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Posts from the ‘Machine learning’ Category

How An AI Platform Is Matching Employees And Opportunities

How An AI Platform Is Matching Employees And Opportunities

Instead of relying on data-driven signals of past accomplishments, Eightfold.ai is using AI to discover the innate capabilities of people and matching them to new opportunities in their own companies.

Bottom Line: Eightfold.ai’s innovative approach of combining their own AI and virtual hackathons to create and launch new additions to their Project Marketplace rapidly is a model enterprises need to consider emulating.

Eightfold.ai was founded with the mission that there is a right career for everyone in the world. Since its founding in 2016, Eightfold.ai’s Talent Intelligence Platform continues to see rapid global growth, attracting customers across four continents and 25 countries, supporting 15 languages with users in 110 countries. Their Talent Intelligence Platform is built to assist enterprises with Talent Acquisition and Management holistically.

What’s noteworthy about Eightfold.ai’s approach is how they have successfully created a platform that aggregates all available data on people across an enterprise – from applicants to alumni – to create a comprehensive Talent Network. Instead of relying on data-driven signals of past accomplishments, Eightfold.ai is using AI to discover the innate capabilities of people and matching them to new opportunities in their own companies. Eightfold’s AI and machine learning algorithms are continuously learning from enterprise and individual performance to better predict role, performance and career options for employees based on capabilities.

How Eightfold Sets A Quick Pace Innovating Their Marketplace

Recently Eightfold.ai announced Project Marketplace, an AI-based solution for enterprises that align employees seeking new opportunities and companies’ need to reskill and upskill their employees with capabilities that line up well with new business imperatives. Eightfold wanted to provide employees with opportunities to gain new skills through experiential learning, network with their colleagues, join project teams and also attain the satisfaction of helping flatten the unemployment curve outside. Project Marketplace helps employers find hidden talent, improve retention strategies and gain new knowledge of who has specific capabilities and skills. The following is a screen from the Marketplace that provides employees the flexibility of browsing all projects their unique capabilities qualify them for:

How An AI Platform Is Matching Employees And Opportunities

Employees select a project of interest and are immediately shown how strong of a match they are with the open position. Eightfold provides insights into relevant skills that an employee already has, why they are a strong match and the rest of the project team members – often a carrot in itself. Keeping focused on expanding employee’s capabilities, Eightfold also provides guidance of which skills an employee will learn. The following is an example of what an open project positions looks like:

How An AI Platform Is Matching Employees And Opportunities

How An AI Platform Is Matching Employees And Opportunities

Employee applicants can also view all the projects they currently have open from the My Projects view shown below:

How An AI Platform Is Matching Employees And Opportunities

Project Marketplace is the win/win every employee has yearned for as they start to feel less challenged in their current position and start looking for a new one, often outside their companies. I recently spoke with Ashutosh Garg, CEO and Co-Founder and Kamal Ahluwalia, Eightfold’s President, to see how they successfully ran a virtual hackathon across three continents to keep the Marketplace platform fresh with new features and responsive to the market.

How to Run A Virtual Hackathon

Starting with the hackathon, Eightfold relied on its own Talent Intelligence Platform to define the teams across all three continents, based on their employees’ combined mix of capabilities. Ashutosh, Kamal and the senior management team defined three goals of the hackathon:

  1. Solve problems customers are asking about with solutions that are not on the roadmap yet.
  2. Accelerate time to value for customers with new approaches no one has thought of before.
  3. Find new features and unique strengths that further strengthen the company’s mission of finding the right career for everyone in the world.

It’s fascinating to see how AI, cybersecurity and revenue management software companies continue to innovate at a fast pace delivering complex apps with everyone being remote. I asked Ashutosh how he and his management team approached the challenge of having a hackathon spanning three continents deliver results. Here’s what I learned from our discussion and these lessons are directly applicable to any virtual hackathon today:

  1. Define the hackathon’s purpose clearly and link it to the company mission, explaining what’s at stake for customers, employees and the millions of people looking for work today – all served by the Talent Intelligence Platform broadening its base of features.
  2. Realize that what you are building during the hackathon will help set some employees free from stagnating skills allowing them to be more employable with their new capabilities.
  3. The hackathon is a chance to master new skills through experiential learning, further strengthening their capabilities as well. And often learning from some of the experts in the company by joining their teams.
  4. Reward risk-taking and new innovative ideas that initially appear to be edge cases, but can potentially be game changers for customers.

I’ve been interviewing CEOs from startups to established enterprise software companies about how they kept innovation alive during the lockdown. CEOs have mentioned agile development, extensive use of Slack channels and daily virtual stand-ups. Ashutosh Garg is the only one to mention how putting intrinsic motivation into practice, along with these core techniques, binds hackathon teams together fast. Dan Pink’s classic TED Talk, The Puzzle of Motivation, explains intrinsic motivators briefly and it’s clear they have implications on a hackathon succeeding or not.

Measuring Results Of the Hackathon

Within a weekend, Project Marketplace revealed several new rock stars amongst the Eightfold hackathon teams. Instead of doing side projects for people who had time on their hands, this Hackathon was about making Eightfold’s everyday projects better and faster. Their best Engineers and Services team members took a step back, re-looked at the current approaches and competed with each other to find better and innovative ways. And they all voted for the most popular projects and solutions – ultimate reward in gaining the respect of your peers. As well as the most “prolific coder” for those who couldn’t resist working on multiple teams.

Conclusion

Remote work is creating daunting challenges for individuals at home as well as for companies. Business models need to change and innovation cannot take a back seat while most companies have employees working from home for the foreseeable future. Running a hackathon during a global lockdown and making it deliver valuable new insights and features that benefit customers now is achievable as Eightfold’s track record shows. Project marketplace may prove to be a useful ally for employees and companies looking to stay true to their mission and help each other grow – even in a pandemic. This will create better job security, a culture of continuous learning, loyalty and more jobs. AI will change how we look at our work – and this is a great example of inspiring innovation.

 

Where AIOps Is Delivering Results Today

Where AIOps Is Delivering Results Today

Bottom Line: Capitalizing on AI and machine learning’s inherent strengths to create contextual intelligence in real-time, LogicMonitor’s early warning and failure prevention systems reflect where AIOps is delivering results today.

LogicMonitor’s track record of making solid contributions to their customers’ ability to bring greater accuracy, insight, and precision into monitoring all IT assets is emerging as a de facto industry standard. Recently I was speaking with a startup offering Hosted Managed Services of a variety of manufacturing applications, and the must-have in their services strategy is LogicMonitor LM Intelligence. LogicMonitor’s AIOps platform is powered by LM Intelligence, enabling customers’ businesses to gain early warning into potential trouble spots in IT operations stability and reliability. LogicMonitor does the hard work for you with automated alert thresholds, AI-powered early warning capabilities, customizable escalation chains, workflows, and more.

Engineers who are working at the Hosted Managed Services provider I recently spoke with say LM Intelligence is the best use case of AI and machine learning to provide real-time alerts, contextual insights, discover new patterns in data, and make automation achievable. The following is an example of the LM Intelligence dashboard:

Where AIOps Is Delivering Results Today

How LogicMonitor’s Architecture Supports AIOps

One of the core strengths LogicMonitor continues to build on is integration, which they see as essential to their ability to excel at providing AIOps support for their customers. Their architecture is shown below. By providing real-time integration to public cloud platforms, combined with control over the entire IT infrastructure structure along with over 2,000 integrations from network to cloud, LogicMonitor excels at unifying diverse IT environments into a single, cohesive AIOps-based intelligence system.  The LogicMonitor platform collects cloud data through our cloud collectors. These collectors retrieve metrics such as the cloud provider health and billing information by making API calls to the cloud services. The collector is a Windows Service or background process that is installed in a virtual machine. This collector then pulls metrics from the different devices using a variety of different methods, including SNMP, WMI, perf Mon JMX, APIs, and scripts.

Where AIOps Is Delivering Results Today

Using AIOps To Monitor, Analyze, Automate

LogicMonitor has created an architecture that’s well-suited to support the three dominant dimensions of AIOps, including Monitoring, Analytics (AIOps), and Automating. Their product and services strategies in the past have reflected a strong focus on Monitoring. The logic of prioritizing Monitoring as a product strategy area was to provide the AI and machine learning models with enough data to train on so they could identify anomalies in data patterns faster. Their 2018/2019 major releases in the Monitor area reflect how the unique strength they have of capturing and making use of any IT asset that can deliver a signal is paying off. Key Monitor developers recently include the following:

  • Kubernetes Monitoring
  • Service Insight
  • Topology
  • Remote Sessions
  • Netflow
  • Configuration Monitoring
  • Public Cloud Monitoring
  • Applications Monitoring

LogicMonitor’s core strengths in AIOps are in the Anomaly Detection and Early Warning System areas of their product strategy. Their rapid advances in the Early Warning System development show where AIOps is delivering solid results today. Supporting the Early Warning System, there are Dynamic Thresholds and Root Cause Analysis based on Dependencies as well.

The Automate area of their product strategy shows strong potential for future growth, with the ServiceNow integration having upside potential. Today Alert Chaining and Workflow support integrations to Ansible, Terraform, Slack, Microsoft, Teama, Putter, Terraform, OpsGenie, and others.

