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Dr. John Bates, Member of the Group Exec Board
The Age of the Machine and what it means for software
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Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Massive scale personalization for the ‘IoT’ & wearable revolution
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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
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Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Solar roadways
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Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Clouds of Big Data intersecting with each other
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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
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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
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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”
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The internet of energy
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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
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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
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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
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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
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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
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Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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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
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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
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Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
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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
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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?
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Innovation World 2014 October 13 – 15 New Orleans ©2014 Software AG. All rights reserved.
Mismatch between trading technology and risk & compliance technology
versus
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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…
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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
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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
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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
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