IoT

Blockchain, Data Governance, and Smart Contracts in a Post-COVID-19 World

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The last few months have been very disruptive to nearly everyone across the globe. There are business challenges galore; such has managing large remote workforces – many of whom are new to working remotely, and managing risk while attempting to conduct “business as usual.” Unfortunately for most businesses, their systems, processes, and internal controls were not designed for this “new normal.”

While there have been many predictions around Blockchain for the past few years it is still not widely adopted. We are beginning to see an uptick in adoption with Supply Chain Management Systems for reasons that include traceability of items – especially food and drugs. But large-scale adoption has been elusive to date.

Image of globe with network of connected dots in the space above it.

My personal belief is that we will soon begin to see large shifts in mindset, investments, and effort towards modern digital technology driven by Data Governance and Risk Management. I also believe that this will lead to these technologies becoming easier to use via new platforms and integration tools, and that will lead to faster adoption by SMBs and other non-Enterprise organizations

Here are a few predictions:

  1. New wearable technology supporting Medical IoT will be developed to help provide an early warning system for disease and future pandemics. That will fuel a number of innovations in various industries including Biotech and Pharma.
    • Blockchain can provide the necessary data privacy, data ownership, and data provenance to ensure the veracity of that data.
    • New legislation will be created to protect medical providers and other users of that data from being liable for missing information or trends that could have saved lives or avoided some other negative outcome.
    • In the meantime, Hospitals, Insurance Providers, and others will do everything possible to mitigate the risk of using the Medical IoT data, which could include Smart Contracts as a way to ensure compliance (which assumes that there is a benefit being provided to the data providers).
    • Platforms may be created to offer individuals control over their own data, how it is used and by whom, ownership of that data, and payment for the use of that data. This is something that I wrote about in 2013.
  2. Data Governance will be taken more seriously by every business. Today companies talk about Data Privacy, Data Security, or Data Consistency, but few have a strategic end-to-end systematic approach to managing and protecting their data and their company.
    • Comprehensive Data Governance will become both a driving and gating force as organizations modernize and grow. Even before the pandemic there were growing needs due to new data privacy laws and concerns around areas such as the data used for Machine Learning.
    • In a business environment where more systems are distributed there is increased risk of data breaches and cybercrime. That will need to be addressed as a foundational component of any new system.
    • One or two Data Integration Companies will emerge as undisputed industry leaders due to their capabilities around MDM, Data Provenance & Traceability, and Data Access (an area typically managed by application systems).
    • New standardized APIs akin to HL7 FHIR will be created to support a variety of industries as well as interoperability between systems and industries.
  3. Anything that can be maintained and managed in a secure and flexible distributed digital environment will be implemented as a way to allow companies to quickly pivot and adapt to new challenges and opportunities on a global scale.
    1. Smart Contracts and Digital Currency Payment Processing Systems will likely be core components of those systems.
    1. This will also foster the growth of next generation Business Ecosystems and collaborations that will be more dynamic in nature.

All in all this is exciting from a business and technology perspective. It will require most companies to review and adjust their strategies and tactics to embrace these concepts and adapt to the coming New Normal.

The steps we take today will shape what we see and do in the coming decade so it is important to quickly get this right, knowing that whatever is implemented today will evolve and improve over time.

IoT and Vendor Lock-in

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I was researching an idea last weekend and stumbled across something unexpected. My personal view on IoT has been that it provides a framework to support a rich ecosystem of hardware and software products. That flexibility and extensibility foster innovation, which in turn fosters greater use and ultimately adoption of the best products. It was quite a surprise to discover that IoT was being used to do just the opposite.

My initial finding was a YouTube video about “Tractor Hacking” to allow farmers to make their own repairs. That seemed like an odd video to appear in my search results, but midway or so through the video it made sense. There is a discussion about not having access to software, replacement components not working because they are not registered with that tractor’s serial number and that the only alternative is costly transportation of the equipment to a Dealership to have a costly component installed.

Image of jail cell representing vendor lock-in
Image Copyright (c) gograph.com/VIPDesignUSA

My initial thoughts were that there had to be more to the story, as I found it hard to believe that a major vendor in any industry would intentionally do something like this. That led me to an article from nearly two years earlier that contained the following:

“IoT to completely transform their business model”   and

“John Deere was looking for ways to change their business model and extend their products and service offering, allowing for a more constant flow of revenue from a single customer. The IoT allows them to do just that.”