Conclusion

LogicMonitor’s platform handles 300B metrics on any given day and up to 10B a month, with over 28K collectors deployed integrated with approximately 1.4M devices being monitored. Putting AI and machine learning to work, interpreting the massive amount of data the platform captures every day to fine-tune their Early Warning and Failure Prevention Systems, is one of the most innovative approaches to AIOps today. Their AIOps Early Warning System is using machine learning Algorithms to fine-tune Root Cause Analysis and Dynamic Thresholds continually. AIOps Log Intelligence is also accessing the data to complete Automatic Log Anomaly Detection, Infrastructure change detection, and Log Volume Reduction to Signal analysis.

 

 

 

10 Ways AI Is Accelerating DevOps

10 Ways AI is Accelerating DevOps

Looking to reduce the delays DevOps teams are challenged with, software development tool providers are accelerating the pace of integrating AI- and Machine Learning technologies into their apps and platforms. Accelerating every phase of the Software Development Lifecycle (SDLC) while increasing software quality is the goal. And the good news is use cases are showing those goals are being accomplished, taking DevOps to a new level of accuracy, quality, and reliability.

What’s particularly fascinating about the ten ways AI is accelerating DevOps is how effective it is proving to be in assisting developers with the difficult, time-consuming tasks that take away from coding. One of the most time-consuming tasks is managing the many iterations and versions of requirements documents. A leader in using AI to streamline every phase of the SDLC and assist with managing requirements is Jira Software from Atlassian, widely considered the industry standard in this area of DevOps.

The following are ten ways AI is accelerating DevOps today:

  1. Improving DevOps productivity by relying on AL and ML to autosuggest code segments or snippets in real-time to accelerate development. DevOps teams interviewed for this article from several leading enterprise software companies competing in CRM, Supply Chain Management, and social media markets say this use case of AI is the most productive and has generated the greatest gains in accuracy. Initial efforts at using AI to autocomplete code were hit or miss, according to a DevOps lead at a leading CRM provider. She credits DevOps’ development tools providers’ use of supervised machine learning algorithms with improving how quickly models learn and respond to code requests. Reflecting what the DevOps teams interviewed for this article prioritized as the most valuable AI development in DevOps, Microsoft’s Visual Studio Intellicode has over 6 million installs as of today.
  2. Streamlining Requirements Management using AI is proving effective at improving the accuracy and quality of requirements documents capturing what users need in the next generation of an app or platform.  AI is delivering solid results streamlining every phase of creating, editing, validating, testing, and managing requirements documents. DevOps team members are using AI- and ML-based requirements management platforms to save time so they can get back to coding and creating software products often on tight deadlines. Getting requirements right the first time helps keep an entire project on the critical path of its project plan. Seeing an opportunity to build a business case of keeping projects on schedule, AI-powered software development tools providers are quickly developing and launching new apps in their area. It’s fascinating to watch how quickly Natural Language Processing techniques are being adopted into this area of DevOps tools. Enterprises using AI-based tools have been able to reduce requirements review times by over 50%.
  3. AI is proving effective at bug detection and auto-suggestions for improving code. At Facebook, a bug detection tool predicts defects and suggests remedies that are proving correct 80% of the time with AI tools learning to fix bugs automatically. Semmle CodeQL is considered the leading AI-based DevOps tool in this area. DevOps teams using CodeQL can track down vulnerabilities in code and also find logical variants in their entire codebase. Microsoft uses Semmle for vulnerability hunting. Security researchers in Microsoft’s security response team use Semmle QL to find variants of critical problems, allowing them to identify and respond to serious code problems and prevent incidents.
  4. AI is assisting in prioritizing security testing results and triaging vulnerabilities.  Interested in learning more about how ML can find code vulnerability in real-time, I spoke with Maty Siman, CTO Checkmarx, says that “even organizations with the most mature SDLCs often run into issues with prioritizing and triaging vulnerabilities. ML algorithms that focus on developers’ or AppSec teams’ attention on true positives and vulnerable components that pose a threat are key to navigating this challenge.” Maty also says that ML algorithms can be taught to understand that one type of vulnerability vs. another has a higher percentage of being a true positive. With this automated “vetting” process in place, teams can optimize and accelerate their remediation efforts in a much more informed manner.
  5. Improving software quality assurance by auto-generating and auto-running test cases based on the unique attributes of a given code base is another area where AI is saving DevOps teams valuable time. This is invaluable for stress-testing new apps and platforms across a wide variety of use cases. Creating and revising test cases is a unique skill set on any DevOps team, with the developers with this skill often being overwhelmed with test updates. AI-based software development tools are eliminating test coverage overlaps, optimizing existing testing efforts with more predictable testing, and accelerating progress from defect detection to defect prevention. AI-based software development platforms can identify the dependencies across complex and interconnected product modules, improving overall product quality in the process. Improving software quality enhances customer experiences, as well.
  6. AI is proving adept at troubleshooting defects in complex software apps and platforms after they’ve been released and shipped to customers. Enterprise software companies go to great lengths in their software QA processes to eliminate bugs, logic errors, and unreliable segments of code. Retrofitting releases or, worst case, recalling them is costly and impacts customers’ productivity. AI-based QA tools are proving effective at predicting which areas of an enterprise application will fail before being delivered into complex customer environments. AI is proving effective at root cause analysis, and also has proved effective in accelerating a leading CRM providers’ application delivery and a 72% reduction in time-to-restore in customers’ enterprise environments. Another DevOps team says they are using AI to auto-configure their applications’ settings to optimize performance in customer deployments.
  7. ML-based code vulnerability detection can spot anomalies reliably and alert DevOps teams in real-time. Maty Siman, CTO Checkmarx told me that, “assuming that your developers are writing quality, secure code, machine learning can set a baseline of “normal activity” and identify and flag anomalies from that baseline.” He continued, saying that “ultimately, we live in an IT and security landscape that’s evolving every minute of every day, requiring systems and tools that learn and adapt at the same, if not a greater, speed. Organizations and developers can’t do it alone and require solutions that improve the accuracy of threat detection to help them prioritize what matters most.” Spotting anomalies quickly and taking action on them is integral to building a business case for AI software-based QA and DevOps tools.
  8. Advanced DevOps teams are using AI to analyze and find new insights across all development tools, Application Performance Monitoring (APM), Software QA, and release cycle systems. DevOps teams at a leading Supply Chain Management (SCM) enterprise software provider are using AI to analyze why certain projects go so well and deliver excellent code while others get caught in perpetual review and code rewrite cycles. Using supervised machine learning algorithms, they’re able to see patterns and gain insights into their data. Becoming data-driven is quickly becoming part of their DNA, a DevOps lead told me this week on a call.
  9. Improving traceability within each release cycle to find where gaps in DevOps collaboration and data integration workflows can be improved.  AI is enabling DevOps teams to stay more coordinated with each other, especially across remote geographic locations. AI-driven insights are helping to see how shared requirements and specifications can reflect localization, unique customer requirements, and specific performance benchmarks.
  10. Creating a more integrated DevOps strategy where AI can deliver the most value depends on frameworks that can keep DevOps customer-centric while improving agility and nurturing an analytics-driven DNA to gain insights into operations. DevOps leaders interviewed for this article say integrating security into development cycles reduces bottlenecks that get in the way of staying on schedule. Several went on to say that frameworks capable of integrating Quality Assurance into the DevOps workflows are key. AI’s use cases taken together reflect the potential to revolutionize DevOps. Executing on this promise, however, requires a framework that empowers enterprise DevOps teams to deliver a transcendent customer experience, automate customer transactions, and provide support for automation everywhere. One of the leaders in this area is BMC’s Autonomous Digital Enterprise framework, which helps businesses harness AI/ML capabilities to run and reinvent in a rapidly transforming world. It’s helping enterprises innovate faster than their competitors by enabling the agility, customer centricity, and actionable insights integral to driving data-driven business outcomes.

Conclusion

Accelerating development cycles while ensuring the highest quality code gets produced is a challenge all DevOps teams face. AI is helping to accelerate every phase of DevOps development cycles by anticipating what developers need before they ask for it. Auto suggesting code segments, improving software quality assurance techniques with automated testing, and streamlining requirements management are core areas where AI is delivering value to DevOps today.

Improving Online Learning Experiences One Secured Endpoint At A Time

Improving Online Learning Experiences One Secured Endpoint At A Time

Bottom Line: Defining the perfect mix of cloud apps, platforms and secured endpoints to create compelling online learning experiences customizable to students’ learning strengths is how schools are overcoming the challenge of virtual teaching.

There are over 56 million students in the U.S. alone who are relying on remote learning apps, platforms and autonomous endpoint security to protect them as they pursue their education. School districts, online educators and teachers quickly realized the move to 100% online classes could mean the end to outdated mechanized approaches to teaching. Eager to teach using technologies that tailor individual learning programs to every student’s unique learning strengths, schools are combining cloud, e-learning and endpoint security with strong results. Combining technologies gives every student regardless of their socioeconomic background a chance to excel. The goal is to provide unique personalized instruction at scale using a teaching technique called scaffolding. Scaffolding stresses creating an individual learning plan for each student complete with reinforcement for each lesson.

