42.cx, September 9th 2019
Ms Ovtcharova, to what extent has digitalisation changed people so far?
In times of digitization, technology and knowledge generations are changing faster and faster, meanwhile several times within a human life. Computer, Internet and now AI age: These are three radical changes of the past 60 years, which came in increasingly shorter intervals. This has never happened in human history. In this context, there is also a faster generation change of people. A generation is no longer characterized only by its age and its social and economic conditions, but mainly by a similar approach to technology and knowledge. Thus, the generation of the vintages 1965 to 1980, which is called Generation X, grew up largely with television as well as video and computer games and became mainly through the media witness of the technological change. I call them the generation of "offliners". The Generation Y, also called Gen Y or Millennials, grew up with the Internet and is increasingly seeing the world through the Internet glasses. And finally, we're talking about the youngest, Generation Z. It includes creators and gamers whose everyday lives are almost entirely dictated by digital technology. The first humanoid robots like JD, Pepper and Sophia fall into their time.
A good development in the context of digitization in Germany is that the affiliation to the generations is less and less linked to the birth cohorts. Due to the wide availability of digital technologies, we are now experiencing a multi-faceted intrageneration variance that has no limits. But it is bad that we still do not get in the way. This must happen as soon as possible. In order to retain our leading position in the economy, the traditional trademark "German Engineering" is no longer sufficient. John F. Kennedy has said, "Who has a head start in life, who tackles where others first talk." A view that is more relevant today than ever before.
Where on the digitization path are we in Germany?
According to a study by Cisco and Gartner at the end of March 2019, Germany is ranked 6th out of 118 countries in terms of digital maturity - also due to the good economic conditions - but lags behind in many areas.
There is a pent-up demand for digital products and services (rank 18), digital education and skills development (rank 19) and even more conditions for start-ups and investment in politics and business (rank 29). Result of the study: "There are only a few countries that have better conditions to be digitally successful. What the Germans still lack is openness and the desire to try new things. "I fully agree with that.
It is fundamentally important to understand that information technology only provides the necessary but not sufficient conditions for a profound change in society and the economy. Even if IT is becoming smarter, it remains only a tool. Digitization by definition requires profound change processes. On the one hand, these concern the mindset of people and, on the other hand, existing structures that are perceived as business models from the outside.
Traditional business models are determined and controlled by a direct exchange between people, such as the operation of a taxi company or travel agency. And here is the problem in Germany. In every reasonably well-founded conversation about digitization, the term Internet platform appears. Microsoft, Apple, Amazon, Alphabet, Facebook and Tencent - these are the first six of the world's top ten publicly traded companies in 2019. And all of them are based on platform models. Far behind, in 48th place, SAP is the most successful German company, as well as platform-based. The business concept is conceivably simple: platforms create two-sided markets between providers and customers and generate their added value from data. The execution of the algorithms is predominantly autonomous.
In Germany, the implementation on Internet platforms is slow. Only the interest and willingness for digital business models is growing - due to increasing competitive pressure. A long way lies ahead.
What does the increasing shortening of innovation cycles mean for the organization of companies?
Alone being a structured technology provider is not enough today and this trend will intensify. The organization of the future is flat, agile and well networked. Response to new developments will play a critical role in the company's success: is the new development useful to us and our customers? If so, how can we add value to our business as quickly as possible? Personalized customer loyalty will also become more important. These include fast analysis and optimization cycles for the processes. The prerequisite is the transition from local IT infrastructures to cloud- and edge-based architectures.
The biggest challenge for the organization, however, is to provide employees with access to continuous digital training. Further education is a decisive factor in success. For while digitization is still sometimes understood as a project that can be outsourced, it is becoming more and more a part of day-to-day business, affecting every single employee.
You are watching the trend away from the Internet of Things to the "Internet of the senses" - what is behind the term?
First of all, the Internet of Things: the term stands for technologies that connect physical and digital objects with each other and allow them to work together through information and communication technologies. It mainly relates to the industrial and commercial side of Internet usage, such as manufacturing, logistics and commerce.
On the side of the "Internet of the senses", Internet companies like Facebook, Google, Amazon, Alibaba and many more have made the future with tremendous speed and entrepreneurial drive. They profoundly change people's lives in terms of their sensory perceptions. Digital seeing, listening and talking via Skype and Messenger are everyday life today. Also, how smelling and tasting can be digitally translated is an issue. Consumer articles are increasingly advertised and sold over the Internet via an emotional appeal on an unprecedented scale.
