Monday, September 18, 2017

Artificial Intelligence, Combined Actions and Digital Strategies

Fingerspitzengefühl: A German word used to describe the ability to maintain attention to detail in an ever-changing operational and tactical environment by maintaining real-time situational awareness. The term is synonymous with the English expression of "keeping one's finger on the pulse".  The problem with fingerspitzengefühl traditionally, in addition to pronouncing it, has been it is hard for an individual to scale up. Today that is changing.  In a world of sensors, AI and mobile devices, having real-time situational awareness is far easier than ever before.  In fact, today the challenge is not how to do it, but what to do with the massive volume of data that can be provided.

Data comes from many different sources, especially considering field services where work is often mobile, remote and dynamic.  If more data can be captured and added to a typical GPS coordinate (i.e. longitude, latitude and altitude) which is 3D and identifies location, then why stop at a 3D view of our situation when we can add so much more:
  1. Arrival Time
  2. Start and stop tasks times
  3. Travel times
  4. Traffic conditions
  5. Available workforces and associated costs
  6. Available equipment
  7. Activities
  8. Events
  9. Business process steps
  10. Expenses
  11. Health, safety and security steps
  12. Transactions
  13. Compliance tasks
  14. Performances against KPIs (key performance indicators)
  15. Actors (customers, partners, suppliers, contractors, employees, etc.)
  16. Relationships
  17. Contract/Agreements
  18. Supplies, materials and equipment tracking
  19. Projected profits now for this service
  20. Projected profits over the lifetime of the customer for this service
  21. Etc.
All of these data points can be added together into an algorithm as Performance Impact Variables (PIVs).  PIVs is the information that can be used as inputs to algorithms that can be used by real-time artificial intelligence (AI) solutions to optimize and manage the performance of the business in real-time.

Each of these layers of information exponentially increase the complexity, decision-making options and possible combinations.  This enormous volume of real-time data would quickly overwhelm the average human.  That is why non-humans, AI and software robots, can be used to such great effect to maintain productive situational awareness and strategic advantages in complex environments demanding real-time, fast and logical decision-making and action.  This is the future of field services.

Now let's continue to build on our strategies.  During the period between WWI and WWII, all Western countries developed or acquired tanks and military aircraft to support their infantry.  The Germans, however, went three steps further by adding:
  1. New Communications: Radios and frequencies for communicating between forces (tanks, infantry and aircraft) in real-time
  2. New Strategies: Strategies for coordinated actions between the three groups
  3. New Organizational Command Structures: Mission oriented command structures – Commanders define the mission “intent”, but the details of how to accomplish them were left to frontline officers.
In today’s world, companies seeking strategic advantages in field services operations can learn from these three historical innovations. The digital transformation equivalent of “New Communications” is OILS (optimized information logistics systems) that sense, collect, securely and wirelessly transmit data, analyze and report on it, and support artificial intelligence (AI) and automation.

The digital transformation equivalent of “New Strategies” is the ability to think differently to exploit the values provided by digital technologies.  Sensors and mobile technologies enable us to collect vast quantities of real-time data, analytics, AI and algorithms can be used to automatically and dynamically manage, monitor and adjust a whole series of activities and events such as: schedules, resources, tasks, jobs, orders, transactions, etc., instantly.  Are we using them?

The digital transformation equivalent of “New Organizational Command Structures” is changing roles and responsibilities based on what humans do best, and what automation and the power of AI can bring to the table.

When massive amounts of real-time data are systematically collected and analyzed, they can feed algorithms and AI systems to optimize real-time activities and events and change the way the business operates.  The speed at which data can be processed through OILS and AI systems today far exceeds human decision-making capabilities – so automation that works in digital-time is required. That is where AI excels.  AI can analyze all the inbound data in nanoseconds and instantly adjust and optimize operations.
Digital technologies without digital strategies are wasted, just like having tanks without the appropriate communications, strategies and command structures to accompany them.  Or like having tanks, mobile infantry and aircraft, but no coherent plan for using them together in combined actions. In my recent report, 40 Months of Hyper-Digital Transformation, digital laggards were found lacking in their return on investments (ROIs) when compared to digital leaders.  The differences, I believe, were in their lack of strategies, and combinatorial building blocks.

