ITM 309: Business Information Technology and Systems Spring 2016 Watson and the new era of cognitive systems Jerry Haan IBM Cloud Ecosystem Development January 27, 2016 2013 International Business Machines Corporation IBM Today: Building a Smarter Planet Revenue Breakdown Services - 60% Software - 30% Hardware - 10% IBM has 400,000 employees worldwide Over 100 Years of Business & Innovation 55% of IBM's Workforce is new to the company in the last 5 years ~ due to Acquisitions and new hires Corporate Recognition #1 company for leaders (Fortune) Number 1 in patent generation for 23 consecutive years - over 7,000 US patents awarded in 2015 #1 green company worldwide (Newsweek) #2 best global brand (Interbrand) #2 most respected company (Barron's) #5 most admired company (Fortune) The Mega Trends Cloud Mobile Social Analytics 2014 International Business Machines Corporation Businesses are \"dying of thirst in an ocean of data\" \" 90% 80% 1 Trillion of the world's data was created in the last two years of the world's data today is unstructured connected devices generate 2.5 quintillion bytes data / day 1 in 2 83% 2.2X business leaders don't have access to data they need of CIOs cited BI and analytics as part of their visionary plan more likely that top performers use business analytics Big Data: More than just volume Volume Terabytes to exabytes of existing data to process Velocity Streaming data, milliseconds to seconds to respond 2014 International Business Machines Corporation Variety Structured, unstructured, text & multimedia Veracity Uncertainty from inconsistency, ambiguities, etc. Evolving trends are changing client expectations Baby boomers retire daily Mobile devices world-wide; 1B+ of them smartphones Active Facebook, Twitter, and YouTube accounts % top performers integrating analytics for better insights \"You don't know me\" \" \"It's too hard\" \" Intolerance of mass-market, impersonalized approaches Need the right information in the right place at the right time \"You're not connecting with me\" \" Social / mobile replacing PC/web for quick, easy answers but 75% of self-service fails Today's business challenges are causing organizations to rethink what it will take to get ahead tomorrow Emerging IT Traditional IT Structured data (local) Deterministic Applications Search Oriented Small Data Machine Language Structured & unstructured data (global, multiple sources) Probabilistic Applications Discovery Oriented Small and Big Data Natural Language Tomorrows IT is more complex and transformative, built on the integration of traditional (transactional) workloads and emerging (information-centric) workloads Watson is ushering in a new era of computing Tabulating Systems Era Programmable Systems Era Cognitive Systems Era 1900 1950 2011 The Era of Cognitive Computing By 2020, there will be 44 Zettabytes of data in the world. That's equal to 1.6 billion years of HD video. Most of this data will be invisible to al the world's information systems. All except the cognitive ones. 2013 International Business Machines Corporation The world's progress is driven by expertise Etc. 2014 International Business Machines Corporation 12 Experts build expertise through cognition Cognition: conscious mental activities : the activities of thinking, understanding, learning, and remembering Observe Interpret & Evaluate Decide Cognition How Watson drives value Enhance Scale Accelerate Enhance The cognitive process of professionals on the job Observe Decide Interpret Evaluate Enhance Watson enhances the cognitive process of professionals to strengthen decision making in the moment Observe Decide Interpret Evaluate Scale How companies scale expertise Scale Watson scales expertise by elevating the consistency and objectivity of decision making across an organization. Accelerate How people build expertise Master Practice Apprentice Study Time Accelerate Watson captures the expertise of top performers and accelerates the development of expertise in others. Master Practice Apprentice Study Time Brief History of IBM Watson IBM Research Project Jeopardy! Grand Challenge Watson for Healthcare Watson for Financial Services Watson Industry Solutions (2006 - ) (Feb 2011) (Aug 2011 -) (Mar 2012 - ) (2012 - ) Cross-industry Applications Expansion Commercialization Demonstration R&D On February 14, 2011, IBM Watson made history Result of IBM Research \"Grand Challenge\" Why is it so hard for computers to understand us? Welch ran this? Person Organization L. Gerstner IBM J. Welch GE W. Gates Microsoft \"If leadership is an art then surely Jack Welch has proved himself a master painter during his tenure at GE.\" \u0001 Noses that run and feet that smell? \u0001 How can a house burn up as it burns down? \u0001 Does CPD represent a complex comorbidity of lung cancer? \u0001 What mix of zero-coupon, non-callable, A+ munis fit my risk tolerance? Watson made incremental progress in precision and confidence IBM Watson Playing in the \"Winners Cloud\" v0.8 11/10 V0.7 04/10 v0.6 10/09 Precision v0.5 05/09 v0.4 12/08 v0.3 08/08 v0.2 05/08 v0.1 12/07 Baseline 12/06 Watson is cognitive computing Understands natural language Watson understands me. Watson engages me. Watson learns and improves over time. Watson helps me discover. Watson establishes trust. Watson has endless capacity for insight. Watson operates in a timely fashion. 2014 International Business Machines Corporation Adapts and learns Generates and evaluates hypotheses 25 Watson's intelligence and capabilities are expanding Explores Reasons Visualizes 26 2014 International Business Machines Corporation This will be Watson Understands natural language Generates and evaluates hypotheses Adapts and learns Reasons Explores Visualizes Sees Hears Experiences New Watson Headquarters: 51 Astor Place, Manhattan (Silicon Alley). Featuring: Incubator - fostering innovation in the design and development of cognitive applications Client Solutions Center - interactive hands on experience of ways in which cognitive products and services can be put to work Design Lab - redefining ways in which individuals and organizations will leverage Big Data in the new cognitive era Workshops and Seminars Bringing Watson to Market 9/24/2015 - IBM Opens \"Watson West'\" in Silicon Valley 10/6/2015 - IBM Launches Cognitive Consulting Practice 10/28/2015 - IBM to Acquire The Weather Company 12/15/2015 - IBM Opens Watson IoT Global HQ in Munich 1/15/2016 - Forrester Research names IBM leader in Hybrid Cloud \"Cognitive Cooking with Chef Watson\" Watson Healthcare - IBM Purchases Merge Healthcare (30 billion images) Watson now has over 350 Partnerships Watson Analytics -http://www.ibm.com/analytics/watson-analytics/ 100,000 Software Developers Using Watson 2014 International Business Machines Corporation IBM CEO Ginni Rommetty Delivers Keynote Address at 2016 Consumer Electronics Show \"IBM is a Cognitive and Cloud Solutions Company\" Under Armour partners with IBM Watson on fitness tracking apparel 2013 International Business Machines Corporation Bluemix.net Bluemix.net ITM 309: Business Information Technology and Systems Spring 2016 Watson and the new era of cognitive systems Jerry Haan IBM Cloud Ecosystem Development January 27, 2016 IT: Enabling Growth @ GE Matt Logar Solutions Delivery & Cloud Leader GE Healthcare February 29, 2016 Matt Logar Professional Career: General Electric (GE) Executive IT Leader - Solutions Delivery & Cloud; DTTC Site Lead, GE Healthcare (2014-present) IT Leader - Supply Chain Planning, Sourcing and Order Fulfillment, GE Healthcare (2011-2014) IT Leader - Global Finance, GE Healthcare (2005-2011) Experienced Information Management Program (EIMP), GE Corporate (2008-2010) Finance Operations Excellence Leader, GE Healthcare (2005-2008) IT Program Manager, GE Consumer & Industrial (2000-2005) Information Technology Leadership Program (ITLP), GE Industrial Systems (1998-2000) IT Intern, GE Motors (1997) Education: Indiana University Bachelors: Science - Business, Computer Information Systems (1998) Personal