In addition, a new dimension of perception arises in connection with stationary or mobile virtual and augmented reality solutions. In a virtual space, people can explore digital products or services better than on screen. It allows a personalized and intuitive interaction similar to the real world. This is a paradigm shift: For a long time, we have adapted to the way computers work. We learned how to use different software menus and how to use mouse and keyboard as fast as possible. We could not really bring in our intuition here. Above all, people learn through interaction and intuitive movement, which both apply to virtual reality. With the control of speech, movement and interaction, we no longer adapt to the computer, but vice versa. In the "Internet of the Senses", we can dream about the reality of tomorrow, explore it and help shape its development. We can also simulate situations that are not really possible or very dangerous - and in this way train our abilities and senses. The possibilities are very diverse and exciting.
Many companies are still hesitant about digitization. What would you advise the manager of such a company?
In recent years, digitization trends on the world market have become so severe that all people need to be aware of their responsibility. Digitalisation is no longer just a matter of wishful thinking, but of survival. Let us take as an example the survey of the German Chamber of Industry and Commerce on the expected effects of digitization on German companies from the year 2017. For example, 72 percent of the 1,806 companies surveyed expect labor flexibility to increase. Opportunities through new business models for their own companies see 67 percent. An increase in sales is expected 44 percent. An increase in the number of employees 18 percent.
Of course, digitization also has its downsides. At 75 percent, these are mainly seen as security risks and 65 percent in legal uncertainties. However, these are not insurmountable problems that should keep companies from investing in digitization. In most cases, security and legal risks lead back to a lack of investment in skills development when dealing with computer security.
The most important thing is to do away with the old stereotypes and look ahead. Digitization offers untold potential for new work and business models. For a modern company, vision, zeitgeist and passion, not just any success story are off the shelf. First, my advice is to have the courage and the will to go your own way. At the front is where nobody knows, and there is no roadmap. The saying "The day before something is a breakthrough, it's a crazy idea" by Peter Diamandis, founder of the X-Prize Foundation, I find particularly appropriate at this point. Second, take investment risk and do not underestimate the cost of change. Google, Apple and Facebook began their triumphal march when there were supposedly overpowering opponents like Yahoo, Nokia or MySpace. And thirdly, follow your own intuition about employees and partners and work together only with the best.
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42.cx, December 23rd 2019
Dear Partners & Customers!
During this festive season of giving, let us take time to slow down and enjoy the simple things.
May this wonderful time of the year touch your heart in a special way.
Wishing you much happiness not just today, but throughout the New Year!Read more...
42.cx, November 15th 2019
Once again 350 renowned participants from the areas of business, science and politics are expected at the 2019 DIGICON and will hold visionary presentations and discussions. Accompanying the convention will be the pitch battle for the 4th Munich Digital Innovation Award as well as the Marketplace of Innovation, which will give successful start-ups, KMU’s and large companies the opportunity to present groundbreaking innovations. We are proud to speak about "IP Assets: An Awakening in the Market? How to use Artificial Intelligence....Read more...
42.cx, Kurt Hornburg, November 13th 2019
In Nobel Prize winner Robert Shiller’s new book “Narrative Economics”, Shiller advocates ‘stories do still matter’ – that narratives based on fact or fiction can go viral and influence the actions of consumers and firms. Hence, economists should pay more attention to people’s narratives and be better story tellers themselves. Hannah Fry, a Professor in mathematics at University College London, uses stories effectively in her entertaining and accessible book about data.....Read more...
42.cx, November 13th 2019
During a global partner conference of an international M&A firm in Madrid, 42.CX presented the utilisation of IP and Intangible Asset analytics to enhance the process of M&A related short-list generation. Traditionally, when Company X wants to expand in a particular technology area and wants to prepare a list of potential acquisition candidates, questions around how to identify targets or how to rank them arise. A classical job for an M&A advisory firm. 42.cx presented a machine learning based approach, where an M&A target list was....Read more...
42.cx, October 28th 2019
42.CX, represented by Jivka Ovtcharova, presented at the ICMEE 2019 in China. The ‘2019 International Conference on Mechanical Engineering Education’, held by Chinese Mechanical Engineering Society (CMES), American Society of Mechanical Engineers (ASME) and Institution of Mechanical Engineers (IMechE), is a high-level standard activity in the area of mechanical engineering education. This conference is co-operated by CMES, ASME and IMechE, National Mechanical Engineering Teaching Advisory Board under the Ministry of Education and MEUEE....Read more...
42.cx, Nicole Büttner-Thiel, September 30th 2019
AI, machine learning and robotics have become omnipresent in daily life and headlines. While innovators are ravishing that it can eradicate close to all of humanity’s problems and data and machines will in future take all the decision. At the same time, the public debate about the impact of these technologies is often fundamentally pessimistic painting a picture of superintelligent machines taking over the world to dominate and eventually eradicate the human race. The response to this is often defensive, trying to fend off disruptive forces to preserve a status quo and even idealize ....Read more...