Why Cybersecurity Is The Cornerstone Of Online Learning 

Tailoring the latest technologies to the diverse needs of online learners is the easy part of creating an online learning program. Far more difficult is choosing the right endpoint security strategies to protect their identities, every one of their video conference sessions with peers and teachers and thwarting breach attempts. Parents, teachers, students and administrators all need to trust an e-learning platform to make it work. The bottom line is an e-learning platform needs to create and grow trust while being adaptive enough to meet students’ unique learning needs.

Interested in learning more about how leading online educators are bringing together the latest cloud and autonomous endpoint security technologies to help students learn online, I recently interviewed Eric Ramos Chief Technology Officer at Duarte Unified School District and Dean Phillips, Senior Technology Director, David Atkins, Director of Marketing and Communications and Jennifer Shoaf, Deputy Chief Academic Officer at PA Cyber.  Duarte Unified School District (USD) serves the educational needs of 3,400 scholars at the elementary, K-8 and high school levels. The Pennsylvania Cyber Charter School (PA Cyber) in Midland, PA, is one of the most experienced and successful online K-12 public schools in the nation serving over 12,000 students. Together the group of education professionals provided valuable insights into how educators can combine cloud, collaboration and cybersecurity applications to create more personalized, effective learning experiences for students. David Atkins of PA Cyber says that their approach to e-learning is succeeding because they take a fully holistic view of the student, their family and their situation. “Our collaboration with the student starts from the very moment that there’s interest in having some sort of cyber education. And we go from enrollments, all the way through any issues of that students could have, or the students family could have and take them all the way through graduation’ David said. “We take the time to listen and see the student as a complete person.”

The following are the key insights based on our conversations:

  • Choosing to make cybersecurity the highest priority treats students as customers, protecting their unique online learning experiences while providing excellent access across all socioeconomic levels. That’s when online learning experiences excel. What’s impressive how committed the team of educators I spoke with is about making technology work as a catalyst to help every student achieve their educational goals across all socioeconomic levels. They’re also the most advanced at tailoring complex technologies to deliver customized online learning experiences with PA Cyber serving 12,000 remote students at once. “Each of our students is different and they’re looking to accomplish different things and they learn in different ways. We have a different classroom options that they can choose from. And we have a lot of different scaffolding options in place when it comes to our instructional platform, “Jennifer Shoaf, Deputy Chief Academic Officer at PA Cyber said. Eric Ramos, CTO at USD says that he and his staff “reach out to teachers and staff members and provide them with the latest cybersecurity alerts and make sure they are aware of how their autonomous endpoint security platform is securing every laptop and making their job of staying in compliance to security protocols easy.” Eric continued saying that, “having an undeletable digital tether gives my staff, senior educators and me peace of mind, especially with summer here and the need to keep track of the Chromebooks out with students and families.”
  • The more resilient the autonomous endpoint security on the laptop, the easier it is to secure, upgrade and locate each of them if they’re lost or stolen. Duarte Unified School District provides Chromebooks to students for use all year long, often also providing an Internet HotSpot as many students’ families don’t have Internet access. PA Cyber provides students a Dell laptop and an entire technology kit that includes printers and peripherals as well. Having an undeletable digital tether to every laptop makes it possible to keep every system up to date on security and system patches. Dean Phillips, Senior Technology Director at PA Cyber, says that it’s been very helpful to know each laptop has active autonomous endpoint security running at all times. Dean says that endpoint management is a must-have for PA Cyber “We’re using Absolute’s Persistence to ensure an always-on, two-way connection with our IT management solution, Kaseya®, which we use to remotely push out security patches, new applications and scripts. That’s been great for students’ laptops as we can keep updates current and know where the system is. Without an endpoint management solution on student laptops, it is very difficult to manage endpoints without that agent. So Absolute absolutely helps us with that as well. That’s been a big plus.” Eric Ramos, CTO, says that Absolute has been great, especially when student calls in and says they can’t find their laptop. I don’t know where it is. It’s lost or maybe stolen. We’re able to pull that up, figure out the last time it got pinged and we can locate that usually. Nine times out of 10, the student finds it by next day by just having that information. So that’s been crucial. It’s always been something we love having.”
  • Standardize on a secure cloud platform that is flexible enough to support scaffolding or individualized learning yet hardened enough to protect every laptop connected to it via an undeletable digital tether. A major challenge both online schools face is keeping their cloud platforms adaptive enough to support students’ varying skills yet also secure enough to protect every student online.  Dean Phillips, Senior Technology Director at PA Cyber, says that it’s best to “keep technology as simple as possible for the students and families. Standardization is key, I think, with everything you do from a technology standpoint. Making sure that you build from the inside out from the core. Your applications and networks and making sure that that’s consistent all the way to the endpoint, I think that’s extremely important.” PA Cyber’s lessons learned creating a secure and adaptive e-learning platform makes the goal of providing personalized instruction for every student achievable at scale.  Jennifer Shoaf, Deputy Chief Academic Officer at PA Cyber, explains how the school personalizes online instruction for every student. “It all starts when the student first comes to PA Cyber and we try to get an understanding of where they are and where they should be and where they want to see themselves, whether it’s in a month or in a couple years, or when they graduate from our school. So one of the things that we pride ourselves on here at this school is allowing for multiple modes of instruction for our students,” Jennifer said.
  • Capitalizing on the excellent asset management reporting autonomous endpoint security solutions have, CTOs and senior IT directors are gaining new insights into how to improve learning effectiveness. Having resilient, persistent connections to every endpoint with an undeletable digital tether also provides invaluable asset management data. Eric Ramos of Duarte USD and Dean Phillips of PA Cyber are leaders in this area of e-learning today. Eric Ramos says that asset management and activity reports made possible by the autonomous endpoint platform he is using from Absolute makes getting prepared for senior management meetings easy. “During principal meetings, I’m able to pull up these reports and say, look, these were the goals at the beginning of the year to use these four products at this amount of time. And here’s where you’re at on a small window. Or you can look at it over time and saying, this has been an increase here, this is a decrease here, these sites are doing really well with it, these sites may be not. But let’s now talk about what’s working for you. What are your teachers liking about the particular program? Or, program aside, how are your results coming about?” Eric Ramos, CTO said.

Conclusion

Delivering an excellent online learning experience needs to start with a cybersecurity strategy that includes autonomous endpoint security. Duarte USD and PA Cyber are leaders in this field, being among the first to see how combining core technologies while having an undeletable digital tether to every laptop is a must-have. Earning and growing the trust of parents, students, teachers and school administrators start with an endpoint security strategy that can adapt and grow as an e-learning program does.

10 Ways AI Is Improving New Product Development

10 Ways AI Is Improving New Product Development

  • Startups’ ambitious AI-based new product development is driving AI-related investment with $16.5B raised in 2019, driven by 695 deals according to PwC/CB Insights MoneyTree Report, Q1 2020.
  • AI expertise is a skill product development teams are ramping up their recruitment efforts to find, with over 7,800 open positions on Monster, over 3,400 on LinkedIn and over 4,200 on Indeed as of today.
  • One in ten enterprises now uses ten or more AI applications, expanding the Total Available Market for new apps and related products, including chatbots, process optimization and fraud analysis, according to MMC Ventures.

From startups to enterprises racing to get new products launched, AI and machine learning (ML) are making solid contributions to accelerating new product development. There are 15,400 job positions for DevOps and product development engineers with AI and machine learning today on Indeed, LinkedIn and Monster combined. Capgemini predicts the size of the connected products market will range between $519B to $685B this year with AI and ML-enabled services revenue models becoming commonplace.

Rapid advances in AI-based apps, products and services will also force the consolidation of the IoT platform market. The IoT platform providers concentrating on business challenges in vertical markets stand the best chance of surviving the coming IoT platform shakeout. As AI and ML get more ingrained in new product development, the IoT platforms and ecosystems supporting smarter, more connected products need to make plans now how they’re going to keep up. Relying on technology alone, like many IoT platforms are today, isn’t going to be enough to keep up with the pace of change coming.   The following are 10 ways AI is improving new product development today:

  • 14% of enterprises who are the most advanced using AI and ML for new product development earn more than 30% of their revenues from fully digital products or services and lead their peers is successfully using nine key technologies and tools. PwC found that Digital Champions are significantly ahead in generating revenue from new products and services and more than a fifth of champions (29%) earn more than 30% of revenues from new products within two years of information. Digital Champions have high expectations for gaining greater benefits from personalization as well. The following graphic from Digital Product Development 2025: Agile, Collaborative, AI-Driven and Customer Centric, PwC, 2020 (PDF, 45 pp.) compares Digital Champions’ success with AI and ML-based new product development tools versus their peers:

10 Ways AI Is Improving New Product Development

 

  • 61% of enterprises who are the most advanced using AI and ML (Digital Champions) use fully integrated Product Lifecycle Management (PLM) systems compared to just 12% of organizations not using AI/ML today (Digital Novices). Product Development teams the most advanced in their use of AL & ML achieve greater economies of scale, efficiency and speed gains across the three core areas of development shown below. Digital Champions concentrate on gaining time-to-market and speed advantages in the areas of Digital Prototyping, PLM, co-creation of new products with customers, Product Portfolio Management and Data Analytics and AI adoption:

10 Ways AI Is Improving New Product Development

  • AI is actively being used in the planning, implementation and fine-tuning of interlocking railway equipment product lines and systems.  Engineer-to-order product strategies introduce an exponential number of product, service and network options. Optimizing product configurations require an AI-based logic solver that can factor in all constraints and create a Knowledge Graph to guide deployment. Siemens’ approach to using AI to find the optimal configuration out of 1090 possible combinations provides insights into how AI can help with new product development on a large scale. Source: Siemens, Next Level AI – Powered by Knowledge Graphs and Data Thinking, Siemens China Innovation Day, Michael May, Chengdu, May 15, 2019.

