"The smart machine era will be the most disruptive in the history of IT", Gartner

1. Smart machines
Is the year 2015 the year of Smart Machines?
© Immo Salo

2. The Year of the Smart Machines?

3. Top 10 Strategic Technology Trends for 2014
● Web-Scale IT
● Smart Machines
● 3D Printing
● The Era of Personal Cloud
● Software-Defined Anything
● Mobile Device Diversity and Management
● Mobile Apps and Applications
● The Internet of Everything
● Hybrid Cloud & IT as a Service Broker
● Cloud/Client Architecture
www.smartmachines.fi

4. Top 10 Strategic Technology Trends for 2015
● Computing Everywhere
● The Internet of Things
● 3D Printing
● Advanced, Pervasive and Invisible Analytics
● Contex-Rich Systems
● Smart Machines
● Cloud/Client Computing
● Software-Defined Applications and Infrastructure
● Web-Scale IT
● Risk-Based Security and Self-Protection
www.smartmachines.fi

5. Smart Machines gets attention
Smart machines has been getting more and more attention:
● How Smart, Connected Products Are Transforming Competition
Harward Business Review, Nov 2014
● Hype Cycle of Smart Machines released
Gartner, Jul 2014
● McKinsey writes about Smart Machines
McKinsey Quarterly, Sep 2014
● Economist writes about Smart Machines
“The Age of Smart Machines”, May 2014
● IBM published a book about Smart Machines
“Smart Machines: IBM’s Watson and the Era of Cognitive Computing”, Oct 2013
www.smartmachines.fi

6. Must read book about the topic
www.smartmachines.fi
The Second Machine Age: Work, Progress,
and Prosperity in a Time of Brilliant
Technologies
Brynjolfsson, McAfee

7. Good to read book about the topic
www.smartmachines.fi
The Intelligent Web: Search, smart
algorithms, and big data
G. Shroff

8. Definition of Smart Machines
“Smart machines include robots, self-driving cars and other cognitive computing systems that are able to
make decisions and solve problems without human intervention.”
Techtarget.com
“[Smart Machines are]...contextually aware, intelligent personal assistants, smart advisors (such as IBM
Watson), advanced global industrial systems and public availability of early examples of autonomous
vehicles”
Gartner
“...a smart machine is an intelligent device that uses machine-to-machine (M2M) technology. Smart
machines include robots, self-driving cars and other cognitive computing systems that are able to make
decisions and solve problems without human intervention.”
Techtarget.com
www.smartmachines.fi

9. What are Smart Machines?
1. Observe
learn by observing
2. Tests
test the real world
3. Autonomous
behave autonomously
4. Probabilistic
making decision based on probabilities
5. Predicts
predict the future based on models and calculations
6. Purpose
narrow in purpose, each machine has its own purpose and there are different machines for different purposes
7. Understands
appear to understand concepts, relationships, causalities
8. Human reaction
“I didn’t know a machine could do that!”
https://www.youtube.com/watch?v=Z4kfdkCFQ2g
www.smartmachines.fi
Gartner tried to answer the question in Jul 2014

10. What are Smart Machines?
● Smart Machines are technologies that:
○ Deal with high levels of complexity and uncertainty
○ Decision making based on probabilistics
○ Understanding of task-specific contexts
○ Multitude of uses
○ Some gauge person’s feelings by examining facial
movements etc.
http://gartnernews.com/smart-machine-disruption-will-dominate-this-decade/
www.smartmachines.fi

11. 3 D’s of Smart Things
http://gartnernews.com/three-emerging-trends-drive-digital-business/
www.smartmachines.fi
Gartner is also talking about “Smart Things”

12. New technologies are enablers
● The idea of Smart
Machines is not new,
but now the time is
right
→ Perfect storm
combination of technologies and concepts are mature enough
www.smartmachines.fi

13. Innovations are the key
● Most important innovations will be combinatory
innovations*
● Creative destruction will face those not willing or
able to take action
● The pace of change might be surprisingly fast
* The Second Machine Age, Brynjolfsson & McAfeewww.smartmachines.fi

14. Phases of competition
1. Wondering
○ These machines are amazing!
2. Innovations, phase 1
○ Changing the way business is done within existing industries
3. Innovations, phase 2
○ Creating new industries
4. Innovations, phase 3
○ Destruction of old industries / business models
5. The Age of Ecosystems
○ High-technologization of industries, ecosystem-level competition
www.smartmachines.fi

