineer @ Facebook

Training and Education. Another strategy from the Global AI leaders the creation of community or industry training and education opportunities around their open source technologies. For example, Google is committing $1 billion to train American workers to build new businesses with Google’s AI tools (see “Google Commits $1 Billion in Grants to Train U.S. Workers for High-Tech Jobs”).

Avoiding Technology Lock-in.  But equally important is that these AI leaders are seeking to avoid technology and architecture lock-in. They have watched old school organizations struggle with proprietary software packages that took months if not years for upgrades and bug fixes, while paying a burdensome annual maintenance fees (33% of list price means you’re buying the entire software package again every 3 years). In a world where the enabling data and analytic technologies are changing nearly daily, technological and architecture agility (at scale) and independence is mandatory for organizations looking to win the Great AI War.

#3 Mastery of Big Data
Everyone knows about the astounding growth of big data over the last decade as organizations focused on capturing detailed customer, product, operational and market data. Initially fueled by commerce, web and social media data, big data has accelerated with the growth of video, wearables, and the Internet of Things. (See Figure 2).

However, organizations have struggled to monetize this wealth of data. Enter artificial intelligence.

Figure 2: Fueling the Insatiable Appetite for Data

More Data = Better AI. Artificial intelligence can exploit massive data sets to identify patterns on a scale that flummox traditional Business Intelligence “slice and dice” and query technologies. Data is the food that feeds AI. The more data the AI models consume, the smarter AI gets. For example, Facebook is mastering facial recognition via its DeepFace Deep Learning application by virtue of owning the world’s largest repository of photos.

To illustrate the symbiotic relationship between big data and AI, let’s look at autonomous vehicles (AV). AV require enormous quantities of data to feed the AV machine learning algorithms. It would take tens of thousands of hours of real-world driving data across a variety of driving scenarios to teach cars how to navigate on their own. To address this data volume problem, AV companies are using the video game “Grand Theft Auto” to help generate enough data in order to train Autonomous Vehicles (see “GTA is Teaching Self-Driving Cars How to Navigate Better in the Real World”).

Data Lake. Leading AI organizations are exploiting the data lake concept to not only store the growing wealth of structured and unstructured (internal and publicly-available) data, but to provide an elastic, scalable, self-provisioning data science platform for “collaborative value creation” in building the machine learning and artificial intelligence models (see “Data Lake Business Model Maturity Index” for more details on data lake business model maturation).

Exploiting the Economic Value of Data. Leading AI organizations realize that data and analytics are unlike any traditional corporate assets. Data and analytics are digital assets that never wear out, never deplete, and can be used simultaneously at near-zero marginal cost across an infinite business and operational use cases. Understanding the true economic value of the organization’s data can help to prioritize technology and business investments that accelerate value capture from these data sources (see University of San Francisco research paper “Determining the Economic Value of Data” for more details).

Conclusion: How to Become an AI Winner
As has been discussed many times in my blog series, and explored in detail in my book, “Big Data MBA: Driving Business Strategies with Data Science,” AI winners will ultimately be those organizations that are the most effective at leveraging data and analytics to power their business models (see Figure 3).

Figure 3: How Effective Is Your Organization at Leveraging Data and Analytics to Power Your Business Models?

Ultimately, AI winners will master three key characteristics:

  • Focus on Value Capture by identifying, validating and prioritizing the organization’s key business and operational use cases (see “Use Case Identification, Validation and Prioritization”).
  • Avoid technology and architecture lock-in and create technology independence via an open source technology strategy
  • Mastery of Big Data and the Data Lake to exploit the unique economic value of the data and analytic digital assets (see “Data Lake Business Model Maturity Index”).

So in conclusion, let’s have some fun with this blog and think outside of the box about some hypothetical scenarios in which companies exploit this AI gold rush:

  • What would be the business model ramifications to GE if they were to open source Predix and offer Predix training to universities and third party developers?
  • What would be the business model ramifications to JPMC if they were to open source their trading platform to universities and third party developers?
  • What would be the business model ramifications if IBM moved out of the technology purveyor business and instead acquired companies in financial services and healthcare where their Watson AI platform could create market dominance?

As the world prepares for the impending great AI war, now is not the time for organizations to be shy or to cling to old, outdated business models.

Fortune Favors the Brave.

Sources

Figure 1: ScoopNest “2017 global market capitalization leader board: tech is 40% of top 20 companies and 100% of top 5” and Consultancy UK “Market capitalisation of world’s 100 biggest companies hits $17.4 trillion

The post 3 Keys to Winning the Great Artificial Intelligence (AI) War! appeared first on InFocus Blog | Dell EMC Services.


DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the conference tracks for CloudEXPO | DXWorldEXPO 2018 New York.

DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City.

Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term.

A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throughout enterprises of all sizes.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

2018 Conference Agenda, Keynotes and 10 Conference Tracks

DXWordEXPO New York 2018 and Cloud Expo New York 2018 agenda present 222 rockstar faculty members, 200 sessions and 22 keynotes and general sessions in 10 distinct conference tracks.

