Digital Transformation: Survive and Thrive in an Era of Mass Extinction By Thomas M. Siebel

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The legendary Silicon Valley entrepreneur examines how both business and government organizations can harness the power of disruptive technologies.     Tom Siebel, the billionaire technologist and founder of Siebel Systems, discusses how four technologies—elastic cloud computing, big data, artificial intelligence, and the internet of things—are fundamentally changing how business and government will operate in the 21st century. While this profound and fast-moving transformation can appear daunting to some, Siebel shows how organizations can not only survive, but thrive in the new digital landscape.   In this authoritative yet accessible book, Siebel guides readers through the technologies driving digital transformation, and demonstrates how they can strategically exploit their powerful capabilities. He shows how leading enterprises such as Enel, 3M, Royal Dutch Shell, the U.S. Department of Defense, and others are applying AI and IoT with stunning results.

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After watching big companies like Blockbuster and Borders go out of business because they couldn’t adapt to changing conditions, Siebel thinks we are in an era of mass corporate extinction with mass speciation of new kinds of companies. Siebel is a gifted writer, and with over 40 years in the industry, often spent talking with other CEOs, he has plenty of stories and insight about the impact of new technology.KEY POINTS FROM THE BOOK• The combination of four disruptive technologies: cloud computing, big data, the internet of things, and artificial intelligence is dramatically changing the way businesses compete.• The smooth rate of change implied by Moore’s law doesn’t capture today’s upheaval. Since 2000, 52% of the Fortune 500 companies have been acquired or gone out of business.• To survive, most companies will have to make revolutionary changes to key corporate processes.• The CEO has to lead this change.• The competitive landscape for governments is also changing. China has declared it intends to be the leader in AI and plans to invest $60 billion per year by 2025 to get there.• Most companies struggle to move beyond AI experiments and prototypes. Perhaps the most valuable parts of the book are Siebel’s tips, like using a model-driven architecture, to increase the odds of success.• Large companies can turn their existing data into a competitive advantage to deter new entrants.• The productivity improvements can be huge. John Deere estimates it will save over $100 million per year using AI to optimize its inventory. 3M hopes to save over $500 million per year from its AI applications. The U.S. Air Force has significantly increased mission-capable readiness by applying AI to predict the need for unscheduled aircraft maintenance.• Siebel gives a CEO action plan with 10 principles. Moreover, he includes a reading list of six general books (from James Gleick’s “The Information,” to Brynjolfsson and McAfee’s “The Second Machine Age.”) And if you want more, he gives a list of Coursera online courses that teach you how to code.


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