Background: General: Wife: Sara, 2 boys: Jack (age 5), Alex (age 1) Interests: Exploring Michigan, Travel, the Beach, Water Sports, Time with family, Photography, College Sports (preference to another Big 10 team ... when not playing Michigan State, of course) 2014-2016 General Electric Company - All rights reserved General Electric - A Heritage of Innovation Founded by Thomas Edison in 1878 Only company from the original 1896 Dow Jones index still listed today Rated AA+ with stable outlook by S&P 305,000 employees world-wide Operating in more than 160 countries 2014-2016 General Electric Company - All rights reserved General Electric Innovation 1909 1913 1927 1932 1938 1942 1953 1955 1962 1973 1984 1994 1999 2004 2009 2010 Ductile tungsten Medical X-ray First television broadcast reception Langmuir Nobel Prize in chemistry Invisible/glareless glass First US jet engine LEXANTM polycarbonate Man-made diamonds Semi-conductor laser Giaever Nobel Prize in physics Magnetic resonance imaging GE90 composite fan blade Digital X-ray Lightspeed VCT Wide Bore 1.5T MR System Energy SmartR LED 2014-2016 General Electric Company - All rights reserved GE Business UnitsAviation $20B Power & Water $28B Healthcare $18B Transportation $6B 50,000+ Technologist s Energy Management $7B Appliances & Lighting $8B Oil & Gas $15B $108B Ind. Rev; 400+ Global Factories; $70B+ Mfg Spend; $5B+ R&D Spend 5 2014-2016 General Electric Company - All rights reserved Introducing GE Digital We're about driving growth and productivity by enabling business processes, driving simplification while ensuring the security of our information and assets, turning data into a competitive advantage, and increasing collaboration for employees, customers and partners through digital innovations. Never before has IT been more essential. 6/ 9/28/2012 2012 IT Growth Playbook 2014-2016 General Electric Company - All rights reserved 2014-2016 General Electric Company - All rights reserved IT at GE ~11,000+IT professionals IT Centers of Excellence worldwide Detroit, Michigan Hiring & expanding in Glen Allen, Virginia house expertise New Orleans, Louisiana Operating in more than San Ramon, California 60 global locations 8 2014-2016 General Electric Company - All rights reserved Positioning GE and Our Customers for Success Industrial Internet Simplification Cyber Security Data . Analytics Productivity . Employee . IT Network . Product . IP . Security Operations Center IT shared purpose We are the integrators of innovation, process and technology and will redefine the way business is done. 2014-2016 General Electric Company - All rights reserved Industrial Internet Driving customer value through the use of data and analytics 10 2014-2016 General Electric Company - All rights reserved Forces shaping the Industrial Internet 1 Internet of things A living network of machines, data, and people 2 Intelligent machines Increasing system intelligence through embedded software 3 Big Data Transforming massive volumes of information into intelligence 4 Analytics Generating data-driven insights and enhancing asset performance 11 2014-2016 General Electric Company - All rights reserved Power of 1% 1% improvement in efficiency in these 5 industries could add up to $276B over 15 years 12 2014-2016 General Electric Company - All rights reserved Equipment Improved asset utilization & performance Improve operations and asset ROI Visualization of highly relevant machine data for better asset management Maximize equipment performance 13 2014-2016 General Electric Company - All rights reserved Operations Improved workflow and scheduling Real-time monitoring on use and scheduling of resources (doctors, nurses, patients, equipment assets) Reduce operational waste and system bottlenecks No wait states 14 2014-2016 General Electric Company - All rights reserved Safety Improved patient care delivery Dose Management...extensive data sets highlight variation to assist optimization & standardization mGy.cm DLP After R2 = 0.086 DLP Before R2 = 0.0064 Hand Hygiene....deep analytics with minimal change to existing workflow Can't improve won't you don't know ... 15 2014-2016 General Electric Company - All rights reserved \"Typical\" Hospital 1. Asset Optimization 70% Hospital Operations Bed Occupancy Addressable waste: is the $25-50 MM/yr 2. Patient Flow Optimization Pursuit of 3. Workforce Optimization Target 70% Industry 45% You 18% 45% 18% Asset Utilization Infusion Pump Utilization Target 85% Industry 65% You 50% 65% Capacity Utilization 45% A \"Frictionless Patient Experience\" 4. Whole Hospital 2014-2016 General Electric Company - All rights reserved Optimization Hand Hygiene 16 Compliance Manufacturing Today at GE Then put back together in Supply Data broken into PIECES, and ... Chain MANUALLY Engine designed DIGITALLY, but ... 17 2014-2016 General Electric Company - All rights reserved GE's Brilliant Factory Enabling the \"digital thread\" Fully-connected Automated Never surprised \"Factory that never stops\" Supply Chain Network - Supplier feedback loop- Virtual Product Design Virtual Manufacturing Service/Repair Shop 18 2014-2016 General Electric Company - All rights reserved The GE Digital Thread Brilliant Factory Design Systems Integration (DSI) Model Based Enterprise (MBE) Field & Service Digital Thread: Feed-forward, Feedback, Analytics, Apps 2014-2016 General Electric Company - All rights reserved 19 Contemporizing Technologies Empowered employees with more choices Launched Bring Your Own Mobile to 4k users Started supporting multiple Android device types Offered new choices of modern browsers... 250K+ downloads Simplified access to GE apps and data Deployed MyApps Anywhere for PC & Mac Improved mobile access to GE websites and directory Making it easier to get their jobs done Eliminated ~60MM logins in 90 days Launched customizable homepage for news and events 20 2014-2016 General Electric Company - All rights reserved Employee Experience & Security A balancing act Access anywhere Any device Application choice Risk Visibility Compliance 21 2014-2016 General Electric Company - All rights reserved Cyber Security Protecting our competitive advantage 22 April 2013 2014-2016 General Electric Company - All rights reserved Advanced Persistent Threat Organized/state funded groups infiltrate enterprises Motive: Steal IP & sensitive info to gain competitive advantage Focus: Phishing Trend: Government #1, Research #2 in list of top targets Threat Landscape Cyber Crime Organized crime rings dedicated to targeting retail and corps Motive: Steal personal & customer data, sell on black market Focus: POS Intrusions, Mobile Devices Trend: Not just credit card companies anymore. Industrial Control Systems (ICS) Targeted attacks that inhibit operational activities of power plants and large scale control systems Motive: Damage or interrupt operations of critical infra. Focus: External Attacks & Malware Trend: Energy producing systems #1 in top targets Hacktivism Highly visible attacks targeting large corps & government Motive: Used as a means to protest Focus: Denial of Service (DOS), Website attacks Trend: Increased attack frequency, account details published on the internet to incite public embarrassment 2014-2016 General Electric Company - All rights reserved 23 Growing Fast ... Industrial Control Systems (ICS) Cyber Crime 24 2014-2016 General Electric Company - All rights reserved Disagreement on \"The Cloud\" 25 2014-2016 General Electric Company - All rights reserved 25 Our View of The Cloud Cloud is a Technology Enabler Freedom from the Constraints of Hardware Based Decisions The Next Evolution of Virtualization Cloud is a New Operating Model Cloud is about Transparency Cloud is about Applications Distributed vs. Centralized Control Visibility Never Before Possible Engineered Systems are Dying Changing the Primitives of Technology Machine Driven Decisions at the Point of Transactions Integrated Applications are Our Future 26 2014-2016 General Electric Company - All rights reserved Thinking differently about apps & governance Innovating to solve new challenges BOT ARMY Highly technical Contextually aware Cross-trained specialists Talent Open source, agile Machine readable Continuous integration Technology Design for empowerment Govern with tools & visibility Distributed control Combination of automation & analytics Continuously monitoring GE's Clouds Detects flaws in security Prunes environment for efficient use and cost savings Process 27 2014-2016 General Electric Company - All rights reserved GE's cloud journey Dec. '15 Apr. '15 840 Dec. '14 Jan. '14 50 GE's 1st 50 app sprint to public cloud Jun. '14 100 AWS U.S. go-live 200 Published 1st cloud accelerators AWS Europe go-live 300 Cloud.ge.com go-live Internal MediumRisk Workloads in AWS 9 Bots in ReaperBot launch production all VPC's Azure limited Verizon U.S. hybrid availability launch cloud go-live Learn. Mature. Accelerate. Transform. 