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Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
SUPPLEMENT | July 2018

Let’s put
smart to
work
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
Sometimes sunlight
is more powerful
after dark.
Today, energy companies work
with IBM Services to intelligently
distribute solar and wind power
to a network of batteries.
This helps balance the grid
and enables renewable energy
to be stored when demand
is low and available during
hours when it’s high.
ibm.com/smart

IBM and its logo, ibm.com and Let’s put smart to work are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide.
See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. ©International Business Machines Corp. 2018. P32899
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
Credits
 PUBLISHER                            Jovan Regasek
 EDITORIAL DIRECTOR                   Ranka Jovanovic
 EDITOR                               Simon Foulds

                                                                         Editor’s
 CONTRIBUTING EDITOR                  Adrian Hinchcliffe
 CONTRIBUTING WRITERS                 Tracy Burrows,
                                      James Francis,

                                                                         note
                                      Dave Glazier,
                                      Adam Oxford,
                                      Tamsin Oxford,
                                      Rodney Weidemann
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 DESIGN                               Infiltrate Media
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Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
Contents   IN SPECIAL
           FOCUS THIS
           MONTH

            4   Let’s put smart
                to work
                As technology continues
                to infiltrate all aspects of
                life, what are the forces
                driving the next wave of
                technological evolution?
                By Adam Oxford

           11   Intrinsically
                invested
                When it comes to
                contributing value to the
                South African economy
                and society, IBM has made
                local focus a part of its
                value chain.
                By Tamsin Oxford

           15   Inside every
                industry
                How is IBM transforming
                companies, industries and
                professions in a cognitive
                era to provide specific,
                tailored solutions?
                By Dave Glazier
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
18   Knowledge is power
     IBM Research is focused on
     driving cutting-edge studies
                                    24   Prevent, detect,
                                         respond
                                         When the cyber security
                                                                           32       Technology meets
                                                                                    humanity
                                                                                    The new consolidated IBM
     and investigations into             question changed from ‘if                  Services portfolio brings expert
     how technology can play a           we get attacked’ to ’when’                 consulting and advanced new
     significant role in helping         it was time to change tack.                technologies for South Africa’s
     to transform industries and         It’s critical organisations can            digital revolution.
     society as a whole.                 respond to cyber threats                   By Tracy Burrows
     By Rodney Weidemann                 intelligently and in real-time.

20   Innovate with the
                                         By Tamsin Oxford
                                                                           36       Differentiate your
                                                                                    business
     intelligent and
     secure
     Transformation is a scary
                                    28   Blockchain’s future
                                         is now
                                         Forget Bitcoin and the crypto
                                                                                    Building models that
                                                                                    support partner ecosystems,
                                                                                    build collaborative client
     prospect, unless you partner        market: the real value of                  experiences.
     with a company that’s been          blockchain is emerging in the              By Tamsin Oxford
     there many times before.            enterprise space.
     By James Francis                    By James Francis
                                                                           38       Futureproof finance
                                                                                    The rate at which technology

22   Gaining a bigger
     brain
     Artificial intelligence
                                    30   Re-imagining
                                         infrastructure
                                         Data has become the
                                                                                    is evolving may well leave
                                                                                    companies concerned that
                                                                                    they won’t obtain a proper
     promises to augment the             ultimate in strategic assets,              return on their investments.
     capabilities of the human           but only if infrastructure is              IBM Financing has the answer.
     brain with unheard of               geared to keep up and stay                 By Rodney Weidemann
                                         ahead.

                                                                            40
     speeds and capacity.
     By Rodney Weidemann                 By Tamsin Oxford                           At a glance
                                                                                    Fast facts.
                                                                                    By Simon Foulds

                                                                           SPECIAL FOCUS |   IBM   |   J U LY 2 0 1 8
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
4          Inflection point

                                                   Hamilton Ratshefola,
                                                       Country GM, IBM

Let’s put
smart to work
As technology continues to infiltrate all aspects of life, what
are the forces driving the next wave of technological evolution?

J U LY 2 0 1 8 |   IBM   |   SPECIAL FOCUS
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
Inflection point              5

BY: Adam Oxford
PICTURE: Karolina Komedera

T
         here are two underlying forces
         driving the current wave of
         disruption we are facing: namely
         pervasive interconnectivity and
the explosion of data.
   “15 years ago, people were talking
about infinite bandwidth,” says IBM
South Africa country general manager,
Hamilton Ratshefola. “The impact
of practically unlimited bandwidth is
playing out now. The fact that so many
devices and things are connected,
allows for the types of applications
that are arising. Industry analysts,
Frost & Sullivan estimates there will
be 34 billion connected devices in the
world by 2020.
   “Now add the amount of both
structured and unstructured data being
created – 45 zettabytes by 2020. We
keep coming up with new orders of
magnitude for data volumes.”
   The result according to Ratshefola is
two-fold: the traditional IT industry is
re-platforming and new technologies are
remaking the industry.
   This change is not new, the last
300 years may have brought us four
industrial revolutions, but within
the world of IT there have been four
similarly ground-shifting eras of
computing technology that have defined
the way business works. Every decade
or so, the industry hits an inflection point
where enterprises have undergone rapid
periods of transformation based on
fundamental changes in the technology
architecture used and the impact of new
technologies. Today we’re standing at
the one of those points.
   The last 50 years can be divided
into four distinct periods of dominant
business technology. These periods of
disruption and widespread adoption
have changed the way firms around the
world operate, bringing rapid advances
in productivity and IT capability – and
each time IBM has been at the forefront
of change, defining the way the next
generation of businesses will be run.

