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Why Dell’s emerging market growth outpaces the rest

Dell Technologies founder and CEO Michael Dell tells ARTHUR GOLDSTUCK that Africa is bright with tech opportunity

The founder and CEO of Dell Technologies says that the company’s rapid growth in Europe, Middle East and Africa (EMEA), which has outpaced that in the rest of the world, is a direct result of the massive opportunity in the region.

“Ultimately, we’ve invested where there has been opportunity,” Michael Dell said last week in an exclusive briefing. “The EMEA region has been a great performer, with fantastic capabilities and great teams. We’ve given the team a lot of resources, and customers have responded. It’s a familiar story, because it has also happened in other regions.”

Dell was talking at the end of the Dell Technologies World expo in Las Vegas, which drew a record 15,000 paying delegates this week. The event came in the wake of the company reporting its first quarterly results since relisting on the stock market following the record $67-billion acquisition of storage giants EMC. Revenue for the quarter reached $21.4-billion, up 19% from the previous quarter.

The company also recorded its fifth consecutive quarter of growth in PC shipments, led by the EMEA region, during a period that saw continual decline in PC sales globally, and many rivals exiting emerging markets.

“We’ve all learned that you have to evolve and change what you’re doing to stay relevant. The capabilities we’ve announced at Dell Technologies World this week are highly relevant and totally market oriented towards the demand out there. We’re significantly differentiated relative to our competitors, and our partners see that.”

Aongus Hegarty, president of Dell Technologies for EMEA, said that the region had gone through strong economic growth, which had led to increased demand for information technology. This was reflected in the emergence of numerous start-ups, as well as the expansion of small and medium enterprises.

“In combining Dell and EMC to form Dell Technologies, the collaboration between the two organisations has worked particularly well in all our markets in EMEA,” he said. “Michael has supported us in the Middle East and across Africa, at a time when many technology companies were withdrawing or outsourcing, while we were building up expertise on the ground.

“It’s much more a business discussion than a technology-led conversation. We start with business objectives and challenges.”

The biggest risk in the region, Michael Dell stressed, would be not taking risks.

“To me, risk goes with innovation and success,” he said. “So you have to take risk. Inside many big corporations people talk of risk reduction and risk management but, if you don’t take risks, you won’t innovate and you won’t succeed. It doesn’t mean all risks will be successful: you have to learn quickly, use data, understand what’s working and make adjustments as you go.”

Within the EMEA region, the territory known as META, covering the Middle East, Turkey and Africa, performed especially well. Mohammed Amin, Dell’s senior vice president for the territory, said the company saw 20% growth in the last quarter, and increased its 5000-strong workforce by 900 employees in the past year.

“Some of our competitors closed down in the region or reduced investment or headcount,” he said. “The acquisition of EMC gave us a huge opportunity to serve our customers. Many large customers already wanted to consolidate their vendors, so it was great thing for them when we came together.

“The other important thing was that there was no conflict of product or go to market strategy. Dell had access to so many customers that EMC could not access and vice versa, so combined we had access to a much bigger customer base.”

The South African market saw spectacular performance, propelling the country into the top ten of Dells’ global Digital Transformation Index, which measures business readiness to compete in a digital world. According to Doug Woolley, general manager of Dell Technologies in South Africa, the company holds just under 50% market share in storage hardware, around 40% in servers, and about 22% in personal computing.

“We’ve got a very strong market share position, but I’m less worried about share than how to help customers be competitive,” he said. “It’s about how do you help customers transform. The share looks after itself if you look after customers.”

The company also appears to be differentiated by its response to political uncertainty, which has been a factor in some competitors pulling back from emerging markets.

Said Amin: “We never pull back because of a short-term situation. This is one of our secret sauces. Companies trust that we will be there in good times, but also in tough times.”

The trust of customers, Michael Dell confirmed, was at the heart of the company’s success: “To continue winning their trust, we have to keep reinventing ourselves all the time. That is built into our culture.”

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Now IBM’s Watson joins IoT revolution in agriculture

Global expansion of the Watson Decision Platform taps into AI, weather and IoT data to boost production

IBM has announced the global expansion of Watson Decision Platform for Agriculture, with AI technology tailored for new crops and specific regions to help feed a growing population. For the first time, IBM is providing a global agriculture solution that combines predictive technology with data from The Weather Company, an IBM Business, and IoT data to help give farmers around the world greater insights about planning, ploughing, planting, spraying and harvesting.