In the book, Stray Voltage, War in the Information Age, published in 2003, author Wayne Michael Hall defines two more PIVs - cyberspace and cerebral that we need to pay attention to. Here is an excerpt, "Information superiority is firmly connected to making decisions that are superior to an adversary's and combines information technology and intellectual power to create conditions with which to make better decisions…human beings will need to improve their thinking capabilities to cope with the increasing complexities of the world." Improvements in our thinking capabilities today can be found in the computing power and speed of artificial intelligence, big data analytics and machine learning.

Read more from Kevin Benedict at the Center for Digital Intelligence:™
  1. Competition, Artificial Intelligence and Balloons
  2. 7 Imperatives for Thriving During Digital Transformation
  3. What Artificial Intelligence Can Teach Us
  4. Speed as a Competitive Advantage in Digital Transformation
  5. Culture as a Competitive Advantage in Digital Transformation
  6. Digital Technologies and the Compression of both Time and Distance
  7. Patterns, Platforms and Automation
  8. Making the Hard Decisions in Digital Transformation
  9. Center for Digital Intelligence Interviews: Hitachi's Rob Tiffany on Industrial IoT 
  10. Digital Transformation and the New Rules for Start-Ups
  11. Digital Transformation and Leadership Development
  12. Digital Transformation and Competitive Decision-Making
  13. Combinatorial Nature of Digital Technologies and Legos
  14. Digital Transformation from 40,000 feet
  15. Winning in Chaos - Digital Leaders
  16. 13 Recommended Actions for Digital Transformation in Retail
  17. Mistakes in Retail Digital Transformation
  18. Winning Strategies for the Fourth Industrial Revolution
  19. Digital Transformation - Mindset Differences
  20. Analyzing Retail Through Digital Lenses
  21. Digital Thinking and Beyond!
  22. Measuring the Pace of Change in the Fourth Industrial Revolution
  23. How Digital Thinking Separates Retail Leaders from Laggards
  24. To Bot, or Not to Bot
  25. Oils, Bots, AI and Clogged Arteries
  26. Artificial Intelligence Out of Doors in the Kingdom of Robots
  27. How Digital Leaders are Different
  28. The Three Tsunamis of Digital Transformation - Be Prepared!
  29. Bots, AI and the Next 40 Months
  30. You Only Have 40 Months to Digitally Transform
  31. Digital Technologies and the Greater Good
  32. Video Report: 40 Months of Hyper-Digital Transformation
  33. Report: 40 Months of Hyper-Digital Transformation
  34. Virtual Moves to Real in with Sensors and Digital Transformation
  35. Technology Must Disappear in 2017
  36. Merging Humans with AI and Machine Learning Systems
  37. In Defense of the Human Experience in a Digital World
  38. Profits that Kill in the Age of Digital Transformation
  39. Competing in Future Time and Digital Transformation
  40. Digital Hope and Redemption in the Digital Age
  41. Digital Transformation and the Role of Faster
  42. Digital Transformation and the Law of Thermodynamics
  43. Jettison the Heavy Baggage and Digitally Transform
  44. Digital Transformation - The Dark Side
  45. Business is Not as Usual in Digital Transformation
  46. 15 Rules for Winning in Digital Transformation
  47. The End Goal of Digital Transformation
  48. Digital Transformation and the Ignorance Penalty
  49. Surviving the Three Ages of Digital Transformation
  50. The Advantages of an Advantage in Digital Transformation
  51. From Digital to Hyper-Transformation
  52. Believers, Non-Believers and Digital Transformation
  53. Forces Driving the Digital Transformation Era
  54. Digital Transformation Requires Agility and Energy Measurement
  55. A Doctrine for Digital Transformation is Required
  56. Digital Transformation and Its Role in Mobility and Competition
  57. A Revolution in Precision Through IoT, Analytics and Mobility
  58. Competing in Digital Transformation and Mobility
  59. Ambiguity and Digital Transformation
  60. Digital Transformation and Mobility - Macro-Forces and Timing
  61. Mobile and IoT Technologies are Inside the Curve of Human Time
************************************************************************
Kevin Benedict
Principal Analyst, Futurist, the Center for Digital Intelligence™
Website C4DIGI.com
View my profile on LinkedIn
Follow me on Twitter @krbenedict
Subscribe to Kevin's YouTube Channel
Join the Linkedin Group Strategic Enterprise Technologies
Join the Google+ Community Mobile Enterprise Strategies

***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I work with and have worked with many of the companies mentioned in my articles.

