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IBM Watson and Genesys Partner to Power Smarter Customer Experiences

IBM Watson and Genesys Partner to Power Smarter Customer Experiences

IBM and Genesys (www.genesys.com), a leading provider of customer experience and contact center solutions, today announced a partnership that will transform how organizations of all sizes differentiate their customer experience by tapping the power of IBM Watson to transform the way brands engage clients across customer service, marketing and sales through data-driven insights and automated actions.

 WHAT DOES THIS MEAN TO YOU?

The combination of the Watson Engagement Advisor with the Genesys Customer Experience Platform to is reportedly positioned to transform how organizations worldwide engage with their customers across customer experience touchpoints and channels of communication. This partnerships will allow Genesys to develop a learning system that can better serve consumers in their self-service applications and contact centers because The Watson Engagement Advisor enables natural language solution learning and adapts and understands market and organizational data quickly and easily, and gets progressively smarter with use, outcomes, and new pieces of information.

 WHAT IS A SPECIFIC EXAMPLE OF HOW THE WATSON ENGAGEMENT ADVISOR HELPS CUSTOMER SERVICE AGENTS?

The partnership will aid and assist a brand’s customer service agents to provide fast, data-driven answers, or simply sit directly in the hands of consumers via mobile device, chat session or online interaction. In one simple click, the solution’s “Ask Watson” feature can quickly help address customers’ questions, offer feedback to guide their purchase decisions, and troubleshoot their problems.

Because today’s consumers are a tweet, post, phone call, email or web chat away from reporting an issue or asking a question, and nearly half expect a response from businesses within a span of minutes, according to Edison Research, companies need to get a lot smarter about how they operationalize real-time customer service. Brand customer representatives who field these inquiries are often backlogged with time-consuming issues or questions that require detailed, accurate responses not often readily available to them – which can lead to an inconsistent customer experience. We’ve all been there – called a contact center and knew more about what we were asking than the company did. Perhaps this will help agents become closer to being able to provide real-time customer service.

DOES THIS MEAN KNOWLEDGE MANAGEMENT DATABASES ARE BEING REINVENTED? 

Contact center agents can gain access to a cloud-based Watson advisor that reads and uncover insights from millions of pages of data-driven content within seconds, from product guides to call transcripts. The result: cognitive computing that will augment a contact center agent’s knowledge and shift their time from searching for answers to discovering timely insights that solve problems, facilitate new opportunities, and improve the customer experience.  

WHAT IS A SPECIFIC EXAMPLE OF HOW THE WATSON ENGAGEMENT ADVISOR HELPS CUSTOMERS?

Genesys customers will gain the additional value of a Watson cloud-based advisor that thinks, learns and provides expert insights, while combing through millions of pages of data within seconds for customers and the contact center agents who serve them. As a result, Genesys customers can tap into the body of data that Watson understands and puts to work and use that knowledge to deliver more actionable and satisfying responses to customer inquiries in their self-service applications and contact centers.

HOW DOES THIS CONNECT A CUSTOMER AND A COMPANY TO PROVIDE BETTER SERVICE?

Imagine yourself as a bank customer, home from work and doing late night research on mortgage loans after your children are in bed. You may see a feature or rate that you like, but you have detailed questions that require expert advice. You can call, email or tweet the brand, but it’s after-hours. Many brands dont even pay attention to tweets much less have someone answering questions at night. Often that customer would not have access to a customer service agent until the next day.

Now envision the following experience: at any time of night, you can access a web chat advisor that has access to the bank’s data-driven content around mortgages, and through a natural language interface, understands your questions and history interacting with the bank. Not only will the application educate you on all things mortgage shopping, but it will also provide a formal offer that can be presented by a mortgage expert at a convenient time scheduled by you.

The idea is that with the Watson Ecosystem, Genesys customers will gain access to a cloud-based advisor that, within seconds, can read and uncover insights from millions of pages of data-driven content, from product guides to call transcripts to deliver exceptional customer experiences. The result: cognitive computing will augment agents’ knowledge and free their bandwidth from searching for answers, to creatively thinking of how they can further help a customer or even make a sale. This, in turn, will allow Genesys clients to deliver on their brand’s promise to the nearly 80 percent of consumers who say that the contact center is involved in defining the customer experience. SOURCE (IQPC)

 WHAT INDUSTRIES DOES THIS SOLUTION PROVIDE BETTER SERVICE FOR?

