EDITORIAL - Cryptocurrencies, Bitcoin Mining and Blockchain

What is it all about? Will it change anything? When?

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We hear cryptocurrency, bitcoin mining and blockchain in many conversations these days. The views seem to range from those who think it is hype, to those who are skeptical of the impact they face, to the very few who are convinced the world has changed forever.

At the bottom of this article is a funny video that summarizes three main flavours of sentiment toward cryptocurrency.

In this article I hope to stimulate the thinking of colleagues who may be in government, in senior management, on the advisory boards of nonprofits, directors of profit driven enterprises and those who invest. Some 2,600 are connected by LinkedIn and the rest (458K) read this blog.

Recently, the feed from CNBC ran the headline 'Secretive Chinese bitcoin mining company may have made as much money as Nvidia last year'.  The article went on to say:

• "Based on conservative estimates of gross margin of 75 percent and operating margin of 65 percent, Bernstein analysts calculate that Beijing-based Bitmain made $3 billion to $4 billion in operating profits in 2017". 

• "By contrast, Nvidia's operating profit was $3 billion during the same period, according to Bernstein's U.S. semiconductor team estimates".

So how can this be?  
Mostly because changes are occurring so rapidly. Of course even the casual observer will understand the implications of Nvidia Corporation profits after 24 years of capital intensive development being overshadowed by a bitcoin mining operation in its infancy. Bitmain was founded five years ago (2013) and is likely a less capital intensive operation. An interesting sidelight to this story is that Nvidia may, in fact, hold an important key to higher computing densities and lower power consumption in bitcoin mining with the SoCs and parallel processing capabilities it owns.

Okay, so what? 
Here's what. The lack of stability and massive speculation evident in cryptocurrency have blinded those who should be paying close attention to blockchain technology in the rest of the economy. 

Defining the blockchain in detail is beyond the scope of this article, however, several articles have appeared in InfoStream (Use the search feature). A recent InfoStream article featured Ginni Rometty CEO of IBM, was simple and explained blockchain to the US National Governors Association.

What is it all about? Will it change anything? When?
The main blockchain takeaways for your consideration are these:

1. Blockchain will convert every existing value chain into an ecosystem of collaborators working to deliver products and services to the customer with full transparency, financial security, lower cost and high levels of trust.
2. If you aren't in the ecosystem that evolves to serve your customers, you will lose your customer base and likely your business.
3. Blockchains already exist for food safety, country of origin, manufacturing processes, funds transfer, smart contracts and financial services, to name just a few.
4. If you move very quickly, there may still be an opportunity to be a driver of the blockchain and ecosystem that is rapidly developing to serve your customers.
5. According to Gartner, IBM, McKinsey and other analysts blockchain will have a more powerful disruptive effect than did the Internet.
6. In my lifetime, I have been associated with four major disruptions: Electrical to Electronic; Wired to Wireless; Analogue to Digital; and, the Bandwidth/Capacity of Optical Fibre. The speed at which blockchain is being embraced is beyond anything I have witnessed, possibly because there are so few barriers and such a high degree of benefit for all.

In my advisory activities, I use the term 'digital velocity' to define the acceleration (velocity) an organization must achieve to overcome the cultural and process inertia (gravity) preventing change and therefore future sustainability.

This is going to sound harsh, but I observe that many are ambivalent or ignorant of the consequences they face, while others sit on the deck of their  modern 'Titanic' discussing competitive improvements as the ship silently slips below the waves. My intent here is to sound an alarm and to provide a call to action.

Blessed are those who find wisdom, those who gain understanding, for she is more profitable than silver and yields better returns than gold. Wisdom, she is only a friend to those who act. It's time to get the help you need and act!

A COMMON RESPONSE TO CRYPTOCURRENCY:

DISRUPT - Yesterday US State Governors Tackled AI, Blockchain and Other Disruptors

The Winter Meeting of State Governors Plenary Session - Staying ahead of the Curve

InfoStream recommends that you invest an hour to view the streaming video from this Plenary Session in Washington yesterday. It will illuminate the future you face and the issues that private and public officials should be working on to become sustainable.