  SPECIAL FOCUS |      IBM   |   J U LY 2 0 1 8
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
Inflection point              7

   In the 1960s, there was the                more reliant on emerging technologies       automation AI is becoming the
revolutionary mainframe and the               like AI to aggregate that information       defining competitive edge.
origins of today’s datacentres:               and filter the important messages from         As much as AI is causing concern
centralised repositories of knowledge         the noise.”                                 about its impact on employment,
and computing power which enabled                                                         Ratshefola is bullish about the
businesses to make better decisions,          Putting smart to work                       prospect for the new world it will
faster. By the 1980s, the desktop             IBM’s strategy for moving past the          herald. “At IBM, we prefer to think of AI
era was in full swing, driven by              latest inflection point is based on         as augmented intelligence, machines
‘IBM-compatible’ architectures that           three core pillars Ratshefola explains,     working with humans to achieve far
enabled mass adoption through                 and it’s the company’s ability to           more than either could do alone. AI will
hardware standards.                           engage deeply in all three areas that       liberate all of us from routine repetitive
   With the birth of the World Wide           gives him the confidence that IBM will      tasks and allow us to focus on higher
Web in the early 1990s, IBM rapidly           once again emerge as a leader.              value activities. It will certainly impact
established itself as a platform leader          The first pillar is cloud. Cloud is a    jobs, but the efficiency gains will drive
in the emerging fields of e-commerce          catalyst for innovation, speed and new      higher productivity, leading to new
and IT services – IBM software still          applications allowing enterprises to        types of employment. The new types
underpins financial services and              innovate instantly. IBM has 58 IBM          of work will need new skills, what we
networks of ATMs, as well as online           cloud datacentres around the globe and      refer to as ‘new collar workers’, and AI
payment gateways and distribution             more than 100 billion transactions a day    will even help us all to gain new skills.
centres around the world.                     on IBM systems globally. IBM’s focus is     IBM is investing in Africa to address the
   By the mid-2000s, IBM was an early         to deliver cloud services in a way that’s   requirement for new skills through our
pioneer in the realm of Software as a
Service (SaaS), rapidly transforming
itself from a hardware vendor into one of
the world’s largest software companies
in systems software, showing leadership
in artificial intelligence (AI), machine
learning and enterprise cloud.
                                              IBM is investing in Africa to address the requirement
                                              for new skills through our Digital Nation Africa
A critical juncture
The IT industry is clearly at an inflection   initiative and our local development centre.”
point. The next year or two will be           Hamilton Ratshefola
critical for IT providers, as businesses
and institutions around the world will
be making key architectural decisions –       tailored to enterprise customers, secure    Digital Nation Africa initiative and our
about cloud, data and AI. The outcomes        and ready for AI integration.               local development centre.”
of these decisions will define business         AI is the second area. AI systems           The third area is industry application
and IT for many years to come.                augment human intelligence, allowing        based on deep industry insights with
   The next phase of business                 faster and more informed decision-          innovation and implementation in
computing, says Ratshefola, will be           making. Watson is at the core of            the context of industries. To bring
built on the foundations of pervasive         IBM’s AI technology with one billion        higher value to the market, IBM is
connectivity and the ability to process       customers reached by Watson in              providing solutions that are specific
vast amounts of data. Coping with             2017. Watson is now an increasingly         and tailored to the challenges
the vast amount of data generated by          common feature in many different            enterprises face in their industry,
technologies such as the Internet of          applications around the world.              using the power of IBM’s advanced
Things (IoT) will require fundamentally         AI, for example, has the potential        AI computing capabilities built on
new approaches to business technology.        to transform customer experience            the IBM Cloud. The company is
   “If you take something like cyber          across different industries. In call        working with companies ranging from
security, you can see that current            centres, Watson is helping to deliver a     retailers, banks and shippers to apply
approaches simply won’t work as IoT           much more consistent experience to          this technology to transform their
becomes more ubiquitous,” Ratshefola          customers by either guiding agents to       ecosystems. “Take the example of
says. “If you have millions of devices        better answers or allowing customers        telcos,” Ratshefola says, “the ability
connected to your network, there’s            to get answers for themselves. In the       to leverage data, analytics and AI
no way that human operators will be           hotel industry, AI-powered assistants       will allow telcos to offer tailor-made
able to deal with the number of alerts        are improving customer experience           packages based on past behaviour and
and logging information that will be          by enabling guests to request room          preferences, allowing for a much more
generated. Teams will become much             services automatically. In industry         personalised experience.”

                                                                                            SPECIAL FOCUS |      IBM   |   J U LY 2 0 1 8
Let's put smart to work - SUPPLEMENT | July 2018 - ITWeb
8          Inflection point

                                                                                                                           bullish about blockchain. Partnerships
                                                                                                                           such as the one recently sealed between
                                                                                                                           IBM and shipping giant Maersk are
                                                                                                                           showing exactly how revolutionary
      Cloud computing and artificial intelligence allow                                                                    distributed ledgers will be. “Blockchain
                                                                                                                           really comes into its own with cross-
      clients to look at how they can take their own data                                                                  border trading and logistics,” Ratshelofa
      and combine it with information from lots of other                                                                   says. “Traceability and transparency are
                                                                                                                           important foundations for logistics and
      sources to improve services and decision-making.”                                                                    trade. IBM Blockchain optimises business
                                                                                                                           transactions and trading relationships
      Hamilton Ratshefola
                                                                                                                           with robustly secure business networks
                                                                                                                           on blockchain – both at scale and
      The world is a lab                                      applied and far-reaching exploratory                         globally. This is exciting because it offers
      In addition to the three pillars of its                 research into Africa’s grand challenges                      a shared ledger that’s updated and
      strategy it’s important to note that                    and are committed to delivering                              validated in real-time with each network
      IBM’s history is entrenched in research                 commercially-viable innovations that                         participant. It enables equal visibility
      and innovation. With some 3 000                         impact people’s lives.                                       of activities and reveals where an asset
      researchers and scientists spread                          Ratshefola says the adoption of                           is at any point in time, who owns it and
      across 12 global labs on six continents,                emerging technology is closer than many                      what condition it’s in. This, for example,
      the world is its laboratory. With locations             people imagine. Commercial applications                      will reduce waiting times at ports thanks
      in Nairobi, Kenya and Johannesburg,                     for quantum computing will be obvious                        to better inventory management and
      South Africa, IBM Research – Africa is                  in around five years, he says, and                           early notification of issues, and improve
      IBM’s 12th global lab. The locations are                blockchain is already being adopted in                       productivity and revenue at customs
      the first on the continent for conducting               key industries. Ratshelofa is particularly                   agencies too.”