15. Timing and technology
● Smart Machines is built on top of existing
technologies and innovations
○ Cloud computing
○ Big data
○ Internet of Everything
○ Robotics
www.smartmachines.fi

16. Categories
Cloud computing
● IaaS
● PaaS
● SaaS
XaaS
Big Data
● Volume
● Variety
● Velocity
multiple other V’s
Internet of Everything
● People
● Things
● Places
● Information
Robotics
● Industrial
● Service
● Consumer
Smart Machines is a combination of existing technologies and concepts
www.smartmachines.fi

17. www.smartmachines.fi

18. Cloud Computing is the brain
powering Smart Machines

19. The Role of Cloud Computing
● Cloud Computing is an enabler of Smart Machines
“Imagine a robot that finds an object that it's never seen or used
before—say, a plastic cup. The robot could simply send an
image of the cup to the cloud and receive back the object’s
name, a 3-D model, and instructions on how to use it”
J. Kuffner, Google
IEEE: Jan 2011, http://spectrum.ieee.org/automaton/robotics/robotics-software/cloud-roboticswww.smartmachines.fi

20. www.smartmachines.fi

21. Quote: Ken Goldberg,
Berkeley University
“Robot learning is going to be greatly accelerated.
Putting it a little simply, one robot can spend
10,000 hours learning something, or 10,000
robots can spend one hour learning the same
thing.”
http://bits.blogs.nytimes.com/2014/10/25/the-robot-in-the-cloud-a-conversation-with-ken-goldbergwww.smartmachines.fi

22. Robots learning from Youtube
● Robots learning to cook by watching Youtube
www.smartmachines.fi http://arxiv.org/pdf/1112.6209v5.pdf
Researchers have come up with a new way to teach
robots how to use tools simply by watching videos on
YouTube.
Robot Learning Manipulation Action Plans by ‘Watching’
Unconstrained Videos from the World Wide Web
Image Credit: Erik Charlton/Flickr

23. Division of execution
www.smartmachines.fi
Onboard execution
➢ Simple, repetitive tasks
➢ Motorics
➢ Tasks related to events
that always demand
immediate response
Cloud execution
➢ Complex tasks
➢ Machine learning
➢ Tasks that demand compute-
or memory-intensive analytics

24. Advanced Analytics provides wisdom to Smart Machines

25. The Role of Big Data
● Cloud Services provide scalability
“Amazon Kinesis is a fully managed service for real-time processing of
streaming data at massive scale. Amazon Kinesis can collect and
process hundreds of terabytes of data per hour from hundreds of
thousands of sources, allowing you to easily write applications that
process information in real-time, from sources such as web site click-
streams, marketing and financial information, manufacturing
instrumentation and social media, and operational logs and metering
data.”
An Inside Look at Google BigQuery
http://aws.amazon.com/kinesis/www.smartmachines.fi

26. The Role of Big Data
● Advanced Analytics helps to model and predict the
future
“Machine learning–mining historical data with computer systems to
predict future trends or behavior–touches more and more lives every
day. Search engines, online recommendations, ad targeting, virtual
assistants, demand forecasting, fraud detection, spam filters–machine
learning powers all these modern services. But these uses barely
scratch the surface of what's possible.”
Microsoft Azure Machine Learning
http://azure.microsoft.com/en-us/services/machine-learning/www.smartmachines.fi

27. Watson as a cloud service
● IBM Watson is available as a cloud service (Sep
2014)
“In the future a cleaning robot in the hospital corridor
connected to Medical Watson might be able to give you
more precise diagnosis and prognosis than the doctor
who you are waiting to see.”
www.smartmachines.fi

28. Robotics makes digitalization visible in production,
services, transportation and all other areas of life

29. Sales of Industrial Robots
Worldrobotics.org: http://www.worldrobotics.org/uploads/tx_zeifr/June_04__2014_PI_IFR_World_Robot_Market.pdf
Record high sales of industrial
robots in 2013
www.smartmachines.fi

30. “Turning to the projections for the period of 2013 to 2016, sales forecast which
were provided by companies worldwide indicate an increase to about 94,800
units with an estimated value of US$ 17.1 billion.
Thereof, about 28,000 robots for defense applications are expected to be sold
in the period of 2013 to 2016. They are followed by milking robots with about
24,500 units. However, this is probably a rather conservative estimate. These
two service robot groups make up 55% of the total forecast of service robots at
the current time.”
www.smartmachines.fi
Sales of Service Robots
Worldrobotics.org: http://www.ifr.org/service-robots/statistics/

31. Sales of Domestic Service Robots
Worldrobotics.org: http://www.ifr.org/service-robots/statistics/www.smartmachines.fi
...vacuum and floor cleaning, lawn-
mowing robots, and entertainment
and leisure robots, including toy
robots, hobby systems, education and
research.

