The Rise of Artificial Intelligence in Healthcare and Technology

1. LONG Tom Peters’ RE-IMAGINE EXCELLENCE. INNOVATE. NOW. OR PERISH. 2014 PAI Market Partner Conference 05 December/Punta Cana (slides at tompeters.com; also see excellencenow.com)

2. “Meet Your Next Surgeon: Dr. Robot”

3. “Meet Your Next Surgeon: Dr. Robot” Source: Feature/Fortune/15 JAN 2013/on Intuitive Surgical’s da Vinci/multiple bypass heart-surgery robot (“Almost all health care people get is going to be done by algorithms within a decade or two.”—Michael Vassar/MetaMed)

4. “The combination of new market rules and new technology was turning the stock market into, in effect,awarof robots.”—Michael Lewis, “Goldman’s Geek Tragedy,” Vanity Fair, 09.13

5. “Steve, you’re costing me a hundred nanoseconds. [$1B/Millisecond] Can you at least cross it diagonally?” Source: Michael Lewis, Flash Boys

6. Let’s Welcome Our Newest Board Member: “Just like other members of the board, the algorithm gets to vote on whether the firm makes an investment in a specific company or not. The program will be the sixth member of DKV's board.” —Business Insider, 13 May 2014: “A Hong Kong VC fund has just appointed an algorithm to its board.”

7. “Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of … 3 minutes.[Pilots] have become, it’s not much of an exaggeration to say, computer operators [c.f., AF447].” —Nicholas Carr, the Atlantic, 11.13

8. “The next frontier is a wireless technology called v2x, which companies in America, Europe and Japan are developing. It encapsulates vehicle-to-vehicle and vehicle-to-infrastructure communications. Special modems allow v2x-equipped cars to talk to each other and to the world around them.” —Mary Barra, CEO, GM, in the Economist, “The World in 2015,” December 2014

9. SENSOR PILLS:“Proteus Digital Health is one of several pioneers in sensor-based health technology. They make a silicon chip the size of a grain of sand that is embedded into a safely digested pill that is swallowed. When the chip mixes with stomach acids, the processor is powered by the body’s electricity and transmits data to a patch worn on the skin. That patch, in turn, transmits data via Bluetooth to a mobile app, which then transmits the data to a central database where a health technician can verify if a patient has taken her or his medications. “This is a bigger deal than it may seem. In 2012, it was estimated that people not taking their prescribed medications cost $258 billion in emergency room visits, hospitalization, and doctor visits. An average of 130,000 Americans die each year because they don’t follow their prescription regimens closely enough..” (The FDA approved placebo testing in April 2012; sensor pills are ticketed to come to market in 2015 or 2016.) Source: Robert Scoble and Shel Israel, Age of Context: Mobile, Sensors, Data and the Future of Privacy

10. IoT/The Internet of Things IoE/The Internet of Everything M2M/Machine-to-Machine Ubiquitous computing Embedded computing Pervasivecomputing Industrial Internet Etc.* ** *** *“More Than 50 BILLION connected devices by 2020” —Ericsson **Estimated 212 BILLION connected devices by 2020—IDC ***“By 2025 IoT could be applicable to $82 TRILLION of output or approximately one half the global economy”—GE (The WAGs to end all WAGs!)

11. China/Foxconn: 1,000,000robots/next 3 years Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

12. “Since 1996, manufacturing employment in China itself has actually fallen by an estimated 25 percent. That’s over 30 million fewer Chinese workers in that sector, even while output soared by 70 percent.It’s not that American workers are being replaced by Chinese workers. It’s that both American and Chinese workers are being made more efficient by automation.” —Erik Brynjolfsson and Andrew McAfee, The Second Machine Age: Work, Progress, and Prosperity in a time of Brilliant Technologies

13. “Ten Million Jobs at Risk from Advancing Technology: Up to 35 percent of Britain's jobswill be eliminated by new computing and robotics technology over the next 20 years, say experts[Deloitte/Oxford University].” —Headline,Telegraph (UK), 11 November2014 “I believe that 90 percent of white-collar/‘knowledge-work’ jobs—which are 80 percent of all jobs—in the U.S. will be either destroyed or altered beyond recognition in the next 10 to 15 years.”—Tom Peters, Cover,Time, 22 May 2000 “The machine plays no favorites between manual and white collar labor.”—Norbert Wiener, 1958