Leveraging its experience and deep domain expertise across industries including banking, insurance, and retail, Genesys will integrate access to the cloud-based Watson to its Customer Experience Platform empowering their customers with the ability to interact through a natural dialog leveraging Watson’s understanding and intelligent natural language response. Now consumers can tap into Watson to gain insight and answers faster than possible with knowledge management solutions.

HOW WILL THIS IBM AND GENESYS PARTNERSHIP AFFECT SELF-SERVICE?

The desire for self-service is there – both from the company’s point of view (reduce call volume, etc…) and customers are tired of calling into a contact center only to be disappointed. But while self-service has been a leading “idea” it rarely delivers an experience that doesn’t garner the customer to try to get help in another channel, often the phone channel. This defeats the purpose of self-service and reduces the first contact resolution — one of the most important indicators of customer satisfaction and loyalty.

The IBM Watson and Genesys solution provides organizations with the ability to identify when a customer needs to speak with a customer experience representative, rather than continuing in a self-service application. For example, if a customer reaches a point in conversation during a self-service interaction that could prompt either customer churn or a timely sales opportunity, Watson’s knowledge of pre-defined business guidelines allows the solution to signal when it is time to transfer the conversation to an agent.

The customer is not arbitrarily transferred to just any agent among the potentially hundreds who work at a call center. The solution pinpoints the exact agent to handle a customer’s inquiry, based on specific factors such as an agent’s experience, channel used, training and even license to discuss or sell a given product and then transfers the customer with the accompanying detail of the self-service interaction. This could mean a shift to reducing call volume and increasing first contact resolution – if it works as indicated. Case studies will be interesting to hear how brands are actually putting it to use.

WHAT DOES THE CEO OF GENESYS THINK ABOUT THE NEW PARTNERSHIP?

Paul Segre, President and CEO, Genesys says, “This combined solution delivers sophisticated yet simple to manage knowledge capabilities to transform self-service systems and human interactions into positive brand impressions. With Watson, our new solution provides a transformational customer experience with a natural and informed transition from self service to agent assistance to yield better business outcomes.

WHAT DOES THE MIKE RHODIN, SVP OF IBM WATSON GROUP THINK ABOUT THE NEW PARTNERSHIP?

Mike Rhodin, Senior Vice President, IBM Watson Group says, “By tapping into IBM Watson’s cognitive intelligence, Genesys is infusing a personalized assistant into every customer interaction. Customer engagement is a natural fit for Watson, empowering brands with information driven insights. This is a key example of how a new era of cognitive computing applications will transform industries and professions and revolutionize how decisions are made.”

About Genesys

Genesys is the market leader in multi-channel customer experience (CX) and contact center solutions in the cloud and on-premises. We help brands of all sizes make great CX great business. The Genesys Customer Experience Platform powers optimal customer journeys consistently across all touchpoints, channels and interactions to turn customers into brand advocates. Genesys is trusted by over 4,500 customers in 80 countries to orchestrate more than 100 million digital and voice interactions each day. Visit us at www.genesys.com or call us at +1.888.436.3797.

 

IBM Watson: Pioneering a New Era of Computing

Three years after its victory on the TV quiz show Jeopardy!, IBM Watson has evolved to represent a new era of computing, where by 2017 it is predicted that 10 percent of computers will be able to learn as Watson does. Today, Watson is no longer just the world’s most famous game-playing computer. IBM has put Watson to work in various industries. In healthcare, IBM is co-developing an application with Memorial Sloan-Kettering Cancer Center, and partnering with WellPoint, the University of Texas MD Anderson Cancer Center, and the Cleveland Clinic Lerner College of Medicine. Additionally, IBM has partnered with numerous colleges and universities across the country to teach Watson capabilities and cognitive computing technology to the next generation workforce. In 2013, IBM announced the introduction of the IBM Watson Engagement Advisor, the first Watson offering designed to improve customer experience, putting the power of Watson within reach of everyone.

