Innovation Leadership: AI, Data, and the 4th Industrial Revolution

1. Ikhlaq Sidhu, content author Ikhlaq Sidhu Founding Faculty Director Sutardja Center for Entrepreneurship & Technology Department of Industrial Engineering & Operations Research IEOR Emerging Area Professor Award Enabling Innovation Through Leadership For AI, Business Models and the 4th Industrial Revolution

2. Ikhlaq Sidhu, content author Lots of Students Our Model Brings Bay Area Executives and Entrepreneurs into the Classroom 1500 Undergraduates 100 Ph.D / Graduate Students 100 Executives 10 Global Partners Michael Marks, KKR, former CEO, Flextronics Shomt Ghose, Venture Partner, Onset Ventures Udi Manber, VP Engineering, Google Marc Andreesen, Founder, Netscape Larry Baer, COO, San Francisco Giants Amine Haoui, CEO, Sensys Networks Stacey Lawson, Founder In Part, Executive Seibel Jim Davidson, Managing Director, Silverlake Partners Donna Dubinsky, Former CEO, Palm Matt Caspari, co-founder, Aurora Biofuels Richard Gorman, SVP, Siebel Systems Mike Olson, founder and CEO, Cloudera Brodie Keast, EVP, TiVo David Ladd, Managing Director, Mayfield Jeff Miller, CEO, Documentum Eva Miranda, SVP, Sony Corporation Ravi Mohan, Managing Director, Shasta Ventures Ted Hoff, Inventor,of the Microprocessor Nat Goldhaber, Managing Director, Claremont Creek Ventures Peter Thiel, co-founder and CEO, PayPal Victoria Hale, founder and CEO, Medicines 360 Steve Newcomb, founder , Powerset (part of Microsoft’s BING) Pehong Cheng, CEO, Broadvision We focus on the Mindsets & Behaviors needed for Innovation and Entrepreneurship (in context of technology change)

3. Ikhlaq Sidhu, content author Our model has adapted: Business training is not the only key element Our effectiveness formula is: • Depth in an valued area • Entrepreneurial “behaviors and mindset” Our programs and projects provide this. Our model has adapted: Business training is not the only key element Skill in a Core Area Innovation Behaviors and Mindset “Psychology of Innovation” High Potential Too Narrow Street smart, but lacking depth

4. Ikhlaq Sidhu, content author LOTS OF ACTIVITY CHALLENGE LAB GLOBAL PROFESSORS NZTV SELF-DRIVING COLLIDER DATA-X CHATBOT COLLIDER SCET IN TAIWAN JOHN BATTELLE FOUNDER WIRED MAGAZINE NEWS COVERAGE

5. Ikhlaq Sidhu, content author Our Labs offer classes and projects in emerging industry areas 8/19/2017 Reﬂecting on “Why” for UC Berkeley’s Sutardja Center for Entrepreneurship & Technolo Our Recipe and How It Works: Mindset and Behavior: A key educational training is the area of mindsets and behaviors. This area is not obvious. When we began, we be that it was valuable to start with technical students and simply add an understanding of business knowledge to th curriculum. Since then, we have corrected that belief. We no longer believe business training is the key additive ingredient. Mechanical business skills can be acquired anytime and as needed. The actual missing ingredient is a behaviors and mindsets that allow a person to utilize their core capabilities. Industry 4.0?

6. Ikhlaq Sidhu, content author What is happening at the Sutardja Center (SCET)? • We are changing education • Students change the world • Our lab area enable new industries and new ways to collaborate

7. Ikhlaq Sidhu, content author Anticipating the Next Industrial Revolution Industrial Revolution 1.0 Industrial Revolution 2.0 • Winner was whoever made something most cheaply • Leveraged scale • Winner will be whoever makes best sense of the data • Leveraging scale Shomit Ghose First Industrial Revolution Next Industrial Revolution