32. Drones - soon flying everywhere
https://www.sensefly.com/drones/ebee.html
No piloting skills required
The eBee takes off, flies and lands
autonomously.
The artificial intelligence incorporated in the
senseFly autopilot continuously analyzes data
from the Inertial Measurement Unit and the
onboard GPS and takes care of all aspects of
the flight mission.
www.smartmachines.fi

33. Autonomous vehicles create
creative destruction
https://atmelcorporation.wordpress.com/2014/10/08/gartner-smart-machine-disruption-will-dominate-this-decade/www.smartmachines.fi
Jobs will be lost and new ones created.
Gartner

34. Consumer robotics
https://www.indiegogo.com/projects/jibo-the-world-s-first-family-robot
Jibo
kickstarter project, shipping 2015
What is Jibo? It’s a little pod with a motorized
swivel, equipped with cameras, microphones
and a display. It recognizes faces and voices,
and can act as a personal assistant by setting
reminders, delivering messages and offering to
take group photos. It also serves as a
telepresence robot for video chat.
Time.com
www.smartmachines.fi

35. Internet of Things
There are 50 to 500 billion connected devices in 2020
IDC, General Electric

36. Smart, connected things
● Harward Business Review (Nov 2014)
“Embedded sensors, processors, software, and
connectivity in products, coupled with a product cloud in
which product data is stored and analyzed and some
applications are run, are driving dramatic improvements
in product functionality and performance”
www.smartmachines.fi HBR: https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

37. IBM SyNAPSE chip
● Computer chip imitating the
brain (introduced in Aug 2014)
IBM: http://www.research.ibm.com/cognitive-computing/neurosynaptic-chips.shtml
The architecture can solve a wide class of problems
from vision, audition, and multi-sensory fusion, and has
the potential to revolutionize the computer industry by
integrating brain-like capability into devices where
computation is constrained by power and speed.
www.smartmachines.fi

38. Intel Edison
● Remember Raspberry Pi?
● Intel Edison takes tiny
computers to the next level
● It can be the brains of almost
any device (width is only 35 mm)
Intel: http://www.intel.com/content/www/us/en/do-it-yourself/edison.html
The Intel® Edison development platform is the first
in a series of low-cost, product-ready, general
purpose compute platforms that help lower the
barriers to entry for entrepreneurs in the Internet of
Things (IoT).
www.smartmachines.fi
3,5 cm

39. Spark
● Spark is a Wi-Fi development
kit for connecting devices aka
“things” to internet
Spark: https://www.spark.io/
The Spark Core is our tiny Wi-Fi development kit
that helps you build a connected product in hours,
not weeks. The Spark Core is hooked to the Cloud
out of the box, and the entire design is open
source.
www.smartmachines.fi

40. The Smart Machine era will be the most disruptive in the history of IT.
Gartner Oct 2013

41. Smart, connected products
● Physical components
○ Example: The core product itself
● Smart components
○ Example: Intel Edison
● Connectivity
○ Example: Spark
www.smartmachines.fi
by HBR
HBR: https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

42. Categories of Smart Machines
● Movers
○ Example: Google “Self-Driving car”
● Doers
○ Example: Rething Robotics “Baxter”
● Sages
○ Example: IBM “Watson”
IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austinwww.smartmachines.fi
by IBM

43. Movers
Google Self-Driving Car: http://en.wikipedia.org/wiki/Google_driverless_carwww.smartmachines.fi
Google Driverless Car

44. Doers
Rething robotics: http://www.rethinkrobotics.com/baxter/www.smartmachines.fi
Baxter

45. Sages
IBM: http://www.ibm.com/smarterplanet/us/en/ibmwatson/what-is-watson.htmlwww.smartmachines.fi
IBM Watson beating top human players in Jeopardy 2011

46. Categories of Smart Machines
● Expert systems (sages)
○ Example: IBM “Watson”
● Autonomous robots (movers, doers)
○ Example: Google “Self-Driving car”
● Intelligent assistants (helpers?)
○ Examples: Apple “Siri”, Microsoft “Cortana”
Technavio: Oct 2014, http://www.technavio.com/blog/know-your-robots-top-three-types-of-smart-machinewww.smartmachines.fi
by Technavio