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Inflection point           9

Growth in South Africa is going to                        platforms that it’s offering customers.      opportunities, refine its capabilities
come from local businesses’ ability                          “We use the same tools to automate        and extend into new markets.
to harness and understand the                             a lot of our own business,” Ratshefola           “This is a critical component in
data that they and their customers                        says. “Our IT department is all based        our approach to the market,” states
generate. Ground-breaking work in                         on self-service principles using IBM         Ratshefola. “Our network is made up of
the area is being conducted, not least                    Watson Assist. Watson answers the            companies both large and small, from
through the projects being run out of                     phone when there’s a problem with a          those that sell IBM to those that use
the Research Lab in Tshimologong,                         laptop, for example, and either offers       it, from the traditional reseller to the
Johannesburg. Local teams and                             assistance or schedules a repair.”           freshly-made cloud company. But the
their enterprise partners are both                           The opportunity now, Ratshelofa           questions remain: how will you deal with
benefiting and contributing to the                        says, is bringing the technology             this change? And, are you ready to go
rapidly developing global strategy of                     that IBM has at its disposal,                on the offensive? We believe that every
the company as a whole.                                   combined with its deep knowledge             one of our clients has great knowledge
                                                          of South Africa to create solutions          in their company to build a platform and
Let’s build tomorrow together                             which will help local businesses             create a whole different set of values for
“Cloud computing and artificial                           leapfrog international peers.                whoever their client is.
intelligence allow clients to look at                        Differentiating your business                 “In this era of data, we constantly ask
how they can take their own data and                      from the competition requires                – what’s your big bet? Our big bet is our
combine it with information from lots of                  innovation, acceleration and the             clients. This is why we reinvented IBM.
other sources to improve services and                     right partnership. IBM understands           We reinvented IBM for what we think will
decision-making,” says Ratshefola.                        that to excel, the organisation              be in the hope that our clients are going
   An important part of the strategy                      requires support, partnerships and           to seize this moment. It will only be
is that IBM has already made many                         networks. It’s within these webs of          once in a lifetime that you can get real,
changes in the way it works internally,                   collaboration and information sharing        exponential and sustainable change in
based on the same technology and                          that the organisation can find new           this kind of era.”

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                                                                                        S P to
                                                                                            E C SECURE toS SAFE.
                                                                                                IAL FOCU   | IBM                   |   JUNE 2018
Commitment               11

                                                  Ziaad Suleman,
                                       chief operating officer, IBM

Intrinsically
invested
When it comes to contributing value
to the South African economy and
society, IBM has made local focus a
part of its value chain.

BY: Tamsin Oxford                              community at large. The aim is to             IBM has invested in a new online, free-
PICTURE: Karolina Komendera                    positively impact all stakeholders and        to-all digital learning and enablement
                                               the measurement of success lies in            platform, Digital Nation Africa (D-NA).
                                               substantive business value.”                  The mission is to help raise overall digital

I
                                                  Suleman leads the Special                  literacy, increase the number of skilled
      n 1952, IBM entered the South            Projects and Investments Unit, the            developers able to tap into cognitive
      African market with its inventive        Transformation and Operations Unit as         engines and enable entrepreneurs
      technology and approach to               well the Equity Equivalent Investment         and would-be entrepreneurs to grow
      people and community. Over the           Programme. All of these are tailored          businesses around the new solutions. “By
past six decades, IBM has been paying          to the local environment, providing not       virtue of attaining the relevant knowledge
attention to more than just its bottom         only business value, but personal and         and skills set achieved through D-NA,
line and technological advancement.            professional development.                     the beneficiaries will open up access
   Through an intrinsic social upliftment         “IBM is geared towards delivering          to a wider range of opportunities, and
strategy that develops entrepreneurs,          the best services and products to our         as a result, we will have sufficient skills
emerging SMME business partners and            customers, collaboration partners and         available to compliment the market
provides for skills enablement through         our people. These special programmes          needs,” he says.
various education initiatives, IBM has         differentiate IBM in the market through          “This investment allows many
focused on investing into the country          innovative technology offerings and           people to be conversant in emergent
and its people in ways that are both           technology infrastructure platforms –         technologies at no financial cost,” says
relevant and sustainable.                      the impact of which is amplified through      Suleman. “It allows for the creation
   “We believe we have a responsibility        the Research Lab and the IBM Client           of vital digital literacy skills that will
to South Africa and the ecosystem              Centre.”                                      translate into improved workforce
within that we operate,” says Ziaad               Over the decades, IBM has been             capabilities and better futures for both
Suleman, chief operating officer,              driven by innovation and this is leading      business and citizens.”
IBM. “Our investments are focused              the push to enable digital competence,           D-NA also provides an enablement
on meaningful outcomes, which are              local innovation and ultimately support a     platform to support innovators
positively impactful, progressive              21st century workforce in South Africa.       and entrepreneurs to develop new
and sustainable. We’ve engaged and                As part of this strategic drive to build   intellectual property aimed at solving
continue collaborating with the ICT            digital, cloud and cognitive IT skills,       local, national and regional challenges.

