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Tag Archives: Uncertainty

Why Today’s Uncertainty Will Strengthen The Case For Cloud Software

April 25, 2020   SAP
 Why Today’s Uncertainty Will Strengthen The Case For Cloud Software

As the world economy is reeling from the rapid spread of COVID-19 and the drastic measures taken to curb it, many businesses are reconsidering their priorities. Long gone seem the days when one of the most pressing issues a company faced was updating its technological stack and deciding whether it should adopt a cloud solution.

Although these considerations might have temporarily moved to the background, I believe the coronavirus crisis will reinforce the case for moving to the cloud for the following three reasons. I will explain my points with SAP S/4HANA Cloud, as this is the cloud solution I know best.

1. Remote work will become much more widespread

The trend towards working remotely gained traction long before the coronavirus pandemic, carried by a number of wider societal trends. “Telecommuting” helps connect teams in a globalized world. It can help save time and costs for business travel. It can improve employees’ work-life balance, thus contributing to the integration of a more diverse population into the workforce. Additionally, it can help reduce carbon emissions and caters to the preferences of millennials who favor (or idealize) working from a beach bed or a mountain hut rather than an office.

The drastic social distancing measures put in place in response to the pandemic are forcing businesses to conduct an experiment on remote work, and many of them will discover the above benefits (at least partially). Many of them will also discover the limitations of their current technological setup: Can employees access their systems from outside the company’s premises? Can they do so from mobile devices?

Using cloud-based software, they can. SAP S/4HANA Cloud, for example, can be accessed from a web browser, no matter where you are at that moment. You can use any device, be it a smartphone, a tablet, or a laptop. Some will argue that they could achieve similar results with an on-premises architecture and a VPN. But as my colleague and host of the SAP Experts Podcast Alex Greb pointed out recently, “Even DAX heavyweight companies have recognized that it’s not that easy having their people work from home, as their VPN bandwidths have started to hit their boundaries.”

This problem would not occur working with a cloud solution, and on top of that, it would be much easier to maintain from an IT perspective. There is a good chance that many companies will come out of this big social distancing experiment having learned that cloud software made working from home much easier – and thus, made their companies more resilient.

2. There will be renewed focus on operational efficiency

With entire economic sectors in a virtual standstill, a grave economic recession seems all but inevitable. The IMF, for example, assumes that the economic upheaval we are about to face will dwarf the supposedly once-in-a-generation meltdown of 2008. Regardless of whether these fears are overblown or understated, there is little doubt that the longest economic recovery in history may have come to an abrupt end. And as revenue sources dry up in this process, a reinforced focus on reducing operational costs will follow as companies scramble to safeguard their bottom lines.

Cloud software can help cut operational costs. Implementing best-practice processes built into cloud software provides the opportunity to harvest some low-hanging fruit: giving processes a makeover that might have gone unchecked for a long while. SAP is constantly innovating on these best practices, with the goal of reducing 50% of repetitive processes in the coming years. To that end, for example, “intelligent technologies” (machine learning, conversational AI, robotic process automation) are increasingly phased into SAP S/4HANA Cloud, automating more and more repetitive processes. This way, companies can not only profit from a short-term boost in productivity after implementation but continue to improve their bottom lines as they consume new innovations automatically delivered to them.

3. Companies will increasingly favor OPEX over CAPEX

For organizations that are looking into upgrading their IT landscape, this discussion will sound familiar: Do you favor CAPEX or OPEX? An on-premises installation usually tilts your spending towards capital expenditure (CAPEX): Licenses that need to be bought upfront and heavy implementation projects require a considerable amount of liquidity in the early stage of the software lifecycle. Cloud software, by contrast, allows you to spread those expenditures over a longer time period. Subscription payments hit your cash position in regular intervals, while implementation projects are a lot leaner and faster (although consulting might be needed more often to take advantage of the dynamic innovation cycles described above).

Theoretically, the longer you spread out the payments of an investment over time (as you do when you convert CAPEX to OPEX), the more this increases its net present value (= profitability). In practice, finance departments often had less clear-cut opinions about this matter. What the pandemic – and more so, the looming recession – will change about this discussion is that cash will be in short supply in many sectors of the economy for the foreseeable future.