  • Cloud-Native | Serverless
  • DevOpsSummit
  • FinTechEXPO - New York Blockchain Event
  • CloudEXPO - Enterprise Cloud
  • DXWorldEXPO - Digital Transformation (DX)
  • Smart Cities | IoT | IIoT
  • AI | Machine Learning | Cognitive Computing
  • BigData | Analytics
  • The API Enterprise | Mobility | Security
  • Hot Topics | FinTech | WebRTC

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

DXWorldEXPO | CloudEXPO 2018 New York cover all of these tools, with the most comprehensive program and with 222 rockstar speakers throughout our industry presenting 22 Keynotes and General Sessions, 200 Breakout Sessions along 10 Tracks, as well as our signature Power Panels. Our Expo Floor brings together the world's leading companies throughout the world of Cloud Computing, DevOps, FinTech, Digital Transformation, and all they entail.

As your enterprise creates a vision and strategy that enables you to create your own unique, long-term success, learning about all the technologies involved is essential. Companies today not only form multi-cloud and hybrid cloud architectures, but create them with built-in cognitive capabilities.

Cloud-Native thinking is now the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, as well as the public sector.

CloudEXPO is the world's most influential technology event where Cloud Computing was coined over a decade ago and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals.

FinTech Is Now Part of the DXWorldEXPO | CloudEXPO Program!

Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses.

Accordingly, attendees at the upcoming 22nd CloudEXPO | DXWorldEXPO November 11-13, 2018 in New York City will find fresh new content in two new tracks called:

  • FinTechEXPO
  • New York Blockchain Event

which will incorporate FinTech and Blockchain, as well as machine learning, artificial intelligence and deep learning in these two distinct tracks.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly developed, deployed, and scaled on public, private, and hybrid clouds.

More than US$20 billion in venture capital is being invested in FinTech this year. DXWorldEXPOCloudEXPO are pleased to bring you the latest FinTech developments as an integral part of our program.

DXWorldEXPO | CloudEXPO are accepting speaking submissions for this new track, so please visit Cloud Computing Expo for the latest information or contact us at [email protected]

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

Download Slide Deck ▸ Here

Only DXWorldEXPO | CloudEXPO bring together all this in a single location:

Attend DXWorldEXPO | CloudEXPO. Build your own custom experience. Learn about the world's latest technologies and chart your course to Digital Transformation.

22nd International DXWorldEXPO | CloudEXPO, taking place November 11-13, 2018, in New York City, will feature technical sessions from a rock star conference faculty and the leading industry players in the world.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

Download Slide Deck: ▸ Here

Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS - software, platform, and infrastructure as a service.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers.

Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)

Sponsorship Opportunities Here

Speaking Opportunities Here

Sponsorship and Speaking Inquiries: [email protected].

Download Slide Deck: ▸ Here

Companies are each developing their unique mix of cloud technologies and services, forming multi-cloud and hybrid cloud architectures and deployments across all major industries. Cloud-driven thinking has become the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, and the public sector.

Sponsorship Opportunities

DXWorldEXPO | CloudEXPO are the single show where technology buyers and vendors can meet to experience and discus cloud computing and all that it entails. Sponsors of DXWorldEXPO | CloudEXPO will benefit from unmatched branding, profile building and lead generation opportunities through:

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Speaking Opportunities

The upcoming 22nd International DXWorldEXPO | CloudEXPO November 11-13, 2018 in New York City, NY announces that its Call For Papers for speaking opportunities is now open.

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Submit your speaking proposal Here or by email [email protected].

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About DXWorldEXPO LLC

DXWorldEXPO LLC is a Lighthouse Point, Florida-based trade show company and the creator of DXWorldEXPODigital Transformation Conference & Expo. The company produces and presents CloudEXPO, DevOpsSummitFinTechEXPO Blockchain Event, the world's most influential conferences and trade shows.

More Stories By William Schmarzo

Bill Schmarzo, author of “Big Data: Understanding How Data Powers Big Business” and “Big Data MBA: Driving Business Strategies with Data Science”, is responsible for setting strategy and defining the Big Data service offerings for Hitachi Vantara as CTO, IoT and Analytics.

Previously, as a CTO within Dell EMC’s 2,000+ person consulting organization, he works with organizations to identify where and how to start their big data journeys. He’s written white papers, is an avid blogger and is a frequent speaker on the use of Big Data and data science to power an organization’s key business initiatives. He is a University of San Francisco School of Management (SOM) Executive Fellow where he teaches the “Big Data MBA” course. Bill also just completed a research paper on “Determining The Economic Value of Data”. Onalytica recently ranked Bill as #4 Big Data Influencer worldwide.

Bill has over three decades of experience in data warehousing, BI and analytics. Bill authored the Vision Workshop methodology that links an organization’s strategic business initiatives with their supporting data and analytic requirements. Bill serves on the City of San Jose’s Technology Innovation Board, and on the faculties of The Data Warehouse Institute and Strata.

Previously, Bill was vice president of Analytics at Yahoo where he was responsible for the development of Yahoo’s Advertiser and Website analytics products, including the delivery of “actionable insights” through a holistic user experience. Before that, Bill oversaw the Analytic Applications business unit at Business Objects, including the development, marketing and sales of their industry-defining analytic applications.

Bill holds a Masters Business Administration from University of Iowa and a Bachelor of Science degree in Mathematics, Computer Science and Business Administration from Coe College.