Friday, September 15, 2017

Competition, Artificial Intelligence and Balloons

W. Edward Deming taught that quality is achieved by measuring as much as possible and reducing variations, and reducing variation is achieved by improving the system, not just pieces.  Japan widely adopted Deming's philosophies in the 1950s and became the 2nd biggest economy in the world.  Quality improvement didn't decrease jobs in Japan, it increased jobs.

AI now has the ability to expand and codify Deming's philosophies - to take them to the next level. AI can improve and standardize decision making based on logic, rather than the fear of missing objectives, bonuses or losing one's job.  It can continuously monitor for quality against specifications by analyzing streams of real-time data coming from embedded sensors connected to the IIoT, IoT and IoA (internet of agriculture).  This means companies that are aggressive early adopters of these digital technologies will have more knowledge, higher quality and significant competitive advantages, which means more demand for their products, sales, customer service, manufacturing, distribution, etc.  It also means aggressive adopters will likely generate more jobs.

Market competition, however, is like a balloon, when one end is squeezed, it just moves and expands in another direction. When the market catches up with a competitive advantage and the advantage ceases, competition moves to another part of the ecosystem.  With sensors, IoT, automation and AI, it likely means competition will move to even higher levels of quality and precision - often in areas never before possible before sensors, IoT and AI, and the speed of response to fast changing trends and demands.  This opens up opportunities for more new innovations and jobs to be created.

Employment also has historically been like a balloon.  When one industry is contracting, another emerges and expands.  Digitizing the physical world to better understand it and create value is one of those expansion areas.  Digitizing requires creating digital twins of physical things by creating or capturing digital information, identifying, locating, categorizing, measuring, monitoring, managing and analyzing things.  These steps are followed by entrepreneurs and innovators developing new solutions based on what is learned.  Examples of things that have been or will be digitized include: healthcare, manufacturing, banking, transportation, crime fighting, agriculture, etc.  All of these digitization efforts spawn new ideas and businesses, and generate new jobs. Once the initial work of capturing the data from these digitization efforts is complete and automated, the next phase is understanding how to improve, manage and control systems as a result of the data.  The act of improving or adjusting systems based on the new data means even more work and jobs.

In this new digital world, there will be an immense amount of work to do.  Work like setting up and maintaining a continuously growing system of global sensors for collecting data, transmitting the data, storing it, securing it in data centers, analyzing it and creating new solutions.   The findings of the data analysis will then be used to develop new solutions, processes, systems and companies. As more processes, and both natural and artificial systems become increasingly digitized, work to control, manage and improve them will increase.  As systems of sensors and AI expand, more precision will be possible and competition will increase again in these areas, and as a result, more investments will be made and jobs created.

Once unknowns become knowns (through data capture and digitization), smart people will build new businesses and solutions to take advantage and add value on the new knowns. Investments and jobs will then migrate to the new frontier in search of competitive advantages.  When something new is made possible - jobs will be created.  As something new evolves into something ubiquitous it will be automated and competition will migrate outward.  The good news is that the circle, the edge, this mobile boundary of an expanding circumference represents more jobs and more opportunities for innovation, employment and competitive advantages.  This is the rule of the "Expanding Mobile Boundary of Innovation."

