The world is grappling with unprecedented pace of change fuelled by disruptive business models and digital technologies. Businesses across diverse domains and industry verticals are impacted by accelerating technological change and rapid disruption. Exponential technologies such as AI, ML, NLP, DL, IoT, and Computer Vision are transforming broad swaths of industry and business.
Over the past few years, in a few select domains, core AI technologies have become mainstream, making it easier for businesses to integrate them into their products, services, and processes. There is a wide body of research indicating that businesses who are early adopters have succeeded in gaining a competitive edge through their AI-powered transformation.
IDC estimates 2019 global spending on AI to be $35.8 billion, an amount that could more than double to $79.2 billion by 2022, largely fueled by a four-fold increase (from 37% to 270% in four years) in number of enterprises that have deployed AI (source: Deloitte).
At the same time, many CEOs, CIOs, and CTOs are still struggling to get a grip on not only whether to adopt these technologies, but also about the right approach and strategy. In this edition of our co-Innovate newsletter, in addition to our usual updates, we will present a broad overview of effective strategies to adopt core AI and supporting technologies.
As a software provider, you must focus on enhancing business value through continuous innovation and providing enriching experiences that customers would love. The next big thing after Cloud/ SaaS transformation is adding Intelligence and transforming product/customer experience by embracing core AI/ML (technologies, frameworks, techniques and algorithms). Use cases such as predictive analytical models, process and application automation, and conversational interfaces through virtual assistants (bots) are some of the application areas witnessing high rates of AI adoption. In this context, you must be cognizant of the following constraints and challenges:
Naturally a traditional enterprise’s approach to AI adoption will differ from that of a software provider. As an enterprise, your focus is predominantly on meeting the business needs of your end users with technology (software) as an enabler. While sectors such as manufacturing, banking, insurance, and retail are ahead of the curve in AI adoption, other industries are fast catching up. Even though specific uses cases could vary from industry to industry, there are some horizontal, common areas where AI technologies are enabling new digital business initiatives based on anticipation and servicing user needs, as outlined below:
In both cases i.e. software businesses as well as non-IT enterprises, I suggest the following pragmatic approach for AI adoption:
At coMakeIT, we understand the challenges, opportunities, and constraints of AI adoption faced by both software businesses and non-IT businesses. To help our customers accelerate adoption of emerging digital technologies and reduce risks associated with new technology initiatives, we have set up two accelerators – Center of excellence (CoE), and Technology Innovation Center (TIC). While TIC will help you identify the right technologies, frameworks, and use cases, CoE will help you demonstrate proof of business value through quick PoCs.
The US Federal Trade Commission (FTC) levied a $5 billion penalty against Facebook, which is the largest ever imposed on any company for violating consumers’ privacy and almost 20 times greater than the largest privacy or data security penalty ever imposed worldwide. FTC stated : “we added new restrictions to the way the tech giant handles user data in hopes it will change Facebook’s entire privacy culture.” The 20-year agreement orders Facebook to restructure the way it handles user privacy—including changes at the board level and in the way the company will handle relationships with third-party developers. The settlement also establishes new guidelines for how the company will be held accountable for future privacy violations.
India has initiated a project to digitally map the country with a resolution of 10 centimetres, using drones and technologies such as Artificial Intelligence and big data. The herculean task was taken up by the Survey of India, part of the Department of Science and Technology, and is planned to be completed in two years. Once the project is completed, the data will be available to citizens and to villages and local governments, empowering them to use it in decision making and planning process.
Google, at the fifth edition of its annual Google for India event, announced that it is setting up research lab focused on artificial intelligence in Bengaluru. This AI lab will primarily focus on Machine Learning, Computer Vision, Languages, Speech, Systems, and other related areas. In addition, the lab will also focus on applying this research to tackle big problems in healthcare, agriculture, and education. The lab will also focus on making apps and services that will focus on helping billions of people in the country.
The Federal Ministry of the Interior (Bundesministerium des Innern or BMI) in Germany announced that it will reduce reliance on specific IT suppliers, especially Microsoft, in order to strengthen its “digital sovereignty”. In an official statement, the Federal Minister of the Interior stated that “in order to ensure our digital sovereignty, we want to reduce dependencies on individual IT providers. We are also considering alternative programs to replace certain software. This will be done in close coordination with other EU countries.”
UK is part of the mutually agreed General Data Protection Regulation (GDPR), which came into force in 2018 and covers its European members with the world’s strongest data protection rules. The UK’s Data Protection Act 2018 supplements GDPR, and in some cases goes slightly further, making the UK’s rules more stringent in some specific cases. In the event of a no-deal Brexit, under EU law, the UK will be automatically considered a third country not bound by GDPR rules, and able to diverge from the current strong standards if parliament so decides. Consequently, data from EU countries would not be able to flow freely to the UK.
Financial technology (fintech) sectors in Germany, the UK, Sweden and France recorded huge growth in investment in the first six months of this year, while total global funds received fell due to a distortion caused by a large deal in the same period last year. In the UK, investment in fintech firms in the first half of 2019 almost doubled to $2.6bn, compared with the same period in 2018. A similar increase was seen in Germany, where investment also doubled to reach $812m. Sweden had the highest proportional increase in Europe, with investment quadrupling to total $573m. In France, meanwhile, investment increased by 48% to reach $423m.