14. “Software is eating the world.” —Marc Andreessen

15. “Human level capability has not turned out to be a special stopping point from an engineering perspective. ….” Source: Illah Reza Nourbakhsh, Professor of Robotics, Carnegie Mellon, Robot Futures

16. “The root of our problem is NOT that we’re in a “GreatRecession” or a “GreatStagnation,” but rather that we are in the early throes of a Great Restructuring. Our technologies are racing ahead, but our skills and organizations are lagging behind.” Source: Race AGAINST the Machine, Erik Brynjolfsson and Andrew McAfee

17. “I would rather engage in a Twitter conversation with a single customer than see our company attempt to attract the attention of millions in a coveted Super Bowl commercial.Why? Because having people discuss your brand directly with you, actually connecting one-to-one, is far more valuable—not to mention far cheaper! … “Consumers want to discuss what they like, the companies they support, and the organizations and leaders they resent. They want a community. They want to be heard. … “[I]f we engage employees, customers, and prospective customers in meaningful dialogue about their lives, challenges, interests, and concerns, we can build a community of trust, loyalty, and—possibly over time—help them become advocates and champions for the brand.” —Peter Aceto, CEO, Tangerine (from the Foreword to A World Gone Social: How Companies Must Adapt to Survive, by Ted Coine & Mark Babbit)

18. Going “Social”: Location and Size Independent “Today, despite the fact that we’re just a little swimmingpool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools.’ Now we say,‘We are the best teachers … in the world … on the subject of fiberglass swimming pools, and we also happen to build them.’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

19. Walmart SV =1,500

20. Tom Peters’ RE-IMAGINE EXCELLENCE. INNOVATE. NOW. OR PERISH. 2014 PAI Market Partner Conference 05 December/Punta Cana (slides at tompeters.com; also see excellencenow.com)

21. “What’s really interesting is that over the nextfive years we’re going to see every industry exposed to reinvention of how people put products and services together, how work is done, what kind of jobs and skills are needed, what can be handled by technology.” —John Sculley, startup investor, former Apple CEO

22. -1/+1/2

23. “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious …Source: Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

24. “I am often asked by would-be entrepreneurs seeking escape from life within huge corporate structures, ‘How do I build a small firm for myself?’ The answer seems obvious:Buy a very largeone and just wait.”—Paul Ormerod, Why Most Things Fail: Evolution, Extinction and Economics

25. S&P 500 -1/+1* *Every …2weeks! Source: Richard Foster (via Rita McGrath/HBR/12.26.13

26. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for 1,000 U.S. companies.They found that NONEof the long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times

27. Middle-sized Niche- Micro-niche Dominators!

28. THE RED CARPET STORE (Joel Resnick/Flemington NJ)

29. *Basement Systems Inc. (Larry Janesky/Seymour CT)*Dry Basement Science (100,000++ copies!)*1990: $0; 2003: $13M; 2010:$80,000,000

30. The Magicians of Motueka & the Mittelstand Trifecta W.A. Coppins Ltd.* (Coppins Sea Anchors/ PSA/para sea anchors) *Textiles, 1898; thrive on “wicked problems” —e.g., U.S. Navy STLVAST (Small To Large Vehicle At Sea Transfer); custom fabric from W. Wiggins Ltd./Wellington (specialty nylon, “Dyneema,” from DSM/Netherlands)

31. THE DOCK DOCTORS Custom Products & Shoreline Solutions Every waterfront property is different, from the topography of the shoreline to exposure and water depths. Our custom products are designed and fabricated based on your specific property and recreational needs. Whether you are interested in a dock, stair system, hillside elevator, or boat lift, we will design, manufacture, and install a custom product to accommodate your desires for a perfect waterfront. We offer innovative solutions and the most diverse waterfront product line on the East Coast. Whether your project is unusual or traditional, our years of experience consulting, designing, and manufacturing commercial projects for a variety of entities such as municipalities, marina facilities, hydro plants, engineers, and land planners. Marinas, piers, stairs, shoreside platforms, and wetland and pedestrian walkways piers, are only some of the examples of commercial projects that we specialize in. Commercial Division