Read more from the Center for Digital Intelligence here:
  1. 7 Imperatives for Thriving During Digital Transformation
  2. What Artificial Intelligence Can Teach Us
  3. Speed as a Competitive Advantage in Digital Transformation
  4. Culture as a Competitive Advantage in Digital Transformation
  5. Digital Technologies and the Compression of both Time and Distance
  6. Patterns, Platforms and Automation
  7. Making the Hard Decisions in Digital Transformation
  8. Center for Digital Intelligence Interviews: Hitachi's Rob Tiffany on Industrial IoT 
  9. Digital Transformation and the New Rules for Start-Ups
  10. Digital Transformation and Leadership Development
  11. Digital Transformation and Competitive Decision-Making
  12. Combinatorial Nature of Digital Technologies and Legos
  13. Digital Transformation from 40,000 feet
  14. Winning in Chaos - Digital Leaders
  15. 13 Recommended Actions for Digital Transformation in Retail
  16. Mistakes in Retail Digital Transformation
  17. Winning Strategies for the Fourth Industrial Revolution
  18. Digital Transformation - Mindset Differences
  19. Analyzing Retail Through Digital Lenses
  20. Digital Thinking and Beyond!
  21. Measuring the Pace of Change in the Fourth Industrial Revolution
  22. How Digital Thinking Separates Retail Leaders from Laggards
  23. To Bot, or Not to Bot
  24. Oils, Bots, AI and Clogged Arteries
  25. Artificial Intelligence Out of Doors in the Kingdom of Robots
  26. How Digital Leaders are Different
  27. The Three Tsunamis of Digital Transformation - Be Prepared!
  28. Bots, AI and the Next 40 Months
  29. You Only Have 40 Months to Digitally Transform
  30. Digital Technologies and the Greater Good
  31. Video Report: 40 Months of Hyper-Digital Transformation
  32. Report: 40 Months of Hyper-Digital Transformation
  33. Virtual Moves to Real in with Sensors and Digital Transformation
  34. Technology Must Disappear in 2017
  35. Merging Humans with AI and Machine Learning Systems
  36. In Defense of the Human Experience in a Digital World
  37. Profits that Kill in the Age of Digital Transformation
  38. Competing in Future Time and Digital Transformation
  39. Digital Hope and Redemption in the Digital Age
  40. Digital Transformation and the Role of Faster
  41. Digital Transformation and the Law of Thermodynamics
  42. Jettison the Heavy Baggage and Digitally Transform
  43. Digital Transformation - The Dark Side
  44. Business is Not as Usual in Digital Transformation
  45. 15 Rules for Winning in Digital Transformation
  46. The End Goal of Digital Transformation
  47. Digital Transformation and the Ignorance Penalty
  48. Surviving the Three Ages of Digital Transformation
  49. The Advantages of an Advantage in Digital Transformation
  50. From Digital to Hyper-Transformation
  51. Believers, Non-Believers and Digital Transformation
  52. Forces Driving the Digital Transformation Era
  53. Digital Transformation Requires Agility and Energy Measurement
  54. A Doctrine for Digital Transformation is Required
  55. Digital Transformation and Its Role in Mobility and Competition
  56. A Revolution in Precision Through IoT, Analytics and Mobility
  57. Competing in Digital Transformation and Mobility
  58. Ambiguity and Digital Transformation
  59. Digital Transformation and Mobility - Macro-Forces and Timing
  60. Mobile and IoT Technologies are Inside the Curve of Human Time
************************************************************************
Kevin Benedict
President, Principal Analyst, Futurist, the Center for Digital Intelligence™
Website C4DIGI.com
View my profile on LinkedIn
Follow me on Twitter @krbenedict
Subscribe to Kevin's YouTube Channel
Join the Linkedin Group Strategic Enterprise Technologies
Join the Google+ Community Mobile Enterprise Strategies

***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I work with and have worked with many of the companies mentioned in my articles.
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Tuesday, September 12, 2017

What Artificial Intelligence Can Teach Us

Most of us understand that artificial intelligence (AI) offers opportunities for productivity improvements in the form of speed, automation, standardized actions and responses, plus the opportunity for continuous improvements via machine learning. These opportunities are enabled by data inputs that are analyzed and processed through AI algorithms that execute a desired decision and action. For all of the great capabilities and benefits that AI can provide, there is also a potential dark side. AI solutions can easily codify our prejudices, bias, gender stereotypes and promote injustices intentionally or unintentionally. This threat, as real and serious as it is, can also be seen as an opportunity to evaluate who we are, what we want the future to look like, and then codify a better tomorrow.

Let's first take a look at what makes us human. When we interact with other humans, we access our accumulated life experiences, ambitions, education, training, character and personality traits, ethics, cultural norms, religious paradigms and morals to think through problems and challenges and to communicate our feelings and ideas. Our human qualities help us be great salespeople, teachers, writers, caregivers, programmers, police officers, doctors, inventors, carpenters, plumbers, managers, etc. We bring our human skills and attributes with us to work. Our employers don't expect to have to invest in all of these attributes before we can be productive. AI solutions, on the other hand, can't on their own bring these skills to the job. AI is just code and must be programmed by humans to be productive and successful, and to treat humans humanely.

In more complex environments like sales and customer service, human participants often depend on their personal backgrounds and understandings to successfully communicate and resolve difficult situations to everybody's' satisfaction. How do we program these human qualities into AI? How do we add feelings of empathy, compassion, love, moral obligations, kindness, fairness, equality and justice to our AI solutions? We have a lot of thinking to do here. We expect these qualities to be present in even the most junior of call center workers, yet these basic qualities are absent from AI solutions unless we add them.

