From data to strategy How artificial intelligence is changing the rules of the game. Dr. Vladimir Preveden Graz, October 11, 2017
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1 2017 From data to strategy How artificial intelligence is changing the rules of the game Dr. Vladimir Preveden Graz, October 11, 2017
2 What is Intelligence? and why does AI matter so much now? Impact > Chip power > Transmission speed > Computing costs Intelligence is defined as the ability to acquire and apply knowledge and skills. It can also be defined as general cognitive problem-solving skills ~2045 Time Source: Roland Berger
3 AI is a field of computer science and comprises several elements Symbolic-based Data-based Moving around Vision Speech Understanding the environment Robotics Image processing Speech recognition and natural language processing Machine learning (pattern recognition), deep learning (cognitive skills) 1956 definition Machines using language, forming abstracts and concepts solving problems and improving themselves Source: Roland Berger
4 A. Digital turning points B. New competencies needed C. Recommendations for action
5 Turning points in technology Robot concierge Self-driving Uber Break-through AI app Jacket of Levi's/Google May 2016 Sep 2016 Hilton and IBM test the robot Connie Uber introduces self-driving cars in Pittsburgh Jan 2017 The travel app lola receives USD 15 m series B funding Sep 2017 First connected jacket on the market Source: Hilton; Uber; lola; Levi's; Roland Berger
6 By 2020, the majority of the population will have grown up in a fully digitized environment, already from early age on 44% Source: Eurostat; Roland Berger; in % of the European population will either be Millennials or Generation Z
7 A. Digital turning points B. New competencies needed C. Recommendations for action
8 Artificial Intelligence embraces various new technologies companies will need to master Speech recognition Wearables Facial recognition Humanoid robots Connected smart data Robotic process automation Source: Alipay; Levi's; Roland Berger
9 Speech recognition With unimaginable effects and potentials > Unbelievable quality of communication > Virtual advisor > Closed access for all others > This is only the beginning > Expansive repository of human-computer speech interactions Source: Roland Berger
10 First application of Alexa in hotels Wynn Hotel in Las Vegas > "Best customer excitement ever" > Steering of light, music and TV is only the beginning > Personal profiles will be transferable > A lot of further applications possible Source: Wynn; Roland Berger
11 After three years of development, the first commercial connected jacket is on the market Wearables > Idea to create the first full scale digital platform for smart clothing > Project by Google and Levi's > Three years in the making > Intuitive and use-based (urban cyclist) Commuter Trucker Jacket Source: Levi's; Roland Berger
12 Facial recognition is already far advanced and being tested in mass applications > Already in commercial function > Massive amount of data > Individual tracking > Abundance of use-cases Source: Alipay; Roland Berger
13 Humanoid robots allow for a personalized and cost-efficient interaction with the customer > Recognizes people > Recognizes emotions, mimics and gesticulation > Concrete advice > Learns from answers > Always available and friendly > Cost-efficient Source: Roland Berger
14 Humanoid robots Pepper are working on cruise ships of Costa Group > Assistance & advice > Answer questions about the ship and the trip > Speaks three languages > Learns from and collects feedback from guests Pepper Source: SoftBank; Roland Berger
15 Connected data analytics lead to a superb customer understanding What if an evil demon, as clever and deceitful as he is powerful, has directed his entire effort to misleading René Descartes, 1641 Source: Roland Berger
16 Robotic Process Automation automatizes workflows and prepares decision while reducing costs > 20/80-rule focus on the 80% > For standardized processes > Cost savings of up to 90% in workflows > Several internal usecases Source: Roland Berger
17 A. Digital turning points B. New competencies needed C. Recommendations for action
18 Companies need new skill sets and features to be able to compete Ambidexterity Agile organization Design driven customer centricity Open innovation ecosystem Strong analytical skills 10 x thinking Fast decision making Status of employer of choice Source: Roland Berger
19 More concretely, work on the following thinks Define pain points you want to solve, identify opportunities and 1 build AI use cases 4 In parallel, build up data handling skills internally, start working with AI 2 3 Analyze your organization for decision points along all steps and hierarchies and think how you can make them intelligent Prioritize these potentials and get in touch with service providers for strategy design and startups for technology development Identify data you need and prepare the data in a useful way Provide senior leadership for data/ai topics Ensure organizational agility and cultural change Source: Roland Berger
20 A short introduction Dr. Vladimir Preveden Academic studies of energy technology and business administration at the University of Technology in Graz and the Universitat Politecnica Valencia Dissertation at the University of Vienna about the conceptual design of a Corporate Venture Capital unit for a large corporation 16 years of professional experience in strategic consulting of large corporations, 2 years in early-stage venture capital Author of studies about strategy, digitization and innovations Vladimir.Preveden@rolandberger.com
21 Continuous academic and internationally recognized publications enhance our work Applying Design Thinking systematically to create an innovation mindset Applying disruptive digital ideas to transform your processes and business model Agility Demands of a fast-changing world How corporations can profit from a vivid start-up scene Source: Roland Berger
22
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