Ginni Rometty, CEO of IBM, addresses the Governors concerns about how innovative disruptors will impact those they serve. The session serves as a clarion call for a shift in paradigms across education, business, lifestyles, values, food safety, private/public alliances and consumer services. Simple illustrations of the technology and impact of Artificial Intelligence (AI) as well as Blockchain are provided.

Rometty shares how she moved IBM from a product orientation to a customer oriented provider of solutions. She outlines how disruption will reshape everything, but shows there will be much opportunity and outlines the programs that are working to retrain employees, improve the opportunities for high school graduates and resolve the developing shortage of technologists.

Nevada Governor, Brian Sandoval, has innovators like Elon Musk setting up shop in his state, so sees the disruption as well as the opportunities and issues first hand. Governor Sandoval leads the session as well as the Innovation Initiative for NGA. There is much of value here.

This plenary session of the National Governors Association was streamed live yesterday.

VIDEO SATURDAY - A Dream, Olympic Drones, Cognitive Computing, Free Riding, Net Neutrality

We are pleased to present 24 minutes of viewing curated by InfoStream for your edification:

INTEL - Walking the Dream, Published on Feb 9, 2018 (3'15")

Experience the moment Intel brought virtual reality to an Olympian’s hometown and brought an entire village together in celebration.

To experience this in VR, ready your system by going to Intel.com/Olympics/TrueVR #PyeongChang2018 #Olympics #ExperienceTheMoment

INTEL - The Tech Behind a Record-breaking Drone Show at PyeongChang 2018, Published on Feb 9, 2018 (1'15")

Watch a world record being broken in the harshest winter conditions. See how our engineers designed, created, and programmed more than 1,200 drones to soar above PyeongChang for the Opening Ceremony of the Olympic Winter Games.  Learn more about drones at The Olympic Games at intel.com/Olympics/drones.

IBM, Published on Feb 22, 2016 (1'30")

Glenn Finch on how cognitive computing picks up where the human mind leaves off, allowing executives to organise and understand information from a wide range of sources that individuals could never process on their own. 

Today’s leaders are now inundated with so much data and information that it’s difficult to detect meaningful knowledge and insight. 

While the potential applications for cognitive are vast, IBM recommends that corporations think about cognitive as a journey during which teams learn how cognitive works, discover its uses and applications and then scale its impact across disciplines and geographies.

Free Riding NZ- Published on Feb 10, 2018 (15'30")

One of our favorite Horse Women in the World, Alycia Burton, is asked for videos of horse schooling... so here is the latest! Alicia had been away for a month teaching so is just getting back into jump training. Here she is working on being accurate, light and reactive.

BURGER KING - Explains Network Neutrality using a Whopper, Published on Jan 24, 2018 (2'50")

The repeal of Net Neutrality is a hot topic in America, but it can be very difficult to understand. That’s why the BURGER KING® brand created WHOPPER® Neutrality, a social experiment that explains the effects of the repeal of Net Neutrality by putting it in terms anyone can understand: A WHOPPER® sandwich.

This effort aims to help people understand how the repeal of Net Neutrality will impact their lives. The BURGER KING® brand believes the Internet should be like the WHOPPER® sandwich: the same for everyone. Help keep Net Neutrality safe by signing the petition at Change.org/SavetheNet

"Actual Guests. Fake pricing for illustration purposes only. TM & © 2018 Burger King Corporation.  All rights reserved."

INVEST - Barclay's is Bullish on IBM's New Strategy in Cloud and Blockchain

A 'new dawn emerges' as Rometty Strategy Moves IBM

Ginni Rometty, CEO of IBM.

Barclays raised its rating on IBM stock to overweight all the way from underweight yesterday.

"We think that IBM could emerge as the next important cloud vendor after Amazon and Azure over time as customers seek a multi-cloud strategy to avoid vendor lock-in or technology complacency," wrote Barclays analyst Mark Moskowitz. "As a result, IBM's strategic revenue should surpass legacy revenue – implying the worst may be over."

The Barclay's analyst raised his price target to $192 from $133, representing 17 percent upside from Tuesday's close.

IBM has struggled and the company's revenue had declined for 22 quarters in a row.

