Knowledge-Based Society by KaaS (KaaS: Knowledge as a Service)

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1 -Based Society by KaaS (KaaS: as a Service) October 23, 2008 Systems Development Laboratory, Hitachi Ltd. Akira Maeda, Ph.D

2 Contents 1. ICT trends and their implications 2. ICT as a knowledge generation platform 3. KaaS: a new business model, and an infrastructure for knowledgebased society

3 1-1. Technology Trends Device and Network Technology Roadmap Technology PC Internet Cell Phone RFID Car Navigation Sensor Broadband ZigBee Wearable Robots WiMAX Platform Technology Roadmap Technology 3 tiered DC Grid Virtualization Cloud Computing Typical Objectives Internet Apps Execution 実装 運用 Spare Resource More Effective Utilization Use of HW Service Provision 2

4 1-2. Cloud yet to Come Cloud can provide innovative services from a huge amount of ubiquitous data. Administration Ubiquitous data DB Server End User Grid AP Storage Innovative services Authentication Cloud Computing Virtualization Development Network Expenditure for Data Center [B$] Amazon ebay Yahoo Microsoft Google '03 '07 From :Morgan Stanley Cloud can handle vast amount of data, and create innovative services by utilizing the data 3

5 1-3. CIO s View on ICT Top Managers major concerns in IT: Business process improvement and new business development No Business Priority 2006 Customer relationship management Security, business continuity Compliance 2008 Business process improvement Creating new products and service Expanding into new markets or geographies No Technology Priority 2006 Security tools Network/Multimedia communication Business intelligence applications 2008 Service/Sales technology Servers and storage technologies Business intelligence applications Business and technology area expectation for CIO in Japan (From Gartner) How to create business values is the key 4

6 1-4. Form of ICT Value Delivery Core Area Value SI ITO ICT Outsourcing KPO ITO BPO KPO BPO Business Process Outsourcing Non Core Area Process Outsourcing = Outsourcing of work which requires expert knowledge or qualifications : the most important key factor to strengthen business competitiveness 5

7 2-1. Mechanism of Acquisition Acquisition of the new knowledge Real world The next day will be sunny if we see the evening glow Recognize by senses Pattern Detection Pattern Recognition Memory It s a beautiful evening glow! Tomorrow will definitely be sunny! is justified true belief Definition in Philosophy 6

8 2-2. Acquisition by ICT Real world Acquisition of the new knowledge Extraction of correlation rules from world weather data of the past Gathering by sensors Pattern Detection Pattern Recognition Correlation among data A Huge amount of weather data Prediction of tomorrow s weather from today s one ICT can generate new knowledge beyond human capability with its huge processing power 7

9 2-3. Case 1 (e-commerce Company A) Advertisement / Recommendation service realized by knowledge from purchase history Customer Publisher Publisher Used Book Shop Used Book Shop End User End User Plant Traditional Service Purchase Order Book Sale Data Mining Based Service Advertisement Recommendation Purchase History Existing business/service Computing Platform Consumption Tendency Value added business/service 8

10 2-4. Case 2 (Internet Search Company B) Advertisement/Recommendation service realized by knowledge from search history Customer Advertise Sponsor Service Provider End User End User End User End User Plant Traditional Service Keyword Position Search/Map Search/ Browsing History Existing business/service Page Rank, Clustering Trend analysis Computing Platform based service Advertisement Recommendation Personal preference, Society trend Location-based Advertisement Value added business/service 9

11 3-1. KaaS: a New Growth Model Customer Big Account Big Account SMB SMB End User End User Plant Traditional Service Sensor Data from Real World Platform Computing Platform as a Service Value Added Data () Existing business/service Value added business/service Combination of cloud computing and sensor network technology enables KaaS business model 10

12 3-2. KaaS Example 1 (SCM) Real-time detection and management service of value-chain status of products Provision of real-time status of products and root cause analysis utilizing trace logs Retail/ Distribution Automatic Warehouse Electric price tag Personal Device Channel Sales Production In/Out /Logistics Order /Warehousing Management plant Analysis Chg. in keeping condition Product trace info. Modeling Price cut service Disposal Quality pattern 11

13 3-3. KaaS Example 2 ( Convergence) A new service which integrates knowledge across industries New social infrastructure service which integrates power industry and manufacturing industry Power control services for utility industry Plan for highly optimized power generation Energy Optimization Planning SCM services for manufacturing/retail industries SCM plan for electricity optimization Generation plan SCM Plan Power Consumption Generation history Analysis Root based demand trend Modeling Each cluster generation/ Consumption pattern Each SC cluster production/ warehousing trend/sales pattern Plant Each SC production/ demand trend Modeling Receive, Order, Sales Production, Logistics, Warehousing Analysis 12

14 3-4. -Based Society by KaaS Requirement of a platform for the knowledge-based society Based on the real world information, it supports resolution of today s global challenges (eg. Environment, energy, education). Anyone can unconsciously obtain the benefits from the knowledge. TraditionalS ervice K now ledge Service TraditionalS ervice K now ledge Service Raw Data K now ledge Plant K now ledge Traditional Service Service Raw Data K now ledge Plant TraditionalS ervice K now ledge Service Raw Data Raw Data K now ledge Plant Plant TraditionalS erv ice K now ledge Service TraditionalS ervice K now ledge Service Raw Data K now ledge Plant K now ledge Raw Data K now ledge Plant ICT as a platform for knowledge-based society, and KaaS is the key concept 13

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