That article closed with the assertion:

“Moreover, only allowing John Deere products access to the ecosystem creates a buyer lock-in for the farmers. Once they own John Deere equipment and make use of their services, it will be very expensive to switch to another supplier, thus strengthening John Deere’s strategic position.”

While any technology – especially platforms, has the potential for vendor lock-in, the majority of vendors offer some form of openness, such as:

  • Supporting open standards, APIs and processes that support portability and third-party product access.
  • Providing simple ways to unload your own data in at least one of several commonly used non-proprietary formats.

Some buyers may deliberately make the decision to implement systems that support non-standard technology and extensions because they believe the long-term benefits of a tightly coupled system outweigh the risks of being locked-into a vendor’s proprietary stack. But, there are almost always several competitive options available so it is a fully informed decision.

Less technology-savvy buyers may never even consider asking questions like this when making a purchasing decision. Even technologically savvy people may not consider IoT as a key component of some everyday items, failing to recognize the implications of a closed system for their purchase. It will be interesting to see if this type of deliberate business strategy changes due to competitive pressure, social pressure, or legislation over the coming few years.

In the meantime, the principle of caveat emptor may be truer than ever in this age of connected everything and the Internet of Things.

 

Discussions that Seed the Roots of Creativity

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A few months ago I purchased Fitbit watches for my children and myself. My goals were twofold. First, I was hoping that they would motivate all of us to be more active. Second, I wanted to foster a sense of competition (including fair play and winning) within my children. Much of their pre-High School experiences focused on “participation,” as many schools feel that competition is bad. Unfortunately, competition is everywhere in life, so if don’t play to win you may not get the opportunity to play at all.

It is fun seeing them push to be the high achiever for the day, and to continually push themselves to do better week-by-week and month-by-month. I believe this creates a wonderful mindset that makes you want to do more, learn more, achieve more, and make an overall greater impact with everything they do. People who do that are also more interesting to spend time with, so that is a bonus.

Recently my 14 year-old son and I went for a long walk at night. It was a cold, windy, and fairly dark night. We live in fairly rural area so it is not uncommon to see and hear various wild animals on a 3-4 mile walk. I’m always looking for opportunities to teach my kids things in a way that is fun and memorable, and in a way that they don’t realize they are being taught. Retention of the concepts is very high when I am able to make it relevant to something we are doing.

That night we started talking about the wind. It was steady with occasional gusts, and at times it changed direction slightly. I pointed out the movement on bushes and taller grass on the side of the road. We discussed direction, and I told him to think about the wind like an invisible arrow, and then explained how those arrows traveled in straight lines or vectors until they met some other object. We discussed which object would “win,” and how the force of one object could impact another object. My plan was to discuss Newton’s three laws of motion.

My son asked if that is why airplanes sometimes appear to be flying at an angle but are going straight. He seemed to be grasping the concept. He then asked me if drones would be smart enough to make those adjustments, which quickly led to me discussing the use potential future of “intelligent” AI-based drones by the military. When he was 9 he wanted to be a Navy SEAL, but once he saw how much work that was he decided that he would rather be Transformer (which I explained was not a real thing). My plan was to use this example to discuss robotics and how you might program a robot to do various tasks, and then move to how it could learn from the past tasks and outcomes. I wanted him to logically break down the actions and think about managing complexity. But, no such luck that night.

His mind jumped to “Terminator” and “I, Robot.” I pointed out that Science Fiction does occasionally become Science Fact, which makes this type of discussion even more interesting. I also pointed out that there is spectrum between the best possible outcome – Utopia, and the worst possible outcome – Dystopia, and asked him what he thought could happen if machines could learn and become smarter on their own.

His response was that things would probably fall somewhere in the middle, but that there would be people at each end trying to pull the technology in their direction. That seemed like a very enlightened estimation. He asked me what I thought and I replied that I agreed with him. I then noted how some really intelligent guys like Stephen Hawking and Elon Musk are worried about the dystopian future and recently published a letter to express their concerns about potential pitfalls of AI (artificial intelligence). This is where the discussion became really interesting…

We discussed why you would want a program or a robot to learn and improve – so that it could continue to become better and more efficient, just like a person. We discussed good and bad, and how difficult it could be to control something that doesn’t have morals or understand social mores (which he felt if this robot was smart enough to learn on its own that it would also learn those things based on observations and interactions). That was an interesting perspective.