Developments in analytics, cloud, mobile and security technologies are all being considered as a way to offset revenue shortfalls in the company's legacy products, according to Moskowitz. Roughly 46 percent of revenue in the third quarter came from these new strategic imperatives, while cloud revenue for the quarter was $4.1 billion, up 20 percent from the previous year.

One of the technologies highlighted by Moskowitz, blockchain may also be an area in which IBM could capitalize. It currently has 1,500 employees assigned to developing blockchain, hoping to leverage the popular technology with Walmart to address food safety.

"Eighty-four percent of chief investment officers plan to use multiple cloud vendors and IBM's initiatives with both blockchain and analytics could help the company become a more competitive vendor for certain cloud workloads," Moskowitz said. "Uptake of these solutions would benefit IBM revenue and help scale the company's cloud segment margin."

While not mentioned by Moskowitz yesterday, InfoStream sees IBM's move to serve up 'Watson' as a service announced by Rometty at CES 2016 as being vital to the future of the company.

VIDEO SATURDAY - A Bell, A Bike Helmet and A Business Model

InfoStream Video Saturday is pleased to bring you three short films to watch (10m):

GE 2017 (3M) - Unimpossible Missions: 'You Can't Unring a Bell'

IBM 2015 (2M) - Shanker Ramamurthy on Business Model Innovation: The Why, When and How of Incubation 

GE 2013 (4M) - The invisible bike helmet:

INNOVATE - Blockchain Explorers - Adding Trust to the Ecosystem

The IBM Institute for Business Value global survey of nearly 3,000 executives uncovered a unique group - Blockchain Explorers. One of the biggest ways Blockchain Explorers are setting themselves apart is by embracing a platform business model. Find out what else they're doing differently:

Join members of the Blockchain Research Institute and explore a blockchain Proof of Concept (POC) activity that will add trust to your ecosystem.

INNOVATE - IBM Report on Augmented Intelligence in Banking

As this IBM report shows, the client is at the heart of transformation

Several decades ago Much Music discovered their audience could be trusted to determine the popular music videos of the day. It turned out the Much Music audience drove the channel to the top of the leader board as well as the music they selected to the top of the charts. There were huge implications for broadcast networks and the music industry.

As I shared with a leader in the beef industry recently, consumers have always controlled brand. What has changed is their ability to mass communicate and influence each other so quickly using social media. Perhaps it is time to gather up these client influencers and give them a client experience (CX) that satisfies and gains their trust!

This IBM report shows how Augmented Intelligence in the financial service industry is driving the transformation of the system for clients. 

• Imagine; a client centric business. 
• Imagine; your competitors becoming client centric before you do. 
• Imagine; the fourth industrial revolution with cognitive computing systems:
• that learn from and augment people rather than replacing them
• located at the confluence of physical, digital and biological realms.

Here's the report

These eight pages will help you understand why being client centric is important and how cognitive computing can help you to achieve this goal. If you don't already have a plan, it may be time to call the good people at IBM.

"61 percent of marketing and sales executives said cognitive computing (a form of augmented intelligence) will be a disruptive force in their industries. Yet only 24 percent of survey respondents said they have a strategy for cognitive computing today."

Why is this important:
Because access to your business has been commoditized by the internet. With so many choices of where to do business and with similar offers, similar rates and comparative service, customers are voting their dollars based on experiences that satisfy them. You need to know how you've scored with your client in real time.

Change Management - IBM on Accidental Agitators

IBM recently published an Executive Report and InfoGraphic for the transportation sector that was entitled 'Accidental Agitators'.

Please click on the image below to see the entire IBM InfoGraphic. Even though you may not be in the transportation sector, there is much to learn here.



We believe you will be struck by an emerging picture of what is driving digital reinvention and also where the drivers are coming from. The picture coming into focus is that the disruptors of your business may not be those who you have always looked upon as your competitors. In fact, those who can disrupt your business may not even be in your sector.

Furthermore, as the borders of the world and industry you know become blurred, porous or even non-existent you will need to become agile or risk losing the relevance required to sustain your business.