IBM’s mission to spark a new generation of Watson-powered apps is just the latest milestone in developing cognitive system offerings that help its clients and partners succeed.

For more information on IBM Watson, please visit www.ibmwatson.com

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Resources
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Webinar: Big Privacy

Webinar: Big Privacy

I'm presenting a Constellation Research webinar next week on my latest research into "Big Privacy" (June 18th in the US / June 19th in Australia). I hope you can join us.

We live in an age where billionaires are self-made on the back of the most intangible of assets - the information they have amassed about us. That information used to be volunteered in forms and questionnaires and contracts but increasingly personal information is being observed and inferred.

The modern world is awash with data. It's a new and infinitely re-usable raw material. Most of the raw data about us is an invisible by-product of our mundane digital lives, left behind by the gigabyte by ordinary people who do not perceive it let alone understand it.

Many Big Data and digital businesses proceed on the basis that all this raw data is up for grabs. There is a particular widespread assumption that data in the "public domain" is free-for-all, and if you're clever enough to grab it, then you're entitled to extract whatever you can from it.

In the webinar, I'll try to show how some of these assumptions are naive. The public is increasingly alarmed about Big Data and averse to unbridled data mining. Excessive data mining isn't just subjectively 'creepy'; it can be objectively unlawful in many parts of the world. Conventional data protection laws turn out to be surprisingly powerful in in the face of Big Data. Data miners ignore international privacy laws at their peril!

Today there are all sorts of initiatives trying to forge a new technology-privacy synthesis. They go by names like "Privacy Engineering" and "Privacy by Design". These are well meaning efforts but they can be a bit stilted. They typically overlook the strengths of conventional privacy law, and they can miss an opportunity to engage the engineering mind.

It's not politically correct but I believe we must admit that privacy is full of contradictions and competing interests. We need to be more mature about privacy. Just as there is no such thing as perfect security, there can never be perfect privacy either. And is where the professional engineering mindset should be brought in, to help deal with conflicting requirements.

If we're serious about so-called Privacy by Design and Privacy Engineering then we need to acknowledge the tensions. That's some of the thinking behind Constellation's new Big Privacy compact. To balance privacy and Big Data, we need to hold a conversation with users that respects the stresses and strains, and involves them in working through the new privacy deal.

The webinar will cover these highlights of the Big Privacy pact:

  • Respect and Restraint
  •  
  • Super transparency
  •  
  • And a fair deal for Personal Information.

June 18, 2014 1:00p.m. PT/ 4pm ET

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News Analysis - Progress Software acquires Modulus - gets hip and bridges the old with the new

News Analysis - Progress Software acquires Modulus - gets hip and bridges the old with the new

Somewhat surprisingly Progress Software this morning announced the acquisition of Cincinnati based Modulus. Not so surprising if you follow Progress more closely and see the significant steps the vendor is taking to create value for its large install base.

 

So let’s take a look at the press release:

 

Progress (NASDAQ: PRGS), today announced it has acquired Cincinnati, Ohio-based Modulus, a privately held company that provides a platform-as-a-service (PaaS) for easily hosting, deploying, scaling and monitoring data-intensive, real-time applications using powerful, rapidly growing Node.js and MongoDB technologies. Financial terms were not disclosed.

MyPOV – A key move by Progress that discloses all the value propositions that Modulus brings to Progress and its customers. A fast way to deploy to deploy next generation applications leveraging PaaS techniques, node.js and MongoDB.


The Modulus Node.js and MongoDB cloud platform is designed to simplify and speed development of the new generation of scalable, always connected business and consumer apps that are constantly monitored and optimized for the best experience. The Modulus platform is ideally suited for real-time mobile, SaaS, social and Big Data apps that run across distributed devices and can seamlessly handle floods of data requests with built-in performance monitoring and analytics.

MyPOV – A good description on what Modulus does – deliver next generation applications that are highly scalable, distributed across devices and delivered through the cloud. All application attributes that Progress has been traditionally lacking for its applications, and recently (the last 2-3 years) been adding capabilities both through internal development and acquisitions.