                                                                                               SPECIAL FOCUS |      IBM   |   J U LY 2 0 1 8
12       Commitment

                                           test, application development and          partners. The centre is focused on
                                           maintenance services, IBM South Africa     using IBM technology to innovate,
                                           has also invested in a local development   generate ideas and test concepts
                                           centre in Johannesburg. Its focus is to    prior to production. From proof of
We believe we have                         ignite innovation and the integration of   concepts, proof of technology, design
                                           new technologies within existing and       thinking workshops and enablement,
a responsibility to                        new ecosystems while consistently          to Infrastructure as a Service and
South Africa and the                       enhancing people’s skills.                 awareness, the Client Centre takes
                                              “The local development centre is        the learnings from best practice and
ecosystem within which                     committed to setting up hybrid skills      industry knowledge to the next level.
we operate.”                               such that the resource is able to add         “We continuously examine how
                                           value at customers and within IBM.         we can align our value proposition
Ziaad Suleman
                                           These skills provide a platform upon       and create solutions that support our
                                           which to build careers,” says Suleman.     customers and their business,” says
By providing learning into some of         “Once students have completed their        Suleman. “At our client centre, we
the most impactful new technology          training and are ready for customer        collaborate with customers and partners
areas such as Internet of Things (IoT),    engagement, we place them with             to produce a proof of concept, and
blockchain, security, cognitive and AI,    customers so they gain hands-on            we have all the technology we need
data science and analytics, and cloud,     training and skills development and        to take ideas and solutions into new
the platform is designed to help develop   through this we continue to strengthen     and exciting spaces. Our overarching
much-needed technology skills.             the ecosystem.”                            goal is to create an ecosystem where
                                              IBM South Africa has a jewel in the     all the beneficiaries, recipients and
Driving skills development                 heart of Sandton, namely a dedicated       partners can leverage these ideas and
As part of the IBM skills drive            client centre, to better serve and         capabilities to differentiate and thrive
across Africa by providing high value      collaborate with customers and             using best-of-breed technology.”

JUNE 2018 |     IBM   |   SPECIAL FOCUS
Commitment              13

  The B-BBEE commitment                      development and research. The business          and research innovation. Part of the
  IBM South Africa is a Level 1 B-BBEE       development aspect is unique in that it         EEIP includes the creation of IBM’s 12th
  contributor and this includes a hefty      caters for entrepreneurs at varying levels      global research lab which focuses on
  R700 million Equity Equivalent             of maturity: aspiring entrepreneurs for         technology innovation, solving grand
  Investment Programme (EEIP) through        those at the ideation phase; startups           challenges, collaborating with emerging
  the DTI, that’s set to run for ten years   looking to leverage a wide range of             SMMEs and so much more.
  until 2025. The underlying premise         support mechanisms such as incubation,             “We’ve worked hard to provide
  of the EEIP focuses on substantive         financing, coaching and mentoring,              South African beneficiaries with
  value driven social upliftment through     access to markets, and business process         true enablement and we regard this
  education enablement by providing full     support; and deep skills for medium to          responsibility as an important aspect of
  bursaries to disadvantaged students in     large enterprises looking to augment            our local value proposition,” says IBM’s
  the field of computer science, business    their enterprise with IBM technology            Ziaad Suleman.

IBM’s plan to transform and engage           black-owned entities that struggle to take       core of its commitment to the country
doesn’t end there. IBM South Africa          their businesses from survivalist or micro       and this is reflected in the variety of
promotes socio-economic development          level, to a sustainable and profitable level.    initiatives it has invested into. From its
through various initiatives such as its      Enterprise and supplier development              procurement strategies to its enterprise
Corporate Service Corps programme,           programmes target local capacity                 and supplier development programmes
Impact Grants, Kidsmart and Science.         and skills enablement to enhance                 to its promotion of socio-economic
   Enterprise and supplier development,      the beneficiaries value-add within               development across a huge range of
is also a vital element, that addresses      transactions and the broader economy.            initiatives, IBM is set on a path to deliver
key challenges facing small and micro           IBM has put value and relevance at the        real value to South Africa.
Industry transformation                15

                                                    Craig Holmes,
                                             VP: industry solutions
                                        and business development

Inside every
industry
How is IBM transforming
companies, industries and
professions in a cognitive era to
provide specific, tailored solutions?

BY: Dave Glazier                               to optimise supply chains, improve            Financial services is a great example
PICTURE: Karolina Komendera                    scheduling and embrace predictive             of how IBM has harnessed powerful,
                                               maintenance,” he says.                        leading-edge technology to inform new
                                                  “In utilities, it’s a similar scenario,    strategies, new execution capabilities,