42.cx, September 25th 2019
The global innovation race is heating up, with advances in artificial intelligence, blockchain, biotechnology, data storage and other cutting-edge technologies transforming sectors and global markets. This is also evidenced in the fact that the ratio of tangible to intangible assets of industry leaders around the world has been seeing ....Read more...
42.cx, Gabriele Zedlmayer & Martin Drexler, September 24th 2019
Many people keep asking about the connection between Yossi Vardi, the famous Israeli VC and Hubert Burda. It all started with a small conference in Beer Sheva almost 20 years ago called “Cool people in the hot desert”. This first major conference of the Hubert Burda Center in cooperation with Yossi Vardi was created to build a bridge between Germany and ....Read more...
42.cx, August 6th 2019
It is a man-made development that demands much from its habitual-loving creator: digitization. Your constant companion: the change. How is digital progress changing people? What role do our senses play in this? And to what extent must people rethink and reorganize companies in order to advance digitization in Germany? These and other questions are answered...Read more...
42.cx, July 29th 2019
KARLSRUHE, Germany, July 29, 2019 The Karlsruhe Institute of Technology (KIT) announced the establishment of the Center for Artificial Intelligence Talents (CAIT) located at the university's campus. CAIT considers digital education and the use of AI for everyone as a core requirement for professional success and participation in social and professional life...Read more...
42.cx, July 9h 2019
ARTIFICIAL INTELLIGENCE puts the world in which we live and work in a fundamental upheaval. Like never before, whole industries and lifestyles change. A race for the future has begun at a moment when a great deal is at stake. "Any profound change also offers new opportunities for all who recognize the signs of the times." Under this motto, the Institute for Information Management in Engineering at the Karlsruhe Institute of Technology is...Read more...
42.cx, Giacomo Bonavera, June 14h 2019
42.cx is the leading research, advise and market intelligence provider for financial institutions in the area of Artificial Intelligence. As an independent authority, 42.cx classifies the AI market and constantly monitors 11.000+ companies in the field of Artificial Intelligence. 42.cx issues Market Intelligence Special Reports to different topics about the AI industry.
NVIDIA (NASDAQ: NVDA) share price slumped to half the value from its last year highs. While...Read more...
42.cx, PRESS RELEASE, May 10h 2019
The expert members of the 42.cx Index Rebalancing Committee Meeting got together and conducted the quarterly review of the AI-42 INDEX™ constituents, discussed the latest Artificial Intelligence trends and shared market insights from their delegation visit to China. The rise of AI companies globally is continuing, with the AI-42 INDEX™ Q1/2019 closing at 10.677,55 points, an increase of 2.465,24 points (+30,02%) since the beginning of this year. The index, which is expressing the global growth of the...Read more...
42.cx, Mike Halsall, May 7th 2019
In February 2018, the FT published an article outlining ‘Why we are in danger of overestimating AI’, arguing that ‘considerably more work is needed before we can reach the long-dreamt-of moment when machine intelligence matches the human variety’. By 2030, just 11 years from now, China has vehemently expressed its ambition to ‘lead the world in AI’. Is this a realistic ambition, or has China become entirely conceited in the midst of its new-found wealth and growing economic muscle?Read more...
42.cx, PRESS RELEASE, March 29th 2019
41.35% of so called AI companies do not use AI at all. 10,861 public and private companies have been analysed worldwide. New AI Market Intelligence Platform helps Venture Capital firms, Private Equity companies, asset managers, analysts, family offices and financial institutions to identify investment opportunities.
42.cx, Gabriele Zedlmayer, March 15th 2019
So there seems to be trouble in Paradise. The globe is facing massive challenges like climate change, cyber-crime, shortage of available resources, political instability and the potential of massive job loss because everything that can be automated will be. At the same time, we are seeing unprecedented opportunities like we have never before. Algorithms help us to better diagnose, predict and prevent diseases, they revolutionize the education sector by treating each student as an individual, and they free us from many repetitive and often cumbersome tasks.Read more...
42.cx, Anne Gfrerer, March 9th 2019
In the last years, technology has gradually become invisible and digital ubiquity is arising in our daily work and private lives. This is also true for artificial intelligence and its impact for companies to succeed in the digital age. Organizations must foster their digital readiness, which decides about their future business model and which encompasses a...Read more...
42.cx, Jivka Ovtcharova, February 21st 2019
We live in exciting times. Artificial Intelligence (AI) is fundamentally transforming the world with all its facets. Even if it has been around for a while in science and technology, aiming to create machines with some form of human intelligence, over time AI has become an inseparable part of our daily lives, personal as well as professional. Online searching engines, financial transactions, digital personal assistants, image and voice recognition are...Read more...