The Modulus platform is offered both as a hosted service and can also be deployed by enterprises in public, private and hybrid clouds as well as in an on-premise infrastructure. Modulus Enterprise is the first and only enterprise Node.js PaaS available as a licensed product, allowing businesses and ISVs to deploy next-generation apps faster and at a lower total cost. With Modulus, more time can be spent on creating and modernizing apps and less time worrying about deployment infrastructure.

MyPOV – Modulus’ flexible deployment options, all the way to private cloud have certainly made the vendor more attractive to Progress, as Progress customers for a number of reasons still have a significant portion of on premise deployed applications. Progress has realized that for a number or reasons, these customers will not move their applications to the public cloud, so thanks to Modulus’ private cloud deployment, modern platforms like node.js and MongoDB as well as techniques like continuous deployment and application monitoring will be available for Progress customers.


Founded in 2012, Modulus has more than 450 customers of all sizes and is a leader in the Node.js community. Progress is committed to continuing and expanding Modulus' contributions and role in this community. The core technologies that Modulus supports are among the fastest growing in the industry. Node.js is designed for easily building high performing, scalable network applications using the ubiquitous JavaScript programming language. MongoDB is the leading NoSQL database system and is designed for scalability, performance and high availability.

MyPOV – Nothing documents providing value to customers better than rapid growth in the customer base – and with Modulus having 450 customers in only a little more than two years of existence is certainly a key proof point. Progress customers can now build their next generation applications with modern, state of the art technologies that last but not least are also popular with the developer community.

Surely in less than a few hours after the release there will be pundits deploring an end of innovation here, but Progress would be foolish of not continuing to support the Modulus product commitments and roadmap. In contrary – I would expect Progress to double down on the Modulus side as the offering is something Progress has been chasing to create since a number of years – a modern PaaS platform.

With the addition of the Modulus capabilities into its PaaS portfolio, Progress now offers the industry's most comprehensive set of cloud, mobile, hybrid and on-premise development, data and business rules technologies.

MyPOV – Let’s leave the marketing beside – the key thing is that Progress has become a lot more attractive to its customer base. Progress also has a whole new set of reasons its existing customers to keep looking at the vendor and keep building applications with Progress tools.

 

Overall MyPOV

A very good move by Progress. Now it needs to create and publish the roadmap of bringing proven and appreciated Progress capabilities to the new Modulus platform. And as well harmonize and communicate how Modulus fits in the overall Progress PaaS strategy, something I am sure the team around CTO Padir is been working on. Lastly I am sure a whole lot of millennial developers will have the answer on the question ‘Progress who?’ figured out on June 9th 2014. Not a bad side effect for the proven and venerable Progress Software.

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Other technology posts

  • Musings - The advent of the No-Design DB - read here

  • News Analysis - Todays Billion in Cloud is HP's and it goes to Helion - read here

  • Event Report - IBM Impact - what a difference a year makes - read here

  • Musings - Future of Work - Is Voice part of it? Post Cortana launch thoughts - read here

  • Event Report - Microsoft Azure blossoms - enough for the enterprise yet? Read here

  • News Analysis - Google gets serious about cloud - and it is different - read here

  • News Analysis - Another week another Billion - Cisco Intercloud - another approach to cloud - better late than never - read here

Find more coverage on the Constellation website here.

 

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Watson the Doctor is no laughing matter

Watson the Doctor is no laughing matter

For the past year, oncologists at the Memorial Sloan Kettering Cancer Centre in New York have been training IBM's Watson - the artificial intelligence tour-de-force that beat allcomers on Jeopardy - to help personalise cancer care. The Centre explains that "combining [their] expertise with the analytical speed of IBM Watson, the tool has the potential to transform how doctors provide individualized cancer treatment plans and to help improve patient outcomes". Others are speculating already that Watson could "soon be the best doctor in the world".

I have no doubt that when Watson and things like it are available online to doctors worldwide, we will see wonderful overall improvements in healthcare outcomes, especially in parts of the world now under-serviced by medical specialists. As with Google's self-driving car, we will probably get terrific gains averaged across the population from replacing humans with machines. Yet some of the foibles of computing are not well known and I think they will lead to surprises.