By 2050, the world will need to feed two billion more people without an increase in arable land [1]. IBM is combining power weather data – including historical, current and forecast data and weather prediction models from The Weather Company – with crop models to help improve yield forecast accuracy, generate value, and increase both farm production and profitability.

Roric Paulman, owner/operator of Paulman Farms in Southwest Nebraska, said: “As a farmer, the wild card is always weather. IBM overlays weather details with my own data and historical information to help me apply, verify, and make decisions. For example, our farm is in a highly restricted water basin, so the ability to better anticipate rain not only saves me money but also helps me save precious natural resources.”

New crop models include corn, wheat, soy, cotton, sorghum, barley, sugar cane and potato, with more coming soon. These models will now be available in the Africa, U.S. Canada, Mexico, and Brazil, as well as new markets across Europe and Australia.

Kristen Lauria, general manager of Watson Media and Weather Solutions at IBM, said: “These days farmers don’t just farm food, they also cultivate data – from drones flying over fields to smart irrigation systems, and IoT sensors affixed to combines, seeders, sprayers and other equipment. Most of the time, this data is left on the vine — never analysed or used to derive insights. Watson Decision Platform for Agriculture aims to change that by offering tools and solutions to help growers make more informed decisions about their crops.” 

The average farm generates an estimated 500,000 data points per day, which will grow to 4 million data points by 2036 [2]. Applying AI and analysis to aggregated field, machine and environmental data can help improve shared insights between growers and enterprises across the agriculture ecosystem. With a better view of the fields, growers can see what’s working on certain farms and share best practices with other farmers. The platform assesses data in an electronic field record to identify and communicate crop management patterns and insights. Enterprise businesses such as food companies, grain processors, or produce distributors can then work with farmers to leverage those insights. It helps track crop yield as well as the environmental, weather and plant biologic conditions that go into a good or bad yield, such as irrigation management, pest and disease risk analysis and cohort analysis for comparing similar subsets of fields.

The result isn’t just more productive farmers. Watson Decision Platform for Agriculture could help a livestock company eliminate a certain mold or fungus from feed supply grains or help identify the best crop irrigation practices for farmers to use in drought-stricken areas like California. It could help deliver the perfect French fry for a fast food chain that needs longer – not fatter – potatoes from its network of growers. Or it could help a beer distributor produce a more affordable premium beer by growing higher quality barley that meets the standard required to become malting barley.

Watson Decision Platform for Agriculture is built on IBM PAIRS Geoscope from IBM Research, which quickly processes massive, complex geospatial and time-based datasets collected by satellites, drones, aerial flights, millions of IoT sensors and weather models. It crunches large, complex data and creates insights quickly and easily so farmers and food companies can focus on growing crops for global communities.

IBM and The Weather Company help the agriculture industry find value in weather insights. IBM Research collaborates with start up Hello Tractor to integrate The Weather Company data, remote sensing data (e.g., satellite), and IoT data from tractors. IBM also works with crop nutrition leader Yara to include hyperlocal weather forecasts in its digital platform for real-time recommendations, tailored to specific fields or crops. IBM acquired The Weather Company in 2016 and has since been helping clients better understand and mitigate the cost of weather on their businesses. The global expansion of Watson Decision Platform for Agriculture is the latest innovation in IBM’s efforts to make weather a more predictable business consideration. Also just announced, Weather Signals is a new AI-based tool that merges The Weather Company data with a company’s own operations data to reveal how minor fluctuations in weather affects business.

The combination of rich weather forecast data from The Weather Company and IBM’s AI and Cloud technologies is designed to provide a unique capability, which is being leveraged by agriculture, energy and utility companies, airlines, retailers and many others to make informed business decisions.

[1] The UN Department of Economic and Social Affairs, “World Population Prospects: The 2017 Revision”

[2] Business Insider Intelligence, 2016 report: https://www.businessinsider.com/internet-of-things-smart-agriculture-2016-10


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What if Amazon used AI to take on factories?