As you think about reinventing your business, we believe this IBM information  can provide you with the keys to creating a new model and new values with consumer centricity through openness, innovation and collaboration. 

It's time to grab the handles of your wheelbarrow!

BUSINESS - Apple Joins Other Tech Giants in Artificial Intelligence Partnership

Partnership on AI was formed in 2016 and while Apple was involved since the beginning, the corporation became an official founding member this week.

 

Apple joins a group that includes some of the biggest names in tech - Amazon, DeepMind/Google, Facebook, IBM, and Microsoft.

The growth in artificial intelligence (AI) products, and concerns about potential risks prompted the formation of Partnership on AI whose goal is to ensure that applications of AI are beneficial to people and society.

The organization will study the potential societal impact of AI systems, develop and share best practices, develop educational resources and host open forums to share information about the latest topics in the field.

They will also create working groups for different sectors, for example healthcare and transportation, conducting research on the specific AI applications in these different areas of the economy.

Some fears surrounding AI include criminal use, robots taking over the workforce, privacy, and even the end of the human race.

Many believe, however, AI machines and applications are the next generation of sophisticated tools enhancing our human capabilities.

The aim of Partnership on AI is to help ensure the positive application of artificial intelligence.

According to their website, “Diversity of thought across the organization is crucial to ensure that we effectively explore and address the influences of AI on people and society, provide guidance on AI best practices, and seek to advance the public’s understanding of AI.”

INNOVATE - Olli Automated Buses to Launch in 2017

Tiny (they only seat 12), talking, electric, driverless buses – they’re approachable, environmentally responsible by multiple metrics, app-summonable, and they aim to bridge the gap between people and robots.

There’s a lot to get excited about with Olli, the automated buses that Local Motors will be launching in Las Vegas and Miami in 2017.

For one thing, they represent a leap forward in fully automated, driverless vehicles – potentially years ahead of fully autonomous passenger vehicles.

Although most predictions agree that the technology is years away from full automation, many companies are vying for dominance in the growing field.

Delphi and Mobileye are making waves with their hopes to release a version of a self-driving car kit in 2017, and given some of their industry advantages, they have the potential to jump ahead of their competitors.

According to the Society of Automotive Engineers outline, Olli buses would be Level 4 on the automated driving system scale, which is beyond any self-driving passenger cars currently available.

Unlike the Uber self-driving car launch in Pittsburgh this year, the Olli buses will be supervised remotely but do not appear to have a back-up driver riding along. That driver, who takes over when things get tricky, keeps the Uber fleet at a Level 3.

(Copyright 2014 SAE International J3016)

Olli buses aim to do more than advance self-driving car technology.

CEO Jay Rogers told CNN that he imagines a near future where Olli can “deliver medicine, provide advertising on demand, or roll up en masse in an area where there is an active shooter and block people so they can get out of harm's way."

The buses will use IBM’s Watson, cutting edge “cognitive technology” that hopes to provide an engaging, responsive, conversational interaction for passengers.

IBM and Local Motors want to foster a friendly relationship between customers and the robot. Watson may also connect to users’ social media, for more personalization.

Watson is also an Internet of Things platform, and the connectivity of the buses to a wide range of other connected devices such as apps, maps, sensors, and monitors both on the vehicle and beyond is a critical part of what will make the buses safe and effective.

The buses use haptic sensors to ensure that they stop when they contact anything, and uses lidar to see the surroundings.

Olli’s production model also hopes to address some of the environmental impact of vehicle production.

Not only is Olli entirely electric, with wireless recharging, the production includes 3-D printing for parts of the vehicle. These materials generate fewer carbon emissions, and they can be broken down and reused.

Although Olli hasn’t debuted yet, and will have a limited first release on campuses and airports, chances are you will see on-demand, driverless, highly interactive buses in a city centre near you within a few years.

By Tiffany Sostar

Tiffany is a writer, editor, academic, and animal lover who came late to her appreciation of pets. At 18, a rescue pup named Tasha saved her from a depression and she hasn't looked back. She has worked as the canine behaviour program coordinator for the Calgary Humane Society, and was a dog trainer specializing in working with fearful and reactive dogs for many years. She doesn't have any pets right now, but makes up for it by giving her petsitting clients (and any dogs she comes across on her frequent coffee shop adventures) extra snuggles.