For all the wondrous gains made in Artificial Intelligence, where Watson now is the state-of-the art, A.I. remains algorithmic, and for that, it has inherent limitations that don't get enough attention. Computer Scientists and mathematicians have know for years that some surprisingly straightforward problems have no algorithmic solution. That is, some tasks cannot be accomplished by any universal step-by-step codified procedure. Examples include the Halting Problem and the Travelling Salesperson Problem. If these simple challenges have no algorithm, we need be more sober in our expectations of computerised intelligence.

A key limitation of any programmed algorithm is that it must make its decisions using a fixed set of inputs that are known and fully characterised (by the programmer) at design time. If you spring an unexpected input on any computer, it can fail, and yet that's what life is all about -- surprises. No mathematician seriously claims that what humans do is somehow magic; most believe we are computers made of meat. Nevertheless, when paradoxes like the Halting Problem abound, we can be sure that computing and cognition are not what they seem. We should hope these conundrums are better understood before putting too much faith in computers doing deep human work.

And yet, predictably, futurists are jumping ahead to imagine "Watson apps" in which patients access the supercomputer for themselves. Even if there were reliable algorithms for doctoring, I reckon the "Watson app" is a giant step, because of the complex way the patient's conditions are assessed and data is gathered for the diagnosis. That is, the taking of the medical history.
In these days of billion dollar investments in electronic health records (EHRs), we tend to think that medical decisions are all about the data. When politicians announce EHR programs they often boast that patients won't have to go through the rigmarole of giving their history over and over again to multiple doctors as they move through an episode of care. This is actually a serious misunderstanding of the importance in clinical decision making of the interaction between medico and patient when the history is taken. It's subtle. The things a patient chooses to tell, the things they seem to be hiding, and the questions that make them anxious, all guide an experienced medico when taking a history, and provide extra cues (metadata if you will) about the patient's condition.

Now, Watson may well have the ability to navigate this complexity and conduct a very sophisticated Q&A. It will certainly have a vastly bigger and more reliable memory of cases than any doctor, and with that it can steer a dynamic patient questionnaire. But will Watson be good enough to make it available direct to patients through an app, with no expert human mediation? Or will a host of new input errors result from patients typing their answers into a smart phone or speaking into a microphone, without any face-to-face subtlety (let alone human warmth)? It was true of mainframes and it's just as true of the best A.I.: Bulldust in, bulldust out.

Finally, Watson's existing linguistic limitations are not to be underestimated. It is surely not trivial that Watson struggles with puns and humour. Futurist Mark Pesce when discussing Watson remarked in passing that scientists don't understand the "quirks of language and intelligence" that create humour. The question of what makes us laugh does in fact occupy some of the finest minds in cognitive and social science. So we are a long way from being able to mechanise humour. And this matters because for the foreseeable future, it puts a great deal of social intercourse beyond AI's reach.

In between the extremes of laugh-out-loud comedy and a doctor's dry written notes lies a spectrum of expressive subtleties, like a blush, an uncomfortable laugh, shame, and the humiliation that attends some peoples' experience of ill health. Watson may understand the English language, but does it understand people?

Watson can answer questions, but good doctors ask a lot of questions too. When will this amazing computer be able to hold the sort of two-way conversation that we would call a decent "bedside manner"?

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Additional Resources

Three Billion was a Snap - Why even selfies deserve data protection
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ata to Decisions

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Tales of the One in Ten

Tales of the One in Ten

1
Disadvantage can shape an entire life. This short, animated film by The Smith Family called, David & the Big Heavy, follows the true story of a young boy struggling to cope with issues at home and school as his family adjusts to life in a new country.

But then something happens that he could never have imagined.

Watch and share and help change someone else’s story.


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Marketing Transformation Chief Marketing Officer

The Enterprise Mobility Problem

The Enterprise Mobility Problem

1
Apple upgraded itself on Monday, or so the papers say. They had their big yearly developer conference and announced a lot of interesting things. In some corners people cheered wildly, in other corners people booed and hissed, finding fault with every new feature, and then in the far corner, the enterprise folks just went about their business. It wasn’t that some of them weren’t interested, since many companies use iOS, they were interested, but only the geeky of them really cared. The rest turned away when a new device wasn’t announced. Google I/O will be in a few weeks and the scene will be repeated with only the corners changing.

shiny new smartphonesThe question needs to be asked whether these enterprises should care. The BYOD (Bring your own device) faithful will insist that the enterprises must care, as employees will use any device they fancy and they must be ready. Security will insist on it, as the new features are always new things to be blocked until the din reaches the crescendo of caring, forcing them to truly examine if an issue exists, most often it doesn’t. Yet, we let it go unsaid, in almost every corner enterprises are looking at mobility wrong, except for the few in that rarified air.