10 Ways AI Is Improving New Product Development

  • Eliminating the roadblocks to getting new products launched starts with using AI to improve demand forecast accuracy. Honeywell is using AI to reduce energy costs and negative price variance by tracking and analyzing price elasticity and price sensitivity as well. Honeywell is integrating AI and machine-learning algorithms into procurement, strategic sourcing and cost management getting solid returns across the new product development process. Source: Honeywell Connected Plant: Analytics and Beyond. (23 pp., PDF, no opt-in) 2017 Honeywell User’s Group.

10 Ways AI Is Improving New Product Development

  • Relying on AI-based techniques to create and fine-tune propensity models that define product line extensions and add-on products that deliver the most profitable cross-sell and up-sell opportunities by product line, customer segment and persona. It’s common to find data-driven new product development and product management teams using propensity models to define the products and services with the highest probability of being purchased. Too often, propensity models are based on imported data, built-in Microsoft Excel, making their ongoing use time-consuming. AI is streamlining creation, fine-tuning and revenue contributions of up-sell and cross-sell strategies by automating the entire progress. The screen below is an example of a propensity model created in Microsoft Power BI.

10 Ways AI Is Improving New Product Development

  • AI is enabling the next generation of frameworks that reduce time-to-market while improving product quality and flexibility in meeting unique customization requirements on every customer order. AI is making it possible to synchronize better suppliers, engineering, DevOps, product management, marketing, pricing, sales and service to ensure a higher probability of a new product succeeding in the market. Leaders in this area include BMC’s Autonomous Digital Enterprise (ADE). BMC’s ADE framework shows the potential to deliver next-generation business models for growth-minded organizations looking to run and reinvent their businesses with AI/ML capabilities and deliver value with competitive differentiation enabled by agility, customer centricity and actionable insights. The ADE framework is capable of flexing and responding more quickly to customer requirements than competitive frameworks due to the following five factors: proven ability to deliver a transcendent customer experience; automated customer interactions and operations across distributed organizations; seeing enterprise DevOps as natural evolution of software DevOps; creating the foundation for a data-driven business that operates with a data mindset and analytical capabilities to enable new revenue streams; and a platform well-suited for adaptive cybersecurity. Taken together, BMC’s ADE framework is what the future of digitally-driven business frameworks look like that can scale to support AI-driven new product development. The following graphic compares the BMC ADE framework (left) and the eight factors driving digital product development as defined by PwC (right) through their extensive research. For more information on BMC’s ADE framework, please see BMC’s Autonomous Digital Enterprise site. For additional information on PwC’s research, please see the document Digital Product Development 2025: Agile, Collaborative, AI-Driven and Customer Centric, PwC, 2020 (PDF, 45 pp.).

10 Ways AI Is Improving New Product Development

  • Using AI to analyze and provide recommendations on how product usability can be improved continuously. It’s common for DevOps, engineering and product management to run A/B tests and multivariate tests to identify the usability features, workflows and app & service responses customers prefer. Based on personal experience, one of the most challenging aspects of new product development is designing an effective, engaging and intuitive user experience that turns usability into a strength for the product. When AI techniques are part of the core new product development cycle, including usability, delivering enjoyable customer experiences, becomes possible. Instead of a new app, service, or device is a chore to use, AI can provide insights to make the experience intuitive and even fun.
  • Forecasting demand for new products, including the causal factors that most drive new sales is an area AI is being applied to today with strong results. From the pragmatic approaches of asking channel partners, indirect and direct sales teams, how many of a new product they will sell to using advanced statistical models, there is a wide variation in how companies forecast demand for a next-generation product. AI and ML are proving to be valuable at taking into account causal factors that influence demand yet had not been known of before.
  • Designing the next generation of Nissan vehicles using AI is streamlining new product development, trimming weeks off new vehicle development schedules. Nissan’s pilot program for using AI to fast-track new vehicle designs is called DriveSpark. It was launched in 2016 as an experimental program and has since proven valuable for accelerating new vehicle development while ensuring compliance and regulatory requirements are met. They’ve also used AI to extend the lifecycles of existing models as well. For more information, see the article, DriveSpark, “Nissan’s Idea: Let An Artificial Intelligence Design Our Cars,” September 2016.
  • Using generative design algorithms that rely on machine learning techniques to factor in design constraints and provide an optimized product design. Having constraint-optimizing logic within a CAD design environment helps GM attain the goal of rapid prototyping. Designers provide definitions of the functional requirements, materials, manufacturing methods and other constraints. In May 2018, General Motors adopted Autodesk generative design software to optimize for weight and other key product criteria essential for the parts being designed to succeed with additive manufacturing. The solution was recently tested with the prototyping of a seatbelt bracket part, which resulted in a single-piece design that is 40% lighter and 20% stronger than the original eight component design. Please see the Harvard Business School case analysis, Project Dreamcatcher: Can Generative Design Accelerate Additive Manufacturing? for additional information.

Additional reading:

2020 AI Predictions, Five ways to go from reality check to real-world payoff, PwC Consulting

Accenture, Manufacturing The Future, Artificial intelligence will fuel the next wave of growth for industrial equipment companies (PDF, 20 pp., no opt-in)

AI Priorities February 2020 5 ways to go from reality check to real-world pay off, PwC, February, 2020 (PDF, 16 pp.)

Anderson, M. (2019). Machine learning in manufacturing. Automotive Design & Production, 131(4), 30-32.

Bruno, J. (2019). How the IIoT can change business models. Manufacturing Engineering, 163(1), 12.

Digital Factories 2020: Shaping The Future Of Manufacturing, PwC DE., 2017 (PDF, 48 pp.)

Digital Product Development 2025: Agile, Collaborative, AI Driven and Customer Centric, PwC, 2020 (PDF, 45 pp.)

Enabling a digital and analytics transformation in heavy-industry manufacturing, McKinsey & Company, December 19, 2019

Global Digital Operations 2018 Survey, Strategy&, PwC, 2018

Governance and Management Economics, 7(2), 31-36.

Greenfield, D. (2019). Advice on scaling IIoT projects. ProFood World

Hayhoe, T., Podhorska, I., Siekelova, A., & Stehel, V. (2019). Sustainable manufacturing in industry 4.0: Cross-sector networks of multiple supply chains, cyber-physical production systems and AI-driven decision-making. Journal of Self-

Industry’s fast-mover advantage: Enterprise value from digital factories, McKinsey & Company, January 10, 2020

Kazuyuki, M. (2019). Digitalization of manufacturing process and open innovation: Survey results of small and medium-sized firms in japan. St. Louis: Federal Reserve Bank of St Louis.

‘Lighthouse’ manufacturers lead the way—can the rest of the world keep up?  McKinsey & Company, January 7, 2019

Machine Learning in Manufacturing – Present and Future Use-Cases, Emerj Artificial Intelligence Research, last updated May 20, 2019, published by Jon Walker

Machine learning, AI are most impactful supply chain technologies. (2019). Material Handling & Logistics

MAPI Foundation, The Manufacturing Evolution: How AI Will Transform Manufacturing & the Workforce of the Future by Robert D. Atkinson, Stephen Ezell, Information Technology and Innovation Foundation (PDF, 56 pp., opt-in)

Mapping heavy industry’s digital-manufacturing opportunities, McKinsey & Company, September 24, 2018

McKinsey, AI in production: A game changer for manufacturers with heavy assets, by Eleftherios Charalambous, Robert Feldmann, Gérard Richter and Christoph Schmitz

McKinsey, Digital Manufacturing – escaping pilot purgatory (PDF, 24 pp., no opt-in)

McKinsey, Driving Impact and Scale from Automation and AI, February 2019 (PDF, 100 pp., no opt-in).

McKinsey, ‘Lighthouse’ manufacturers, lead the way—can the rest of the world keep up?,by Enno de Boer, Helena Leurent and Adrian Widmer; January, 2019.

McKinsey, Manufacturing: Analytics unleashes productivity and profitability, by Valerio Dilda, Lapo Mori, Olivier Noterdaeme and Christoph Schmitz, March, 2019

McKinsey/Harvard Business Review, Most of AI’s business uses will be in two areas,

Morey, B. (2019). Manufacturing and AI: Promises and pitfalls. Manufacturing Engineering, 163(1), 10.

Preparing for the next normal via digital manufacturing’s scaling potential, McKinsey & Company, April 10, 2020

Reducing the barriers to entry in advanced analytics. (2019). Manufacturing.Net,

Scaling AI in Manufacturing Operations: A Practitioners Perspective, Capgemini, January, 2020

Seven ways real-time monitoring is driving smart manufacturing. (2019). Manufacturing.Net,

Siemens, Next Level AI – Powered by Knowledge Graphs and Data Thinking, Siemens China Innovation Day, Michael May, Chengdu, May 15, 2019

Smart Factories: Issues of Information Governance Manufacturing Policy Initiative School of Public and Environmental Affairs Indiana University, March 2019 (PDF, 68 pp., no opt-in)

Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (52 pp., PDF, no opt-in) McKinsey & Company.