28 2014-2016 General Electric Company - All rights reserved Automation Maturity + Automation Self Service Self Healing Self Optimized As Service 1 2 3 S Self-Service Cloud Aware IaaS Cloud Native SaaS SaaS PaaS Push button deployment of cloud Infrastructure Distributive auto scaling & re-build to mitigate failure Geo sensitive apps optimize IT resources; Self create/destroy Software Subscription Service; No GE Infrastructure Flexibility & Speed for Application Teams Increased resiliency without intervention Optimized Infra costs; Global DR Focus Pay only for what is used; Min Maint. $ Driving to resilient Infrastructure as Software 29 2014-2016 General Electric Company - All rights reserved Critical Bricks in the Road of Application Transformation Migration, Principles & Lessons Learned Application Migration Discover - Portfolio Analytics, Candidate Identification, & Required Services Fingerprint- To be Architecture & Refactoring decisions Guiding Principles 1. 2. 3. 4. 5. Automate Everything Architect for Resilience Security at Every Layer Measure Everything Tag Everything Migrate - Move \"Parties\"... Stand-Up, Move Data, Integrate, Test & Release Operate - Transitioning to Ops / Dev Support Lessons Learned Lead from the front Be committed & engaged Get started... Fail fast 2014-2016 General Electric Company - All rights reserved GE AMSTC State-of-the-art IT and research development facility Largest concentration of GE IT professionals in the world Currently has 975 employees with plans to build up to 1400 in the next few years. Roughly 90% of AMSTC employees are from Michigan. Cross-business site created to regain Intellectual Property (IP) GE has traditionally outsourced, increase technical capabilities and add GE jobs The site serves as an incubator for talent, technology, collaboration and innovation. IT professionals work on developing new software, processes and technologies to accelerate the future of GE. 31 2014-2016 General Electric Company - All rights reserved Full Time & Intern Competencies Key Majors & Skills Needed Software Engineers User Experience IT Security Advanced Manufacturing IT related Big Data & Analytics Computer Science Infrastructure Project Leadership Technical and Business Analysis Business Intelligence/Data QA/Testing Automation / Cloud Technologies Database Actively recruiting... Automation Engineers User Experience Designers Mobile Developers Database Administrators Web Technologists Cloud Technologists Integration Technologists 32 2014-2016 General Electric Company - All rights reserved Learn more about GE.... For more information on GE Careers and Leadership Programs please check out: http://www.gecareers.com/campusinterview Select Business Specific Internship/Co-Op \"GE Corporate\" for AMSTC Internships Or email Resume to Lauren.Rodammer@ge.com 33 2014-2016 General Electric Company - All rights reserved THANK YOU IT: Enabling Growth @ GE Matt Logar Solutions Delivery & Cloud Leader GE Healthcare February 29, 2016 Healthcare Information Technology MSU - ITM309 Tom Bres SVP, Chief Administrative Officer and Chief Information Officer Sparrow Health System October 26, 2015 thomas.bres@sparrow.org @sparrowtombres The national healthcare landscape The numbers send a clear and present message \"The implication for budgeteers is clear: If we can somehow solve the health care cost problem, we will also solve the long-run deficit problem. But if we can't control health care costs, the long-run deficit problem is insoluble\" Alan S. Blinder Source: Blinder A.S. After the music stopped: The financial crisis, the response, and the work ahead New York The Penguin Press 2013 What will enable us to achieve real change? Consistent Change Factors Technology becomes available Innovators enter the market Consumer demand for change reaches a tipping point Market disruption occurs Recent Trends in Healthcare Patients prefer access and convenience over continuity and credentials Email and video over clinic location How they are treated is more important that who treats them Retail Clinics Continue Growing Estimated Total Number of Retail Clinics in the US 2000-20151 2868 Growth trajectory depends on preferred payer relations, PCP capacity, and health system partnerships 2243 1743 1355 1135 1172 1220 2008 2009 2010 1418 868 202 2000 2006 2007 2011 2012 2013 2014 2015 Retailer Operational Retail Clinics1 1) As of Oct. 2014. 900+ 400+ 135 14 75+ Source: Accenture, "Retail medical clinics: From Foe to Friend?," 2013; Ritchie J, "After a stall, Kroger could add clinics," Cincinnati Business Courier, July 5, 2013; Robeznieks A, "Retail clinics at tipping point," Modern Healthcare, May 4, 2013; Health Care Advisory Board interviews and analysis. Consumers' Top 10 Primary Care Attributes Prioritizing Convenience and Affordability I can walk in without an appointment, and I'm guaranteed to be seen within 30 minutes If I need lab tests or x-rays, I can get them done at the clinic instead of going to another location 4.11 3.98 The provider is in-network for my insurer 3.95 The visit will be free 3.94 The clinic is open 24 hours a day, 7 days a week 3.91 I can get an appointment for later today 3.70 The provider explains possible causes of my illness and helps me plan ways to stay healthy in the future 3.04 Each time I visit the clinic, the same provider will treat me 3.01 If I need a prescription, I can get it filled at the clinic instead of going to another location The clinic is located near my home 3.00 3.00 Source: 2014 Primary Care Consumer Choice Survey, Marketing and Planning Leadership Council interviews and analysis. Patient Preferences for Online Care Growing Survey Finds Email Visits Preferred to Clinic Near Errands or Work Preference for Location of Services Clinic located near work Clinic located near errands Emailing provider with symptoms Clinic located near the home Increasing Consumer Preference 1) Based on proportions of respondents interested in teleheatlh. Source: 2014 Primary Care Consumer Choice Survey, Marketing and Planning Leadership Council interviews and analysis. Sparrow IT grows to become a competitive advantage Data Analytics My Sparrow Epic application Technology infrastructure Network, security, devices iSparrow Connect Clinical programs Health Information Exchange Clinical integration Population Health Sparrow - an industry leader MyChart Bedside Summary Screen 17 I would like... 18 My health 19 To learn 20 Messages A patient who sends a treatment team message through the Messages feature counts in the numerator for the Patients Send Secure Messages to EPs (P230) objective for all Eligible Providers who use the system and saw the patient during the reporting period. 