You see, mobility is this bell that all are ringing, loud and clear. They have seen the drummer and are marching to his beat, handing out smartphones and tablets left and right. Apple is cleaning up in the enterprise and Samsung is starting to make some headway for Android. It’s like an episode of Oprah, you walk into work one day and look beneath your seat and there’s a tablet or smartphone waiting. If you are really lucky there might even be a few apps preloaded or the companies that really get it have an app store already setup and ready to go, filled with apps that fit your needs.

The funny thing is, 6 months later, they all start asking where all the new productivity is that they read about in every Wall Street Journal or even the New York Times. They thought that all they had to do was hand the devices out. They setup basic PIM functionality. Everyone can get their email, contacts and calendaring on their devices. According to IBM they should be getting an extra hour a day of productivity from each person. Some think that if they give their users smartphones and tablets they should get two extra hours each day.

Along the way, these companies forgot what they were doing in the first place. They built their business and created a strategy for growth and profit. They hired good people and gave them the tools they needed to get their jobs done. Then these shiny little objects that came with stories of unheard of productivity and efficiency distracted them. It caused them to stray from the basics that made them good companies in the first place. There was no strategy when these mobile devices were rolled out, other than they would work. They forgot that mobility is just another tool in the arsenal of their workers. These tools required jobs that could be done with them. The jobs couldn’t be done exactly the same way they had been in the past because those tools already existed. They had to be suited for a new way of working. They had to be fit to their workers wants and needs. They necessitated a loosening of the old ways of doing things and needed to give heed to new apps and devices that allowed more flexibility and agility.

Mobile devices, in and of themselves, are pointless. They aren’t tools. It’s only when you combine the mobile devices with the right apps, that they become tools fit to the right need. It’s when they take an old business process and turn it on its head because they enable a new, better way for it to be performed that they are successful. It’s when it allows someone to enter information in a system instantaneously after it is acquired versus the old way of writing it down, walking back to their desk and inputting it that it becomes efficient. When a pilot no longer has to carry 20 pounds of manuals for a flight and then leaf through to find the right page, but instead just types in the search box of their tablet to find the right procedure that it becomes successful. When approvals that required an email, a web browser, a SharePoint session, and a complete approval flow taking 30 minutes in total and a PC become a mobile app where the manager reviews the case and clicks approve in 2 minutes, then you’ve become successful.

An enterprise can ignore the goings on in mobile or throw themselves whole hog into giving their workers devices, but until they integrate mobile into their business strategy, processes and procedures, all they’ve done is spend a lot of money on some really shiny toys.

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Reflections on the Future of the Cloud at SAPPHIRENOW

Reflections on the Future of the Cloud at SAPPHIRENOW

In this post panel debrief, R "Ray" Wang shares his insights regarding the future of the cloud and shares how the cloud enables the transformation to digital. 

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Reflections on the Future of the Cloud at SAPPHIRE NOW

Reflections on the Future of the Cloud at SAPPHIRE NOW

Brief overview of SAPPHIRENOW discusses the nature of innovation and what role the cloud plays in enabling the shift to digital transformation.

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Three Billion was a Snap - why even selfies deserve data protection

Three Billion was a Snap - why even selfies deserve data protection

The latest Snowden revelations include the NSA's special programs for extracting photos and identifying from the Internet. Amongst other things the NSA uses their vast information resources to correlate location cues in photos -- buildings, streets and so on -- with satellite data, to work out where people are. They even search especially for passport photos, because these are better fodder for facial recognition algorithms. The audacity of these government surveillance activities continues to surprise us, and their secrecy is abhorrent.

Yet an ever greater scale of private sector surveillance has been going on for years in social media. With great pride,Facebook recently revealed its R&D in facial recognition. They showcased the brazenly named "DeepFace" biometric algorithm, which is claimed to be 97% accurate in recognising faces from regular images. Facebook has made a swaggering big investment in biometrics.