Team predicts the useful life of batteries with data and AI. (2019, March 28). R & D.

The AI-powered enterprise: Unlocking the potential of AI at scale, Capgemini Research, July 2020

The Future of AI and Manufacturing, Microsoft, Greg Shaw (PDF, 73 pp., PDF, no opt-in).

The Rise of the AI-Powered Company in the Postcrisis World, Boston Consulting Group, April 2, 2020

Top 8 Data Science Use Cases in Manufacturing, ActiveWizards: A Machine Learning Company Igor Bobriakov, March 12, 2019

Walker, M. E. (2019). Armed with analytics: Manufacturing as a martial art. Industry Week

Wang, J., Ma, Y., Zhang, L., Gao, R. X., & Wu, D. (2018). Deep learning for smart manufacturing: Methods and applications. Journal of Manufacturing Systems, 48, 144–156.

Zulick, J. (2019). How machine learning is transforming industrial production. Machine Design

5 Mistakes That Threaten Infrastructure Cybersecurity And Resilience

5 Mistakes That Threaten Infrastructure Cybersecurity And Resilience

 

Bottom line: With many IT budgets under scrutiny, cybersecurity teams are expected to do more with less, prioritizing spending that delivers the greatest ROI while avoiding the top five mistakes that threaten their infrastructures.

In a rush to reduce budgets and spending, cybersecurity teams and the CISOs that lead them need to avoid the mistakes that can thwart cybersecurity strategies and impede infrastructure performance. Cutting budgets too deep and too fast can turn into an epic fail from a cybersecurity standpoint. What I’ve found is that CIOs are making decisions based on budget requirements, while CISOs are looking out for the security of the company.

Based on their ongoing interviews with CIOs, Gartner is predicting an 8% decline in worldwide IT spending this year. Cybersecurity projects that don’t deliver a solid ROI are already out of IT budgets. Prioritizing and trimming projects to achieve tighter cost optimization is how CIOs and their teams are reshaping their budgets today. CIOs say the goal is to keep the business running as secure as possible, not attain perfect cybersecurity.

Despite the unsettling, rapid rise of cyber-attacks, including a 667% increase in spear-fishing email attacks related to Covid-19 since February alone, CIOs often trim IT budgets starting with cybersecurity first. The current economic downturn is making it clear that cybersecurity is more of a business strategy than an IT one, as spending gets prioritized by the best-to-worst business case.

Five Mistakes No CISO Wants To Make

One of the hardest parts of a CISO’s job is deciding which projects will continue to be funded and who will be responsible for leading them, so they deliver value. It gets challenging fast when budgets are shrinking and competitors actively recruit the most talented team members. Those factors taken together create the perfect conditions for the five mistakes that threaten the infrastructure cybersecurity and resilience of any business.

The five mistakes no CISO wants to make include the following:

1.   No accountability for the crown jewels for the company. Privileged access credentials continue to be the primary target for cyber-attackers. However, many companies just went through a challenging sprint to make sure all employees have secure remote access to enable Covid-19 work-from-home policies. Research by Centrify reveals that 41% of UK businesses aren’t treating outsourced IT and other third parties likely to have some form of privileged access as an equal security concern.

And while a password vault helps rotate credentials, it still relies on shared passwords and doesn’t provide any accountability to know who is doing what with them. That accountability can be introduced by moving to an identity-centric approach where privileged users log in as themselves and are authenticated using existing identity infrastructures (such as Microsoft Active Directory) to federate access with Centrify’s Privileged Access Service.

CISOs and their teams also continue to discount or underestimate the importance of privileged non-human identities that far outweigh human users as a cybersecurity risk in today’s business world. What’s needed is an enterprise-wide approach enabling machines to protect themselves across any network or infrastructure configuration.

2.   Cybersecurity budgets aren’t revised for current threatscapes. Even though many organizations are still in the midst of extensive digital transformation, their budgets often reflect the threatscape from years ago. This gives hackers the green light to get past antiquated legacy security systems to access and leverage modern infrastructures, such as cloud and DevOps. IT security leaders make this even more challenging by not listening to the front-line cybersecurity teams and security analysts who can see the patterns of breach attempts in data they review every day. In dysfunctional organizations, the analyst teams are ignored and cybersecurity suffers.

3. Conflicts of interest when CISOs report to CIOs and the IT budget wins.  This happens in organizations that get hacked because the cybersecurity teams aren’t getting the tools and support they need to do their jobs. With IT budgets facing the greatest scrutiny they’ve seen in a decade, CISOs need to have their budget to defend. Otherwise, too many cybersecurity projects will be cut without thinking of the business implications of each. The bottom line is CISOs need to report to the CEO and have the autonomy to plan, direct, evaluate and course-correct their strategies with their teams.

4. The mistake of thinking cloud platforms’ Identity and Access Management (IAM) tools can secure an enterprise on their own. Cloud providers offer a baseline level of IAM support that might be able to secure workloads in their clouds adequately but is insufficient to protect a multi-cloud, hybrid enterprise. IT leaders need to consider how they can better protect the complex areas of IAM and Privileged Access Management (PAM) with these significant expansions of the enterprise IT estate.

Native IAM capabilities offered by AWS, Microsoft Azure, Google Cloud and other vendors provide enough functionality to help an organization get up and running to control access in their respective homogeneous cloud environments. However, often they lack the scale to fully address the more challenging, complex areas of IAM and PAM in hybrid or multi-cloud environments. Please see the post, The Truth About Privileged Access Security On AWS and Other Public Clouds, for additional information.

5. Exposing their organizations to a greater risk of breach and privileged access credential abuse by staying with legacy password vaults too long. Given the severity, speed and scale of breach attempts, IT leaders need to re-think their vault strategy and make them more identity-centric. Just as organizations have spent the past 5 – 10 years modernizing their infrastructure, they must also consider how to modernize how they secure access to it. More modern solutions can enforce a least privilege approach based on Zero Trust principles that grant just enough, just-in-time access to reduce risk. Forward-thinking organizations will be more difficult to breach by reorienting PAM from being vault-centric to identity-centric.

Conclusion

Decisions about what stays or goes in cybersecurity budgets this year could easily make or break careers for CISOs and CIOs alike. Consider the five mistakes mentioned here and the leading cause of breaches – privileged access abuse. Prioritizing privileged access management for human and machine identities addresses the most vulnerable threat vector for any business. Taking a more modern approach that is aligned to digital transformation priorities can often allow organizations to leverage their existing solutions to reduce risk and costs at the same time.

 

 

 

How To Improve Channel Sales With AI-Based Knowledge Sharing Networks

How To Improve Channel Sales With AI-Based Knowledge Sharing Networks

Bottom Line: Knowledge-sharing networks have been improving supply chain collaboration for decades; it’s time to enhance them with AI and extend them to resellers to revolutionize channel selling with more insights.

The greater the accuracy and speed of supply chain-based data integration and knowledge, the greater the accuracy of custom product orders. Add to that the complexity of selling CPQ and product configurations through channels, and the value of using AI to improve knowledge sharing networks becomes a compelling business case.

Why Channels Need AI-Based Knowledge Sharing Networks Now

Automotive, consumer electronics, high tech, and industrial products manufacturers are combining IoT sensors, microcontrollers, and modular designs to sell channel-configurable smart vehicles and products. AI-based knowledge-sharing networks are crucial to the success of their next-generation products. Likewise, to sell to any of these manufacturers, suppliers need to be pursuing the same strategy. AI-based services, including Amazon Alexa, Microsoft Cortana, and Google Voice and others, rely on knowledge-sharing networks to collaborate with automotive supply chains and strengthen OEM partnerships. The following graphic reflects how successful Amazon’s Alexa Automotive OEM sales team is at using knowledge-sharing networks to gain design wins across their industry.

The following are a few of the many reasons why creating and continually fine-tuning an AI-based knowledge-sharing network is an evolving strategy worth paying attention to:

