Micro Explanations For Nine Essential AI Technologies

Mike Gualtieri

Artificial Intelligence is rampant in the movie Ex MachinaArtificial Intelligence (AI) is not one big, specific technology. Rather, it is comprised of one or more building block technologies. So, to understand AI, you have to understand each of these nine building block technologies. Now, you could argue that there are more technologies than the ones listed here, but any additional technology can fit under one of these building blocks. This is a follow-on to my post Artificial Intelligence: Fact, Fiction, How Enterprises Can Crush It

Here are the nine pragmatic AI technology building blocks that enterprises can leverage now:

■        Knowledge engineering. Knowledge engineering is a process to understand and then represent human knowledge in data structures, semantic models, and heuristics (rules). AD&D pros can embed this engineered knowledge in applications to solve complex problems that are generally associated with human expertise. For example, large insurers have used knowledge engineering to represent and embed the expertise of claims adjusters to automate the adjudication process. IBM Watson Health uses engineered knowledge in combination with a corpus of information that includes over 290 medical journals, textbooks, and drug databases to help oncologists choose the best treatment for their patients.

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India Jolts Its Cash Economy

Ashutosh Sharma

Prime Minister Modi’s announcement of the demonetization of the large denomination bills is a significant initiative. While he indicated terror financing and corruption as the main causes for the initiative, there are many ramifications this move will have on legitimate business activities as well.

India is known for its love of cash. Uber is primarily a cashless service elsewhere in the world, but more than 50% of Uber trips in India are paid for in cash. This preference for cash transactions arises primarily from following reasons:

  1. The majority of Indians are still not familiar with card-based or electronic payments, irrespective of the relentless focus of the Reserve Bank of India toward changing their behavior.
  2. Merchants in India are forcing the choice of cash payments on customers because electronic payments eat into their margins — just like everywhere else in the world.
  3. Even more significantly, cash payments allow merchants and professionals like doctors, lawyers, and accountants to keep such transactions off the books and avoid tax.
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The US Leads In Public Cloud Services, But Other Regions Are Catching Up

Jennifer Adams

Public cloud services are one of the biggest disruptions in the tech market in the past 15 years. In September 2016, my colleagues Andrew Bartels, Dave Bartoletti, and John R. Rymer published their latest public cloud services outlook, The Public Cloud Services Market Will Grow Rapidly To $236 Billion In 2020,projecting 22% annual growth in public cloud services over the 2015-to-2020 period. Explosive growth in cloud applications has depressed software license sales, and cloud platforms have upended the traditional on-premises server and storage market. The pure-play public cloud players continue to report fantastic growth: Amazon Web Services’ revenue grew 58% year-over-year in Q2 2016, and Microsoft Azure reported 116% year-over-year revenue growth in Q1 2017 (September). In response, traditional software and hardware vendors are moving to the cloud via both acquisitions and launches of new cloud services.

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Automation And Sharing Are Common Themes

Joseph Blankenship

After years of shunning automation and information sharing efforts, the security industry is now embracing them. Every vendor conference I attended this fall talked about the need to automate some security functions in order to increase security teams' efficiency and ability to quickly detect and respond to incidents. The vendors also focused on the need to break down the silos and share information across the security and IT organizations, between vendors, and throughout the security community.

Why the change? The pace of attacks along with the continued stress of resource-constrained organizations are forcing security leaders to find new solutions.

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China’s Cybersecurity Law Challenges Foreign Companies To Accelerate Their Digital Transformation

Charlie Dai

On November 7, China’s top legislature adopted a cybersecurity law to safeguard the sovereignty on cyberspace, national security, and the rights of citizens. The law has seven chapters that define specific regulations in various areas, such as network operational security (including key IT infrastructure), network information security, monitoring, alerting, and emergency situation handling as well as related legal responsibilities.

Some critics, especially those in Europe and the United States, continue to read too much into the negative impact of this legislation. I believe that it’s the reasonable move for the Chinese government to make in order to balance national security, citizen privacy, and economic openness. Foreign players in the Chinese market must revisit their local strategy and accelerate their digital transformation if they don’t want to miss the increasing needs and new opportunities regarding security and privacy:

  • The cybersecurity law has substantial advantages that benefit cybercitizens. For example, for the first time, the Chinese government requires that vendors providing cyberproducts and cyberservices must make clarifications to users and attain their approvals before they collect personal information. The new law also regulates that if companies leak or illegally sell personal information to third parties, they must bear legal responsibilities accordingly. These regulations mark a critical milestone in China’s journey toward personal privacy protection, and they are also important for consumers in the world’s largest market to protect themselves against internet fraud and spam messages.
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Take The Wheel: Build Your Cloud Computing Strategic Plan NOW

Dave Bartoletti
Are you excited by all the new innovations coming in the cloud computing market for 2017? Our Predictions report neatly summarizes them for you. Now what are you going to do about it? If you’re like the majority of infrastructure and operations pros I speak with about cloud, building a strategic plan to get your cloud plans in order is a top priority for 2017.
 
2017 is the perfect time for I&O pros to take control of their company’s cloud computing strategy, because cloud adoption is up, developers are more keen on cloud services than ever — and cloud is where the most exciting innovations in IoT, machine learning, big data analytics, and container-based development are happening.
 