"Big Privacy: The New Big Data Privacy Pact" webinar June 18

Data mining needs raw material, there's lots of it out there, and Facebook has been supremely clever at attracting it.It's been suggested that 20% of all photos now taken end up in Facebook. Even three years ago, Facebook held 10,000 times as many photographs as the Library of Congress:

Largest photo libraries

[Picture courtesy of the now retired 1000memories.com blog]

And Facebook will spend big bucks buying other photo lodes. Last year they tried to buy Snapchat for the spectacular sum of three billion dollars. The figure had pundits reeling. How could a start-up company with 30 people be worth so much? All the usual dot com comparisons were made; the offer seemed a flight of fancy.

But no, the offer was a rational consideration for the precious raw material that lies buried in photo data.

Snapchat generates at least 100 million new images every day. Three billion dollars was, pardon me, a snap. I figure that at a ballpark internal rate of return of 10%, a $3B investment is equivalent to $300M p.a. so even if the Snapchat volume stopped growing, Facebook would have been paying one cent for every new snap, in perpetuity.

These days, we have learned from Snowden and the NSA that communications metadata is just as valuable as the content of our emails and phone calls. So remember that it's the same with photos. Each digital photo comes from a device that embeds within the image metadata usually including the time and place of when the picture was taken. And of course each Instagram or Snapchat is a social post, sent by an account holder with a history and rich context in which the image yields intimate real time information about what they're doing, when and where.

The hallmark of the Snapchat service is transience: all those snaps are supposed to flit from one screen to another before vaporising. Now of course that idea is contestable; enthusiasts worked out pretty quickly how to retrieve snaps from old memory. And in any case, transience is a red herring, perhaps a deliberate distraction, because the metadata matters more, and Snapchat admits in its Privacy Policy that it pretty well keeps the lot:

  • When you access or use our Services, we automatically collect information about you, including:
  • Usage Information: When you send or receive messages via our Services, we collect information about these messages, including the time, date, sender and recipient of the Snap. We also collect information about the number of messages sent and received between you and your friends and which friends you exchange messages with most frequently.
  • Log Information: We log information about your use of our websites, including your browser type and language, access times, pages viewed, your IP address and the website you visited before navigating to our websites.
  • Device Information: We may collect information about the computer or device you use to access our Services, including the hardware model, operating system and version, MAC address, unique device identifier, phone number, International Mobile Equipment Identity ("IMEI") and mobile network information. In addition, the Services may access your device's native phone book and image storage applications, with your consent, to facilitate your use of certain features of the Services.
  • Location Information: With your consent, we may collect information about the location of your device to facilitate your use of certain features of our Services, determine the speed at which your device is traveling, add location-based filters to your Snaps (such as local weather), and for any other purpose described in this privacy policy.

Snapchat goes on to declare it may use any of this information to "personalize and improve the Services and provide advertisements, content or features that match user profiles or interests" and it reserves the right to share any information with "vendors, consultants and other service providers who need access to such information to carry out work on our behalf".

So back to the data mining: nothing stops Snapchat -- or a new parent company -- running biometric facial recognition over the snaps as they pass through the servers, to extract additional "profile" information. And there's an extra kicker that makes Snapchats extra valuable for biometric data miners. The vast majority of Snapchats are selfies. So if you extract a biometric template from a snap, you already know who it belongs to, without anyone having to tag it. Snapchat would provide a hundred million auto-calibrations every day for facial recognition algorithms! On Facebook, the privacy aware turn off photo tagging, but with Snapchats, self identification is inherent to the experience and is unlikely to be ever be disabled.

NSA has all your selfies

As I've discussed before, the morbid thrill of Snowden's spying revelations has tended to overshadow his sober observations that when surveillance by the state is probably inevitable, we need to be discussing accountability.

While we're all ventilating about the NSA, it's time we also attended to private sector spying and properly debated the restraints that may be appropriate on corporate exploitation of social data.

Personally I'm much more worried that an infomopoly has all my selfies.