21 Population Health Federation Model Rather than having a clear hub, there are equal partners. Some of these partners may use Epic while others use different EHRs. Providers not connected, using Epic Providers not connected, using another EHR Providers not connected, using another EHR Constellation notProviders connected, Providers not connected, using Epic using Epic Providers not connected, using another EHR Connect Accreditations Organizations extending to large affiliates (200 beds in a hospital or 200,000 visits in a practice) (fka SOM) Questions thomas.bres@sparrow.org @sparrowtombres ITM 309: Business Information Technology and Systems November 23rd, 2015 Information Technology Innovations Which Drive US Manufacturing Competitiveness Mike Cicco Vice President General Industry Sales & Execution North and South America FANUC America Lecture Outline Overview of FANUC and FANUC America How FANUC uses Analytics to find new business How FANUC is using the \"Internet of Things\" to reshape the way Automation is used in Manufacturing today Why are we doing this? Save Your Factory: Background and Importance to the U.S. The Quiz > 360,000 robots Core Technology installed worldwide > 15 million servo motors installed worldwide >3.2 million CNCs installed worldwide > Leading supplier of small machining centers, electric injection molding machines and wire EDMs FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Annual production capacity 3,000,000 Servo Motors 360,000 CNCs 60,000 Robots 60,000 ROBODRILLS 3,000 CO2 Lasers FANUC is based at the foot of Mount Fuji covering 1.5 million square meters Using over 2,700 robots in our own production FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form The \"World Leader In Robotic Automation\" Robot Loaded Machining Cells Pulsecoder Assembly CNC Assembly Servo Motor Assembly Sheet Metal Assembly Robot Assembly FANUC uses over 2700 robots in their manufacturing system FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Or you may know us from these... FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Diverse Markets Aerospace Energy Agriculture Construction Furniture Automotive Cosmetics Wood Glass Beverage Food Jewelry Paper Textile Metal Fabric Electronics Medical & Pharmaceutical Die Casting Plastics FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form How did FANUC start using Business Analytics and WHY? FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form We are using Analytics to find new business... What industry is going to Automate next? We try to know before they know... FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Using Analytics to find new business... FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Using Analytics to find new business... FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Using Analytics to find new business... Medical Device Manufacturing FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Using Analytics to find new business... Medical Device Manufacturing FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form What is the \"Internet of Things\"? How FANUC is using it to reshape the way Automation is used in Manufacturing today FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form The Zero Down Time Initiative Customers production facilities are operating at high volume and Unexpected downtime creates considerable consequences, and the strategies using IOT are : Proactively detect and inform a potential robot, controller, or process problem before unexpected downtime occurs Provide Smart Maintenance notifications that can extend robot life while optimizing maintenance costs. Advanced analytics and reporting to help customers optimize equipment utilization and overall robot life cycle cost Mechanical Health Process Health System Health Smart Maintenance Optimize Equipment ZDT Data Base FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Zero Down Time Initiative ZDT will provide suites to detect pre-failure conditions and prevent downtime 1. Motion/Mechanical Health Examples: Motor and Reducer deterioration, gear backlash, excessive servo-off events, dislocation prediction for delta robots, etc. 2. Process Health Examples: Air regulator failure, canister high torque, ServoGun motor/drive deterioration, abnormal tip wear, gas flow, wire spool low, part rate increase beyond, etc. 3. System Health Examples: Memory utilization, Ethernet Transmit/receive errors, Vision performance, CPU performance issues, etc. FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form The Big Picture Partnered with Cisco for Network Security and Reliable Cloud Services Analytics Performed for Intelligent Trend Monitoring Replacement part automatically sent to customer Robot RC1 needs motor replaced Alert messages sent to customer and the FANUC Service Team ZDT Data Securely Stored for Analysis Cisco Security ZDT ZDT ZDT FANUC ZDT Data Collector Application Component changed on weekend NO DOWN TIME FANUC Robots FANUC America Corporation CONFIDENTIAL - Not To Be Re-Distributed In Any Form Save Your Factory Why are we doing this? Save Your Factory US Manufacturing - Facing a Crisis or a Challenge? What steps can be taken to enable North American manufactures to be globally competitive Off-Shore Competition Jan 2015 Trade Balance -$41.8 Billion Jan '13 Jan '14 Jan '15 20 Importance of Manufacturing in N.A. Leads in GDP Growth & Productivity Leads in Innovation: 70% of Total Private Sector R&D 90% of Patents U.S. Manufacturers have added 495,000 American jobs since 2010 Workers earn pay and benefits about 17% higher than other workers Backbone of Defense Industrial-Technology Base 21 Importance of Manufacturing in N.A. U.S. companies exported a record number of goods and services in 2014, setting a record for the fifth consecutive year. According to the Department of Commerce, total exports reached $2.35 trillion last year. In 2013, manufactured goods accounted for 88 percent of total U.S. exports of goods In 2013, the U.S. manufacturing sector produced $2.1 trillion of value, or 12.4 percent of U.S. GDP. In 2014, the U.S. was second to China in exports 22 Manufacturing Paradigm N.A. - Higher costs - Labor - Healthcare - Legal - Tax Rates - Environmental laws Offshore - Low cost labor 23 Traditional Cost Comparison Start with the piece part cost for a domestic product Compare this with the piece part cost for the same item in China or India (It will almost always be lower) Add the cost of freight to get it to your customer 24 Realistic Cost Comparison 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Shipping Inventory Insurance Quality Travel Vendor Selection Infrastructure Risk Material Labor Other 25 North American Option The Real Long Term Winner? North America Offshore Lean Manufacturing Robots & Automation Quality Programs Just in time Inventory Capitalize on culture, laws & standards 26 Case Study - Arc Welding Costs Total Cost per Part with Manual Welding $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $.84 / part (Labor + Materials) $.30/ part U.S.A China Case Study - Arc Welding Costs Total Cost per Part with Robotic Versus Manual $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 Plus Transportation Cost and Delay, Duties, Risk..... With Better Quality Robot + Materials $.30 / part Labor + Materials $.30/ part $0.00 Robot China Other Key Benefits of Automation Total Cost per Part with Helps address attrition of skilled labor Robotic Versus Manual Does not require health care or pension benefits Consistent Quality Reduces Material Cost Via Less Scrap Available 24/7, 365 Days per Year Reduces Need For Operation to Operation Inspections Impact of Productivity Improvement U.S. Farming 2012 U.S. Food Production U.S. agricultural exports have increase since over 300% since 1961 Today the U.S. is the the world's largest exporter of food Save Your Factory - Re-shoring Total Cost per Part with Manufacturers Look Homeward, Boosting Robotic Versus Manual Domestic Production Business leaders and economists credit the re-shoring trend to several factors: Rising labor costs in China. Increasing costs to ship products to North America. The desire to more directly control the manufacturing process and the quality of the products. Room for Growth Total Cost perthe Partratio with In US manufacturing of Robotic Versus robots to employees is Manual only 1 robot to every 86 employees In Japanese manufacturing the ratio increases to 1 robot for every 32 employees At FANUC's newest factory the ratio is greater than 10 robots for every employee In Summary... Saving U.S. Manufacturing \"Which Leads to\" Positive Impact On The U.S. Economy \"And In The Process\" Positive Impact On The Environment Save Your Factory Now the Quiz! (I hope you were paying attention ) ITM 309: Business Information Technology and Systems November 23rd, 2015 Information Technology Innovations Which Drive US Manufacturing Competitiveness Mike Cicco Vice President General Industry Sales & Execution North and South America FANUC America Information Technology in Healthcare Business Intelligence Michigan State University ITM 309 03/16/16 Ed Hisscock 2014 Trinity Health. All Rights Reserved. 