Cloud is now a foundational enterprise technology. I&O leaders must strike the right balance between business, developer, and tech management priorities to source, configure, deliver, and optimize the right mix of cloud services for their business.
 
Above all, your cloud strategic plan must be customer-obsessed. Do you know what it means to build a customer-obsessed operating model based on cloud computing? Don’t wait to find out. Your business won’t wait. And most of all, your customers won’t wait.
 
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Boost Customer Obsession With Business Technology

Eveline Oehrlich

Welcome to the age of the customer!

To quickly recap: this is the age where digitally empowered customers are driving firms to become customer-obsessed, digital businesses that apply customer-led, insights-driven, fast, and connected technology. You may be asking “What does this have to do with me and my responsibility in Infrastructure and Operations?” To answer in brief, your CIO and technology management organization play central roles in making your firm customer obsessed because:

  • Technology enables dramatic business transformation.Customer-obsessed digital businesses exploit digital technologies to create new customer value and increase operational agility in service of customers. Companies that understand how to master these challenges are driving digital transformation to become digital predators. Forrester predicts that by 2020, every business will be either a digital predator or digital prey.
  • Customer-led business value drives technology investments. Tech management organizations must understand, manage, and communicate technology’s role in delivering customer-obsessed outcomes like digital customer experience. Technology executives responsible for service design and delivery must minimize the cost of MOOSE (spending to maintain and operate the tech organization, systems, and equipment) for ongoing operations, deliver the agreed quality of service, and shift investments to customer-obsessed innovation. Only 14% of budgets for new IT initiatives and projects support sell-side business operations.
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2017 Predictions: Big Data, Digital, and Virtual Care Key to Engage Healthcare’s Empowered Consumer

Kate McCarthy

The healthcare industry is changing rapidly as its consumers begin to demand more of the organizations from whom they receive care and insurance. Not only are healthcare consumers sharing more financial risk for the insurance and care they receive, but they are increasingly purchasing insurance outside of group contracts via exchanges or Medicare and Medicaid programs. In 2015, we saw the first big signal that the health insurance industry is pivoting from B2B to B2C-whether they’re ready or not-as the percent of business served by group contracts dropped to 48%. Providers and payers continue to struggle to understand what engages the healthcare consumer. As they seek to win, serve and retain these customers, they will need the tools, people, and culture to crack that code and master patient and consumer engagement.

Forrester sees three big, highly visible trends accelerating in 2017: 1) continued adoption of big data technologies to ingest and derive useful, high-quality, and cost-impacting insights, 2) expanding investments in digital experience to achieve more engagement and satisfaction, and 3) virtual care investments continue to grow to serve future demand. We believe these investments are necessary to win, serve, and retain healthcare's empowered consumer, because:

  1. Mastery of unstructured data will deliver customer insight.  Payers and providers must integrate unstructured data to derive patient and customer insight. Providers, particularly, should start taking advantage of health clouds.  And they should begin to apply cognitive offerings to pull more insight from their data. 
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Meet The Digital Architects Of Your Technology Strategy

Ted Schadler
When Jeffrey Hammond, Mark Grannan, Adrian Chapman, and I dove into our most recent developer survey, we unearthed a fascinating group of developers we call "digital architects." This group aspires to set architectural direction, deploys open source software across four or more technology areas, and uses three or more types of cloud services (see the figure). 
 
  • One in 11 enterprise developers. Only 9% of the developers in North America and Europe are digital architects. This small segment is an elite and attractive group, with particular enthusiasm for technology and, as we'll see, for digital innovation and customer engagement.
  • More likely to work at fast-growing companies. More than half of digital architects — 53% — work at companies growing at double-digit rates. You'll find them in all three sectors of the software business: enterprises, software vendors, and service providers.
  • Younger than the rest. Almost three-quarters of digital architects are younger than 45, and 30% are younger than 35. That means these technologists came of age during the internet and smartphone era. They think digital because they know nothing else.
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Boost Digital Business With The Internet Of Things

Charlie Dai

The rise of mobile networks, improved wireless tech, and rapid sensor innovation over the past 10 years has enabled companies to use internet-connected sensors and actuators to improve business operations and transform products. The ever-increasing number of connected devices is opening up new business models and new opportunities for both tech vendors and end users; as a result, IoT is becoming an essential cornerstone of the business technology agenda. Enterprise architecture professionals must define a holistic IoT software architecture to navigate through the complex technology landscape.

I’ve recently published two reports focusing on how to architect the IoT software stack. These reports analyze the heat maps and trends around IoT adoption in China and introduce Forrester’s IoT technology stack reference architecture. They also show EA pros how to achieve strategic business outcomes and unleash the power of digital business by analyzing the IoT practices of visionary Chinese firms. Some of the key takeaways:

  • Successful IoT initiatives yield substantial business value. Outstanding IoT initiatives achieves strategic outcomes, such as competitive differentiation, customer experience enhancement, and asset performance optimization. Chinese companies have successfully launched IoT initiatives to establish their digital business in various industries, including energy, automotive, logistics, and manufacturing.
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