  • Supply chains are the primary source of knowledge that must permeate an organization’s structure and channels for the company to stay synchronized to broader market demands. For CPQ channel selling strategies to thrive, they need real-time pricing, availability, available-to-promise, and capable-to-promise data to create accurate, competitive quotes that win deals. The better the supplier collaboration across supply chains and with channel partners, the higher the probability of selling more. A landmark study of the Toyota Production System by Professors Jeffrey H Dyer & Kentaro Nobeoka found that Toyota suppliers value shared data more than cash, making knowledge sharing systems invaluable to them (Dyer, Nobeoka, 2000).
  • Smart manufacturing metrics also need to be contributing real-time data to knowledge sharing systems channel partners use, relying on AI to create quotes for products that can be built the fastest and are the most attractive to each customer. Combining manufacturing’s real-time monitoring data stream of ongoing order progress and production availability with supply chain pricing, availability, and quality data all integrated to a cloud-based CPQ platform gives channel partners what they need to close deals now. AI-based knowledge-sharing networks will link supply chains, manufacturing plants, and channel partners to create smart factories that drive more sales. According to a recent Capgemini study, manufacturers are planning to launch 40% more smart factories in the next five years, increasing their annual investments by 1.7 times compared to the previous three years, according to their recent Smart factories @ scale Capgemini survey. The following graphic illustrates the percentage growth of smart factories across key geographic regions, a key prerequisite for enabling AI-based knowledge-sharing networks with real-time production data:
  • By closing the data gaps between suppliers, manufacturing, and channels, AI-based knowledge-sharing networks give resellers the information they need to sell with greater insight. Amazon’s Alexa OEM marketing teams succeeded in getting the majority of design-in wins with automotive manufacturers designing their next-generation of vehicles with advanced electronics and AI features. The following graphic from Dr. Dyer’s and Nobeoka’s study defines the foundations of a knowledge-sharing network. Applying AI to a mature knowledge-sharing network creates a strong network effect where every new member of the network adds greater value.
  • Setting the foundation for an effective knowledge sharing network needs to start with platforms that have AI and machine learning designed in with structure that can flex for unique channel needs. There are several platforms capable of supporting AI-based knowledge-sharing networks available, each with its strengths and approach to adapting to supply chain, manufacturing, and channel needs. One of the more interesting frameworks not only uses AI and machine learning across its technology pillars but also takes into consideration that a company’s operating model needs to adjust to leverage a connected economy to adapt to changing customer needs. BMC’s Autonomous Digital Enterprise (ADE) is differentiated from many others in how it is designed to capitalize on AI and Machine Learning’s core strengths to create innovation ecosystems in a knowledge-sharing network. Knowledge-sharing networks thrive on continuous learning. It’s good to see major providers using adaptive and machine learning to strengthen their platforms, with BMC’s Automated Mainframe Intelligence (AMI) emerging as a leader. Their approach to using adaptive learning to maintain data quality during system state changes and link exceptions with machine learning to deliver root cause analysis is prescient of where continuous learning needs to go.  The following graphic explains the ADE’s structure.

Conclusion

Knowledge-sharing networks have proven very effective in improving supply chain collaboration, supplier quality, and removing barriers to better inventory management. The next step that’s needed is to extend knowledge-sharing networks to resellers and enable knowledge sharing applications that use AI to tailor product and service recommendations for every customer being quoted and sold to. Imagine resellers being able to create quotes based on the most buildable products that could be delivered in days to buying customers. That’s possible using a knowledge-sharing network. Amazon’s success with Alexa design wins shows how their use of knowledge-sharing systems helped to provide insights needed across automotive OEMs wanted to add voice-activated AI technology to their next-generation vehicles.

References

BMC, Maximizing the Value of Hybrid IT with Holistic Monitoring and AIOps (10 pp., PDF).

BMC Blogs, 2019 Gartner Market Guide for AIOps Platforms, December 2, 2019

Cai, S., Goh, M., De Souza, R., & Li, G. (2013). Knowledge sharing in collaborative supply chains: twin effects of trust and power. International journal of production Research51(7), 2060-2076.

Capgemini Research Institute, Smart factories @ scale: Seizing the trillion-dollar prize through efficiency by design and closed-loop operations, 2019.

Columbus, L, The 10 Most Valuable Metrics in Smart Manufacturing, Forbes, November 20, 2020

Jeffrey H Dyer, & Kentaro Nobeoka. (2000). Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal: Special Issue: Strategic Networks, 21(3), 345-367.

Myers, M. B., & Cheung, M. S. (2008). Sharing global supply chain knowledge. MIT Sloan Management Review49(4), 67.

Wang, C., & Hu, Q. (2020). Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance. Technovation94, 102010.

 

10 Ways Enterprises Are Getting Results From AI Strategies

10 Ways Enterprises Are Getting Results From AI Strategies

  • One in 10 enterprises now use 10 or more AI applications; chatbots, process optimization, and fraud analysis lead a recent survey’s top use cases according to MMC Ventures.
  • 83% of IT leaders say AI & ML is transforming customer engagement, and 69% say it is transforming their business according to Salesforce Research.
  • IDC predicts spending on AI systems will reach $97.9B in 2023.

AI pilots are progressing into production based on their combined contributions to improving customer experience, stabilizing and increasing revenues, and reducing costs. The most successful AI use cases contribute to all three areas and deliver measurable results. Of the many use cases where AI is delivering proven value in enterprises today, the ten areas discussed below are notable for the measurable results they are providing.

What each of these ten use cases has in common is the accuracy and efficiency they can analyze and recommend actions based on real-time monitoring of customer interactions, production, and service processes. Enterprises who get AI right the first time build the underlying data structures and frameworks to support the advanced analytics, machine learning, and AI techniques that show the best potential to deliver value. There are various frameworks available, with BMC’s Autonomous Digital Enterprise (ADE) encapsulating what enterprises need to scale out their AI pilots into production. What’s unique about BMC’s approach is its focus on delivering transcendent customer experiences by creating an ecosystem that uses technology to cater to every touchpoint on a customer’s journey, across any channel a customer chooses to interact with an enterprise on.

10 Areas Where AI Is Delivering Proven Value Today

Having progressed from pilot to production across many of the world’s leading enterprises, they’re great examples of where AI is delivering value today. The following are 10 areas where AI is delivering proven value in enterprises today

  • Customer feedback systems lead all implementations of AI-based self-service platforms. That’s consistent with the discussions I’ve had with manufacturing CEOs who are committed to Voice of the Customer (VoC) programs that also fuel their new product development plans. The best-run manufacturers are using AI to gain customer feedback better also to improve their configure-to-order product customization strategies as well. Mining contact center data while improving customer response times are working on AI platforms today. Source: Forrester study, AI-Infused Contact Centers Optimize Customer Experience Develop A Road Map Now For A Cognitive Contact Center.
  • McKinsey finds that AI is improving demand forecasting by reducing forecasting errors by 50% and reduce lost sales by 65% with better product availability. Supply chains are the lifeblood of any manufacturing business. McKinsey’s initial use case analysis is finding that AI can reduce costs related to transport and warehousing and supply chain administration by 5% to 10% and 25% to 40%, respectively. With AI, overall inventory reductions of 20% to 50% are possible. Source: Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? McKinsey & Company.

10 Ways Enterprises Are Getting Results From AI Strategies

  • The majority of CEOs and Chief Human Resource Officers (CHROs) globally plan to use more AI within three years, with the U.S. leading all other nations at 73%. Over 63% of all CEOs and CHROs interviewed say that new technologies have a positive impact overall on their operations. CEOs and CHROs introducing AI into their enterprises are doing an effective job at change management, as the majority of employees, 54%, are less concerned about AI now that they see its benefits. C-level executives who are upskilling their employees by enabling them to have stronger digital dexterity skills stand a better chance of winning the war for talent. Source: Harris Interactive, in collaboration with Eightfold Talent Intelligence And Management Report 2019-2020 Report.

10 Ways Enterprises Are Getting Results From AI Strategies

  • AI is the foundation of the next generation of logistics technologies, with the most significant gains being made with advanced resource scheduling systems. AI-based techniques are the foundation of a broad spectrum of next-generation logistics and supply chain technologies now under development. The most significant gains are being made where AI can contribute to solving complex constraints, cost, and delivery problems manufacturers are facing today. For example, AI is providing insights into where automation can deliver the most significant scale advantages. Source: McKinsey & Company, Automation in logistics: Big opportunity, bigger uncertainty, April 2019. By Ashutosh Dekhne, Greg Hastings, John Murnane, and Florian Neuhaus.

10 Ways Enterprises Are Getting Results From AI Strategies

  • AI sees the most significant adoption by marketers working in $500M to $1B companies, with conversational AI for customer service as the most dominant. Businesses with between $500M to $1B lead all other revenue categories in the number and depth of AI adoption use cases. Just over 52% of small businesses with sales of $25M or less are using AI for predictive analytics for customer insights. It’s interesting to note that small companies are the leaders in AI spending, at 38.1%, to improve marketing ROI by optimizing marketing content and timing. Source: The CMO Survey: Highlights and Insights Report, February 2019. Duke University, Deloitte, and American Marketing Association. (71 pp., PDF, free, no opt-in).
  • A semiconductor manufacturer is combining smart, connected machines with AI to improve yield rates by 30% or more, while also optimizing fab operations and streamlining the entire production process. They’ve also been able to reduce supply chain forecasting errors by 50% and lost sales by 65% by having more accurate product availability, both attributable to insights gained from AI. They’re also automating quality testing using machine learning, increasing defect detection rates up to 90%. These are the kind of measurable results manufacturers look for when deciding if a new technology is going to deliver results or not. These and many other findings from the semiconductor’s interviews with McKinsey are in the study, Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? . The following graphic from the study illustrates the many ways AI and machine learning are improving semiconductor manufacturing.