D
                                               with a keen focus on predictive asset         and new ways of thinking.
           igital may be disrupting            management, and data platforms that
           organisations of every shape        can ingest multiple feeds of real-time        Focus on financial services
           and size, but this disruption is    data. We’re also exploring the potential of   Financial services has traditionally been
           happening in a different way        drone technology to inspect faults along      one of the biggest spenders when it
within each industry vertical. IBM’s deep      power and water lines and improve the         comes to enterprise technology; and in
vertical sector specialisation, combined       management of these assets.”                  recent years many of those investments
with its leading-edge technology                  The public sector is an area ripe for      have been channelled towards the goal
capabilities, present a power-packed           technology opportunity, notes Holmes,         of enhancing customer experience and
combination that transforms industries.        with everything from connected sensors,       accessibility.
  Craig Holmes, VP: Industry Solutions         to mobile services, to surveillance              Ria Pinto, director: Global Markets, IBM
and Business Development, IBM Middle           systems able to bring rich data to            South Africa, says the focus has been
East and Africa, says, across industries,      municipal leaders and reflect ‘the pulse of   on surface-level interface design and
common themes like cloud-based                 the metros’.                                  scrambling to beat the competition with
architectures and data-driven processes           “Healthcare is another vertical in         new innovations that offer great visual
and applications are coming to the             which we’ve made significant strides,         experience, but don’t really ‘move the
fore. However, within different sectors,       harnessing big data technology to             needle’ in terms of business results.
specialised technology capabilities are        capture information that was previously          “In many organisations, all of these
needed. “In capital-intensive industries,      just stored anecdotally by individual         efforts aren’t changing the business
such as logistics, shipping, capital           doctors or clinicians. Now, we’re             metrics, such as rationalising costs,
asset and infrastructure management,           digitising procedural notes, images,          reducing physical infrastructure,
we’re seeing tremendous application            test results, lab findings and all kinds of   reducing cost-to-serve, attracting new
for IoT platforms and instrumentation          other datasets, pulling it into the Watson    customers, and creating new revenue
combined with blockchain technology            platform to inform other diagnoses            streams,” Pinto says.
for smart contracts – allowing firms           around the world.”                               The reason for this, she says, is that

                                                                                               SPECIAL FOCUS |      IBM   |   J U LY 2 0 1 8
16        Industry transformation

We believe that we’ll see
the rise of a host of new-
collar jobs as enterprise
adopts the technology and
responds to the change
in the organisation’s skills
needs and the demands of
their customers.” Craig Holmes
many of the core systems aren’t designed
with customer experience in mind. “The
focus should be to leverage the core
systems for the heavy lifting but deliver
business results by transforming and re-
architecting processes, eliminating hand-
                                                               Ria Pinto,
offs between people, and apply machine
                                                director: Global Markets,
learning and artificial intelligence into the
                                                                     IBM
processes and systems.”

JUNE 2018 |     IBM   |   SPECIAL FOCUS
Industry transformation                          17

      Pinto cites key learnings from IBM’s        most disgruntled,” she advises. “This             In the area of artificial intelligence,
      successful transformation programmes        could be client onboarding, for instance,         Holmes says that repetitive or physically
      with major banks around the world, that     and then deal with these specific user-           exhausting tasks will increasingly be
      could help South African banks and other    journeys from end-to-end.”                        handed over to AI-powered robots, as
      financial players with their challenges        By incorporating automation, machine           AI continues to work its way into almost
      locally. She highlights the importance      learning and new processes into these             every area of the enterprise. “We believe
      of enterprise architectures that make       journeys, they can become best-practices          that we’ll see the rise of a host of new-
      data available in the right places in       as the teams build their enterprise-wide          collar jobs as enterprise adopts the
      order to build intelligence into business   transformation vision.                            technology and responds to the change
      processes, and the need to always adopt                                                       in the organisation’s skills needs and the
      a ‘multichannel mindset’ (and not focus     The next era                                      demands of their customers.”
      merely on one banking channel).             Holmes says the next era of IBM will be              Ultimately though, it’s not just about
         Considering the scale of major           all about the limitless power of cognitive        the technology. Holmes notes that
      financial companies, and the breadth        solutions, delivered via hyperscale cloud         the most successful players are those
      of their service offerings, how does        (private, hybrid and public) platforms, to        that are actively reshaping industry
      one begin on a transformation journey?      give clients the ultimate in flexibility.         ecosystems, creating new platform-
      Pinto advises clients to establish a           He says there are some technologies            based business models, forming new
      unified enterprise transformation           that will play a particularly important role,     partnerships, embracing incubators
      strategy and start by choosing a            such as blockchain. By participating in           and startups, and changing the way
      customer journey that stretches across      the cross-industry consortium known as            they interact with customers and
      the organisation. It’s important to         the Hyperledger Project, IBM is playing a         other stakeholders.
      deliver results early by choosing ‘quick    leading role in developing core blockchain           “Technology certainly plays a vital
      wins’ to show just what would be            networks in the cloud, to provide trusted         role in that, but it’s critically important to
      possible at an enterprise level.            transactions and eliminate friction in            deploy new technologies with a broader
         “Pick the areas where customers are      value chains.                                     enterprise transformation in mind.”

#VoiceFirst Digital Assistants, VoiceBots and ChatBots using
                                                                                                       SPECIAL FOCUS |           IBM       |   JU NE 2018
                                                                                                                                                ///sketch.dinosaur.hurry
© 2018 Ocular Technologies (Pty) Ltd                                                              www.ocu.cx | info@ocu.cx   0861 OCULAR
18         Research

Knowledge
is power
IBM Research is focused on driving cutting-
edge studies and investigations into how
technology can play a significant role in
helping to transform industries and society as
a whole.