As a response, affected IT departments will ponder deferring investments until the economic situation lightens up. This could be a lengthy process, however, and businesses with an outdated technological setup will find themselves ill-prepared to take advantage of the subsequent recovery. If your organization is currently evaluating upgrading its IT landscape, you should consider cloud as an option to reconcile your organization’s long-term strategic priorities with its mid-term financial necessities.

Those who innovate throughout the recession will win the recovery

It seems certain that we are in for a bumpy ride for quite a stretch. But as economic history suggests, every downturn – as tough as it may play out – is eventually followed by a recovery. The trickier question is, who will be best prepared to not only weather the storm but also to take advantage of the ensuing economic growth?

It stands to reason that technology will remain a crucial driver of competitiveness even in this new economic era. Hence, it would be unwise to stop innovating, to stop adopting new technology at this point. It might be true that, due to the pandemic, the focus will shift more from opening new revenue sources to improving operational efficiency, from open-sky innovation to best practice, from upfront investment to pay-as-you-go, from the open plan office to the home office. But all these factors will strengthen the case for the cloud.

How can you achieve your business goals with SAP S/4HANA? Find out more about the next generation of SAP business scenario recommendations for SAP S/4HANA in our upcoming webinar session on April 27, 2020. Sign up today.

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Living Post Uncertainty: How Changes Today Will Propel Future Generations

April 24, 2020   Sisense

COVID-19 is the biggest human challenge we’ve encountered in decades — and despite the focus on epidemiology it actually centers on data. In Data Surrounds Us, we shift our focus from what happened to what we can do better. Through understanding past crises and recent data in the world around us, we want to help everyday people understand how their choices will lead to a better outcome, dispel uncertainty and use data to chart, draw, and paint a better future.

COVID-19 happened so quickly — and by now it is clear to us all that it will reshape our society in so many lasting ways. It shocked, awed, and changed us in just a few short weeks. While almost everyone was confined to their homes by government-mandated shutdowns, isolation led to deep questions about the world around us: How we’re governed, what matters to us, and with whom we want to spend our precious time. In short, this large, impersonal single-cell driven crisis feels oh-so personal to us all, and is creating in many of us a sense of hopelessness and helplessness.  

This isn’t the first time that society collectively experienced a traumatic shock. Both the 9/11 terror attacks and the 2008 economic collapse are still fresh in our recent living memory, but the real comparable events occurred in 1918, 1957, and 1968. This was especially poignant when death totals from the 1918 Spanish Flu exceeded tens of millions of people. Only a handful of survivors of the 1918 pandemic remain, and thus our current crisis is new to nearly all of us. 

Even taking into account the two other pandemics of the 20th century, very few people experienced similar levels of fear, uncertainty, and doubt. Past pandemics affected the world in significant ways — politics, lifestyle, families, and of course the economy. There are lessons from those prior events: During the actual lockdowns, but also in the years that followed and the people who endured those tragedies. How we respond will certainly color how we look back on this crisis.

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Living in a world in flux

As we entered 2020, things were already changing — political upheaval, globalization breakdown, automation job replacement, innovation moving faster than human comprehension — the world was already in transition. This pandemic hit hard and fast, but now that the shock is subsiding, all nations must begin to chart towards a sense of semblance of normalcy.  Many questions still remain unanswered so we should, therefore, note a key learning moment: This crisis provides us all with a chance to pause and reevaluate.

We have an opportunity to look at the data and to decide the world we want to live and work in, and rebuild it together for the better. In my day job, I serve as the Chief Strategy Officer of Sisense, a company that helps deliver data and analytics via an advanced technology platform. More importantly, our mission is to deliver insights to the builders of new constructs, be that data structures, analytics dashboards, or new businesses.  Now more than ever, data will be a barometer of truth. 

The last few weeks were an adjustment period, where people watched and debated data more than ever before. Hundreds of dashboards count and filter a local view of infections, deaths, and other key metrics around the coronavirus pandemic, and it impacts our collective psyche. This data is disorienting, morbid, and overwhelming but we are all figuring out how to survive this, together. But despite all of the negative signals, I believe, there is also hope.  

Data will guide us towards a new normal

Data can contribute to the healing process, but also shines a bright light on new and exciting changes in our society. Data cannot replace our values, nor should we simply consign our societal decision making processes to a set of smart algorithms. However, we should use the cast light of data-driven knowledge to gain insights and outline avenues into the future we should strive to shape.  