10 Ways Enterprises Are Getting Results From AI Strategies

  • AI is making it possible to create propensity models by persona, and they are invaluable for predicting which customers will act on a bundling or pricing offer. By definition, propensity models rely on predictive analytics including machine learning to predict the probability a given customer will act on a bundling or pricing offer, e-mail campaign or other call-to-action leading to a purchase, upsell or cross-sell. Propensity models have proven to be very effective at increasing customer retention and reducing churn. Every business excelling at omnichannel today rely on propensity models to better predict how customers’ preferences and past behavior will lead to future purchases. The following is a dashboard that shows how propensity models work. Source: customer propensities dashboard is from TIBCO.
  • AI is reducing logistics costs by finding patterns in track-and-trace data captured using IoT-enabled sensors, contributing to $6M in annual savings. BCG recently looked at how a decentralized supply chain using track-and-trace applications could improve performance and reduce costs. They found that in a 30-node configuration, when blockchain is used to share data in real-time across a supplier network, combined with better analytics insight, cost savings of $6M a year is achievable. Source: Boston Consulting Group, Pairing Blockchain with IoT to Cut Supply Chain Costs, December 18, 2018, by Zia Yusuf, Akash Bhatia, Usama Gill, Maciej Kranz, Michelle Fleury, and Anoop Nannra.
  • Detecting and acting on inconsistent supplier quality levels and deliveries using AI-based applications is reducing the cost of bad quality across electronic, high-tech, and discrete manufacturing. Based on conversations with North American-based mid-tier manufacturers, the second most significant growth barrier they’re facing today is suppliers’ lack of consistent quality and delivery performance. Using AI, manufacturers can discover quickly who their best and worst suppliers are, and which production centers are most accurate in catching errors. Manufacturers are using dashboards much like the one below for applying machine learning to supplier quality, delivery, and consistency challenges. Source: Microsoft, Supplier Quality Analysis sample for Power BI: Take a tour.

10 Ways Enterprises Are Getting Results From AI Strategies

  • Optimizing Shop Floor Operations with Real-Time Monitoring and AI is in production at Hitachi today. Combining real-time monitoring and AI to optimize shop floor operations, providing insights into machine-level loads and production schedule performance, is now in production at Hitachi. Knowing in real-time how each machine’s load level impacts overall production schedule performance leads to better decisions managing each production run. Optimizing the best possible set of machines for a given production run is now possible using AI.  Source: Factories of the Future: How Symbiotic Production Systems, Real-Time Production Monitoring, Edge Analytics, and AI Are Making Factories Intelligent and Agile, Youichi Nonaka, Senior Chief Researcher, Hitachi R&D Group and Sudhanshu Gaur Director, Global Center for Social Innovation Hitachi America R&D.

10 Ways Enterprises Are Getting Results From AI Strategies

Additional reading:

15 examples of artificial intelligence in marketing, eConsultancy, February 28, 2019

4 Positive Effects of AI Use in Email Marketing, Statista, March 1, 2019

4 Ways Artificial Intelligence Can Improve Your Marketing (Plus 10 Provider Suggestions), Forbes, Kate Harrison, January 20, 2019

Artificial Intelligence: The Next Frontier? McKinsey Global Institute (PDF, 80 pp., no opt-in)

Artificial Intelligence: The Ultimate Technological Disruption Ascends, Woodside Capital Partners. (PDF,

DHL Trend Research, Logistics Trend Radar, Version 2018/2019 (PDF, 55 pp., no opt-in)

2018 (43 pp., PDF, free, no opt-in).

Digital/McKinsey, Smartening up with Artificial Intelligence (AI) – What’s in it for Germany and its Industrial Sector? (PDF, 52 pp., no opt-in)

How To Win Tomorrow’s Car Buyers – Artificial Intelligence in Marketing & Sales, McKinsey Center for Future Mobility, McKinsey & Company. February 2019. (44 pp., PDF, free, no opt-in)

How Top Marketers Use Artificial Intelligence On-Demand Webinar with Vala Afshar, Chief Digital Evangelist, Salesforce and Meghann York, Director, Product Marketing, Salesforce

In-depth: Artificial Intelligence 2019, Statista Digital Market Outlook, February 2019 (client access reqd).

bes Insights and Quantcast Study (17 pp., PDF, free, opt-in),

Marketing & Sales Big Data, Analytics, and the Future of Marketing & Sales, (PDF, 60 pp., no opt-in), McKinsey & Company.

McKinsey & Company, Automation in logistics: Big opportunity, bigger uncertainty, April 2019. By Ashutosh Dekhne, Greg Hastings, John Murnane, and Florian Neuhaus

McKinsey & Company, Notes from the AI frontier: Modeling the impact of AI on the world economy, September 2018 By Jacques Bughin, Jeongmin Seong, James Manyika, Michael Chui, and Raoul Joshi

Papadopoulos, T., Gunasekaran, A., Dubey, R., & Fosso Wamba, S. (2017). Big data and analytics in operations and supply chain management: managerial aspects and practical challenges. Production Planning & Control28(11/12), 873-876.

Powerful pricing: The next frontier in apparel and fashion advanced analytics, McKinsey & Company, December 2018

Winning tomorrow’s car buyers using artificial intelligence in marketing and sales, McKinsey & Company, February 2019

World Economic Forum, Impact of the Fourth Industrial Revolution on Supply Chains (PDF, 22 pgs., no opt-in)

World Economic Forum, Supply Chain 4.0 Global Practices, and Lessons Learned for Latin America and the Caribbean (PDF, 44 pp., no opt-in)

Worldwide Spending on Artificial Intelligence Systems Will Grow to Nearly $35.8 Billion in 2019, According to New IDC Spending Guide, IDC; March 11, 2019

 

Six Areas Where AI Is Improving Customer Experiences

Six Areas Where AI Is Improving Customer Experiences

Bottom Line: This year’s hard reset is amplifying how vital customer relationships are and how much potential AI has to find new ways to improve them.

  • 30% of customers will leave a brand and never come back because of a bad experience.
  • 27% of companies say improving their customer intelligence and data efforts are their highest priority when it comes to customer experience (CX).
  • By 2023, 30% of customer service organizations will deliver proactive customer services by using AI-enabled process orchestration and continuous intelligence, according to Gartner.
  • $13.9B was invested in CX-focused AI and $42.7B in CX-focused Big Data and analytics in 2019, with both expected to grow to $90B in 2022, according to IDC.

The hard reset every company is going through today is making senior management teams re-evaluate every line item and expense, especially in marketing. Spending on Customer Experience is getting re-evaluated as are supporting AI, analytics, business intelligence (BI), and machine learning projects and spending. Marketers able to quantify their contributions to revenue gains are succeeding the most at defending their budgets.

Fundamentals of CX Economics

Knowing if and by how much CX initiatives and strategies are paying off has been elusive. Fortunately, there are a variety of benchmarks and supporting methodologies being developed that contextualize the contribution of CX. KPMG’s recent study, How Much Is Customer Experience Worth? provides guidance in the areas of CX and its supporting economics. The following table provides an overview of key financial measures’ interrelationships with CX. The table below summarizes their findings:

The KPMG study also found that failing to meet customer expectations is two times more destructive than exceeding them. That’s a powerful argument for having AI and machine learning ingrained into CX company-wide. The following graphic quantifies the economic value of improving CX:

Six Areas Where AI Is Improving Customer Experiences

 

Where AI Is Improving CX

For AI projects to make it through the budgeting crucible that the COVID-19 pandemic has created, they’re going to have to show a contribution to revenue, cost reduction, and improved customer experiences in a contactless world. Add in the need for any CX strategy to be on a resilient, proven platform and the future of marketing comes into focus. Examples of platforms and customer-centric digital transformation networks that can help re-center an organization on data- and AI-driven customer insights include BMC’s Autonomous Digital Enterprise (ADE) and others. The framework is differentiated from many others in how it is designed to capitalize on AI and Machine Learning’s core strengths to improve every aspect of the customer (CX) and  employee experience (EX). BMC believes that providing employees with the digital resources they need to excel at their jobs also delivers excellent customer experiences.

Having worked my way through college in customer service roles, I can attest to how valuable having the right digital resources are for serving customers What I like about their framework is how they’re trying to go beyond just satisfying customers, they’re wanting to delight them. BMC calls this delivering a transcendent customer experience. From my collegiate career doing customer service, I recall the e-mails delighted customers sent to my bosses that would be posted along a wall in our offices. In customer service and customer experience, you get what you give. Having customer service reps like my younger self on the front line able to get resources and support they need to deliver more authentic and responsive support is key. I see BMC’s ADE doing the same by ensuring a scalable CX strategy that retains its authenticity even as response times shrink and customer volume increases.

The following are six ways AI can improve customer experiences:

  • Improving contactless personalized customer care is considered one of the most valuable areas where AI is improving customer experiences. These “need to do” marketing areas have the highest complexity and highest benefit. Marketers haven’t been putting as much emphasis on the “must do” areas of high benefit and low complexity, according to Capgemini’s analysis. These application areas include Chatbots and virtual assistants, reducing revenue churn, facial recognition and product and services recommendations. Source:  Turning AI into concrete value: the successful implementers’ toolkit, Capgemini Consulting. (PDF, 28 pp).

Six Areas Where AI Is Improving Customer Experiences

  • Anticipating and predicting how each customers’ preferences of where, when, and what they will buy will change and removing roadblocks well ahead of time for them. Reducing the friction customers face when they’re attempting to buy within a channel they’ve never purchased through before can’t be left to chance. Using augmented, predictive analytics to generate insights in real-time to customize the marketing mix for every individual Customer improves sales funnels, preserves margins, and can increase sales velocity.
  • Knowing which customer touchpoints are the most and least effective in improving CX and driving repurchase rates. Successfully using AI to improve CX needs to be based on data from all trackable channels that prospects and customers interact with. Digital touchpoints, including mobile app usage, social media, and website visits, all need to be aggregated into data sets ML algorithms to use to learn more about every Customer continually and anticipate which touchpoint is the most valuable to them and why. Knowing how touchpoints stack up from a customer’s point of view immediately says which channels are doing well and which need improvement.
  • Recruiting new customer segments by using CX improvements to gain them as prospects and then convert them to customers. AI and ML have been used for customer segmentation for years. Online retailers are using AI to identify which CX enhancements on their mobile apps, websites, and customer care systems are the most likely to attract new customers.
  • Retailers are combining personalization, AI-based pattern matching, and product-based recommendation engines in their mobile apps enabling shoppers to try on garments they’re interested in buying virtually. Machine learning excels at pattern recognition, and AI is well-suited for fine-tuning recommendation engines, which are together leading to a new generation of shopping apps where customers can virtually try on any garment. The app learns what shoppers most prefer and also evaluates image quality in real-time, and then recommends either purchase online or in a store. Source: Capgemini, Building The Retail Superstar: How unleashing AI across functions offers a multi-billion dollar opportunity.