32. Jim’s Mowing Canada Jim’s Mowing UK Jim’s Antennas Jim’s Bookkeeping Jim’s Building Maintenance Jim’s Carpet Cleaning Jim’s Car Cleaning Jim’s Computer Services Jim’s Dog Wash Jim’s Driving School Jim’s Fencing Jim’s Floors Jim’s Painting Jim’s Paving Jim’s Pergolas [gazebos] Jim’s Pool Care Jim’s Pressure Cleaning Jim’s Roofing Jim’s Security Doors Jim’s Trees Jim’s Window Cleaning Jim’s Windscreens Note: Download, free, Jim Penman’s book: What Will They Franchise Next? The Story of Jim’s Group

33. Aizen Kobo Indigo Workshop

34. Going “Social”: Location and Size Independent “Today, despite the fact that we’re just a little swimmingpool company in Virginia, we have the most trafficked swimming pool website in the world. Five years ago, if you’d asked me and my business partners what we do, the answer would have been simple, ‘We build in-ground fiberglass swimming pools.’ Now we say,‘We are the best teachers … in the world … on the subject of fiberglass swimming pools, and we also happen to build them.’” —Jay Baer, Youtility: Why Smart Marketing Is About Help, Not Hype

35. Retail Superstars: Inside the 25 Best Independent Stores in America—by George Whalin

36. JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH: “An adventure in ‘shoppertainment,’ begins in the parking lot and goes on to 1,600 cheeses and 1,400 varieties of hot sauce—not to mention 12,000 wines priced from $8-$8,000 a bottle; all this is brought to you by 4,000 vendors. Customers from every corner of the globe.” BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP 5,000:98,000-square-foot “shop” features 6,000 Christmas ornaments, 50,000trims, and anything else you can name pertaining to Christmas. …”

37. “BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin

38. MITTELSTAND* *“agile creatures darting between the legs of the multinational monsters”(Bloomberg BusinessWeek, 10.10)

39. Michael Raynor and Mumtaz Ahmed’: THE THREE RULES: How Exceptional Companies Think*: 1. Better before cheaper. 2. Revenue before cost. 3. There are no other rules. (*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”) Jeff Colvin, Fortune: “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for value—not for EPS. They keep developing human capital. They get radically customer-centric.

40. “‘Commodity’ is a state of mind. ANYTHING can be DRAMATICALLY differentiated.”

41. Small Giants: Companies that Chose to Be Great Instead of Big (Bo Burlingham) “THEY CULTIVATED EXCEPTIONALLY INTIMATE RELATIONSHIPS WITH CUSTOMERS AND SUPPLIERS, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises. “EACH COMPANY HAD AN EXTRAORDINARILY INTIMATE RELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTYin which it did business—a relationship that went well beyond the usual concept of ‘giving back.’ “The companies had what struck me as UNUSUALLY INTIMATE WORKPLACES. “I noticed thePASSIONthat the leaders brought to what the company did.THEY LOVED THE SUBJECT MATTER, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion."

42. Where the +201,000 new private-sector jobs came from …51% Small firms41% Medium-sized*8% BigSource: ADP National Employment Report/March 2011*E.g., German MITTELSTAND

43. “The average age of a startup founder is 40. And high-growth startups are nearly twice as likely to be launched bypeople over 55 as bypeople 20-34.”—Vivek Wadhwa, Kauffman foundation (Time/0325.13)

44. 0/800: Innovate or Perish/ Extreme Times DEMANDExtreme Solutions

45. “Normal” =“0 for 800”*There are … ZERO … “normal people” in the history books.

46. “INSANELY GREAT”STEVE JOBS“RADICALLY THRILLING” BMW

47. “Astonish me!”(Sergei Diaghlev, to a lead dancer)“Build something great!”(Hiroshi Yamauchi, Nintendo, to a senior game designer)“Make it immortal!” (David Ogilvy, to a copywriter).

48. “Let us create such a building that future generations will take us for lunatics.”—the church hierarchs at Seville, on a prospective cathedral

49. “You can’t behave in a calm, rational manner. You’ve got to be out there on the lunaticfringe.”— Jack Welch

50. “We are crazy. We should do something when people say it is ‘crazy.’If people say something is ‘good’, it means someone else is already doing it.”—Hajime Mitarai, CEO, Canon