InspireID is a great partnership between the University of Idaho, Coeur d’Alene, Apple and the Innovation Collective to bring programming to more rural areas and to people who need an alternative to the full time, university system. Read about it in my latest forbes.com column.
I’m playing with alternating between the publishing page and blog entries and am not sure which I like better.
Which businesses really need a data scientist? https://bit.ly/2JInbhj
Almost a month after my last post, there is a change. Differences in focus and goals have resulted in me solely focusing on my own practice. I wish the people on the TIRIAS Research team the best of luck.
Since my last post, I’ve had a number of columns on Forbes. In addition, my brother, Paul Teich, and I have released a TIRIAS Research report on NVIDIA’s new framework for deep learning. As usual, you can link to all of them via my publications page.
My focus on business intelligence the last few years, my long term interest in artificial intelligence and the growth of machine learning came together to drive the content for my latest Forbes article.
In my work with TIRIAS Research, I’m covering machine learning. As part of that, I am publishing articles on Forbes. One thing I’ve started this month, with two articles, is a thread on management AI. The purpose is to take specific parts of AI and machine learning that are often described very technically, and present them in a way that management can understand what they are and, more importantly, why they provide value to decision making.
As I post my latest Tech Target article, on Tableau showing the subscription model is winning, I should point out that I’m no longer linking articles via blog entry but, rather, adding them to my Published Articles page. I never blogged much, so that makes sense.
As I have thoughts that I don’t think are formal enough to publish, I’ll still use the blog page; but refer to the articles one for publishing
VentureBeat hosted a webinar that missed the mark in the title, but is still worth a watch for those interested in how technology is changing the banking industry. Artificial intelligence (AI) was only discussed a few times, but the overarching discussion of the relationship between the young financial technology (fintech) companies and the existing banking infrastructure was of great value.
The speakers were:
- Katy Gibson, VP of Application Products, Envestnet | Yodlee
- Dion F. Lisle, VP Head of FinTech, Capgemini America Inc.
- John Vars, Chief Product Officer, Varo Money
- Keith Armstrong, Co-founder and Chief Operating Officer, abe.ai
- Stewart Rogers, Director of Marketing Technology, VentureBeat Sponsored by Yodlee
The opening question was about the relationship between fintech and banking organizations. The general response was that the current maturity of fintech means that most companies are focusing on one or two specific products or services, while banks are the broad spectrum organizations who will leverage that to provide the solutions to customers. Katy Gibson did point out that while Yodlee does focus on B2B, other fintech companies are trying to go B2C and we’ll have to see how that works out. Dion Lisle suggests that he sees the industry maturing for the next 18-24 months, then expects to see mergers and acquisitions start to consolidate the two types of businesses.
One of the few AI questions, one on how it will be incorporated, brought a clear response from Ms. Gibson. Just as other companies have begun to realize as machine learning and other AI applications begin to be operationalized, clean data is just as important as it always has been. She points out that banking information comes from multiple sources, isn’t clean and is noisy. Organizations are going to have to spend a lot of time and planning to ensure that the systems will be able to be fed useable information that provides accurate insight.
There was an interesting AI-adjacent question, one where I’m not sure I agree with the panelists. Imagine a consumer at home, querying Alexa, Siri, or other AI voice system and asking a financial question, one such as whether or not personal financial systems are good to buy a specific item. If the answer that comes back is wrong, who will the consumer blame?
The panelist consensus seems to be that they will blame the financial institution. I’m not so sure. Most people are direct. They blame the person (or voice system) in front of them. That’s one reason why customer support call centers have high turnover. The manufacturing system might be to blame for a product failure, but it’s the person on the other end of the line who receives the anger. The home AI companies will need to work with all the service providers, not just in fintech, to ensure not just legal agreements specify responsibility, but that also the voice response reflects the appropriate agreements.
The final item I’ll discuss was a key AI issue. The example discussed was a hypothetical where training figured out that blue eyed people default on home loans more often. What are the legal ramifications of such analysis. I think it was Dion (apologies if it was someone else), pointed out the key statistical statement about correlation not meaning causality. It’s one thing to recognize a relationship, it’s another to assume one thing causes another.
Katy Gibson went further into the AI side and pointed out that fintech requires supervised learning in the training of machine systems. It’s not just the pure correlation/causality issues that matter. Legal requirements specify anti-discrimination measures. That means that unsupervised learning is not just finding false links, it could be finding illegal ones. Supervised learning means data sets including valid and invalid results must be used to ensure the system is trained for the real world.
There were more topics discussed, including an important one about who owns privacy, but they weren’t related to AI.
It was an interested webinar with my usual complaint about large panels: There were too many people for the short time. All of these folks were interesting, but smaller groups and a more tightly focused discussion would have better served the audience.
