What's next in cloud, analytics, AI & social media What’s next in Emerging Technologies | page 2 Torrent of change, as seen in the global megatrends Demographic shifts Shift in global

What's next in cloud, analytics, AI & social media

PwC: What’s next in Emerging Technologies | page 2

Torrent of change, as seen in the global megatrends

Demographicshifts

Shift in global economic power

Accelerating urbanisation

Climate change resource & scarcity

Technologicalbreakthroughs


Global megatrends and the role of technology

Technology advances

77%

“We need technology that’s actually

going to animate a physical stay at a

physical place with interaction with people.

That means not just having the technology

at the site up to snuff, but also integrating

it all the way through that hotel

experience, the point of sale systems, and

all the rest of it. It becomes frustrating,

because a lot of work has to be done on

the infrastructure of that technology

before you do the most exciting things.”

- Arne M. Sorenson, President and CEO of Marriott International, Inc.


Proliferation of technologies is expansive and complex


Addressing concerns related to technology innovation

Organic growth & cost cutting in 2017

Staying ‘fit for growth’ to keep pace with

market opportunities.

Innovation requires a ‘cloud first’ technology foundation to keep pace with the

competitors and market opportunities.

1. What emerging technology is … and what it isn’t


“Software is eating the World” Marc Andreessen

Virtual Reality models of oil field

Sources: Wired, DGI.com, PwC, StratFor

Wearable health sensors AI-driven wealth management advisors

The Digital Factory - Industry 4.0

Drone-based delivery and logistics

Personalized, digital shopping experiences


Emerging Tech Hype Cycle 2015

New tech is entering the market faster than ever before

...and, separate hype cycles exist for mobile, IoT, Big Data,

etc!

Emerging Tech Hype Cycle 1995

Source: Gartner

10 Tracked 40+ Tracked


How can we determine what’s “emerging?”

● Corporate adoption rates

● Acceleration and growth in market share

● Investments by respected vendors

● Investments by venture capitalists

● Investments in crowdfunding projects

● Experimentation by universities

● Velocity of related patent filings

● Opinions of respected thought leaders, analysts

● Velocity of new topics in “maker” communities

● .../...


S-Curves from history

The s-curve for “computing” subsumes a number of related but quite different curves (and technologies) that cover the rise — and fall — of adoption of technologies over time.


Another lens...startups

Analysis of Y Combinator portfolio companies and their competitors


Moore’s Law over 50 years

100K

1M

1B+

1B+

5.2B+

5.2B+

20->50B

?

Sources: Andreesen Horowitz, WCIS, CMO; Images: Bill Bradford, Luke Jones, JapaneseExpert

Devices

Users

Mainframe PC Mobile Pervasive


And what’s not emerging…….remember SMAC?

After the internet revolution began around 1995

we started using the acronym SMAC for Social,

Mobile, Analytics and Cloud around 2010 to

indicate further proliferation of computers,

users and applications and a focus on user and

customer experience.

We are now in yet another era with further

proliferation of data and more and better means

to analyze it to create insights. It’s an era in

which IoT, AI, cognitive computing, machine

learning and other approaches will take center

stage.

Social Mobile

Analytics Cloud

2. Emerging Technology Deep Dives

Cloud


PwC’s point of view on the cloud market

Market Context

Low barrier to entry

Increased expectations

To compete in the As-a-Service economy, enterprises must rapidly configure and reconfigure their business models to thrive in an environment of disruption.

“XaaS” Components(e.g., analytics, Compute, SaaS,

Platform Services, IoT)

Capabilities Required

Our Vision

Rapid response to market changes

Ability to scale

“The Configurable

Enterprise”

A rapidly changing enterprise with a rapidly configurable IT focused on the core

business is a “Configurable Enterprise.”


The Configurable EnterprisePwC’s end-to-end cloud model

Benefits of configurable enterprise strategy

● Flexibility to quickly innovate and scale

● Rationalize, modernize, and migrate applications to best fit cloud solutions

● Transform command/control model to agile,multi-speed capability

Consume

Assemble

Se

cu

rit

y

Digital Operating Models

XaaS Adoption & Migration

Digital Experiences & Business Models

Va

lue

Strategy &

Assessment

Design &

Architecture

Integrate &

Implement

Operate &

Innovate

Configurable Enterprise Journey

Ideate


Becoming a “Configurable Enterprise” PwC’s “Configurable Enterprise” strategy ties initiatives together into a holistic cloud transformation program

Key Benefits of Configurable Enterprise Strategy

Business Value for Client

Flexibility to quickly pilot and scale• Rapid ideation to deployment of new products and

services• Simple, modular re-configuration of the business

Rationalize, modernize, and migrate applications to best fit cloud solutions• Public/hybrid XaaS: Oracle IaaS + PaaS...• Native cloud: CRM, HCM, Cloud ERP…

Transform command/control model to agile, multi-speed capability• Agile dev & DevOps (and traditional managed

services where needed)• Multi-cloud CI/CD & lean ops• Cloud-ready IT security governance & controls