BY: Rodney Weidemann                          Market Solutions, is to invent things that   two issues that are necessary for the
PICTURE: Karolina Komedera                    matter to the world and to make scientific   long-term survival of any research
                                              breakthroughs that transform industries      entity. Diversity is a critical driver in

I
                                              and society.                                 research, because it ultimately enables
       nnovation rarely occurs in                “A key part of our mission is to          you to obtain contrasting views and
       isolation; brilliant new ideas tend    foster local innovation, which means         perspectives.
       to occur far more frequently when      working closely with universities, donor        “At IBM Research, the work we do is
       colleagues share a meal or a           organisations, the government, non-          designed to resonate with all cultures,
lab-to-lab video chat. This is why IBM        governmental organisations and the           creeds and races, and because of this,
Research places such a premium on             local community. This is vital, since the    we find our institution is very attractive to
encouraging and fostering a culture of        solutions we create need to be designed      scientists and developers. They want to
collegiality, interaction and collaboration   to address local needs and meet local        experience our unique environment, while
across disciplines.                           requirements,” he says.                      at the same time having the ability to
   By developing such a cooperative              Since the aim is to solve real-world      tackle the big problems facing our world.”
environment, the organisation is able to      problems, while at the same time
bring together a community of thinkers        fostering local innovation, he continues,    Taming the knowledge economy
whose focus is on addressing some of          collaboration is crucial, but it’s not the   Assefa says that at IBM Research, a major
the world’s most complex problems and         only critical element.                       part of its focus is on the knowledge
challenging opportunities. IBM Research’s        “Diversity is very important to us as     economy and on the technologies that will
ultimate goal, says Dr Solomon Assefa, VP     well, since diversity essentially means      enable humanity to leverage this properly.
of IBM Research for Africa and Emerging       new ideas and different approaches,          As such, IBM is conducting pioneering

J U LY 2 0 1 8 |   IBM   |   SPECIAL FOCUS
Research             19

                                              While such technologies offer incredible
                                              hope for the future, Assefa says the             Developing skills locally
                                              company’s Kenyan lab provides a real-            IBM Research’s Dr Solomon Assefa
                                              world example of how technology is               says the organisation relies on a
                                              currently being utilised to change lives for     pipeline of talent to maintain its
                                              the better.                                      cutting-edge research. To achieve
                                                                                               this, there are several mechanisms
                                              Beyond the laboratory                            in place.
                                              “We recently deployed a retail platform             “We insist on hiring local talent
                                              for SMEs connecting small shopkeepers,           and upskilling them, something
                                              their suppliers and the financial                that’s achieved by regularly bringing
                                              institutions. By bringing these players          interns into the lab to work on
                                              together, we enable the SMEs to obtain           exciting projects and proofs of
                                              microfinance to purchase goods from the          concept. We ensure that the lab is
                                              suppliers that they can then sell,” he says.     accessible to them and also provides
                                                 “The platform assists SMEs to                 mentorship to help them develop
                                              determine the right prices to maximise           their skills and knowledge in respect
                                              their profit, while it offers the supplier a     of the latest technologies,” he says.
                                              better understanding of the distribution            “We also expend a lot of effort
                                              of and markets for their products.               in getting our message out there,
                                              Finally, it offers the financial institution     via public lectures and seminars,
                                              a clearer understanding of the                   through work we undertake with
                                              individual SME’s circumstances, so the           various universities and by providing
                                              bank can determine how much to lend              opportunities for students to interact
                                              to the SME and also how that money is            with our labs. Most crucially, we
                                              being spent.”                                    have over 3 000 scientists in our labs
                                                 In effect, he says, this platform is          across the world, and we can make
                                              about creating shared options for all.           this whole network available to the
                  Solomon Assefa,             Already it’s enabling huge numbers               continent, as a means of helping to
                  VP: IBM Research for        of SMEs in Kenya, and he says the                drive learning and ultimately open up
                  Africa and Emerging         opportunity exists for the solution to           the knowledge economy to Africa as
                  Market Solutions            help tens of millions of SMEs across the         a whole.”
                                              continent too.
                                                 “My future vision is for IBM Research
                                              to continue hiring the best scientists,
                                              researchers and developers, to ensure          with issues like improved air quality and
research and has played a significant         we have the capability to continue             reductions in pollution. We see great
role in advancing the development of          tackling Africa’s major challenges. I hope     potential for the utilisation of algorithms
technologies like blockchain and AI.          that in the next decade, we’ll have been       and technology to assist us in taking
    “The continued development of AI          able to make significant contributions in      better care of the environment and for
is significant, because the ability to        multiple arenas.                               driving a true sustainable development
analyse and mine big data is becoming            “This includes healthcare and               agenda. Ultimately, the key to such future
increasingly critical. At the same time,      encompasses not only the tackling of           success lies in technology, and in using
if you look at how regional integration       infectious diseases, but also the creation     it properly to make the world a better
is increasing, it’s becoming ever more        of better efficiencies in hospitals and        place. The research that we undertake in
important to be able to apply technologies    stronger regional integration. We also         our labs is the foundation underpinning
like blockchain to things like trade          anticipate making big strides in dealing       all of this,” he concludes.
logistics, to make it better, faster and
more transparent.”
    The same could also apply to
agriculture value chains. “After a harvest,
often a lot of the produce ends up spoiled
because it doesn’t get to the right place
at the right time. Adapting blockchain to     The solutions we create need to be designed to
suit this environment could easily have a
major and positive impact on the logistics
                                              address local needs and meet local requirements.”
                                              Solomon Assefa
chain, significantly reducing such waste.”

                                                                                               SPECIAL FOCUS |      IBM   |   J U LY 2 0 1 8
20         Cloud

Innovate
with the
intelligent
and secure
Transformation is a scary
prospect, unless you partner
with a company that’s been there
many times before.

