iw14 session: dr. john bates, board member, software ag

Dr. John Bates, Member of the Group Exec Board

The Age of the Machine and what it means for software


Massive scale personalization for the ‘IoT’ & wearable revolution


A sentient world

Man and machine will be controlled and monitored automatically and seamlessly


Solar roadways


Clouds of Big Data intersecting with each other


The ‘IoT’ megatrend

‘Internet of Things’ installed base will grow to 26 billion units by 2020” – Gartner A 10 percentage point increase in a countries digitisation index can result in a 0.75% rise in GDP and a 1.02% drop in unemployment Airbus A380 engine, generates more data on every Frankfurt to Sydney return flight than the entire library of Congress in Washington


The hard bit: supporting a new class of streaming, decision-centric application requirements

Seize opportunities & avoid crises amidst explosive complexity

Complexity of extra-enterprise information

Fast, Big Data

Time window to analyse & act

Financial

Supply Chain

Logistics

CRM / CXM

Manufacturing

Fraud

Intelligent Hospital


An always-on world needs streaming architectures

Streaming visualization

Streaming analytics & rules

In-memory data grid – fast reference data & analytics, scaling across machines

MQTT for ‘IoT’

Low latency lightweight messaging for digital “fan in”


The internet of energy


What if? …you knew, real-time, how your customers were running their equipment?

You could… …forecast your planned maintenance and technician resources …identify when your customer might want to buy extra capacity

Predictive Maintenance


GE Jenbacher Engine

•  Used in major factories and small cities for on-site generation of power, heating & cooling

•  Operations in more than 140 countries

•  Approximately 11,000 engines currently operating

8.4 meters 4.7 meters


Before

25% of installed base under maintenance contract supported by aggressive SLAs

400 TECHNICIANS ON SUPPORT TEAM

JENBACHER ENGINE

OUTAGES DISRUPT��

OPERATIONS

SLAS & FAILURES

NO REMOTE

VISIBILITY

Unplanned outages result in significant operational disruption


After

•  Machine-to-machine solution actively monitors 250 data points every 30 seconds from approximately 3,500 engines

•  Consolidated dashboard integrates engine service diagnostics and engine application performance statistics

M2M ACTIVE MONITORING OF 250 DATA

POINTS

REAL-TIME DIAGNOSTIC &

PERFORMANCE DASHBOARD

MEASURES EVERY 30 SECONDS

Machine-to-machine solution actively monitors 250 data points every 30 seconds from approximately 3,500 engines

JENBACHER ENGINE

Consolidated dashboard integrates engine service diagnostics and engine application performance statistics


Benefits

PREDICTIVE MAINTENANCE

UNPLANNED OUTAGES

CROSS-FUNCTIONAL VISIBILITY

$1K SAVINGS��PER ENGINE

Monitored variables help predict when an outage will occur

JENBACHER ENGINE Proactive & predictive maintenance minimizes disruption

Deploying a maintenance team before an outage saves ~$1k per engine per year (conservative estimate) = $3.5m

Operational visibility provided to the entire support and management team for this product line


Increased revenue per customer

A personal concierge for every customer

“Mind reading” marketing offers

Improved campaign effectiveness

Improved customer stickiness

Reduced fraud


Customer within range of designer

shoe store

“Mind reading” marketing offers

•  Customer interested in designer shoes is within range of Shoetopia branch •  Partner “Shoetopia” has a promotion •  Push offer of 10% off Jimmy Choo’s for 30 minutes

Real-time, one-to-one marketing

Enjoy 10% discount off

Jimmy Choo’s at Shoetopia

for the next 30 minutes


•  Market manipulation

•  Ever-evolving regulation

•  “Fat finger” trading errors

•  Rogue traders

•  Wild algorithms

Recurring crises in capital markets


Consequences just keep getting bigger

•  Trading losses

•  Regulatory fines

•  Reputational damage

•  Credit rating

•  Insolvency!

•  The end of HFT?


Mismatch between trading technology and risk & compliance technology

versus


Mismatch between trading technology and risk & compliance technology

…to catch a Ferrari

A Ferrari…


Market data

News

Visual analytics / alerting

Trade data Order

data

Market abuse & manipulation

“If a trade occurs for an instrument not usually traded by that trader or it is unusually large for that trader and a related news article occurs within 5 minutes which moves the market by > 10% within 30 minutes, signal an insider trading alert”

“Behaviour” monitoring


HR data

Physical access data

Calendar data

Visual analytics / alerting

Trade data

Settlement & clearing

Rogue trader detection

If number of cancel/amends for a trader is greater than 2 times that of peer group over the same period then signal unusual concentration of cancellations alert

“Behaviour” monitoring


IDC say there will be 50 billion connected devices by 2020

“Age of the Machine” apps must provide real-time analytics & response in the face of this computational data explosion

Big Data streaming analytics = a new architecture for “Age of the Machine” apps •  Streaming analytics & rules, combined with in-memory data

grid, real-time visual analytics & low latency messaging

Already many successful large scale projects are deployed, e.g. •  Proactive maintenance for power grid equipment •  Personalized mobile marketing •  Market surveillance for capital markets

Conclusions

iw14 session: dr. john bates, board member, software ag

Technology