Ability to rapidly

integrate / reconfigure acquisitions

Se

cu

rit

y

Digital Operating ModelsThe New IT Platform

Combined IT and Business Operating Model

Fixed Asset to “XaaS” MigrationRationalization,

Modernization, Migration

Digital Experiences & Business Models

Connected and Data Driven

Discovery and PoCs

Discovery and PoCs

Va

lue

Strategy &

Assessment

Design &

Architecture

Integrate &

Implement

Operate &

Innovate

Configurable Enterprise Journey

Flexibility to quickly scale up

products & services

Reductionin IT operating costs

Shorterleadtime to provision

Fastertime to market

transformation targets

migration targets

potential workload

targets

migration or transformation candidates


PwC’s new IT platform

Architecture

OrganizationGovernance

Mandate

Process


Cloud challenges

1. Regulations

2. Interoperability

3. Talent availability

4. PaaS evolution

5. Value chain competition

The Internet of Things


IoT components

Stimuli Sensor Algorithm

Actuator


1% improvement

Source: GE Predix

Domain 1% More/Better Scope

Power Generation 240 TWh extra electricity Canada

Rail On-Time 100,000 minutes less wait time UK

Output $10B more output US

Airline Fuel Consumption 100,000,000 million gallons US


IoT commercial cases

Energy -- connected wind turbines

Waste disposal Food shipment

• Turbines equipped with sensors• Connected to GE Predix system, to

each other and to the local utility, each turbine makes automatic direction and pitch adjustments based on power demand

• System “talks” with local utility• Communicates status and

performance to central monitoring system

• Company equips trash cans with electronic access cards, RFID chips and online connectivity to collect usage and predict when a trash can is nearly full

• Garbage trucks routed based on predictive analytics to determine the most efficient route targeting nearly full trash cans

• Each can is now nearly 75% full when emptied, and operating costs are down ~20%

• Company equips food bearing shipping containers with sensors that detect temp, humidity, air quality and location; sends alerts to client smartphones when unexpected conditions occur

• Shipping containers are outfitted with a system that controls release of ozone and temperature to adjust conditions in route based on sensor data

• A post-trip analysis provides recipient with a full report


IoT challenges

1. Interoperability

2. Security

3. Device Management

4. Power and Connectivity

Artificial Intelligence


Artificial intelligence deals with the simulation of intelligent behaviour in computers

Main AI techniques Description

Large-scale Machine Learning Design of learning algorithms, as well as scaling existing

algorithms, to work with extremely large data sets

Deep Learning Model composed of inputs such as image or audio and several

hidden layers of sub-models that serve as input for the next layer

and ultimately an output or activation function

Natural Language Processing

(NLP)

Algorithms that process human language input and convert it

into understandable representations

Collaborative Systems Models and algorithms to help develop autonomous systems

that can work collaboratively with other systems and with

humans.

Computer Vision (Image Analytics) The process of pulling relevant information from an image or sets

of images for advanced classification and analysis.

Algorithmic Game Theory &

Computational Social Choice

Systems that address the economic and social computing

dimensions of AI, such as how systems can handle potentially

misaligned incentives, including self-interested human

participants or firms and the automated AI-based agents

representing them

Soft Robotics (Robotic Process

Automation)

Automation of repetitive tasks and common processes such as

IT, customer servicing and sales without the need to transform

existing IT system maps

Areas within AI (non-exhaustive)

Italics indicate “hot” areas of research in “Artificial Intelligence and Life in 2030: One hundred year study on Artificial Intelligence,” Stanford University,

August 1, 2016.

Soft Robotics

(Robotic Process

Automation)Robotics

Sensors/

Internet of Things

Algorithmic

Game Theory

& Computational

Social Choice

Computer Vision

(Imageanalytics)

Collaborative

Systems

Neuromorphic

Computing

Deep

LearningLarge Scale

Machine Learning

Natural Language

Processing

Deep Q&A

systems

(or Cognitive

Computing*)

Audio/Speech

Analytics


Core AI techniques are being applied across industries

Extracting insights from data Augmenting human decision making Automating processes

AI Capabilities

Natural Language Processing: Associated

Press worked with Narrative Science to write

financial summaries, sports recaps, and

fantasy sports reports using NLP

Deep Learning: Google Maps uses Deep

Learning to detect high traffic zones, optimize

routes and embed voice recognition

Machine Learning: Amazon and Target use

click logs to make consumer purchase

predictions

Identifying trends in

historical data to create

business value

Forward looking intelligence

to strengthen human

decisions

Automating processes

previously conducted by

humans

AI Capabilities


Example: Recognizing car images

Deep Learning

A machine learning system that detects

the important features of an object

without knowing the true nature of

the object

83% -Chevrolet SS

12% -Chevrolet Impala

5% -Chevrolet Cruze

1. Image Source: Lee, Grosse, Ranganath, and Ng. "Convolutional Deep Belief Networks for Scalable Unsupervised Learning of

Hierarchical Representations." (2009)


AI in Banking

NLP, network analysis, cognitive

computing and machine learning are

quickly becoming mainstream

capabilities in the financial services

sector

• Found all possible combinations of the likes, interests and affinities of Singapore’s 6 million-odd people, based on a list of 130,000 things that people do every day

• Identified over 85 million individual behavioral patterns that are engaged in by the people in Singapore


Speech recognition: Improving sales calls

Key Takeaways

PwC worked with a client who was interested in answering the question: “what makes an effective sales call?”.