In order to implement an AI solution that can successfully interact independently with humans, it's going to take process experts and researchers from a multitude of disciplines to think through and configure human traits into AI solutions. It's going to take a lot of soul searching to identify and codify how we want AI systems to react and respond. We will need to monitor for unintended consequences that will arise as perfectly logical systems produce results that are unfair, unjust and don't respect human rights. It's up to us to create our future, and our future will be an exaggerated version of ourselves today. This process, however, will teach us a great deal more about ourselves and our own humanity.

Read more from the Center for Digital Intelligence here:
  1. 7 Imperatives for Thriving During Digital Transformation
  2. Speed as a Competitive Advantage in Digital Transformation
  3. Culture as a Competitive Advantage in Digital Transformation
  4. Digital Technologies and the Compression of both Time and Distance
  5. Patterns, Platforms and Automation
  6. Making the Hard Decisions in Digital Transformation
  7. Center for Digital Intelligence Interviews: Hitachi's Rob Tiffany on Industrial IoT 
  8. Digital Transformation and the New Rules for Start-Ups
  9. Digital Transformation and Leadership Development
  10. Digital Transformation and Competitive Decision-Making
  11. Combinatorial Nature of Digital Technologies and Legos
  12. Digital Transformation from 40,000 feet
  13. Winning in Chaos - Digital Leaders
  14. 13 Recommended Actions for Digital Transformation in Retail
  15. Mistakes in Retail Digital Transformation
  16. Winning Strategies for the Fourth Industrial Revolution
  17. Digital Transformation - Mindset Differences
  18. Analyzing Retail Through Digital Lenses
  19. Digital Thinking and Beyond!
  20. Measuring the Pace of Change in the Fourth Industrial Revolution
  21. How Digital Thinking Separates Retail Leaders from Laggards
  22. To Bot, or Not to Bot
  23. Oils, Bots, AI and Clogged Arteries
  24. Artificial Intelligence Out of Doors in the Kingdom of Robots
  25. How Digital Leaders are Different
  26. The Three Tsunamis of Digital Transformation - Be Prepared!
  27. Bots, AI and the Next 40 Months
  28. You Only Have 40 Months to Digitally Transform
  29. Digital Technologies and the Greater Good
  30. Video Report: 40 Months of Hyper-Digital Transformation
  31. Report: 40 Months of Hyper-Digital Transformation
  32. Virtual Moves to Real in with Sensors and Digital Transformation
  33. Technology Must Disappear in 2017
  34. Merging Humans with AI and Machine Learning Systems
  35. In Defense of the Human Experience in a Digital World
  36. Profits that Kill in the Age of Digital Transformation
  37. Competing in Future Time and Digital Transformation
  38. Digital Hope and Redemption in the Digital Age
  39. Digital Transformation and the Role of Faster
  40. Digital Transformation and the Law of Thermodynamics
  41. Jettison the Heavy Baggage and Digitally Transform
  42. Digital Transformation - The Dark Side
  43. Business is Not as Usual in Digital Transformation
  44. 15 Rules for Winning in Digital Transformation
  45. The End Goal of Digital Transformation
  46. Digital Transformation and the Ignorance Penalty
  47. Surviving the Three Ages of Digital Transformation
  48. The Advantages of an Advantage in Digital Transformation
  49. From Digital to Hyper-Transformation
  50. Believers, Non-Believers and Digital Transformation
  51. Forces Driving the Digital Transformation Era
  52. Digital Transformation Requires Agility and Energy Measurement
  53. A Doctrine for Digital Transformation is Required
  54. Digital Transformation and Its Role in Mobility and Competition
  55. A Revolution in Precision Through IoT, Analytics and Mobility
  56. Competing in Digital Transformation and Mobility
  57. Ambiguity and Digital Transformation
  58. Digital Transformation and Mobility - Macro-Forces and Timing
  59. Mobile and IoT Technologies are Inside the Curve of Human Time
************************************************************************
Kevin Benedict
President, Principal Analyst, Futurist, the Center for Digital Intelligence™
Website C4DIGI.com
View my profile on LinkedIn
Follow me on Twitter @krbenedict
Subscribe to Kevin's YouTube Channel
Join the Linkedin Group Strategic Enterprise Technologies
Join the Google+ Community Mobile Enterprise Strategies

***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I work with and have worked with many of the companies mentioned in my articles.