8. Ikhlaq Sidhu, content author Harrah’s Casino: Knowing your customer Service provider of Gambling and Casinos Entry Card Pain points Intervention Reference: Supercrunchers

9. Ikhlaq Sidhu, content author 1. Knowing your customer, better targeting and relationship. E.g. Target, Disney, Netflix 2. Improving physical product or servicer with complimentary information: E.g. UPS, FedEx 3. Data-driven reliability or security E.g. GE, BMW, Siemens 4. Information Brokers, Arbitrage, and Trading Opportunities: E.g. Investment funds. 5. Improving the customer journey/experience.. E.g. Harrah’s 6. Functional Applications: HR/Hiring, Operations etc.. Eg Walmart, Baseball, Sports 7. Efficiency or better performance per dollar cost. E.G. General IT, SAP, etc 8. Risk Management, regulation, and compliance Eg. Compliance 360 Top 8 Business Models Using Data

10. Ikhlaq Sidhu, content author Top Business Models for Using Data 1. Knowing your customer, leading to better targeting and relationship. E.g. Target, Disney 2. Information based better services. E.g. UPS, FedEx 3. Data driven reliability. E.g. GE and Siemens 4. Information Brokers, Arbitrage, and Trading Opportunities: Investment funds. 5. Improving the customer journey/experience.. E.g. Harrahs 6. Functional Applications: HR/Hiring, Operations etc.. 7. Efficiency or Better Performance per dollar cost 8. Risk Management, regulation, and compliance Usage Models • Efficiency (save money) • Wallet Share (top customers spend more time and money with you) • Brand alignment (It reinforces how people think positively about the company) Value to Business Customers More Value

11. Ikhlaq Sidhu, content author Some companies have been able to adapt and transform while others were not Technical Drivers: Data Algorithms Robotics Network Connectivity Structural Drivers: Business Model Adaptation Shorter Cycles Adapted Disrupted

12. Ikhlaq Sidhu, content author Some companies have been able to adapt and transform while others were not Technical Drivers: Data Algorithms Robotics Network Connectivity Structural Drivers: Business Model Adaptation Shorter Cycles Adapted Disrupted • Did “they” get it. Culture, external awareness, learning behaviors. • Did “they” get it. Alignment: Top vs Middle • Timing: over-compensate vs denial • Have alignment, but cannot execute (tactical) • Have alignment, but have challenges with Acquisitions

13. Ikhlaq Sidhu, content author

14. Ikhlaq Sidhu, content author How Do You Select an Emerging Technology Strategy? What Does the brand of your production mean today • Cost • Yield -> Cost • Reliability • Quality • Flexibility • Speed… What are the bigger strategic issues: • How will your competition try to beat you • What are your biggest Business Opportunities (think SWOT) • What core competences today are scalable and hard to copy (use these to filter new AI and other emerging technology areas)

15. Ikhlaq Sidhu, content author Identify the Stage of Your Product Business Investment Readiness System Test, Launch, Ops Technical Readiness System/Subsystem Demonstration Development Progress Feasibility Research Insight Story / Value Validation Business Model Sales Process Complete Ecosystem Operational Metrics X Y Z

16. Ikhlaq Sidhu, content author What is the path for transformation or business model change? Adding, Letting Go, and Change Management Dimension B Dimension A X Z Company or Project: Today Company or Project: Next

17. Ikhlaq Sidhu, content author 1. What do you need to acquire or learn? 2. What do you need to let go? 3. First principle: you can’t be happy where you are. 4. It’s like getting a new degree part time, while you still work at the last job. Dimension B Dimension A Z Company or Project: Today Company or Project: Next

18. Ikhlaq Sidhu, content author Contact: Ikhlaq Sidhu Founding Faculty Director, Center for Entrepreneurship & Technology IEOR Emerging Area Professor, UC Berkeley sidhu @berkeley.edu, scet.berkeley.edu

Innovation Leadership: AI, Data, and the 4th Industrial Revolution

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Innovation Leadership: AI, Data, and the 4th Industrial Revolution

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