1 Presentation Agenda Healthcare Reform Healthcare IT...Perception and Reality Role of IT in the Business of Healthcare Financial Systems EMR (Electronic Medical Records) Business Intelligence Example Application Service Line Analytics Data Mining / Data Presentation Decision Support / Dashboards Creating Business Intelligence 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 22 U.S. - Spending More for a Shorter Life 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 33 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 44 Healthcare Reform http://www.house.gov/jec/news/2010/obamacare_chart.pdf 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 55 $$ 2.5 to 3 TRILLION Dollars $$$$$ 1 million secs = 12 days 1 billion secs = 32 years 1 trillion secs = 30,000 BC 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 66 \"If something cannot go on forever, it will stop.\" 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 77 Healthcare IT Perception: Clinical Systems Cyber Knife Magnetic Resonance Imaging Surgical Robotics Reality: Clinical Systems and Business Systems EMR: Customer Relationship Management Accounting/Finance Supply Chain Management ERP Human Resources Multiple Transactional Systems... 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 88 Role of IT in the Business of Healthcare 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 99 Role of IT in the Business of Healthcare Complex organizations becoming more complex through mergers & acquisitions Hospitals acquiring physician practices and continuing care facilities Joint ventures for services within a hospital Large health system mergers Lack of integration Product data standards not in place Tools for basic data integration immature Costly on many fronts Expensive manual intervention Redundancy Safety 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 10 10 Our 21-State Diversified Network in 21 Regional 90 Hospitals* + Health Ministries** Care & Hospice Locations 49 Home Serving 116 Counties of all babies in America are delivered at Trinity Health facilities Health 4 Mission Ministries 1.7% Health + 3 National Ministries*** Center 14 PACE Locations 23,900 Affiliated Physicians Care 61 Continuing 3,900 Employed Facilities Physicians *Owned, managed or in JOAs or JVs. **Operations are organized into Regional Health Ministries ("RHMs"), each an operating division which maintains a governing body with managerial oversight subject to authorities. ***Includes multiple locations for Trinity Home Health Services, Trinity Senior Living Communities and PACE facilities. 2016 Trinity Health - Livonia, Mich. 11 Trinity Health Non-Labor Spend Purchased Services 25% Total Non-Labor Spend: $6.4 Capital 14% Transactions: Insurance 10% Facilities 9% Supplies 36% Other 6% Over 3 Million accounts payable (A/P) invoices processes annually Generating 4.7 Million A/P lines Expenses booked to over 3.2 Million unique company #, G/L account code combinations 51% of the A/P lines reference a PO 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 12 12 The Analysts Dilemma Copyright Trinity Health - Novi,Reserved. Michigan 20142011 Trinity Health. All Rights 13 13 Initial Business Intelligence (BI) System Creation Considerations 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 14 14 BI System Examples: Simple Enterprise Purchasing BI May 15, 2016 15 BI System Examples: Complex Service Line Analytics ~ ADT ~ Radiology Info System Billing Laboratory Info. System HemoDynamic Monitoring vendor OR Info. System SCM/ERP Item Desc Connector Rod Screw Connector Rod Screw Connector Rod Screw Connector Rod May 15, Screw Item Catalog 112233 112236 112237 113350 112236 112237 112233 112236 112237 11111 2222 2016 3333 Item Qty 1 2 6 1 2 6 1 2 6 1 2 6 Item UOM EA EA EA EA EA EA EA EA EA EA EA EA Item Price $1,250.00 $650.00 $150.00 $1,250.00 $650.00 $150.00 $1,250.00 $650.00 $150.00 $1,350.00 $625.00 $159.00 Ext Cost $1,250.00 $1,300.00 $900.00 $1,250.00 $1,300.00 $900.00 $1,250.00 $1,300.00 $900.00 $1,350.00 $625.00 $159.00 Item Code 500601 500602 500603 500601 500602 500603 500601 500602 500603 500992 500994 500939 Performing Physician** Physician A Physician A Physician A Physician A Physician A Physician A Physician A Physician A Physician A Physician B Physician B Physician B Type Proc Date Spine 4/1/2007 Spine 4/1/2007 Spine 4/1/2007 Spine 4/25/2007 Spine 4/25/2007 Spine 4/25/2007 Spine 6/4/2007 Spine 6/4/2007 Spine 6/4/2007 Spine 4/13/2007 Spine 4/13/2007 Spine 4/13/2007 Procedure LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 Account Number 1234566 1234566 1234566 1235467 1235467 1235467 1240012 1240012 1240012 1230101 1230101 1230101 Discharge Date 4/10/2007 4/10/2007 4/10/2007 4/28/2007 4/28/2007 4/28/2007 6/9/2007 6/9/2007 6/9/2007 4/16/2007 4/16/2007 4/16/2007 Age 30 30 30 55 55 55 72 72 72 61 61 61 Sex M M M F F F M M M F F F DRG 101 101 101 101 101 101 102 102 102 102 102 102 DRG Description Payor Lumbar Fusion w/ Medicare Lumbar Fusion w/ Medicare Lumbar Fusion w/ Medicare Lumbar Fusion w/ BCBS Lumbar Fusion w/ BCBS Lumbar Fusion w/ BCBS Lumbar Fusion w Medicaid Lumbar Fusion w Medicaid Lumbar Fusion w Medicaid Lumbar Fusion w Self Pay Lumbar Fusion w Self Pay 16 Lumbar Fusion w Self Pay BI System Examples: Complex Service Line Analytics SmartANALYTICS Patient Patient Acuity Acuity Product Product Quality Quality Contribution Contribution Margin Supplier Supplier Service Service Our process answers physician questions/challenges and inspires scientific study of product utilization Item Desc Connector Rod Screw Connector Rod Screw Connector Rod Screw Connector Rod May 15, Screw Item Catalog 112233 112236 112237 113350 112236 112237 112233 112236 112237 11111 2222 2016 3333 Item Qty 1 2 6 1 2 6 1 2 6 1 2 6 Item UOM EA EA EA EA EA EA EA EA EA EA EA EA Item Price $1,250.00 $650.00 $150.00 $1,250.00 $650.00 $150.00 $1,250.00 $650.00 $150.00 $1,350.00 $625.00 $159.00 Ext Cost $1,250.00 $1,300.00 $900.00 $1,250.00 $1,300.00 $900.00 $1,250.00 $1,300.00 $900.00 $1,350.00 $625.00 $159.00 Item Code 500601 500602 500603 500601 500602 500603 500601 500602 500603 500992 500994 500939 Performing Physician** Physician A Physician A Physician A Physician A Physician A Physician A Physician A Physician A Physician A Physician B Physician B Physician B Type Proc Date Spine 4/1/2007 Spine 4/1/2007 Spine 4/1/2007 Spine 4/25/2007 Spine 4/25/2007 Spine 4/25/2007 Spine 6/4/2007 Spine 6/4/2007 Spine 6/4/2007 Spine 4/13/2007 Spine 4/13/2007 Spine 4/13/2007 Procedure LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 LUMFUS1 Account Number 1234566 1234566 1234566 1235467 1235467 1235467 1240012 1240012 1240012 1230101 1230101 1230101 Discharge Date 4/10/2007 4/10/2007 4/10/2007 4/28/2007 4/28/2007 4/28/2007 6/9/2007 6/9/2007 6/9/2007 4/16/2007 4/16/2007 4/16/2007 Age 30 30 30 55 55 55 72 72 72 61 61 61 Sex M M M F F F M M M F F F DRG 101 101 101 101 101 101 102 102 102 102 102 102 DRG Payor Description Lumbar Fusion w/ Medicare Lumbar Fusion w/ Medicare Lumbar Fusion w/ Medicare Lumbar Fusion w/ BCBS Lumbar Fusion w/ BCBS Lumbar Fusion w/ BCBS Lumbar Fusion w Medicaid Lumbar Fusion w Medicaid Lumbar Fusion w Medicaid Lumbar Fusion w Self Pay Lumbar Fusion w Self Pay 17 Lumbar Fusion w Self Pay BI System Examples: Complex Service Line Analytics Several custom criteria (your