Business Transformation AI & IoT Enabling Technologies

Group	Teacher	Department	Language
Year 2	Jose Jorge Calvo García	Dirección General y Estrategia	ENG

Workload distribution

Preparation: 10%
On class: 90% (Lecture, debates, group works)
Business cases:
Ayelet Israeli, Jill Avery (2018). Predicting Consumer Tastes with Big Data at Gap. (HBS: 517115-PDF-ENG).
J. Stewart Black, Anne-Marie Carrick (2017). Digitization of an Industrial Giant: GE Takes on Industrial Analytics. (HBS: IN1395-PDF-ENG).
William E Youngdahl y B. Tom Hunsaker (2018). Coda Coffee and bext360 Supply Chain: Machine Vision, AI, IoT, and Blockchain. Harvard Business School. (TB0539-PDF-ENG)

COURSE CONTRIBUTION TO PROGRAM

Artificial Intelligence (AI) and the Internet of Things (IOT) have come to the business and our lives to stay. Nowadays, 40% of digital transformation initiatives and 100% of IOT initiatives are supported by AI capabilities. In the coming years, IOT & AI will be like electricity, they will always be around us. In the near future, 60% of non-strategic tasks will be automated, we will live in smart homes and cities. IOT & AI explosion is being driven by 4 key factors that will have a disruptive impact on the way we do business and live:
1. Big Data: The need to have new methodologies for analyzing a large amount of current data and those that are generated daily from different sources. In the last two years, 50% of all data in the history of humanity has been created. However, companies only efficiently use 5% of the data they store.
2. 5G: The global implementation of 5G will generate huge amounts of data that must be processed in real-time to make automatic decisions, create differential value and obtain strategic information that sets us apart from competitors.
3. The Internet of Things: Machines will interact with humans making synchronized decisions in real-time. Smart gadgets and social robots are entering our homes, autonomous vehicles are beginning to roll down streets and drones are flying through the skies.
4. The exponential capacity of computers: This capacity doubles its computing power every 18 months, maintaining the cost and boosting the three factors above.
This course offers a strategic outlook to AI and IOT applied to business with a management approach that provides the knowledge and confidence necessary to design strategies implementing AI and IOT in business, as ultimate competitive advantage in a digitized and data-driven environment. We will learn how to create the AI-Flywheel and AI-Moat, while developing an exponential combination of Porter's competitive differentiation and cost strategies. This is why AI-driven companies that lead a market take all the value.
AI and IOT are already having an impact in many areas of business and in our society, but the information accessible in the media is often confusing, tech-driven, and with inflated expectations. This course provides the ability to understand the evolution of IOT and AI, advantages and challenges, as well as their specific uses, without the need for prior engineering knowledge.

Course Learning Objectives

This course is intended for all students who aspire to acquire AI and IOT strategic skills and competences in the future Augmented Enterprise, driven by the active collaboration between the cyber and physical worlds: humans and AI+IOT ecosystems that increase the performance of both, in such a way that the participants acquire personal leadership capacity in the organization by implementing AI and IOT as highest competitivity enabler.
The participants will be able to:
Obtain the basics to understand, to know how to be informed and follow the evolution of AI and IOT applications in business.
To understand the disruptive innovative potential of AI and IOT in Business: new business models, products, services, and operations, driven by their disruptive characteristics.
Artificial Intelligence
1. Universal access
2. Marginal cost tends to zero
3. Absence of decreasing returns
4. Convergence of the two main competitive advantages: differentiation and cost leadership
Internet of Things
1. Ubiquitous Connectivity
2. Sensing
3. Data ZB volume
4. Ecosystem
5. Intelligence
6. Action
To understand the strategic potential of AI and IOT in Business Management: descriptive, predictive, prescriptive, and automotive, powered by Zetta Bytes of data in real-time.
Develop AI and IOT implementation strategies to create the AI-Flywheel and the AI-Moat as the ultimate long-term competitive advantage. Identify the value, risks, and opportunities associated with implementing AI and IOT strategies.
Become familiar with platforms AIaaS solutions accessible to any company, having full access to the IBM Academic Initiative, to use the IBM Watson and IBM Cloud platforms, through business cases, practical exercises, access to the IBM catalog software and IBM certificated courses, even after completing this course.

Methodology

The course follows the case method through the study of articles and cases assigned each in each of the four modules that is structured. Through conceptual lectures, opening questions and the analysis of articles and cases individually, in breakout group sessions, the student will need to define and apply criteria to select the relevant information, design action plans to carry out assigned activities, and identify potential difficulties or critical situations in the course of execution, establishing techniques in order to achieve the objectives.
The learning experience is supported by lectures, videos, infographics, articles, reports, recommended books and, free access to the full IBM Academic Initiative Platform, during this course and after, without time limitation.
The course is structured in 5 modules going from the most general and macroeconomic to the specific in AI and IoT applications and business implications. To finish with a summary that visualizes the upcoming future and the ethical challenges that the radical paradigm shift in business and society will entail.
1. How the Industrial Revolutions transformed the societies and economies to foster growth and new business opportunities, and the main characteristics of The Fourth Industrial Revolution: Political, Economic, Social, Technological, Environmental and Legal.
2. Strategic drivers of the 4IR: Artificial Intelligence & Internet of Things as Enabling Technologies that will transform business by real-time connecting customers, devices and companies in a digital world.
3. To formulate corporate, business and functional strategies by developing a comprehensive customer value proposition through AI & IOT Enabling Technologies for an incrementally complex and changing context.
4. The management challenges of both digital business transformations and entrepreneurship in fast-moving industries with aggressive, well-endowed competitors. Digital transformation should not leave people behind.
5. About the crucial role of senior managers and corporate culture in driving digital transformations successfully.

Assessment criteria

The student will be required to carry out four tasks in order to successfully achieve the objectives:
1. The study and assimilation of the concepts presented in class.
2. The preparation and discussion of cases and articles.
3. The written analysis of assigned materials.
4. Teamwork in breakout sessions.
The student will be assessed on the basis of the following weighting:
- 30% Preparatory written assignments
- 35% Class participation and contribution
- 35% Final Report "My Business Transformation Case?

Type:	OPT	Curs:	2	Period:	S semester
ECTS Credits:	3 ECTS

Business Transformation AI & IoT Enabling Technologies (2225.YR.000910.1)

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Workload distribution

COURSE CONTRIBUTION TO PROGRAM

Course Learning Objectives

Methodology

Assessment criteria

Bibliography

Timetable and sections

Timetable Year 2