IW14 Session: Dr. John Bates, Board Member, Software AG

The Age of the Machine
and what it means for software
Dr. John Bates,
Member of the Group Exec Board

Innovation World 2014 October 13 – 15 New Orleans
©2014 Software AG. All rights reserved.

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

8.4 meters 4.7 meters
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

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
M2M ACTIVE
MONITORING
OF 250 DATA
POINTS
MEASURES EVERY
30 SECONDS
REAL-TIME
DIAGNOSTIC
PERFORMANCE
DASHBOARD
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
“Mind reading” marketing offers
Improved campaign
effectiveness
A personal concierge
for every customer
Improved customer
stickiness
Reduced
fraud

“Mind reading” marketing offers
Customer within
range of designer
shoe store
• 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

Recurring crises in capital markets
• Market
manipulation
• Ever-evolving
regulation
• “Fat finger”
trading errors
• Rogue traders
• Wild
algorithms

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
Order data
data
Market abuse manipulation
“Behaviour”
monitoring
“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”

HR
data
Physical
access
data
Calendar
data
Visual
analytics
/ alerting
Trade
data
Settlement
clearing
Rogue trader detection
“Behaviour”
monitoring
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

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

IW14 Session: Dr. John Bates, Board Member, Software AG

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IW14 Session: Dr. John Bates, Board Member, Software AG