I told him about my discussions with his older sister, who wants to become a Physician, about how I believe that robotics, nanotechnology, and pharmacology will become the future of medicine. He and I took the logical next step and thought about a generic but intelligent medicine that identified and fixed problems independently, and then sent the data and lessons learned for others to learn from.

I’m sure that we will have an Internet of Things (IoT) discussion later, but for now I will tie this back to our discussion and Fitbit wearable technology.

After the walk I was thinking about what just happened, and was pleased because it seemed to spark some genuine interest in him. I’m always looking for that perfect recipe for innovation, but it is elusive and so far lacks repeatability. It may be possible to list many of the “ingredients” (intelligence, creativity, curiosity, confidence (to try and accept and learn from failure), multi-disciplinary experiences and expertise) and “measurements” (such as a mix of complementary skills, a mix of roles, and a special environment (i.e., strives to learn and improve, rewards both learning and success but doesn’t penalize failure, and creates a competitive environment that understands that in most cases the team is more important than any one individual)).

That type of environment is magical when you can create it, but it takes so much more than just having people and a place that seem to match the recipe. A critical “activation” component or two is missing. Things like curiosity, creativity, ingenuity, and a bit of fearlessness.

Salvador_Dali_Three_Sphinxes_of_Bikini
Salvador Dali’s “The Three Sphinxes of Bikini”

I tend to visualize things, so while I was thinking about this I pictured a tree with multiple “brains” (my mental image looked somewhat like broccoli) that had visible roots. Those roots were creative ideas that went off in various directions. Trees with more roots that were bigger and went deeper would stand out in a forest of regular trees.

Each major branch (brain/person) would have a certain degree of independence, but ultimately everything on the tree worked as a system. To me, this description makes so much more sense than the idea of a recipe, but it still doesn’t bring me closer to being able map the DNA of this imaginary tree.

At the end of our long walk it seemed that I probably learned as much as my son did. We made a connection that will likely lead to more walks and more discussions.

And in a strange way, I can thank the purchase of these Fitbit watches for being the motivation for an activity that led to this amazing discussion. From that perspective alone this was money well spent.

Ideas are sometimes Slippery and Hard to Grasp

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I started this blog the goal of it becoming an “idea exchange,” as well a way to pass along lessons learned to help others. Typical guidance for a blog is to focus on one thing only and do it well in order to develop a following. That is especially important if you want to monetize the blog, but that is not and has not been my goal.

One of the things that has surprised me is how different the comments and likes are for each post. Feedback from the last post was even more diverse and surprising than usual. It ranged from comments about “Siri vs Google,” to feedback about Sci-Fi books and movies, to Artificial Intelligence.

I asked a few friends for feedback and received something very insightful (Thanks Jim). He stated that he found the blog interesting, but wasn’t sure what the objective was. He went on to identify several possible goals for the last post. Strangely enough, his comments mirrored the type of feedback that I received. That pointed out an area for improvement to me, and I appreciated that, as well as the wisdom of focusing on one thing. Who knows, maybe in the future…

This also reminded me of a white paper written 12-13 years ago by someone I used to work with. It was about how Bluetooth was going to be the “next big thing.” He had read an IEEE paper or something and saw potential for this new technology. His paper provided the example of your toaster and coffee maker communicating so that your breakfast would be ready when you walk into the kitchen in the morning.

At that time I had a couple of thoughts. Who cared about something that only had a 20-30 foot range when WiFi was becoming popular and had much greater range? In addition, a couple of years earlier I had a tour of the Microsoft “House of the Future,” in which everything was automated and key components communicated with each other. But everything in the house was all hardwired or used WiFi – not Bluetooth. It was easy to dismiss his assertion because it seemed to lack pragmatism, and the value of the idea was difficult to quantify given the use case provided.

Idea 2

Looking back now I view that white paper as having insight (if it were visionary he would have come out with the first Bluetooth speakers, or car interface, or even phone earpiece and gotten rich), but it failed to present use cases that were easy enough to understand yet different enough from what was available at the time to demonstrate the real value of the idea. His expression of idea was not tangible enough and therefore too slippery to be easily grasped and valued.

I’m a huge believer that good ideas sometimes originate where you least expect them. Often those ideas are incremental in nature – seemingly simple and sometimes borderline obvious, often building on some other idea or concept. An idea does not need to be unique in order to be important or valuable, but it does need to be presented in a way that is easy to understand the benefits, differentiation, and value. That is just good communication.

One of the things I miss most from when my consulting company was active was the interaction between a couple of key people (Jason and Peter) and myself. Those guys were very good at taking an idea and helping build it out. This worked well because we had some overlapping expertise and experiences as well as skills and perspectives that were more complementary in nature. That diversity increased the depth and breadth to our efforts to develop and extend those ideas by asking the tough questions early and ensuring that we could convince each other of the value.

Our discussions were creative and highly collaborative as well as a lot of fun. Each of us improved from them, and the outcome was usually something viable from a commercial perspective. As a growing and profitable small business you need to constantly innovate to differentiate yourself from your competition. Our discussions were driven as much by necessity as they were by intellectual curiosity, and I personally believe that this was part of the magic.

So, back to the last post. I view various technologies as building blocks. Some are foundational and others are complementary. To me, the key is not viewing those various technologies as competing with each other. Instead, I look for potential value created by integrating them with each other. That may not always possible and does not always lead to something better, but occasionally it does so to me it is a worthwhile exercise. With regard to voice technology, I do believe that we will see more, better and smarter applications of it – especially as realtime systems become more complex due to the use of an increasing number of specialized component systems and sensors.

While today’s smartphones would not pass the Turing Test or proposed alternatives, they are an improvement over more simplistic voice translation tools available just a few years ago. Advancement requires the tools to understand context in order to make inferences. This brings you closer to machine learning, and big data (when done right) significantly increases that potential.

Ultimately, this all leads back to Artificial Intelligence (at least in my mind). It’s a big leap from a simple voice translation tool to AI, but when viewed as building blocks it is not such a stretch.

Now think about creating an interface (API) that allows one smart device to communicate with another in a manner akin to the collaborative efforts described above with my old team. It’s not simply having a front-end device exchanging keywords or queries with a back-end device. Instead, it is two or more devices and/or systems having a “discussion” about what is being requested, looking at what each component “knows,” asking clarifying questions and making suggestions, and then finally taking that multi-dimensional understanding of the problem to determine what is really needed.

So, possibly not true AI, but a giant leap forward from what we have today. That would help turn the science fiction of the past into science fact in the near future. The better the understanding and inferences by the smart system, the better the results.

I also believe that the unintended consequences of these new smart systems is that as they become more human-like in their approach the more likely they will be to make errors like a human. Hopefully they will be able to back test recommendations to validate and minimize errors. If they are intelligent enough to monitor results and make suggestions about corrective actions when they determine that the recommendation is not having the optimal desired results would make them even “smarter.” Best of all there won’t be an ego creating a distortion filter on the results. Or maybe there will…

A lot of the building blocks required to create these new systems are available today. But, it takes both vision and insight to see that potential, translate ideas from slippery and abstract to tangible and purposeful, and then start building something really cool. As that happens we will see a paradigm shift in how we interact with computers and how they interact with us. That will lead us to the systematic integration that I wrote about in a big data / nanotechnology post.

So, what is the real objective of my blog? To get people thinking about things in a different way, to foster collaboration and partnerships between businesses and educational institutions in order to push the limits of technology, and to foster discussion about what others believe the future of computing and smart devices will look like. I’m confident that I will see these types of systems in my lifetime, and believe in the possibility of a lot of this occurring within the next decade.

What are your thoughts?

Big Data – The Genie is out of the Bottle!

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Back in early 2011 myself and 15 other members of the Executive team at Ingres were taking a bet on the future of our company. We knew that we needed to do something big and bold, and decided to build what we thought the standard data platform would be in 5-7 years. A small minority of the people on that team did not believe this was possible and left, while the rest of us focused on making that happen. There were three strategic acquisitions to fill-in the gaps on our Big Data platform. Today (as Actian) we have nearly achieved our goal. It was a leap of faith back then, but our vision turned out to be spot-on and our gamble is paying off today.

Every day my mailbox is filled with stories, seminars, white papers, etc. about Big Data. While it feels like this is becoming more mainstream, it is interesting to read and hear the various comments on the subject. They range from, “It’s not real” and “It’s irrelevant” to “It can be transformational for your business” to “Without big data there would be no <insert company name here>.”

Illustration of smoke coming out of a brass lantern

What I continue to find amazing is hearing comments about big data being optional. It’s not – that genie has already been let out of the bottle. There are incredible opportunities for those companies that understand and embrace the potential. I like to tell people that big data can be their unfair advantage in business. Is that really the case? Let’s explore that assertion and find out.

We live in the age of the “Internet of Things.” Data about nearly everything is everywhere, and the tools to correlate that data to gain understanding of so many things (activities, relationships, likes and dislikes, etc.)  With smart devices that enable mobile computing we have the extra dimension of location. And, with new technologies such as Graph Databases (based on SPARQL), graphic interfaces to analyze that data (such as Sigma), and identification technology such as Stylometry, it is getting easier than ever to identify and correlate that data.

We are generating increasingly larger and larger volumes of data about everything we do and everything going on around us, and tools are evolving to make sense of that data better and faster than ever. Those organizations that perform the best analysis, get the answers fastest, and act on that insight quickly are more likely to win than the organizations that look at a smaller slice of the world or adopt a “wait and see” posture. So, that seems like a significant advantage in my book. But, is it an unfair advantage?

First, let’s keep in mind that big data is really just another tool. Like most tools it has the potential for misuse and abuse. And, whether a particular application is viewed as “good” or “bad” is dependent on the goals and perspective of the entity using the tool (which may be the polar opposite view of the groups of people targeted by those people or organizations).  So, I will not attempt to make judgments about the various use cases, but rather present a few use cases and let you decide.

Scenario 1 – Sales Organization: What if you could not only understand what you were being told a prospect company needs, but also had a way to validate and refine that understanding? That’s half the battle in sales (budget, integration, and support / politics are other key hurdles). Data that helped you understand not only the actions of that organization (customers and industries, sales and purchases, gains and losses, etc.), but also the goals, interests and biases of the stakeholders and decision makers. This could provide a holistic view of the environment and allow you to provide a highly targeted offering, with messaging tailored to each individual. That is possible, and I’ll explain soon.

Scenario 2 – Hiring Organization: As a hiring manager there are many questions that cannot be asked. While I’m not an attorney, I would bet that State and Federal laws have not kept pace with technology. And, while those laws vary state by state, there are likely loopholes that allow for use of public records. Moreover, implied data that is not officially taken into consideration could color the judgment of a hiring manager or organization. For instance, if you wanted to “get a feeling” if a candidate might fit-in with the team or the culture of the organization, or have interests and views that are aligned with or contrary to your own, you could look for personal internet activity that would provide a more accurate picture of that person’s interests.

Scenario 3 – Teacher / Professor: There are already sites in use to search for plagiarism in written documents, but what if you had a way to make an accurate determination about whether an original work was created by your student? There are people who, for a price, will do the work and write a paper for a student. So, what if you could not only determine that the paper was not written by your student, but also determine who the likely author was?

Do some of these things seem impossible, or at least implausible? Personally, I don’t believe so. Let’s start with the typical data that our credit card companies, banks, search engines, and social network sites already have related to us. Add to that the identified information that is available for purchase from marketing companies and various government agencies. That alone can provide a pretty comprehensive view of us. But, there is so much more that’s available.

Think about the potential of gathering information from intelligent devices that are accessible through the Internet, or your alarm and video monitoring system, etc. These are intended to be private data sources, but one thing history has taught us is that anything accessible is subject to unauthorized access and use (just think about the numerous recent credit card hacking incidents).

Even de-identified data (medical / health / prescription / insurance claim data is one major example), which receives much less protection and can often be purchased, could be correlated with a reasonably high degree of confidence to gain understanding on other “private” aspects of your life. The key is to look for connections (websites, IP addresses, locations, businesses, people), things that are logically related (such as illnesses / treatments / prescriptions), and then make as accurate of an identification as possible (stylometry looks at things like sentence complexity, function words, co-location of words, misspellings and misuse of words, etc. and will likely someday take into consideration things like idea density). It is nearly impossible to remain anonymous in the Age of Big Data.

There has been a paradigm shift when it comes to the practical application of data analysis, and the companies that understand this and embrace it will likely perform better than those who don’t. There are new ethical considerations that arise from this technology, and likely new laws and regulations as well. But for now, the race is on!