47. Categories of Smart Machines
www.smartmachines.fi
Categorization 1
by IBM
Categorization 2
by Technavio
Sages Expert Systems
Movers Autonomous Robots
Doers Intelligent Assistants

48. Problem solving with Expert System
www.smartmachines.fi Technavio: Oct 2014, http://www.technavio.com/blog/know-your-robots-top-three-types-of-smart-machine
Problem Definition
System Design
Formalization
System Implementation
System Validation

49. Characteristics of Autonomous Robot
● Self-Maintenance
● Ability to sense the environment (sensors)
● Ability to perform physical tasks (motorics)
● Ability to navigate point to point (movement)
www.smartmachines.fi Technavio: Oct 2014, http://www.technavio.com/blog/know-your-robots-top-three-types-of-smart-machine

50. 5 Generations of virtual assistants
First Generation
based on text, low-quality end-user interface
Second Generation
interactive moving, cartoon type characters, text-to-text, only little speech
Third Generation
animation, responses to speech, functionality to measure response accuracy
Fourth Generation
quality animated characters, dashboards, analytics, mobile solutions, high accuracy
Fifth Generation
3D images, extraordinary accuracy, requests feedback, full speech-to-speech support
www.smartmachines.fi Technavio: Oct 2014, http://www.technavio.com/blog/know-your-robots-top-three-types-of-smart-machine

51. Google Brain
● Artificial Intelligence (AI) is gaining a lot of
attention
www.smartmachines.fi http://arxiv.org/pdf/1112.6209v5.pdf
Building High-level Features
Using Large Scale Unsupervised Learning
Our high-level detectors also outperform standard baselines in terms
of recognition rates, achieving 74.8% and 76.7% on cat and human
body respectively. In comparison, best linear filters (sampled from
the training set) only achieve 67.2% and 68.1% respectively.
Stanford & Google -paper Jul 2012
Cat face drawn by computer base on
looking at cat images from Youtube.

52. Wearables, augmented reality
“Clothing and accessories incorporating computer and advanced
electronic technologies”
Wikipedia, Sep 2014
www.smartmachines.fi
Google Glass
Apple Watch

53. Wearables, categories
1. Lifestyle
○ enhancing and simplifying everyday tasks and activities
2. Entertainment
○ providing enjoyment and entertainment to the user
3. Health & Fitness
○ giving insight to the user by showing personal body data
www.smartmachines.fi http://wearableworldnews.com/2014/05/06/wearable-world-taxonomy
Global market of wearable to reach £30B by 2018

54. Exoskeletons
● “A powered exoskeleton, also known as powered armor, exoframe, or
exosuit, is a mobile machine consisting primarily of an outer framework
(akin to an insect's exoskeleton) worn by a person, and powered by a
system of motors or hydraulics that delivers at least part of the energy
for limb movement.”
Wikipedia
● Gaining a lot of attention with huge possibilities to offer (ie ReWalk*)
www.smartmachines.fi http://wearableworldnews.com/2014/05/06/wearable-world-taxonomy
*ReWalk helps paralyzed people to walk again. It had a successful IPO on Nasdac in Sep 2014

55. Role of Smart Machines
● Assist people
● Advise people
● Observe and help people
● Extend people
● Replace people?
...
IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austinwww.smartmachines.fi

57. The Future of Employment
Oxford Martin School: Sep 2013, http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf
“According to our estimate, 47 percent of total US
employment is in the high risk category,
meaning that associated occupations are
potentially automatable over some unspecified
number of years, perhaps a decade or two“
The future of employment: how suspectible are jobs to computerisation?
Frey & Osborne, Oxford Martin School
www.smartmachines.fi

58. Jobs will be lost
http://www.computerworld.com/article/2691607/one-in-three-jobs-will-be-taken-by-software-or-robots-by-2025.html
“One in three jobs will be taken by [Smart
Machines] by 2025“
Peter Sondergaard, Gartner research director, Oct 2014
www.smartmachines.fi

59. Still room for human employees
http://www.forbes.com/sites/darden/2015/01/12/the-ai-revolution-will-humanize-businesses/www.smartmachines.fi
“The predictions from experts at MIT, IBM and Oxford are that humans
still will be needed for jobs requiring complex critical thinking, creativity,
innovative thinking, and high emotional and social engagement with
other humans, as well as performing customized manual tasks
requiring physical dexterity.”
Forbes, Jan 2015, Ai Revolution Will Humanize Businesses

60. www.smartmachines.fi twitter.com/immon
What next?
● Innovations
● Investments
● Creative destruction
● New skills needed