Two TDWI webinars in one week? Both sponsored by SAP? Today’s was on IoT impacting data warehousing, and I was curious about how an organization that began focused on data warehousing would cover this. It ended up being a very basic introduction to IoT for data warehousing. That’s not bad. In fact. it’s good. While I often want deeper dives than presenters give, there’s certainly a place for helping people focused on one arena, in this case it’s data warehousing, get an idea of how another area, IoT, could begin to impact their world.
The problem I had was how Philip Russom, Senior Research Director for Data Management, TDWI, did that. I felt he missed out on covering some key points. The best part is that, unlike Tuesday’s machine learning webinar, SAP’s Rob Waywell, Director Hana Project Management, did a better job of bringing in case studies and discussing things more focused on the TDWI audience.
Quick soap box: Too many companies don’t understand product marketing so they under utilize their product marketers (full disclosure: I was one). I strongly feel that companies leveraging product marketing rather than product management in presentations will be more able to address business concerns rather than being focused on the products. Now, back to our regular programming…
One of the most interesting takeaways from the webinar was a poll on what level of involvement the audience has with IoT. Fifty percent of the responders said they’re not collecting IoT data and have no plans to do so. Enterprise data warehouses (EDW) are focused on high level, aggregated data. While the EDW community has been moving to blend more real time data, it tends to be other departments who are early into the IoT world. I’m not surprised by the results, nor am I worried. The expansion of IoT will bring it in to overlap EDW’s soon enough, and I’d suggest that that half of the audience is aware things will be changing and they have the foresight to begin to pay attention to it.
IoT Basics for EDW Professionals
Mr. Russom’s basic presentation was good, and folks who have only heard about IoT would do well to listen to it. However, they should be aware of a few issues.
Philip said that “the tendency is to push analytics out to the devices.” Not wholly true, and the reason is critical. A massive amount of data is being generated by what are called “edge devices.” Those are the cars, refrigerators, manufacturing robots and other devices that stream information to the core servers. IoT data is expected to far exceed the web and social media data often referred to as big data. That means that an efficient use of the internet means that edge analytics are needed to aggregate some information to minimize traffic flow.
Take, for instance, product data. As Rob Waywell mentioned, many devices create lots of standard data for which there is no problems. The system really only cares about exceptions. Therefore, an edge device might use analytics to aggregate statistics about the standard occurrences while immediately passing exceptions on to be handled in real-time.
There is also the information needed for routing. Servers in the core systems need to understand the data and its importance. The EDW is part of a full data infrastructure. the ODS (or data lake as folks are now calling it) can be the direct target of most data, while exceptions could be immediately routed to other systems. Whether it’s the EDW, ODS, or other system, most of the analysis will continue in core systems, but edge analytics are needed.
SAP Case Studies
Rob Waywell, as mentioned above, had the most important point of the presentation when he mentioned that IoT traffic is primarily about the exceptions. He had a couple of quick case studies to talk about that, and his first was great because it both showed IoT and it wasn’t about cars – the most used example. The problem is that he didn’t tie it well into the message of EDWS.
The case was about industrial worker safety in the area of gas detection and response. He showed the different types of devices that could be involved, mentioned the multiple types of alert, and described different response paths.
He then mentioned, with what I felt wasn’t enough emphasis (refer to my soap box paragraph above), the real power that a company such as SAP brings to the dance that many tinier companies can’t. In an almost throwaway comment, Mr. Waywell mentioned that SAP Hana, after managing the hazardous materials release instance, can then communicate to other SAP systems to create the official regulatory reports.
Think about that. While it doesn’t directly impact the EDW, that’s a core part of integrated business systems. That is a perfect example of how the world of IoT is going to do more than manage the basics of devices but also be used to handle the full process for with MIS is designed.
Classifications of IoT
I’ll finish up with a focus that came up in a question during Q&A. Philip Russom had mentioned an initial classification of IoT between industrial and consumer applications. That misses a whole lot of areas, including supply chain, logistics, R&D feedback, service monitoring and more. To lump all of that into “manufacturing” is to do them a disservice. The manufacturing term should be limited to the actual manufacturing process.
Rob Staywell then went a different direction. He seemed to imply the purpose of IoT was solely to handle event-driven, real-time, actions. Coming from a product manager for Hana, that’s either an understandable mistake or he didn’t clearly present his view.
There is a difference between IoT data to be operationalized and that to be analyzed. He might have just been focusing on the operational aspects, those that need to create immediate actions, without minimizing the analytical portion, but it wasn’t clear.
This was a webinar that is good for those in the data warehousing and core MIS functions who want to get a quick introduction to what IoT is and what might be coming down the pike that could impact their work. For anyone who already has a good idea of what’s coming and wants more specifics, this isn’t needed.