While it’s a jarring shift, many of the things we are doing today will inform a tomorrow that shouldn’t feel distant. These things include our increased focus on the environment, the changing way we are using technology, celebrating front-line workers, how we shop and purchase items, and countless other factors that impact our personal and professional lives.

We are capable of doing more for ourselves than we ever thought. We are resourceful and many people are returning to a simpler way of doing things — whether that’s staying at home with family or getting outdoors (safely) looking for healthier lifestyles. It changed the way we perceive how we could work, the way we may live, what and how much we should give, how our kids would learn, and even how we consume and process information. 

In short, it impacts what we prioritize, how we create a sense of purpose in our lives, and where we invest our time. Reality has shifted around us and as we find a new stable perch for our minds in the new normal we can choose to direct our gaze, goals, and values to a new horizon, otherwise blocked by the pre-pandemic grueling daily momentum.

Introducing our COVID-19 Hub

Today, we’re launching a new initiative that explores the impact of COVID-19 on the world, showcasing data that predict a new, better world. We will curate and share trends, surveys, and insightful data. This “global timeout” allows us to realize the many things we can do without and the really important things we truly want back. Family quality time, self-development pursuits, reconnecting with friends, nurturing local initiatives, nature sorely missed, and many more. These are only a few of the newly rediscovered human life truisms which emerged during these days of forced seclusion. No matter how much the past might seem appealing, the world of 2019 is gone, and the future is now, and in our hands for shaping.

There are many questions to be targeted by human endeavor, but our world is embracing change more quickly than ever. At Sisense we want to help you curate and experience those changes through data tips and stories. As the world re-emerges, tough decisions will need to be made around the timing and structure of our transition back to normalcy. Some of these decisions will be generational (like the timing of gen-z vs. boomers returning to work) while others will impact everyone (like the timing of a vaccine rollout).  

Data-driven decision-making is more important than ever

The decisions we make today will profoundly impact tomorrow for us, our children, and grandchildren. So, in the coming weeks and months, we’ll regularly share insights as a message of hope and with the goal of providing ideas around what a better future could look like. Data will be at the core of each of these stories because that is what is needed, and yes, also because that is what we do best. And the right data is free from political bias or gut feel; it’s something that is indisputable.

We hope you lean into the future with us, because we plan to push the limits around not only the ebbs and flows of the COVID-19 virus, but paint a picture around a pathway to what’s next. The future will be about a new purpose and a complete pivot that will be driven by analytics that empower the builders of tomorrow. We will each get to define our future.

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Guy Levy-Yurista, PhD is the Chief Strategy Officer at Sisense, and an executive leader and entrepreneur with over 25 years of experience in Fortune 500, startup, and venture capital environments. Guy specializes in commercializing advanced technologies in dynamic market environments. He holds in-depth knowledge of analytics, social media, mobile, telecommunications, cyber-security, and optical technologies. As a thought leader and sought after speaker he is a contributing author to multiple media outlets and keynote speaker at a variety of industry and investor conferences.

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How CFOs Are Successfully Navigating The New Reality Of Uncertainty And Change

February 7, 2020   BI News and Info
 How CFOs Are Successfully Navigating The New Reality Of Uncertainty And Change

In every sector across the globe, change is the new normal. And while change always brings new opportunities, it also creates tremendous uncertainty. From volatile political climates to increases in regulation, from the rapid proliferation of new competitors to anticipated labor shortages, every CFO today must be ready to face and manage the unknown.

The normal human response to uncertainty is avoidance or a cautious “wait and see” attitude. Yet in a fast-paced, frenetic business world, where upstarts can disrupt established industries in mere months, “wait and see” is no longer a viable business strategy.

While those who are reluctant to change are clinging to the old (“that’s the way we’ve always done it”), wise and visionary CFOs are already recognizing the need to step up and into finance’s new role as a strategic business partner. Only those who bravely move forward, in spite of the unknown and armed with information, new tools, and a strategic plan, will reap the rewards.

Acknowledging that uncertainty is the new normal is a critical first step for finance. Yet forward-thinking CFOs aren’t just acknowledging uncertainty – or even merely adapting to it. Instead, they’re proactively leveraging what seems like chaos to others into a strategic advantage.