By ANTONY BOURNE, IFS Global Industry Director for Manufacturing

Amazon recently announced record profits of $3.03bn, breaking its own record for the third consecutive time. However, Amazon appears to be at a crossroads as to where it heads next. Beyond pouring additional energy into Amazon Prime, many have wondered whether the company may decide to enter an entirely new sector such as manufacturing to drive future growth, after all, it seems a logical step for the company with its finger in so many pies.

At this point, it is unclear whether Amazon would truly ‘get its hands dirty’ by manufacturing its own products on a grand scale. But what if it did? It’s worth exploring this reality. What if Amazon did decide to move into manufacturing, a sector dominated by traditional firms and one that is yet to see an explosive tech rival enter? After all, many similarly positioned tech giants have stuck to providing data analytics services or consulting to these firms rather than genuinely engaging with and analysing manufacturing techniques directly.

If Amazon did factories

If Amazon decided to take a step into manufacturing, it is likely that they could use the Echo range as a template of what AI can achieve. In recent years,Amazon gained expertise on the way to designing its Echo home speaker range that features Alexa, an artificial intelligence and IoT-based digital assistant.Amazon could replicate a similar form with the deployment of AI and Industrial IoT (IIoT) to create an autonomously-run smart manufacturing plant. Such a plant could feature IIoT sensors to enable the machinery to be run remotely and self-aware; managing external inputs and outputs such as supply deliveries and the shipping of finished goods. Just-in-time logistics would remove the need for warehousing while other machines could be placed in charge of maintenance using AI and remote access. Through this, Amazon could radically reduce the need for human labour and interaction in manufacturing as the use of AI, IIoT and data analytics will leave only the human role for monitoring and strategic evaluation. Amazon has been using autonomous robots in their logistics and distribution centres since 2017. As demonstrated with the Echo range, this technology is available now, with the full capabilities of Blockchain and 5G soon to be realised and allowing an exponentially-increased amount of data to be received, processed and communicated.

Manufacturing with knowledge

Theorising what Amazon’s manufacturing debut would look like provides a stark learning opportunity for traditional manufacturers. After all, wheneverAmazon has entered the fray in other traditional industries such as retail and logistics, the sector has never remained the same again. The key takeaway for manufacturers is that now is the time to start leveraging the sort of technologies and approaches to data management that Amazon is already doing in its current operations. When thinking about how to implement AI and new technologies in existing environments, specific end-business goals and targets must be considered, or else the end result will fail to live up to the most optimistic of expectations. As with any target and goal, the more targeted your objectives, the more competitive and transformative your results. Once specific targets and deliverables have been considered, the resources and methods of implementation must also be considered. As Amazon did with early automation of their distribution and logistics centres, manufacturers need to implement change gradually and be focused on achieving small and incremental results that will generate wider momentum and the appetite to lead more expansive changes.

In implementing newer technologies, manufacturers need to bear in mind two fundamental aspects of implementation: software and hardware solutions. Enterprise Resource Planning (ERP) software, which is increasingly bolstered by AI, will enable manufacturers to leverage the data from connected IoT devices, sensors, and automated systems from the factory floor and the wider business. ERP software will be the key to making strategic decisions and executing routine operational tasks more efficiently. This will allow manufacturers to keep on top of trends and deliver real-time forecasting and spot any potential problems before they impact the wider business.

As for the hardware, stock management drones and sensor-embedded hardware will be the eyes through which manufacturers view the impact emerging technologies bring to their operations. Unlike manual stock audits and counting, drones with AI capabilities can monitor stock intelligently around production so that operations are not disrupted or halted. Manufacturers will be able to see what is working, what is going wrong, and where there is potential for further improvement and change.

Knowledge for manufacturing

For many traditional manufacturers, they may see Amazon as a looming threat, and smart-factory technologies such as AI and Robotic Process Automation (RPA) as a far off utopia. However, 2019 presents a perfect opportunity for manufacturers themselves to really determine how the tech giants and emerging technologies will affect the industry. Technologies such as AI and IoT are available today; and the full benefits of these technologies will only deepen as they are implemented alongside the maturing of other emerging technologies such as 5G and Blockchain in the next 3-5 years. Manufacturers need to analyse the needs which these technologies can address and produce a proper plan on how to gradually implement these technologies to address specific targets and deliverables. AI-based software and hardware solutions will fundamentally revolutionise manufacturing, yet for 2019, manufacturers just have to be willing to make the first steps in modernisation.

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