BUSINESS - Optimize Your Customer Journey Through Mobile

(pexels.com)

Customers don’t just enter your business through the front door anymore. There are websites and numerous social media channels that can bring customers in.

And mobile has caused a huge shift in how customers engage with businesses.

Now you have to understand mobile users’ habits and behaviour so you can maximize sales and engagement. A new customer path has to be carved as businesses strive to be continually engaged with consumers.

So, how do you integrate mobile initiatives into your customer experience strategy?

IBM and Forrester Research have joined forces to offer a webinar - Top Ways to Influence and Optimize the Customer Journey Through Mobile Touchpoints - on Tuesday, September 13th.

Guest speaker Julie Ask from Forrester Research will share case studies and discuss how you can influence customers' decision-making and streamline their journeys through seamless mobile experiences.

You will learn:

• How companies in different industries benefit from mobile moments and mobile touchpoints to improve overall customer journey
• How mobile impacts customer journeys, online and offline
• How customer behavior and preferences impacts future decisions
• What you can do to influence and guide customers to stay on track of their journey with mobile experiences and engagements.

As customers move away from following traditional paths to your company, this webinar could help you avoid missteps in the mobile market.

Register here.

BUSINESS - Alphabet (Google) Most Valuable Public Company in the World

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With a market capitalization of US$565 billion (+/-) Alphabet moves past Apple the former leader at US$539 billion.

Alphabet Inc. (Google) released its quarterly earnings report after the market closed yesterday and moved past Apple to become the world’s most valuable public company.

What does this mean? With the huge shift in economic and market paradigms it is becoming obvious that capital is moving away from devices toward ecosystems and services. Those who seek funding and those who invest need to pay close attention to where capital moves so they are not disadvantaged.

Furthermore, those involved in manufacturing, distribution and retail must also understand the meaning of this revolution. If capital is rewarding those who help consumers discover products and services more than those who produce, there are large implications for investments in technology, marketing, communications and media.

While Apple blames a slow quarter, the evidence suggests Alphabet was moving ahead since reporting its second quarter profit in July, 2015. Since then Alphabet has risen 28% while Apple’s shares have fallen 25%. Moreover, Alphabet continues to beat the Wall Street projection. Meaning the market guru's have been slow to respond to the shift in the flow of capital.

According to S&P's Silverblatt, achieving this milestone makes Alphabet the 12th company to achieve the title of most valuable company in the history of the index. Apple became the 11th company in August 2011. Other companies have also held the crown. They include Exxon (XOM -2.54%), IBM (IBM -1.45%) and Microsoft (MSFT -2.61%). Surely this places ecosystem and services ahead of energy, machines and software.

While Google executives hear the footsteps of large social media players like Facebook, it must be satisfying to see that building the largest ecosystem in the world has made them the market leader. Small emerging companies who are building ecosystems with the trust of an active subscriber base are on the right track. The patient building of subscriber services will be rewarded as capital gets wise and moves toward them.

LEADERSHIP - What happens when IBM's Watson meets the Internet of Things

For the first time in history, IBM Chairman, President and CEO, Ginni Rometty delivered the 2016 Keynote Address at CES. Why would the world's leading digital technology company be invited to present to the world's largest consumer electronics show?

Because IBM's Watson and cognitive computing is now available to 'everyone' as the line between consumer and industrial/commercial technology blurs. 

The Consumer Electronics Show needed to show the cross-over between IOT (Internet of Things) and the impending 'cognitive' wave that is developing because of IBM's decision to make 'Watson' (intelligent cognitive computing) available to the public as an internet service.

Whether athletics, health, weather, airplanes or robotics, the cognitive power of Watson is already being leveraged for 'everyone' as well as for those who intend to 'serve everyone'. Cognitive computing is expected to add value to life and life's experiences. As Rometty herself observed, "The pace of cognitive development has accelerated beyond anything we expected or experienced in the past".

If you want to see how 'cognitive' computing will change your world or wish to have a glimpse of 'Next big Thing', watch this Keynote: