Self-driving cars, drones, household robots, smart devices etc.. A perfect storm is emerging. But what will the next hype be called? Smart Machines is a strong contestant for the next hype. In 2004 it was Social Media, in 2007 Cloud Computing was coined and in 2011 everybody started talking and writing about Big Data. Four years have passed and year 2015 calls for the next hype building on top of existing ones. Enter Smart Machines.

1. Smart machines
The Future Is Here
© Immo Salo

2. What will we call them?
● Smart machines, Intelligent machines,
Brilliant machines or what
www.smartmachines.fi ?

3. Google Trends on Sep 2014

4. Smart Machines is winning?
Placing the bets, the usual suspects:
● Hype Cycle of Smart Machines released
(Gartner, Jul 2014)
● McKinsey writes about Smart Machines
(McKinsey Quarterly, Sep 2014)
● Economist writes about Smart Machines
(“The Age of Smart Machines”, May 2014)
www.smartmachines.fi

5. New technologies are enablers
● The idea of Smart
Machines is not new,
but now the time is
right
→ perfect storm
www.smartmachines.fi

6. Innovations are the key
● Most important innovations will be
combinatory innovations*
● Creative destruction will face those not
willing or able to take action
www.smartmachines.fi * The Second Machine Age, Brynjolfsson & McAfee

7. Phases of competition
1. Wondering
○ These machines are amazing!
2. Innovations, phase 1
○ Changing the way business is done within existing industries
(transport, retail sales, warehouses, production)
3. Innovations, phase 2
○ Creating new industries
4. The Age of Ecosystems
○ High-technologization of industries, ecosystem-level competition
www.smartmachines.fi

8. Timing and technology
● Smart Machines is built on top of existing
technologies and innovations
○ Cloud computing
○ Big data
○ Internet of Everything
○ Robotics
www.smartmachines.fi

9. Categories
Cloud computing
● IaaS
● PaaS
● SaaS
Big Data
● Volume
● Variety
● Velocity
Internet of Everything
● People
● Things
● Places
● Information
Robotics
● Industrial
● Service
● Consumer
Smart Machines is a combination of existing technologies and concepts
www.smartmachines.fi

10. www.smartmachines.fi

11. Cloud Computing is the brains behind
Smart Machines

12. The Role of Cloud Computing
● Cloud Computing is an enabler of Smart Machines
“Imagine a robot that finds an object that it's never seen or used
before—say, a plastic cup. The robot could simply send an
image of the cup to the cloud and receive back the object’s
name, a 3-D model, and instructions on how to use it”
J. Kuffner, Google
www.smartmachines.fi IEEE: Jan 2011, http://spectrum.ieee.org/automaton/robotics/robotics-software/cloud-robotics

13. www.smartmachines.fi

14. Advanced Analytics provides wisdom to Smart Machines

15. The Role of Big Data
● Analytical capabilities provided by cloud services are
evolving fast
“Dremel can scan 35 billion rows without an index in tens of
seconds. Dremel, the cloud-powered massively parallel query
service, shares Google’s infrastructure, so it can parallelize each
query and run it on tens of thousands of servers simultaneously.
You can see the economies of scale inherent in Dremel.
An Inside Look at Google BigQuery
www.smartmachines.fi https://cloud.google.com/files/BigQueryTechnicalWP.pdf

16. The Role of Big Data
● Advaced Analytics helps to model and predict the
future
“Machine learning–mining historical data with computer systems
to predict future trends or behavior–touches more and more lives
every day. Search engines, online recommendations, ad
targeting, virtual assistants, demand forecasting, fraud detection,
spam filters–machine learning powers all these modern services.
But these uses barely scratch the surface of what's possible.
Microsoft Azure Machine Learning
www.smartmachines.fi http://azure.microsoft.com/en-us/services/machine-learning/

17. Robotics makes digitalization visible in production,
services, transportation and all other areas of life

18. Sales of Industrial Robots
Record high sales of industrial
robots in 2013
Worldrobotics.org: http://www.worldrobotics.org/uploads/tx_zeifr/June_04__2014_PI_IFR_World_Robot_Market.pdf
www.smartmachines.fi

19. Drones - soon flying everywhere
No piloting skills required
The eBee takes off, flies and lands
autonomously.
The artificial intelligence incorporated in the
senseFly autopilot continuously analyzes data
from the Inertial Measurement Unit and the
onboard GPS and takes care of all aspects of
the flight mission.
https://www.sensefly.com/drones/ebee.html
www.smartmachines.fi

20. Consumer robotics
Jibo
kickstarter project, shipping 2015
What is Jibo? It’s a little pod with a motorized
swivel, equipped with cameras, microphones
and a display. It recognizes faces and voices,
and can act as a personal assistant by setting
reminders, delivering messages and offering to
take group photos. It also serves as a
telepresence robot for video chat.
Time.com
https://www.indiegogo.com/projects/jibo-the-world-s-first-family-robot
www.smartmachines.fi

21. IBM SyNAPSE chip
● Computer chip imitating the
brain (introduced in Aug 2014)
The architecture can solve a wide class of problems
from vision, audition, and multi-sensory fusion, and has
the potential to revolutionize the computer industry by
integrating brain-like capability into devices where
computation is constrained by power and speed.
IBM: http://www.research.ibm.com/cognitive-computing/neurosynaptic-chips.shtml
www.smartmachines.fi

22. Internet of Things
There are 50 to 500 billion connected devices in 2020
IDC, General Electric

23. Intel Edison
● Remember Raspberry Pi?
● Intel Edison takes tiny
computers to the next level
● It can be the brains of almost
any device (width is only 35 mm)
The Intel® Edison development platform is the first
in a series of low-cost, product-ready, general
purpose compute platforms that help lower the
barriers to entry for entrepreneurs in the Internet of
Things (IoT).
Intel: http://www.intel.com/content/www/us/en/do-it-yourself/edison.html
www.smartmachines.fi
3,5 cm

24. Spark
● Spark is a Wi-Fi development
kit for connecting devices aka
“things” to internet
The Spark Core is our tiny Wi-Fi development kit
that helps you build a connected product in hours,
not weeks. The Spark Core is hooked to the Cloud
out of the box, and the entire design is open
source.
Spark: https://www.spark.io/
www.smartmachines.fi

25. The Smart Machine era will be the most disruptive in the history of IT.
Gartner Oct 2013

26. Categories of Smart Machines
● Movers
○ Example: Google “Self-Driving car”
● Doers
○ Example: Rething Robotics “Baxter”
● Sages
○ Example: IBM “Watson”
www.smartmachines.fi IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austin

27. Movers
www.smartmachines.fi Google Self-Driving Car: http://en.wikipedia.org/wiki/Google_driverless_car

28. Doers
www.smartmachines.fi Rething robotics: http://www.rethinkrobotics.com/baxter/

29. Sages
www.smartmachines.fi IBM: http://www.ibm.com/smarterplanet/us/en/ibmwatson/what-is-watson.html

30. Role of Smart Machines
● Assist people
● Advise people
● Observe and help people
● Extend people
...
● Replace people?
www.smartmachines.fi IBM: Oct 2013, http://www.ibmbigdatahub.com/blog/rise-smart-machines-nothing-fear-now-austin

32. The Future of Employment
“According to our estimate, 47 percent of total US
employment is in the high risk category,
meaning that associated occupations are
potentially automatable over some unspecified
number of years, perhaps a decade or two“
The future of employment: how suspectible are jobs to computerisation?
Frey & Osborne, Oxford Martin School
Oxford Martin School: Sep 2013, http://www.oxfordmartin.ox.ac.uk/downloads/academic/The_Future_of_Employment.pdf
www.smartmachines.fi

33. What next?
● Innovations
● Investments
● Creative destruction
● New skills needed
www.smartmachines.fi twitter.com/immon