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The Tsunami Effect of AI on Partnering—Part 1 of the 2019 ASAP Summit Keynote Address

Posted By Cynthia B. Hanson, Friday, March 22, 2019

How do you align for the era of smart?  “Let’s put smart to work” was the mantra Bruce Anderson chose for his keynote address “Partnering in the AI Era: An Essential Shift from Value Chains to Business Ecosystems” at the recent 2019 ASAP Global Alliance Summit in Fort Lauderdale, Florida. Anderson is IBM’s global managing director, global electronics industry, and he painted a vision that appeared highly relevant to alliance managers and their associates in the packed room.

“In my world, with the scope of clients, there is almost [always] an alliance idea that happens several times a day,” Anderson said, setting the stage for his address. “We put a lot of structure around that. I have seen that structure help us define these alliances and what they could do.”

The market is moving so fast from a linear to dynamic approach that you need to ask how your company should be thinking about alliances in this accelerating business approach, he stated. “IBM figured out a long time ago you have to partner, and the real value of companies like IBM is to bring the pieces together to create business value. That’s where the ecosystem comes into play.”

Anderson then provided some context: Design cycles for hardware took years, but now technology development is going faster and faster. As companies come into this space, they need to leverage what they’ve created by “reaching out to a broader ecosystem to create value. The approach is getting more open,” he pointed out. “This is only going to accelerate. The change is not only how products are brought together, but also how they partner in the marketplace.”

In this climate, alliance managers need make sure ideas are aligned “because a lot of thought went into the idea of strategy to get momentum for the alliance in the company. We use the word cognitive. You can use the world AI. We think about augmented intelligence and using data to make life—at work and at home—better. This is done most effectively in the Cloud. So there has been a lot of change for us since the ‘80s. But the context for what this is useful for is industries.”

In the advancing era of artificial intelligence (AI), companies need to create all the pieces—and alliances—necessary to make it easy to adapt for the advancement of products, he said. “Alliances have become fundamental to the idea of strategy. How has IBM shifted over the years?” he then asked, flashing a slide of a revenue chart IBM put together years ago with the overarching header “Over 50% of IBM revenue will come from Cloud and Cognitive Solutions in the near future.” Anderson then followed with a slide on AI “emerging across ecosystems … everywhere,” that was broken into three categories:

  • AI-enabled engagement
  • AI-enabled analytics
  • AI-enabled operations

AI seems to have an unlimited number of applications, and Anderson talked about a small handful of which IBM has been partnering on: digital farming, block chain (which prevents waste), mapping the microbiome, sensor detection of pathogens, and radical recycling. A discussion then took place about the multiple benefits of AI in IBM’s Food Trust.

Stay tuned for more of ASAP Media’s live, onsite coverage of this session and others from 2019 ASAP Global Alliance Summit. Cynthia B. Hanson is managing editor of ASAP Media and Strategic Alliance publications. 

Tags:  AI-enabled engagement  alliance managers  Artificial Intellegence  block chain  Bruce Anderson  Cloud  cognitive Solutions  design cycles  digital farming  ecosystem  global electronics  IBM  partner 

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