Using speech-to-text APIs from commercial providers as well as PwC proprietary models, the team was able to extract useful features from tens of thousands of call transcriptions and call metadata. This information was combined with structured transaction data to gather additional insights.

Several of the findings from this analysis, including suggested interaction frequencies, channel patterns, and improvements to sales scripts were incorporated into sales training programs.

Deep Learning: Audio recognition models - Recent improvements in speech-to-text modeling capabilities make it possible to use audio recordings as features in traditional modeling projects


Smart cooler: Unstructured data analysis of imagesDeep Learning: Object Recognition - The latest in deep learning image recognition techniques combine object recognition with image classification; a task which used to take 30 seconds is now accomplished in 100 ms

1. Identify cans

2. Detect Logos

3. Predict Brand

Demo Link: https://smartcooler.firebaseapp.com/1/image_analyticsMore info: https://drive.google.com/open?id=0B15A78kQcodoSUxrZ3JXRUJkRXM

Key Takeaways

PwC developed a prototype cooler equipped with pre-packaged and custom-built sensors. The image data from the cooler can be used to track stock and inventory management, allowing for real time analysis of metrics

The refrigerator sends images to a cloud-based API capable of processing the raw image using deep learning models; the system is scalable as the number of coolers grows

Possible Extensions:● Warehouse inventory tracking● Retail CRM● Security● Advertising / Media

https://smartcooler.firebaseapp.com/1/image_analytics

https://drive.google.com/open?id=0B15A78kQcodoSUxrZ3JXRUJkRXM


AI challenges

1. Complexity

2. Skills

3. Resource Intensive

4. Public trust

Drones


UAVs and drones

Military UAVProsumer QuadConsumer Quad


Use case: aerial image analytics: construction

Automated Data Collection: Aerial Imagery - By combining deep learning methods with the images collected from drone images of construction sites, PwC is able to automate the labeling of the sites and compare construction progress with the estimated timeline and ensure quality.


Drone challenges

1. Regulation

2. Safety

3. Skills

4. Congestion

5. Insurance

Virtual Reality & Augmented Reality


Reality spectrum

Augmented Reality

Overlays data on real world image

Hololens, MetaGoogle TranslateGoogle Glass

Mixed Reality

Virtual objects in real world image

Microsoft HololensGoogle TangoMagic Leap

Virtual Reality

100% Virtual Environment

Oculus RiftGear VRGoogle Cardboard


VR/AR use cases

Virtual Reality

1. Replace in-person flight crew training for safety updates

2.Attend meetings virtually

3.Virtual workplaces/desktop

Augmented Reality

1. Triage aircraft maintenance task

2.View real-time stats in oil field, shop floor

3.Collaborate with expert by sharing live views


Use case: Insurance claims


VR/AR challenges

1. Skills

2. Tethering &Portability

3. Nausea

4. Cost

Social Media


● Advances in technology are changing the power and influence of social media across organizations, communities and individuals.

● They have moved social media from the act of sharing to the domain of reputation and brand building

● Their influences can be seen in blogs, business networks, microblogs, photo sharing, products/ services review, social bookmarking, social gaming, video sharing, and virtual worlds.

● For business, emerging technology has given social media the power to be viral, creating new tactics for advertising at a fraction of the cost of a traditional marketing

How emerging tech is affecting social media

https://en.wikipedia.org/wiki/Blog

https://en.wikipedia.org/wiki/Professional_network_service

https://en.wikipedia.org/wiki/Microblogging

https://en.wikipedia.org/wiki/Photo_sharing

https://en.wikipedia.org/wiki/Review_site

https://en.wikipedia.org/wiki/Social_bookmarking

https://en.wikipedia.org/wiki/Social_network_game


● With location sensitivity, emerging technology has given social media consumer movement so firms can know when customers enter outlets and track their social media comments while there.

● They can also now directly target consumers with offers based on their location.

● Artificial intelligence is making social media more interactive and engaging

● The rise in popularity of social media has created the need for chatbots to deal with growing requests and questions from consumers

● The continuing trend to leverage social media for business purposes increases the need for social media analytics

How emerging tech is affecting social media


Social Media challenges

1. Privacy and retaliation

1. Security of personal data

1. Identity theft

1. Reputational risk management

Conclusion


In closing

● Technology continues to be a dynamic and disruptive megatrend

● There are more than 150+ emerging technologies but the Essential

Eight have emerged as the top global technologies with x-sector

impact

● These technologies are changing and challenging existing business

models, revenue models and operating models but are also creating

new ones

● Through early adoption and innovation we are seeing great promise

but also challenges


Thank youQuestions?

Gerard VerweijGlobal Data & Analytics Leader

[email protected]

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What's next in cloud, analytics, AI & social media What’s next in Emerging Technologies | page 2 Torrent of change, as seen in the global megatrends Demographic shifts Shift in global