Nov 28, 2014
Dr. John Bates, Member of the Group Exec Board
The Age of the Machine and what it means for software
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Massive scale personalization for the ‘IoT’ & wearable revolution
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
A sentient world
Man and machine will be controlled and monitored automatically and seamlessly
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Solar roadways
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Clouds of Big Data intersecting with each other
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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”
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
The internet of energy
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Increased revenue per customer
A personal concierge for every customer
“Mind reading” marketing offers
Improved campaign effectiveness
Improved customer stickiness
Reduced fraud
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
• Market manipulation
• Ever-evolving regulation
• “Fat finger” trading errors
• Rogue traders
• Wild algorithms
Recurring crises in capital markets
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Consequences just keep getting bigger
• Trading losses
• Regulatory fines
• Reputational damage
• Credit rating
• Insolvency!
• The end of HFT?
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Mismatch between trading technology and risk & compliance technology
versus
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Mismatch between trading technology and risk & compliance technology
…to catch a Ferrari
A Ferrari…
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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
Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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