And they’re doing so by engaging in these six key practices:

  1. Using and optimizing new technology
  1. Elevating finance’s role to strategic business partner
  1. Driving the evolution of the accountant
  1. Proactively mitigating cybersecurity threats
  1. Staying ahead of changing regulations
  1. Reducing the cost of the finance function

Using and optimizing new technology

Finance, like the rest of the world, is in the middle of a digital transformation. Yet while marketing, logistics, and sales have made the transition from paper-based systems to automated ones, finance still relies on manual tools, such as spreadsheets, Word docs, and binders, to manage much of the close.

These tools prohibit access to real-time data and stymie the necessary transition to modern accounting. Spreadsheets alone reduce efficiency while simultaneously increasing the likelihood of errors.

For the finance function, managing uncertainty starts with eliminating the use of tools that cause it. For CFOs, this means integrating more smart automation into every process. Engaging RPA – robotic process automation – for repetitive, tedious, manual tasks not only increases efficiency and accuracy but also enables accountants to become less reactive and more visionary.

Elevating finance’s role to strategic business partner

Modern CFOs are transforming the role of finance from a back-office function to a strategic business partner by providing real-time visibility into and analysis of financial assets and resources. Real-time insight, instead of months-old data, enables leadership to pivot quickly to meet customer and stakeholder demands and seize new opportunities before the competition.

Better information isn’t the only driver in this transformation. Leveraging uncertainty into a strategic advantage also requires transforming people and processes.

Automated, streamlined processes free people to focus on strategy creation and predictive and prescriptive analysis – work that enables finance to step into a true partnership role.

Driving the evolution of the accountant

Over the past decade, the finance technology landscape has changed at a dizzying pace, with all indicators pointing to a faster pace of innovation.

Cloud computing has lowered the bar to deploying new apps. RPA is driving efficiency and consistency by applying business rules to eliminate high-volume tasks like reconciliations. Artificial intelligence (AI), machine learning, and more recently, deep learning are predicted to have an ever-increasing impact on finance and accounting departments.

These technologies are leading to the development of a robotic accounting department, and forward-thinking CFOs are excited about the opportunity to realize a much higher people ROI.

These CFOs are using the robotic accounting department, not to replace accountants, but to drive their evolution. Instead of staying bogged down by multiple spreadsheets and manual processes, accountants can take on more valuable, interesting, and strategic roles, including:

  • The technical guru, responsible for the care and feeding of RPA systems
  • The RPA standards leader, who provides human guidance around the use of RPA systems
  • The business adviser, responsible for providing analysis and advice based on RPA-generated reporting
  • The fraud detector, who monitors, identifies, and reports on fraud as it happens
  • The compliance expert, responsible for aligning the organization with external regulations
  • The auditor, who – finally freed of aggregating paper documentation – can now focus on the analysis of past and current decisions

Read this white paper to dive deeper into each of these roles, and discover the role you could play in the robotic accounting department of tomorrow.

This article originally appeared on BlackLine.com and is republished by permission.

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Wait and See: Four Ways To Keep The Customer Experience Going When Uncertainty Looms

January 9, 2020   BI News and Info
 Wait and See: Four Ways To Keep The Customer Experience Going When Uncertainty Looms

Part 4 of the “2020 Strategies and Insights for Midsize Companies” series

“Wait and see.”

That phrase can be like a huge, red stop light for businesses of all sizes when uncertainty looms. No matter if that uncertainty springs from the political landscape like the upcoming 2020 U.S. presidential election, or company leadership is changing, or a merger is happening, companies oftentimes pause on making big decisions around big technology purchases, staffing, and business initiatives until after the change.

Sometimes “wait and see” is just part of business when uncertainty looms. But that self-inflicted pause rarely, if ever, flies with customers. Customer needs, demands, and expectations don’t wait for elections, mergers, budgets, or internal onboarding to conclude.

So, as we face this new decade, how can you keep customer experience (CX) improvement efforts moving if you feel stuck on “wait and see?” Because you may not have a choice about following high-level directives to hold off on big purchases and decisions. But it doesn’t make good business sense to put customers on the back burner, either.

One idea: focus on what you can do. This could be the perfect time to revisit the CX basics at your company. Because customer experience is about much more than tech, initiatives, and big projects. It’s a mindset, or a way of doing things, to be interwoven into the fabric of your company’s culture.

Here are some things you can focus on to keep the company’s CX mindset flowing in times of uncertainty.

Are the basics really under control?

I’m going to get really basic for just a moment. When I say, “the basics,” I mean, are the phones being answered, and answered effectively? While the focus today may be on perfecting digital and online communication, the phone is still customers’ most preferred channel when it comes to contacting the companies where they do business. Fifty-seven percent of consumers used the phone to address a service problem last year. Seventy-five percent of companies believe they’re doing a good job with telephone communication, but only 48% of customers agree. Flames fly every day on social media from angry customers who can’t get a call answered, or when they encounter phone agents who simply don’t seem to care. Getting the phones right is a CX basic. Use “wait and see” time to secret shop your company’s phone systems or contact center. Assess, advocate for, and improve on the phone basics.

Is your website communicating well?

You probably already know website design is important to winning and retaining customers. But a customer’s experience with your site goes well beyond aesthetics. Bad, inconsistent, and confusing content leads to friction with customers. Two out of three customers in one recent study regularly had trouble finding answers on company websites. Here’s an example. I recently visited the website of a company where I had made a purchase and found that the customer service number posted on their site wasn’t correct. Their site invited me to chat online with agents “right now.” When I clicked to enter the chat, the page changed and said chat was closed, but I could feel free to e-mail them. I felt like a digital hot potato—passed around from source to source without getting anywhere. In the end, it felt like the company had deliberately wasted my time. So, secret shop your company website. Ask some communication-savvy colleagues to do the same. You probably don’t need a big budget or to wait for an election to pass in order to get the basics squared away.

How about a customer experience metrics and measurements refresh?

By now, companies who are more customer experience mature should have CX operational and experience metrics in place. Along with your senior team, you’re likely monitoring and triaging customers’ experiences with your application processes, customer wait times, website, and in your contact center, for example. But how long has it been since you challenged what you were measuring, how you were measuring it, and if those were the things that really mattered to customers? What mattered two years ago may not be what matters now. Most small and midsized companies don’t need a big budget to shift what they’re measuring and when. And if you’re not measuring, monitoring, and triaging data surrounding customers’ experiences yet, 2020 is a good time to get started, using systems and resources you already have in place.

Expand your thinking on customer feedback

No matter what size company you run, collecting feedback should be part of your business model. And hopefully by now you’re well on your way to collecting and reviewing feedback on a regular basis. If you get stuck in “wait and see” mode, go back and take another dive back into feedback you’ve collected. Challenge whether you’re acting feedback everywhere possible in your business. Sixty-three percent of companies that collect feedback don’t do a good job of using it holistically in their business. Think about using feedback in your policy and rulemaking work, risk management activities, marketing and public relations work. In the coming decade, you will want to maximize your current business processes, including how and where you use the customer feedback you’re already collecting.

“Wait and see” is oftentimes just part of the normal course of doing business. But that doesn’t mean your focus on CX needs to take a huge pause. With an entrepreneurial spirit and mindset, you can face the 2020s intuitively knowing what it takes to advance the customer experience dialogue, even if big projects go on hold. Small and midsize businesses have an opportunity to be nimble in ways where many large organizations struggle. Embrace and expand on the basics of customer experience management during periods of “wait and see,” and you will be embracing competitive opportunity.

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See IDC’s list of top trends for small and midsize businesses in the 2020s. Download the IDC infographic, sponsored by SAP, “The Roaring 2020s – Six Trends Midsize Companies in the Next Decade.”  

And we invite you join our upcoming webinar for a deeper dive into each of these trends and what you can do now to take advantage of them.  Register for  Winning in the 2020s:  Six Trends Every Midsize Company Needs to Know.

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For FP&A, There’s Risk, Then There’s Uncertainty

May 8, 2019   BI News and Info
 For FP&A, There’s Risk, Then There’s Uncertainty

Do you know the difference between risk and uncertainty?

An experiment by author Daniel Ellsberg on the popular podcast “The Hidden Brain” highlights the difference between the two. Imagine, Ellsberg said, an urn that prohibits you from seeing inside but that contains 50 red balls and 50 black balls. One ball will be picked; if you guess the color correctly, you will receive $ 100. Guess incorrectly, and you will receive nothing. How much would you pay to play this game? The expected outcome is calculated at $ 50, because you have a 50% chance of winning $ 100. It is then up to you to decide whether to play based on your risk appetite.

Now imagine a second urn that contains an unknown number of red and black balls as well as yellow and green balls. Again, one ball will be picked, and you will get $ 100 if you guess correctly, and nothing if you guess incorrectly. Which color will you choose? Will there be any of that color at all in the urn? It is impossible to estimate the outcome, and therefore people are reticent to put up their own money to play this game.

The point Ellsberg was trying to make was that the market (people, companies, etc.) can estimate risk and therefore factor it into decisions, but they will generally walk away from uncertainty. Visionary entrepreneurs have built great businesses and fortunes by wading into uncertainty and creating markets that did not exist previously. Think Microsoft and personal computing in the 1970s, Amazon and online retailing in the 1990s.

What risk versus uncertainty means for FP&A

Let’s look at this through the lens of common FP&A activities. Financial planning and analysis tends to follow risk practices in applying risk and uncertainty to the forecasts. Those with a high probability of occurring lead to reserves (loan losses) or expected losses (returns or breakage). Lower-probability but still significant risks may be managed by mitigating off risk via insurance or hedges. The unimaginable ones—nuclear war, federal default—are assumed to be big enough and of a low probability to be so catastrophic that the cost of protecting against them would outweigh the capital of the company to stay in business.

Try answering this question: How much capital do you need to store on your balance sheet to overcome a giant asteroid smashing into the earth and throwing up enough dust to blot out the sun? You can’t, because you cannot compute them.

What about building a business case for a new product or service where precedent does not exist? This is hard; the first 20 potential investors that Airbnb’s founders approached rebuffed them, showing that professionals who specialize in uncertainty have trouble valuing new ideas. FP&A practitioners already know the standard practices that come with trying to squeeze the unknown into quantitative models: identify the variables and uncertainties, make best estimates based on information available, refresh the model quickly, and present sensitivities and scenarios.

When dealing with true uncertainties, FP&A should recognize which cases are at the fringe of our capability to provide confident estimates. These decisions need to be made based on strategic considerations more than trusted quantitative ones. They may be excluded from the forecast all together, considered research and development for the business rather than a true investment, or factor in only the costs of the exercise without potential benefits. This is also where taking a portfolio approach to investments can be useful, where some are exploratory or revolutionary bets while others have more certain payoffs.

One final thought: When you review your models in these uncertain exercises, it is also useful to maintain a dose of humility and realize the limits of your quantification. It is hard to estimate all the ways that you will diverge from actuals!

How can we mitigate the risks of artificial intelligence in the financial industry? Read AI In The Financial Sector: The Ethics Of Algorithms (Part 1). 

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Automakers must decide how much uncertainty is acceptable for autonomous vehicles

June 27, 2018   Big Data
 Automakers must decide how much uncertainty is acceptable for autonomous vehicles

To meet the goal of autonomous vehicles that can operate safely and without any need for human input — that is, L5 automation — automakers must train AI systems to navigate myriad conditions they’ll run into in the real world so that they don’t actually run into anything in the real world). Our highways and roads are, as we all know from experience behind the wheel, wholly unpredictable places, and they’ll continually require self-driving cars to instantly interpret and react to “edge case” scenarios.

While machine learning can guide AI to develop a recognition of, and reaction to, scenarios that it has seen many times before, there’s an immense hurdle in training AI for one-in-a-million (or billion) situations. For example, AI may be well-versed in basic freeway driving, or identifying pedestrians under expected circumstances. However, edge cases abound. Freeways may be littered with everything from tire scraps to sofas to grandmothers chasing after ducks; Halloween costumes can make pedestrians difficult to detect; you can set traps for autonomous vehicles; and even electric scooters can prove problematic for AVs. There will always exist “unknown unknowns” that companies cannot simulate because no one could foresee what to simulate.

Successfully addressing the unpredictable is particularly important to autonomous driving because any and every unexpected and undetected obstacle is potentially a life-or-death safety issue. Because of this, the stakes for addressing edge cases are enormous for the industry.

Solving deep learning’s edge case constraints

The application of deep learning to solving these edge cases snags on a major issue: Deep learning isn’t well suited to provide such assurances. While it’s possible to determine an AI application’s accuracy against a known dataset, there’s no guarantee of performance in real-world situations where edge cases occur and unfamiliar data must be processed. Deep learning systems deliver stunning results and beat expectations when dealing with datasets that are very similar to what they’ve previously encountered. But, because they have limited abilities to extrapolate information, there’s no way to predict how they’ll function in those outlier scenarios. In fact, a good deal of deep learning theory supports the idea that, at some level, it’s not really possible for these systems to understand a domain of data different from what they’ve been trained on.