Six Areas Where AI Is Improving Customer Experiences

  • Relying on AI to best understand customers and redefine IT and Operations Management infrastructure to support them is a true test of how customer-centric a business is. Digital transformation networks need to support every touchpoint of the customer experience. They must have AI and ML designed to anticipate customer needs and deliver the goods and services required at the right time, via the Customer’s preferred channel. BMC’s Autonomous Digital Enterprise Framework is a case in point. Source: Cognizant, The 2020 Customer Experience.

Six Areas Where AI Is Improving Customer Experiences

Additional Resources

4 Ways to Use Machine Learning in Marketing Automation, Medium, March 30, 2017

84 percent of B2C marketing organizations are implementing or expanding AI in 2018. Infographic. Amplero.

AI, Machine Learning, and their Application for Growth, Adelyn Zhou. SlideShare/LinkedIn. Feb. 8, 2018.

AI: The Next Generation of Marketing Driving Competitive Advantage throughout the Customer Life Cycle (PDF, 10 pp., no opt-in), Forrester, February 2017.

Artificial Intelligence for Marketers 2018: Finding Value beyond the Hype, eMarketer. (PDF, 20 pp., no opt-in). October 2017

Artificial Intelligence: The Next Frontier? McKinsey Global Institute (PDF, 80 pp., no opt-in)

Artificial Intelligence: The Ultimate Technological Disruption Ascends, Woodside Capital Partners. (PDF, 111 pp., no opt-in). January 2017.

AWS Announces Amazon Machine Learning Solutions Lab, Marketing Technology Insights

B2B Predictive Marketing Analytics Platforms: A Marketer’s Guide, (PDF, 36 pp., no opt-in) Marketing Land Research Report.

Campbell, C., Sands, S., Ferraro, C., Tsao, H. Y. J., & Mavrommatis, A. (2020). From data to action: How marketers can leverage AI. Business Horizons, 63(2), 227-243.

David Simchi-Levi

Earley, S. (2017). The Problem of Personalization: AI-Driven Analytics at Scale. IT Professional, 19(6), 74-80.

Four Use Cases of Machine Learning in Marketing, June 28, 2018, Martech Advisor,

Gacanin, H., & Wagner, M. (2019). Artificial intelligence paradigm for customer experience management in next-generation networks: Challenges and perspectives. IEEE Network, 33(2), 188-194.

Hildebrand, C., & Bergner, A. (2019). AI-Driven Sales Automation: Using Chatbots to Boost Sales. NIM Marketing Intelligence Review11(2), 36-41.

How Machine Learning Helps Sales Success (PDF, 12 pp., no opt-in) Cognizant

Inside Salesforce Einstein Artificial Intelligence A Look at Salesforce Einstein Capabilities, Use Cases and Challenges, Doug Henschen, Constellation Research, February 15, 2017

Kaczmarek, J., & Ryżko, D. (2009). Quantifying and optimising user experience: Adapting AI methodologies for Customer Experience Management.

KPMG, Customer first. Customer obsessed. Global Customer Experience Excellence report, 2019 (92 pp., PDF)

Machine Learning for Marketers (PDF, 91 pp., no opt-in) iPullRank

Machine Learning Marketing – Expert Consensus of 51 Executives and Startups, TechEmergence.

Marketing & Sales Big Data, Analytics, and the Future of Marketing & Sales, (PDF, 60 pp., no opt-in), McKinsey & Company.

OpenText, AI in customer experience improves loyalty and retention (11 pp., PDF)

Sizing the prize – What’s the real value of AI for your business and how can you capitalize? (PDF, 32 pp., no opt-in) Pw

The New Frontier of Price Optimization, MIT Technology Review. September 07, 2017.

The Power Of Customer Context, Forrester (PDF, 20 pp., no opt-in) Carlton A. Doty, April 14, 2014. Provided courtesy of Pegasystems.

Turning AI into concrete value: the successful implementers’ toolkit, Capgemini Consulting

Using machine learning for insurance pricing optimization, Google Cloud Big Data and Machine Learning Blog,

What Marketers Can Expect from AI in 2018, Jacob Shama. Mintigo. January 16, 2018.

How To Reduce The Unemployment Gap With AI

How To Reduce The Unemployment Gap With AI

It’s time for AI startups to step up and use their formidable technology expertise in AI to help get more Americans back to work now.

Bottom Line: A.I.’s ability to predict and recommend job matches will help get more Americans back to work, helping to reduce the 22 million unemployed today.

One in ten Americans is out of work today based latest U.S. Department of Labor data. They’re primarily from the travel and hospitality, food services, and retail trade and manufacturing industries, with many other affected sectors. McKinsey & Company’s recent article, A new AI-powered network, is helping workers displaced by the coronavirus crisis provides context around the scope of challenges involved in closing the unemployment gap. McKinsey, Eightfold A.I., and the FMI – The Food Industry Association combined efforts to create the Talent Exchange, powered by Eightfold.ai in a matter of weeks. McKinsey insights across a broad base of industries to help Eightfold and FMI create the Talent Exchange in record time. “In talking with clients across the U.S., it became very clear that there is a huge labor mismatch, and individuals are being affected very differently—from retailers furloughing tens of thousands of workers to other organizations needing to hire more than 100,000 workers quickly. We’re excited to help bring a scalable offering to the market,” said McKinsey partner Andrew Davis. McKinsey and FMI collaborating with Eightfold speak volumes to how Americans are coming together to combat the COVID-19 fallout as a team.

And with the food & agriculture, transportation, and logistics industries considered essential, critical infrastructure by Cybersecurity and Infrastructure Security Agency (CISA), demand for workers is more urgent than ever. Eightfold’s Talent Exchange launched last weekend and already has more than 600,000 jobs uploaded that employers need to fill and is available in 15 languages. Eightfold is making the Talent Exchange available free of charge through the COVID-19 epidemic. The Talent Exchange is also being extended to other industries and eco-systems, illustrating how the Eightfold A.I. platform can provide transferability of skills across roles and industries.

Getting Americans Back To Work Using A.I.

Earlier this week Eightfold, FMI – The Food Industry Association and Josh Bersin, the noted global research analyst, public speaker, and writer on many aspects of human resources and talent management, hosted the webinar, COVID-19: Helping the food industry on the front lines with A.I. It’s available to watch here and includes a walk-through of the Eightfold Talent Exchange. The following graphic explains how the Talent Exchange addresses the needs of downsizing companies, impacted workers and hiring companies:

How To Reduce The Unemployment Gap With AI

Eightfold’s Talent Exchange Is A Model For How To Use A.I. For Good

Eightfold’s Talent Exchange uses A.I. algorithms to match candidates with available roles, based on each individual’s skills and previous experience.

Current employers who have to furlough or lay off employees can invite employees to participate in the program. Eightfold also designed in a useful feature that enables employers to add lists of impacted employees and send them a link to register for the Exchange. Employers can view their entire impacted workforce in a single dashboard and can filter by role, department, or location to see details about the talent needs from hiring companies and how their impacted employees are getting placed in new roles. The following is the Talent Exchange dashboard  for current employers showing progress in placing employees with furlough and outplacement partners, including the number of offers accepted by each:

How To Reduce The Unemployment Gap With AI

Employees impacted by a furlough or lay-off can create and update profiles free on the Talent Exchange, defining their job preferences, skills, and experience. That’s invaluable data for hiring companies relying on the platform to make offers and fill positions quickly.  How current employers handle furloughs and lay-offs today will be their identity for years to come, a point John Bersin made during the webinar saying “employers who thrive in the future are going to build long-term relationships with employees today.” Employees receive the following when their current employer adds their name to the Eightfold Talent Exchange. The fictional Company Travel Air is used for this example:

Hiring companies see candidate matches generated by the Exchange, so they can contact these prospects or immediately offer them new jobs. Eightfold’s A.I. engineering teams have automated and personalized this contact as well, expediting the process even further. Hiring companies can add onboarding instructions to allow new hires to start as soon as they are ready and have real-time views of their hiring dashboard shown below:

How To Reduce The Unemployment Gap With AI

Conclusion

Combining A.I.’s innate strengths with H.R. and talent management professionals’ expertise and insights is closing the unemployment gap today. Employers furloughing or laying off employees need to look out for them and get their profile data on the Talent Exchange, helping them find new jobs with hiring companies. As was so well-said by Josh Bersin during the webinar this week, “smart employers should think of their hourly workers as talent, not fungible, replaceable bodies.” For hiring companies in a war for proven employees with talent today, that mindset is more important than ever.

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