IBM Transformation Series: The ultimate strategy for the future

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Michelangelo said: "The statue is in the stone, I just remove the parts."

Not a week after the year of 2016, IBM announced its biggest organizational restructuring since Gerstner. This adjustment will, in the big Data era, be a very clear form of IBM's three new divisions-Global Industry business group, integrated Cognitive Solutions Group and cloud computing group.

IBM's restructuring of the organization will form a sharpest "chisel", removing unwanted data and revealing "algorithms" hidden in big data. Yes, you can say that IBM is transitioning from being a cloud computing company to a cognitive computing company. But I'm going to go one step further: IBM is going to be a company that provides algorithmic and algorithmic consulting.

I think IBM is trying to find and create the "ultimate Algorithm", and then to create an automated algorithm-based "service" and "consulting" based on artificial intelligence. IBM is pushing advisory services to the next stage: Automated cognitive consulting services in the big Data age. At this stage, the service is performed in an automated manner by the program, and consultation is provided by artificial intelligence algorithms.

In a word, algorithms are dominating the world.

So what is the "ultimate algorithm"? Professor Pedro Domingos of the University of Washington, in his 2015 book, The ultimate Algorithm, describes the "ultimate algorithm" that automatically discovers and creates "main algorithms" for all other algorithms through machine learning. In other words, if "God" has an algorithm, then the "Ultimate algorithm" is the "God" of all the algorithms.

In the Matrix, "the ultimate Algorithm" is the matrix--matrix.

Why do you need a driver? A computer can drive a car as long as it can master enough data. Why do you need a doctor? As long as enough data is available, a piece of code can operate and be more stable and reliable. Why do we need teachers? As long as enough data is available, a program can complete all teaching and mentoring from primary to doctoral.

The ultimate algorithm senses and perceives the world with self-awareness, self-evolution, and the ability to automatically write arbitrary code to accomplish any task.

As humans approach the "ultimate algorithm" in an infinite way, IBM discovered in the process that a supercomputer, called Watson, was invested a long time ago, and that is how the machine learns.

However, Watson is still in "growth", want to approach the "ultimate algorithm" must continue to eat food, this grain is "big data". Why Microsoft Search very hard to catch up with Google, and technology may not be worse than Google, but Google's position is unbreakable? Very simply, Google's "eat" more data than Microsoft, Google's algorithm is always more "smart" than Microsoft's algorithm.

So, I guess Roche may have made up his mind to lead the world to the "ultimate algorithm", the "ultimate algorithm" that will make IBM the "God" of the future world. To this end, her large and small bought no less than 30 algorithms and data companies. Among them, the most famous is the acquisition of the United States weather Weather Company's business assets, is directed at the company's big data.

In order to become part of Watson's capacity as soon as possible, blocking Wall Street's mouth, IBM also bought a lot of non-known but Super Bull's algorithm company, as a complement to the Watson algorithm system. For example, there is a company called Algorithmics, the business is to use business algorithms to measure the risk of financial transactions.

The Algorithmics company was involved in the advice and recommendations of the international Protocol, followed by continuous tracking of the progress of the Bahan protocol and the incorporation of new specifications into the algorithm, which was then sold to countries ' banks for financial risk monitoring. The Bahan agreement is a benchmark for global banking regulation and an international norm for financial regulation.

IBM spent $400 million to buy the company, renaming the company's solution to IBM Algorithmics, and then incorporating the company's algorithms into the entire ultimate algorithm system.

This adjustment is IBM's highly centralized strategy, highly centralized resources, highly centralized execution of the preparatory campaign, is a systematic carding of IBM, IBM's loose organizational structure for many years again highly centralized.

Among them, the Global Industry business Group specializes in combing the needs of industry users, integrated cognitive Solutions group according to the needs of the development of solutions, Cloud Computing Group provides back-office support, clear, straightforward, simple and clear. The future direction is the "ultimate algorithm" provider.

Of course, her will not make her final thinking about the future public, so if you only read Roche's current step, you are already behind Roche many steps.

So, what others see is a 14 consecutive quarterly revenue drop, and I see a planned strategic contraction. What others see is that IBM is cutting jobs, and what I see is that in an era of automatic cognitive counseling, it really doesn't take that many people ———— while the IBM, who is downsizing, is aggressively increasing the number of data scientists.

So I said, the spring of IBM is already around the corner. ( text/Ningchuang, This article first Titanium media, Itvalue)

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IBM Transformation Series: The ultimate strategy for the future