vernacular/taxonomy) are provided to focus the data that is being viewed. Select any combination of criteria from the drop down menus or data entry boxes and then click on the filter button.. Several stakeholders perspectives are offered to ensure all users can work from the same database of information May 15, 2016 Clicking on any point, on any graph, users immediately have access to the underlying data Several graphical representations of the data are provided 18 BI System Examples: Complex Service Line Analytics CPT/Description Detail CPT/Description Detail Patient Account # Procedure Date 1688089217 Aug-18-2010 CPT/Descri CPT/Descripti Physician Procedu Procedure LOS Discharge ption Code on Desc re/PL /PL Date Descriptio 33979 Insertion of Brown ventricular Mark MD assist device implantable intracorporeal single ventricle VAD VAD Placemen Placement/E t/ECMO CMO 47 Sep-21-2010 Age Gender Payor 57 Male UNITED HEALTHCARE ALL PLANS | UNITED HEALTHCARE ALL PLANS Catalog Number Item Desc Manufact Manufacture urer r Name Qty Price ($) Extended Cost ($) 760 DRAPE ANTIMCRB 3M Health 3M Health Care 23X33IN #2 Care INCISE AREA 1 10.27 10.27 780 DRESSING 3M Health TRNSPRNT Care 8X12IN TISSEAL KIT 10ML Baxter Healthcare Corp - Tr... 1 1.95 1.95 1 545.50 545.50 5 545.50 2,727.50 1 2,370.00 2,370.00 1 87,500.00 87,500.00 41122 41122 41651 70912 3936 May 15, 2016 3M Health Care Baxter Healthcare Corp Transfusion Therapies TISSEAL KIT 10ML Baxter Baxter Healthcare Healthcare Corp - Tr... Corp Transfusion Therapies BAND COLVIN Medtronic Medtronic USA GALLOWY FUTRE USA Inc Inc 36MM KIT Thoratec Thoratec Corp PERCAUTANEOUS Corp HM LVAS 2 CATHETER Vitalcor Inc Vitalcor Inc THORAC 32FR 111132AT 3 17.30 19 51.90 \"To conceive of knowledge as a collection of information seems to rob the concept of all its life....Knowledge resides in the user and not in the collection. It is how the user reacts to a collection of information that matters.\" Churchman, 1971 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 20 20 Presentation Agenda Healthcare Reform Healthcare IT...Perception and Reality Role of IT in the Business of Healthcare Financial Systems EMR (Electronic Medical Records) Business Intelligence Example Application Service Line Analytics Data Mining / Data Presentation Decision Support / Dashboards Creating Business Intelligence 2016 TrinityAll Health - Livonia, MI 2014 Trinity Health. Rights Reserved. 21 21 Solomon Young \"The timid never started and the weak died along the way\" Trinity Health 2014 Trinity Health.All2016 Rights Reserved. 22 22 Information Technology in Healthcare Business Intelligence Michigan State University ITM 309 03/16/16 Ed Hisscock 2014 Trinity Health. All Rights Reserved. 23 ITM 309 - April 4, 2016 The Value of IT in Software Development Brian Pillar | IT Manager About Brian MSU - TC Info Studies and Media MSU RHS Information Services TechSmith Corporation What's an IT Manager at TechSmith Corporation Do? CAITC eBoard MSU IT Minor Advisory Committee LCC CIT Advisory Committee Agenda Software Development About TechSmith TechSmith Offerings and IT's Value The TechSmith IT Team Future of TechSmith About Software Development Software Developer in greater Lansing, MI! Founded 1987 First major software product (Snagit) introduced in 1991 Camtasia Studio 1.0 in 2002 First attempt at \"cloud\" services in 2007 First mobile app 2011 Coach's Eye in 2012 Where did it come from? What is the value proposition? Screen Image Capture and Annotation Ahead of its time Maturation Where did it come from? What is the value proposition? Screen Video Capture and Annotation Maturation IT for Desktop Products What Happens for Desktop Software Development? - Developer(s) code - Code maintained in version control - \"Builds\" run - Testing is done - Deployment Where did it come from? What is the value proposition? Show your creations in the cloud (before it was the cloud) \"Show the World\" Providing IT Support IT for \"Cloud\" Products What Happens for Web Application Software Development? Developer(s) code Code maintained in version control \"Builds\" run (TAKES A LOT OF Horsepower) Deployed to web server(s) Testing is done (Automated [requires tools] Manual [requires places to test]) - Deployment - It's Live! - - - - - Impact and IT Mobile - Virtual Whiteboard - Azure - R&D - Instant Collaboration - Sharing - Community IT for Mobile Products What Happens for Mobile Software Development? - Similar to Desktop Products - Expectations are different! Impact and IT TechSmith IT Prior to 2007 - The core business systems Client Systems Authentication/Authorization Email Phones, Security, Door Access System - Making sure Builds worked - Buying \"IT Stuff\" - Team of 3 TechSmith IT 2007 - 2012 - Everything before - More \"servers\" for web services - Network gear and handling a lot of bandwidth & storage - Team of 6 TechSmith IT 2016 - - - - - - - - - - Everything before Everything is \"CLOUD\" Virtualization, consolidation Public, Private and Hybrid Cloud Internal Business Systems Development/Engineering/Manufacturing Support DevOps Business Relationships ITSM Team of 12 Future of Software Development Mobile and Cloud - Freemium Enterprise and Secure Offerings Supporting Work and Personal Environments Integrating with Partners - Don't try to re-invent the wheel Future of TechSmith TechSmith Offerings Becoming an Enterprise Partnerships Integrations Data Driven Decision Making CRM ERP Future of TechSmith IT Process! Automation Logging/Tracking Cost Accounting Integrations Understanding and Interpreting Data/BI We have it all! (Engineering, IT, Support, Marketing, Designers, Sales, Accounting, HR, Logistics) Made in Michigan ITM 309 - April 4, 2016 The Value of IT in Software Development Brian Pillar | IT Manager b.pillar@techsmith.com TechSmith Careers: http://careers.techsmith.com careers@techsmith.com \fKyle Cocozzo & Emily Company Background Founded in 1995 Originally an online bookstore Transitioned to an electronic commerce and cloud computing/storage E commerce is the trading or facilitation of trading in products or services using computer networks Inventory consists of purchases for resale from vendors & 3 rd party sellers Currently the largest internet-based retailer in the United States Averge of 35 orders/second, equivalent to 1.1 billion per year Around 200 million product options, categorized in 35 different departments 2015 Fiscal Year Revenue: $107,000,000,000 Business Operations Ordering: 1 click purchase eliminating form fill out Recommendation systems Shipping & Handling: Stow & pick method Prime membership Investing: Amazon owns twelve different companies and multiple subsidies Majority of which are online websites, eg. IMDB & Pets.com Amazon Problems Slow delivery process Process time: 1-1 hours Human rights issue https://www.youtube.com /watch?v=F4aRz7NqTOo 5:10 IT Solution Implemented new innovative machines https://www.youtube.com/ watch?v=g6DIFpaoI6A Cost/Benefit Analysis Cut process time to 15 min Decreased physical labor Expanded facility capacity and storage space Kiva Robots Amazon bought the company for $775 million in 2012 Installed robots in summer 2014 into 5 warehouses Allows Amazon to hold 50% more inventory Cut order filling time down 75% Allows them to move warehouse in 72 hours vs multiple weeks Enables amazon prime to be successful Prime Launched in 2005 Started by offering customers free two-day shipping on unlimited items $99/year Now offers unlimited movies & music streaming and member-only discounts Estimated 80 million prime members at year end 2015 Kindle Physical device & software Allow customers to have multiple books at a time without taking up space Used for travel Other Resources Groceries Shipping drones Recently released a similar version of youtube Echo Mechanical turk AWS - similar to icloud Solution & Takeaways Use of kiva robots allowed Amazon to speed up filling & delivery process which allows prime to be as successful as it is Perks of Amazon Prime keep members coming back which