                                             Maurice Blackwood,
                                                    director, IBM

J U LY 2 0 1 8 |   IBM   |   SPECIAL FOCUS
Cloud           21

BY: James Francis                               typewriter era, we had successfully             the cocoa plant by decoding its genes to
PICTURE: Karolina Komedera                      transitioned through those times to             preserving classic movies.
                                                where we are today in this data era.               There are different levels of maturity
                                                We’re defining ourselves as the company         required to make transitions possible

T
                                                that’s committed to cognitive solutions         and IBM walks that journey with its
           he world today is growing            and cloud platforming. That, in essence,        customers, from incumbents to cloud-
           increasingly connected,              is how we’re allocating our resources,          born companies.
           creating new possibilities and       how we’re investing in new areas, like             “Even ‘born in the cloud’ companies
           opportunities around every           blockchain, IoT, API calls, even cloud          – how can they use these services and
corner. But, fundamentally, the entire          datacentres across the world.”                  APIs? They don’t have to develop the
revolution is anchored to one vital                This change isn’t a new step for IBM,        services themselves. They can use these
resource.                                       says Blackwood. “We didn’t get here             APIs that will help them transform. So
   “It all starts with data and that data is    overnight. It’s been a very focused             across the landscape, we work with
going to be the resource that commands          strategy of delivering what we view as the      partners in the ecosystem. We start
the most attention,” says Maurice               hybrid cloud era. We’re really enabling         with our developers; we have resources
Blackwood, director of IBM South Africa.        companies to extend their current               and development teams responsible
“This is a paradigm shift. It’s saying that     investments into the new era of data, on-       to help skill teams both in SMMEs and
data is going to make the foundation of         premise as well as off-premise.”                enterprises on how they can run in our
what we do. We build a level of analytics          Putting clout behind that statement          cloud,” says Blackwood.
around data to determine what the data          are the numbers. IBM has 58 cloud                  Those partners range from established
is telling us. Then we ask, how do we           datacentres in 19 countries across the          vendors and services providers to the
infuse programming languages, machine           globe. Over 4 000 startups use the              new bloods defining the cloud era, from
learning, and all the concepts of deep          IBM cloud, which runs over 100 billion          Apple to Salesforce. This is strengthened
learning, with the data analytics, to get to    transactions a day, encapsulating               through global alliances with top
this era of cognitive computing, putting        over 160 different services including           integration partners. IBM’s ecosystem
things to work that we may not have had
access to in the past?”

The future’s three pillars
This is why IBM has built its strategy on
three pillars: cognitive, cloud and industry.
Cognitive is the art of understanding
                                                We’re in the era of smart business right now and it’s
data through new intelligent systems;           the next evolution of where we’ve come from.”
cloud is the powerhouse where many of
these concepts are being executed; and          Maurice Blackwood

industry is the ultimate beneficiary of any
resulting services, and as such the central     cognitive, IoT and blockchain. IBM’s            continues to develop with traditional as
cog of this motion. Combined, they create       clients make over 9.5 billion calls to its      well as next-generation partners that help
the blueprint for this new era. But while       APIs every month.                               it offer solutions. IBM is not a monolith –
anyone can attempt to combine such                 “We’re delivering and continue to            it’s a family.
elements, not all companies are in the          move into new markets that some of our             Being able to transform and use data in
position to spark a revolution.                 clients don’t know about. We have a proud       the most agile, efficient means is key. This
   In an industry where companies rise          history, but even brighter future in terms of   is the goal of IBM, to help create the new
and fall quickly, IBM is a rare standout.       cloud and what we can do to innovate and        era of smart business.
One of the original technology titans, it       be ready for this new cognitive, AI world.”        Says Blackwood: “We’re in the era of
helped define the early days of digital                                                         smart business right now and it’s the next
technology, a time of vast monolithic           A partner that knows change                     evolution of where we’ve come from.
systems. Today’s cloud era seems counter        IBM’s reputation has been built over            It’s going to be embedded in everything
to that and has tripped up giants as they       decades by serving its customers through        that we do, from the back office through
failed to see the change in front of them.      many paradigm shifts in the business and        to customers. The products and service
   But IBM didn’t arrive where it is through    technology worlds.                              that we have will be embedded with
complacency. No company could have                 This is the company that helped make         this new ‘smart’. Our point of view is
survived and thrived as long if it didn’t       the Apollo missions possible, popularised       that cognitive is in essence the new
know how to evolve.                             the barcode, developed Watson – an AI so        way that we work. We’ll always work
   “Transformation is hard. But we have         clever it beat champions in the wordplay        to find ways to make that value real
a 107-year history of transforming. Go          quiz show Jeopardy! – and currently uses        for our customers, now and into the
back to the mainframe era or even the           its clout to do everything from saving          future. This is what IBM does.”

                                                                                                  SPECIAL FOCUS |      IBM   |   J U LY 2 0 1 8
22         Intelligence

                                                                          Hein Badenhorst,
                                                                        technical advisor and
                                                                     technical data lead, IBM

Gaining a
bigger brain
Artificial intelligence promises to augment the
capabilities of the human brain with unheard
of speeds and capacity.

BY: Rodney Weidemann                            sheer scale of data being generated,            at a very serious disadvantage to those
PICTURE: Karolina Komedera                      combined with the unstructured                  which can,” says Andrew Quixley, sales
                                                format of the majority of that data, has        leader for Watson and cloud platform at

A
                                                outstripped the capacity of humans and          IBM South Africa.
            rtificial intelligence has raised   traditional computing capabilities to              “Any business that deals with large
            understandable anxiety              make sense of it all. Unstructured data:        numbers of customers, services,
            that it could replace human         typically text, images, video and audio         products and transactions generates
            intelligence in the workplace.      was ‘invisible’ to traditional computing        data on a grand scale. The ability to
However, the experts believe that               capabilities. Today, these cognitive            gain valuable insight from the data is
the optimal outcome is not to replace           functions can be performed by AI                crucial. It’s long been possible to gain
human intelligence, but to augment it,          computing capabilities, at huge scale           insights from structured data – the sort
enabling humans and machines to work            and great speed.                                that easily fits into database tables,
together to achieve far more than either           “Being able to effectively analyse           but before AI entered the picture,
can achieve separately.                         large quantities of unstructured                gaining insights from unstructured
   AI is rapidly becoming indispensable         information is essential in the modern          data was generally done by a human.
in today’s data-driven world, where the         world. Enterprises that cannot do so are        And humans, of course, take breaks,