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First Take - Sapphire 2014 Day 1 Keynote - Top 3 Takeaways

First Take - Sapphire 2014 Day 1 Keynote - Top 3 Takeaways

We are attending Sapphire 2014 in Orlando and it’s time to see how the SAP under soon to be sole CEO Bill McDermott will start messaging and communicating

 

And different it was with a 30 minute start with young leaders presenting how they change things with Innovation, being polyglot, starting radio stations in Africa and learning to code. Nice – but begged the question what it had to do with SAP and why it got so much room in the keynote. 


So here are my top 3 takeaways from the keynote – enriched by impressions and answers from the press conference

  • Simplicity comes back – The new mantra is all around simplicity. Always a good message as enterprises battle complexities. For SAP (and all enterprise software vendors) it’s not easy to create simplicity, as to make simplicity happen - a lot of complexity needs to be mastered behind the scenes. And when errors are made or leaks happen, that complexity gets exposed and it is never a pretty picture. But let’s give SAP credit for making it the new leitmotiv and watch through the next quarters as the simplicity message materializes. 

 

  • Fiori blossoms without price tag - SAP (finally) turned the corner on the licensing. Barring more details, it sounds like maintenance paying customers will get Fiori for free, customers who have licensed Fiori will get a credit towards future purchases. It’s good to see SAP addressing the issue, which became probably quickly untenable. The question remains how SAP will be able to charge for innovation in the grey areas of integrating existing and new IP assets.

 

  • Ariba gets a boost – The probably most impactful announcement (and the press release is not out) is SAP giving a boost to Ariba with a 30 day free offer to get suppliers on to the Ariba Network. A good move as Ariba is one of the hidden and highest potential assets for SAP and its customers. 


MyPOV – A good start for SAP’s Sapphire conference – though a slow start to the keynote. But then McDermott laid out the challenges for SAP ahead – simplicity. It is good to see that simplicity goes beyond products – but also the simplicity (and ease) to do business with SAP. Now we have to see what happens in the next days and next quarters where and what SAP will deliver and how.

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And more on overall SAP strategy

  • What I would like SAP to address this Sapphire - read here

  • News Analysis - SAP becomes more about applications - again - read here

  • Market Move - SAP acquires Fieldglass - off to the contingent workforce - early move or reaction? Read here.

  • SAP's startup program keep rolling – read here.

  • Why SAP acquired KXEN? Getting serious about Analytics – read here.

  • SAP steamlines organization further – the Danes are leaving – read here.

  • Reading between the lines… SAP Q2 Earnings – cloudy with potential structural changes – read here.

  • SAP wants to be a technology company, really – read here

  • Why SAP acquired hybris software – read here.

  • SAP gets serious about the cloud – organizationally – read here.

  • Taking stock – what SAP answered and it didn’t answer this Sapphire [2013] – read here.

  • Act III & Final Day – A tale of two conference – Sapphire & SuiteWorld13 – read here.

  • The middle day – 2 keynotes and press releases – Sapphire & SuiteWorld – read here.

  • A tale of 2 keynotes and press releases – Sapphire & SuiteWorld – read here.

  • What I would like SAP to address this Sapphire – read here.

  • Why 3rd party maintenance is key to SAP’s and Oracle’s success – read here.

  • Why SAP acquired Camillion – read here.

  • Why SAP acquired SmartOps – read here.

  • Next in your mall – SAP and Oracle? Read here.

And more about SAP technology:

  • News Analysis - SAP moves Ariba Spend Visibility to HANA - Interesting first step in a long journey - read here

  • Launch Report - When BW 7.4 meets HANA it is like 2 + 2 = 5 - but is 5 enough - read here

  • Event Report - BI 2014 and HANA 2014 takeaways - it is all about HANA and Lumira - but is that enough? Read here.

  • News Analysis – SAP slices and dices into more Cloud, and of course more HANA – read here.

  • SAP gets serious about open source and courts developers – about time – read here.

  • My top 3 takeaways from the SAP TechEd keynote – read here.

  • SAP discovers elasticity for HANA – kind of – read here.

  • Can HANA Cloud be elastic? Tough – read here.

  • SAP’s Cloud plans get more cloudy – read here.

  • HANA Enterprise Cloud helps SAP discover the cloud (benefits) – read here.

Find more coverage on the Constellation Research website here.

 

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