In 2021, artificial intelligence (AI) augmentation will create $2.9 trillion of business value and 6.2 billion hours of worker productivity globally, according to Gartner. Gartner’s AI business value forecast highlights decision support/augmentation as the largest type of AI by business value-add with the fewest early barriers to adoption. By 2030, decision support/augmentation will surpass all other types of AI initiatives to account for 44% of the global AI-derived business value.
Global spending on artificial intelligence (AI) systems is expected to maintain its strong growth trajectory as businesses continue to invest in projects that utilize the capabilities of AI software and platforms. According to the recently updated International Data Corporation (IDC) Worldwide Artificial Intelligence Systems Spending Guide, spending on AI systems will reach $97.9 billion in 2023, more than two and one half times the $37.5 billion that will be spent in 2019. The compound annual growth rate (CAGR) for the 2018-2023 forecast period will be 28.4%.
Forrester expects global social advertising spend to reach $165.6 billion in 2023, up from $75 billion in 2018 — a CAGR of 17.1%. Asia Pacific and the rest of world will grow fastest, capturing the US and Europe’s share of global social advertising spend. Asia Pacific’s share of global spend will increase from 30% in 2018 to 35% in 2023, mostly thanks to growth in China. Social video advertising spend will grow from $17.6 billion in 2018 to $56.5 billion in 2023 — a compound annual growth rate (CAGR) of 26.3%.
Hospital Information Management System (HIMS) and Laboratory Information Management System (LIMS) act as the backbone of the Healthcare Industry and help in better management and delivery of test results, thus reducing the Turnaround time (TAT). An instrument interface allows a lab instrument to communicate with the institution’s LIMS, which in turn forwards the patient results directly into an EMR, eliminating the need to manually re-enter data. Most systems package up different pieces of data into a text file and transmit it securely. The main content-standard for these files is HL7 (Health Level 7), where 7 is the layer 7 (Application) in the OSI Model.
While modernization focuses on sustaining existing business and meeting the needs of current customers in a catch-up mode, application transformation takes a fresh look at the product-market fit and explores new business opportunities with a long-term view. Transformation enables one to become a disruptor and a game-changer.
ASP is a unique approach that lets you choose and execute the right strategy for transforming your software – an Apps, SaaS or Platform strategies. These are all essential ingredients for your transformation and success. It may or may not be possible to achieve all three at the same time, but it is important for you to have a roadmap for all of them. A little of one and more of another – depending on the immediate benefit – but have all of them. They are not disconnected. Collectively they make your software complete and help in achieving 360° leadership.
Application design principles have moved from Data Model Driven Design (DFD, Data Dictionary, ERD) to Process Driven Design (BPM, UML) to Domain Driven Design (DDD) (Domain Events, Aggregates and Commands). Implementing Event Driven, Microservices architecture requires an effective domain model design. DDD allows modular design of the applications for agility, scalability, resilience and continuous delivery. DDD is a set of tools that assist in designing and implementing software that delivers high value, both strategically and tactically.
It would be pretty difficult to not encounter a conversational chatbot in our daily interactions. Apple’s Siri, Amazon’s Alexa and Microsoft’s Cortana are a few bots that are famous and well known. A chatbot is an artificial intelligence (AI) software that can simulate a conversation (or a chat) with a user in natural language through messaging applications, websites, mobile apps or through the telephone. A Conversational chatbot understands the context of the conversation and can handle any user goal gracefully. This doesn’t always mean that the bot will be able to answer all questions, but it can handle the conversation well and help the user accomplish their goal as well as possible.
coMakeIT sets up a UK subsidiary: We are pleased to announce the setting up of our UK subsidiary coMakeIT UK Pvt. Ltd. This fully-owned subsidiary of coMakeIT B.V. will be led by our Managing Director, Satish Aanimella, who will help us serve the fast-growing UK market better.
Hyderabad Metro is the new ride in town: We painted the town in orange with our branding ads on Hyderabad Metro. Our unique and eye-catching advertisements on the new Hyderabad Metro were hugely popular.
Monsoon-themed art competition: As part of our continuous employee engagement activities, we held a monsoon themed painting competition and selected winners in three categories- creativity, theme-related, and artistry.
School Chale Hum: We take great pride in nurturing the habit of giving, which is showcased continuously through the generosity of our employyes. Through an innovative School Chale Hum campaign, our colleagues fulfilled the wishes of more than 150 disadvantaged children of Residential School for Hearing Impaired, Hyderabad, which is a part of the People with The Hearing Impaired Network (PHIN).
Independence day celebrations: As a group we take genuine pride in comemorating the anniversary of Indian independence which is observed every year on the 15th of August. All our employees marked the occassion by dressing in Khadi (traditional hand-woven cotton fabric). The highlight of the day was a special performance by the kids of Geetanjali School on the diversity and strength of India.
Making eco-friendly Ganesh idols: The traditional Indian festival of Ganesh was marked by a competition to make eco-friendly Ganesh idols with play dough. All our employees organized as teams and competed in this fun activity.