J U LY 2 0 1 8 |   IBM   |   SPECIAL FOCUS
Intelligence            23

                                           and learn (Machine Learning).                increased levels of supercomputing is
                                               Hein Badenhorst, technical advisor       going to deliver incredible benefits to the
                                           and technical data lead at IBM               world,” he says.
                                           South Africa, adds that in traditional
                                           computing, once a machine is                 Brain for hire
                                           programmed to do something, it does          Badenhorst says the enormous
                                           that same something every time.              workloads created by unstructured
                                               “With AI, on the other hand,             data require massive processing
                                           we utilise a process known as                power. “We’ve designed the
                                           unsupervised learning, where the             necessary infrastructure right down
                                           machine is able to learn for itself. And     to the processors. Without these
                                           because it’s a machine, it’s able to run     developments, computing capabilities
                                           through alternatives and test different      would not cope with today’s AI. Our
                                           options rapidly and repeatedly, enabling     heritage in designing and building
                                           it to constantly learn by evolution.         computer servers has been a significant
                                           Ultimately, this means it’s able to          advantage in this domain.
                                           solve complex problems in a matter              “What’s most exciting in a commercial
                                           of seconds that might take a human a         sense is that we’re democratising these
                                           lifetime,” he says.                          AI capabilities so that any organisation
                                               “Now, think about adding this ability    can use them affordably,” says Quixley.
                                           to the unbelievable processing power         “Think of how international travel has
                                           that will soon be available via quantum      evolved. Most of us could never afford
                                           computing. That will result in a machine     to own a passenger jet, but we can
                                           able to tackle problems far beyond the       afford to pay for a seat on the plane for a
                                           reach of the human mind.”                    given journey. It’s the same with our AI.
                                               Badenhorst points to an extremely        There’s no need to invest in the gigantic
                                           complex system like the weather –            computing power needed to process

                                           Most of us could never afford to own a passenger
                                           jet, but we can afford to pay for a seat on the plane
                                           for a given journey. It’s the same with our AI.”
                                           Andrew Quixley

holidays, sick days, and even the best     which is affected by a multitude of          some of these very complex workloads –
of us make mistakes,” he says.             factors, such as the atmosphere, the         because we make it available in the cloud
                                           heat of the land, movement of the sea        as a ‘pay as you go’ service.”
The essence of AI                          and many other elements – as the kind           Furthermore, says Badenhorst, with
“Cognitive is a word used to describe      of thing such computers will be able to      digital transformation, the need for AI
the things that a human brain can do,      study.                                       and the trustworthy data and insight it
such as count, add, subtract, read,           “AI will likely be able to forecast the   delivers has never been greater.
speak, think, recognise, imagine, learn…   weather over a much longer period,              “Any enterprise undertaking a digital
the list is truly enormous. Traditional    simply because it can compute how            transformation can gain from using AI
computers have done arithmetical           these various factors will impact            and cognitive computing. It’s really the
tasks (like count, add, subtract) for      the bigger picture. Now, with such           best way of handling the vast quantities
many decades. With Watson, we              granularity available in forecasting,        of unstructured data currently being
have enabled computers to do more          it could enable farmers, for example,        generated, and the only solution to
cognitive tasks, including read (we call   to plant crops at the most ideal time        obtaining the kind of deep insight that
it Natural Language Understanding),        to ensure optimum harvest. I have no         can drive a digital transformation agenda
recognise (Visual Recognition)             doubt that a combination of AI and           forward,” he concludes.

                                                                                          SPECIAL FOCUS |      IBM    |   J U LY 2 0 1 8
24         Security

                                                Sheldon Hand,
                                               Security business
                                                  unit lead, IBM

Prevent,
detect,
respond
When the cyber security question
changed from ‘if we get attacked’
to ’when’ it was time to change
tack. It’s critical organisations
can respond to cyber threats
intelligently and in real-time.

BY: Tamsin Oxford                                 In 2015, Ginni Rometty, IBM’s CEO,        time insight across the business,” says
PICTURE: Karolina Komedera                     said: “Cyber crime is the greatest threat    Sheldon Hand, security business unit
                                               to every profession, every industry, and     leader, IBM South Africa. “This allows

T
                                               every company in the world.” Today, her      the business to react quickly, based on
          he rate and sophistication           words remain as relevant as they did then.   real-time data. The average enterprise
          of cyber security threats are           Every organisation today requires         has approximately 85 different security
          growing daily, making the threat     an intelligent immune system of              tools from 45 different vendors. With
          pervasive, the risk exponential      security technology that will allow it       IBM, we give visibility into these tools
and the defences inadequate.                   to detect and prevent threats while          by consolidating the information into
   According to the 2018 IBM X-Force           responding quickly and completely            a centralised, integrated platform that
Threat Intelligence Index, more than 2.9       to a breach and IBM Security’s highly        operates in real-time.”
billion records were leaked globally from      adaptable platform with near real-              IBM Security includes a variety
publicly disclosed incidents in 2017. Cyber    time intelligence processes provides         of products and services that work
criminals shifted to focus on ransomware       sustainable cyber crime prevention and       together to prevent, detect and respond
attacks and as a result, ransomware            holistic responses in light of a rapidly     to cyber attacks. Like a technological
attacks cost companies more than $8            evolving threat environment.                 immune system, these tools are
billion globally last year in downtime, lost      “IBM has developed a platform that        powered by the latest in AI, research
revenue and in ransomware payments.            provides the organisation with real-         and threat awareness.

J U LY 2 0 1 8 |   IBM   |   SPECIAL FOCUS
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