Faced with this limitation, the most successful strategy today is simply to provide an AI application with huge amounts of data so that it becomes familiar with as many potential edge cases as possible. This brute force method calls for cars to be driven all the time to build experience with ever more unfamiliar scenarios, and then have that data added to the system. Doing so then requires that autonomous vehicle system manufacturers have the infrastructure to label and support those incredible volumes of data.

However, even if manufacturers could have that near-infinite amount of data right this minute, it would still be impossible to prepare autonomous cars for everything they might see on the roads. The world changes, human behavior changes, new cars and objects (like the aforementioned scooters) are introduced, etc. Given this reality, there’s a tremendous onus placed on vehicle system manufacturers to determine how they’ll ultimately address the uncertainty of the real world, while providing a safe and comfortable autonomous vehicle experience that isn’t littered with false positives (i.e., unnecessary braking) for every unknown.

Establishing ways to measure success

Today, AV industry players naturally take an adversarial stance in competing over who has the best technology. However, the questions faced here are so existential and challenging — such as determining how best to test whether autonomous vehicle technology is truly ready for safe use — that industry leaders will likely need to band together to answer them. At the same time, customers and society as a whole need to be convinced that this technology is safe and beneficial. I believe an open standard, one established by the industry to test and verify the safety of autonomous vehicles, could help serve this purpose. Collaboration and edge case data sharing might very well be the best strategy for everyone.

As to the level of safety that autonomous vehicles must achieve, it’s important to recognize two things. First, humans are very good drivers; we only have one accident every 165,000 miles. Second, there’s a double standard in our expectations when it comes to humans and machines. We expect humans to make mistakes, but we find it much less acceptable when machines fail. Given these expectations, autonomous cars may need to be 10 times safer than human drivers to earn widespread acceptance. While we’re likely years away from seeing L5 fully autonomous vehicles able to navigate through the infinite edge case scenarios the roadways throw at them, we’ll be an order of magnitude safer when we get there.

Alexandr Wang is the CEO of Scale, a company that accelerates the development of AI by democratizing access to intelligent data.

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Wave Goodbye to Uncertainty with Your Overseas Business Orders!

May 20, 2016   NetSuite



Blog Container Management Wave Goodbye to Uncertainty with Your Overseas Business Orders!













Hello Customized Order Management!

Managing business orders can be a stressful process. When will my order arrive? How will it be shipped? Will its landed cost resemble previous estimations? Will our profit margin increase or decrease? Is there enough inventory? These are simple questions that should, in theory, be easy to answer. But that’s not always the case—unless a real-time order-tracking solution can be implemented in tandem with your business orders!



Because of the interregional nature of business orders, order-tracking solutions typically require a customized web-based ERP service as their backbone. This is why ERP Guru’s Container Management solution is based in NetSuite. Through NetSuite’s business management software, our customized Container Management solution gives users better visibility into their business’ procure-to-pay process; tracking items in each container and shipment, monitoring the entirety of its value and landed costs, all while delivering status updates at every step. ERP Guru’s customized Container Management solution ensures that the delivery of items ordered and the containers in which they are stored remain easily accessible, that the value of each container stays one click away, and that products in the container retain their visibility from factory, to port, to warehouse, to retailer (or whatever route orders may travel). In addition, because this customization is specialized for NetSuite, it links all purchase information to the transactions already performed on the ERP system, allowing users to focus on other, more important things!

Container Management Wave Goodbye to Uncertainty with Your Overseas Business Orders!











Managing business orders through a customized ERP solution best serves businesses that:
1) Need real-time access to their inventory.
2) Group their overseas shipments in one or more containers.
3) Wish to keep track of containers while they transit from one region to another.
4) Require their landing costs to be effectively calculated in order to safeguard estimated profit margins.
Keeping track of business orders engenders lots of questions, but, with a customized ERP solution, you won’t be left wondering long! Let experts customize your ERP platform and experience the results yourself.
For more on Container Management, see: http://erpguru.com/products/netsuite/project-portfolio/app/container-management
To contact an ERP Guru representative, email us at: sales@erpguru.com
To learn more about ERP Guru and what we do, visit: www.erpguru.com

Author: Marissa Rosen

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