increases revenue Always harder to get new customers than keep old one Investing in technology to generate long-term profits In 4th Quarter 2015 reports $513 million net income compared to 4Q 2014 $57 million loss Operating Cash flow up 44% Efficient IT processes lead to efficient business processes Cloud an Computing IT d Outsourcin g Aaron Lasecki Abdulla Al-Dhaheri Outlin e Apple Inc. What Is Cloud computing? iCloud Pros & Cons Of iCloud Security Threats Of iCloud Apple's Response To Security Breach What Is IT Outsourcing? Apple and IT Outsourcing Pros & Cons Of IT Outsourcing Threats Posed With IT Outsourcing Future Trends For Apple's iCloud & IT Outsourcing Apple Inc. o Multinational corporation o Founded in April 1976 o Creates consumer electronics, computer software, and commercial servers o Established a unique reputation in the consumer electronics industry Best known products include: What Is Cloud Computing? Cloud Computing is the practice of using a network of remote servers hosted on the internet to provide computing resources as a service: o Software as a service (SaaS) o Platform as a service (PaaS) o Infrastructure as a service (IaaS) iCloud o Cloud Computing service provided by Apple Inc. o Released in October 2011 o Connects all Apple devices of an individual o Acts as a data syncing center for email, contacts, photos, and other data. Some of its applications include: iCloud Pros Cons o Convenient and easy to set up o Sync and Backup feature o 5GB of free storage space & o Confidentiality is at risk o Security is at risk Security Threats Of iCloud August 2014: o Security issue within iCloud API was exploited o iCloud API allowed attackers numerous chances to guess possible passwords combinations o Hackers obtained images of celebrities via a breach of the cloud services o Prompted increased concern on the privacy and security of cloud computing services Apple's Response To Security Breach o Apple denied any breach within it systems o Confirmed that certain celebrities account have indeed been compromised o Advised users to use strong passwords and enable two-step verification What is IT Outsourcing? The practice of seeking resources - or subcontracting - outside of the organization for a part or all of the operational IT functions. Often used for developers, maintenance, or support teams IT Outsourcing ventures often supported by cloud computing Apple & IT Outsourcing New data shows that one-third of Apple's Software Engineers are in Indian Some work on Visas while others work remotely Apple works with at least five India-based IT companies Apple is \"Outsourcing for Growth\" Vendors develop & maintain apps, data storage, analytics many others Provide software for Apple Stores as well as iTunes, iCloud, and mobile apps IT Outsourcing Pros o Cost efficient for Outsourcing Company o Entire Team Dedicated to your Tasks o Allows for IT Specialization o Provides for more efficient allocation of human resources & Cons o Loss of Internal Control o Potential for Lag Time o o o o Creates Security Issues Confidential Material at Risk Job Displacement Companies become interdependent Security Threats of IT Outsourcing Transmitting vital confidential Information Data can be intercepted Third Parties are less invested in security of information Accountability is reduced when using Third Parties Many of Apple's data breaches or leaks reportedly originate from outsourcing Future Trends for Apple Among iCloud ... Among Outsourcing... Outsourcing Expected to Increase drastically Growth expected to outpace sales/revenue Increased Resistance from critics Expanded Capacity for Data Increased Desktop Integration Apple looks to bridge gap between devices Apple exploring 'Internet of Things' by digitizing everyday items - Homekit Apple looks iCloud for source of revenue IoT and Machine Learning Opportunities Linh Dao & Patrick Nodland Overview Internet of Things (IoT) General Electric (GE): Predix Machine Learning Opportunity Deloitte: Argus General Electric - company background Founded in 1892 By Thomas Edison, Charles Coffin, Elihu Thomson and Edwin Houston Component of the Dow Jones Industrial Average Global digital industrial company: 8 segments CEO Jeffrey Immelt Statistics 6th largest firm in the U.S by revenue, 14th by profits (2011) 4th largest firm in the world by Forbes Global 2000 (2012) Nobel Prizes have been awarded to two GE employees Internet of Things (IoT) Definition: connecting any device with an on/off switch to the Internet, and/or to each other By 2020, there will be about 26 billion connected devices From cellphone, coffee machine, and wearable devices to jet engine and aircrafts Mechanism Increased machine-machine communication Cloud computing and data-gathering sensors Example Challenges: Security issues Data storage Industrial IoT aka. Industrial Internet $225b market opportunity In 2013, GE invested $105 mil (~10% stake) in Pivotal, a developer of PaaS (Platform as a Service) cloud computing Joint R&D for a new cloud-based analytics software platform for GE and its industrial customers GE formed a new software division Predix Overarching platform that is connected to sensorenabled industrial assets that can collect data for business analytics and asset performance management (APM) Comes with system applications called Predictivity Apps GE have invested $1b in Predix in 2016 alone Predix 2.0 released in 2016, 55 industrial partners Benefits and into the future - GE's Perspective First-mover advantage First industrial company to develop industrial software platform Industrial knowledge Rising revenue $5b revenue in 2015, projected $6b in 2016 By 2020, GE Digitals could make up 25% of GE earnings Security threats GE focuses on both internal and infrastructure security Challenges - IT critics' perspectives Skepticism about ability to build and maintain Cloud platforms Competition with public cloud providers (Amazon, IBM, etc.) Difficulties in marketing Predix to GE's industrial rivals Analysis and storage of critical data involves trust Increasing competition from major IT companies Microsoft, Amazon, IBM and Google Takeaways - Predix Predix is a cloud platform for industrial IoT Helps industrial users increase assets efficiency Industrial IoT is a promising business and GE have gotten a head start in it However, competition is closely approaching Double IT security threats Information and infrastructure Deloitte - Company Background Founded in 1845 in London, UK Founded by William Welch Deloitte Divided into segments by service type Audit, Tax, Advisory and Consulting Global CEO - Punit Renjen Key Figures and Statistics $35.2 Billion in revenue in 2015 225,000 Employees Operating in over 150 countries and territories Machine Learning Opportunity Definition: A subfield of computer science that involves building hardware or software that can achieve tasks by learning from examples. Mechanism: More integrated AI for manufacturing and services. Lower labor hours are needed to perform business processes. Example Challenges Implementation is costly There are ethical questions that come with Argus A machine learning model that can quickly \"read\" complex thousands of complex documents while extracting structuring textual information for better analysis. Deloitte has allied with Kira Systems to bring the power of machine learning to the workplace. The Argus system is a Deloitte customized version of the Kira platform designed specifically to assist audits. This software earned Deloitte the Audit Innovation of the Year award in 2015 Benefits of Machine Learning to Deloitte Resource Allocation Reduces document review time and allows redeployment of talent to other areas. Associates can spend more time interpreting the results rather than Time Constraints Allows teams to quickly review thousands of documents, translating into a quicker solution to clients participating in large business transactions under tight deadlines. Challenges to Machine Artificial Intelligence can be incredibly expensive Learning to develop/purchase and implement. Only companies with lots of capital can develop it Companies can rely too heavily on AI and if it is suddenly no longer available, problems can arise. Power outages System failures AI can potentially put employees out of work. Takeaways - Argus Argus is an Artificial Intelligence application that helps with document review. It can quickly review thousands of documents. Implementing Argus has saved Deloitte countless hours of labor. Talent can be allocated away from doc review and toward other tasks. There are economic and ethical factors to consider. AI implementation can be costly and can cause employees to be laid off or roles to become obsolete. References http://www.reuters.com/finance/stocks/companyProfile?symbol=GE.N http://www.ge.com/about-us/fact-sheet https://en.wikipedia.org/wiki/General_Electric http://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-explanation-internet-things-that-anyone-can -understand/#b17eaa668284 http://www.wired.com/insights/2014/11/the-internet-of-things-bigger/ http://pivotal.io/corporate/press-release/pivotal-announces-planned-strategic-investment-from-ge http://www.bloomberg.com/news/videos/2016-06-08/ge-s-predix-refocuses-business-on-internet-of-things http://www.ge.com/digital/predix References (cont) http://www.bloomberg.com/gadfly/articles/2016-05-20/ge-calling-out-rivals-tech-talk-is-wake-up-call https://www.predix.com/how-it-works/cloud-security http://www2.deloitte.com/us/en/pages/about-deloitte/articles/about-deloitte.html https://en.wikipedia.org/wiki/Deloitte https://en.wikipedia.org/wiki/Machine_learning http://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-forms-alliance-with-kira -systems-to-drive-the-adoption-of-artificial-intelligence-in-the-workplace.html http://www2.deloitte.com/us/en/pages/about-deloitte/articles/press-releases/deloitte-wins-audit-innovation-of -the-year.html References (cont) http://ttic.uchicago.edu/~pengjian/MLCourse/intro.pdf Target's Security Issues Joe Morgan and Trevor Deimel Target Background - Founded in 1902 as Dayton Company - Became Target in 1962, marketed as discount retail store - Headquartered in Minneapolis, Minnesota - Current Stock Price of ~$68 - CEO: Brian Cornell - 2013: Biggest Retail Hack in US history Target Security Breach - Late November to early December 2013 - Russian Hackers - Aimed to collect customer financial Information - Many security policies have since been tightened - Has resulted in increased consumer awareness of hackers. IT Security Definitions Data Breach- An incident in which an unauthorized individual has potentially viewed, stolen, or used sensitive, protected or confidential data. Identity Theft - The fraudulent acquisition and use of a person's private identifying information, most commonly for financial gain. Malware (Malicious Software) - Software that is designed to disrupt computer operations, gather sensitive information, gain access to private computer systems, or display unwanted advertising. Targets Failed Plan - Attack planning is handled like a business operation - Target was certified by the payment card industry (PCI) in September 2013. - 6 months prior to the attack target commissioned FireEye to build detection tool. - Target enlisted a staff in Bangalore, India to monitor threats around the clock. What Could've been done? - In late 2013, Security staff at FireEye and in Bangalore raised concerns about vulnerabilities of payment systems - Minneapolis headquarters were notified of the breach as it was happening. Ignored alert due to high volume of alerts they receive. - Instead of ignoring alert, Target should've actively investigated the alert, especially because it was credible. Security Breach Problems -More than 70 Million people were potentially affected -Stolen Information -Angry customers led to decrease in foot traffic -Profits down 46% in 4Q of 2013 -CEO and CIO Fired -Over 100 lawsuits against Target What Has Been Done - New Company Management: New CEO helped reshape the face of Target - Offered one year of free credit monitoring and identity theft protection to all shoppers - 10 Million Dollar Lawsuit settlement: up to $10,000 given to those who can prove they were affected by the breach - New \"Chip-and-Pin\" Card EMV Chips - Europay Mastercard Visa Chips - Help protect cardholder information - More secure than magnetic strips - Create unique codes for each transaction - Used exclusively in all major world economies except the United States Benefits and Costs of Security Breach Benefits - Now a leader in Information Security -One of the most secure corporations now -Implemented systems that were originally planned much faster Costs -Huge loss of profits in 4Q 2013 and into next year -Loss of trust by customers -Lawsuits -Damaged company image -Complete security system overhaul Key Takeaways - Hackers are everywhere, Always finding new methods. - Corporations can be vulnerable even with planning policies in place - Corporations must further investigate situations when alerted. - Breaches can be very costly to both consumers and corporations References http://money.cnn.com/2015/10/14/pf/target-pin-credit-card/ https://www.washingtonpost.com/business/economy/target-says-70-million-customers-were-hit-by-dec-data-breach-more-than-first-reported/2014/01/10/0ada10 26-79fe-11e3-8963-b4b654bcc9b2_story.html https://www.sans.org/reading-room/whitepapers/casestudies/case-study-critical-controls-prevented-target-breach-35412 http://www.wsj.com/articles/SB10001424052702304703804579381520736715690 http://www.bloomberg.com/news/articles/2014-03-13/target-missed-warnings-in-epic-hack-of-credit-card-data http://www.bloomberg.com/news/articles/2014-03-13/target-missed-warnings-in-epic-hack-of-credit-card-data http://www.networkworld.com/article/3075827/security/components-of-modern-hacking-operations.html http://www.huffingtonpost.com/creditcardscom/the-dirty-little-secret-y_b_5572081.html https://www.usa.gov/identity-theft http://www.forbes.com/sites/moneybuilder/2015/01/13/the-big-data-breaches-of-2014/#50764c6b3a48 Case Study By: Yeonik Jang & Chris Upham Company Overview 1.Founded in 2003, at Silicon Valley 2.Named after Nikola Tesla 3.Headquarters: Palo Alto, CA 4.CEO Elon Musk 5.Electric car company Tesla is not just an automaker, but also a technology and design company with a focus on energy innovation. Company Overview: 3 Models 1.Model S -. -. -. -. Launched in 2012World's first premium electric sedan Flat battery pack Motor Trend's 2013 Car of the year 5-star safety rating from the US National Highway Traffic Safety Administration 2. Model X - Launched in 2015 - SUV model - Falcon wing doors - Pollution free: inside and outside - Similar with model S Company Overview: 3 Models 3. Model 3 - Late 2017 delivery goal - $35,000 ( Affordable price) - Charging system ( 215 miles in single charge) - First true mass-market electric car Distributing & Servicing 1.Positioning stores in high foot traffic -. Mall -. Shopping streets 2. No dealership 3. Online sales \" Our goal is not to sell a person a car, but to educate them on what electric cars, and what Tesla electric cars can provide.\" Business Issues 1.Historically unaffordable for average income 2.Poor performance of new technology 3.Long production delays & delivery waitlists 4.Electric car market (Existing competitors & new entrants) Historically unprofitable Technological Solutions 1.New Model 3 priced at $35,000 2.Continued product improvement 3.Improvement of production technology 4.Business strategy (Differentiation & Innovation) Recent increase in company value and positive financial forecasts The Apple of Electric Cars? 1.Slow start to company 2.Commitment to new technology development 3.Innovative and charismatic face of the company 4.Refusal to design low-end products 5.Substantial demand for new releases Questions? References - Cayeux, L. (2012). Is Tesla the Next Apple? N.p.: Forbes. Retrieved from http://www.forbes.com/sites/techonomy/2012/03/07/is-tesla-the-next-apple/#79fa6c5651be - Dyer, J