Modernize Industrial Operations with XtractEdge Asset Efficiency Solution

Much like any other industry, the oil industry faces numerous challenges in transporting oil from its sources to the refineries, processing crude oil to gasoline and its by-products, and finally transporting the finished product to the end markets. Throughout this process, the condition of the oil and equipment needs to be carefully controlled. Failure to do so could lead to costly accidents that could be extremely damaging to the environment such as the catastrophic failure of Deepwater Horizon.

However, it is almost impossible for human operators to monitor all the various sensors along the pipeline or pay attention to every alert when most are not serious. There is a tendency to be complacent about multiple alerts that are constantly going off. Such was the case with Deepwater Horizon, where the constantly sounding – mostly false – alarms were turned off to allow workers to sleep.

Today, with advances in Machine Learning and Artificial Intelligence technologies it is possible to leverage data across the various sensors and predict when an adverse event is about to occur. Hopefully, going forward we should be able to avoid tragedies such as the Deepwater Horizon.

Leverage Technology to Avoid Costly Asset Downtime

XtractEdge’s Asset Efficiency Solution would save millions of dollars for enterprises that operate large assets and machinery. XtractEdge’s Asset Efficiency Solution works by learning from all relevant data assets – including sensor data, maintenance logs, design specs, etc. – it builds a knowledge base for the asset and then monitors sensor data in real time to predict potential issues, extrapolate remaining useful life, and predict maintenance requirements. Thus ensuring that when an alert is raised the human operators have all the information necessary to take appropriate action. With it, managers can schedule maintenance service, mobilize field technicians, and avoid costly asset downtime.

Without the XtractEdge Asset Efficiency Solution, equipment operators will be forced to conduct maintenance based on a manufacturer’s specifications. This increases an equipment’s susceptibility to failure, increases the likelihood of false alerts, and decreases asset useful life. However, by leveraging the integrated modules of the XtractEdge Asset Efficiency Solution, conditions-based, preventive maintenance and repairs can be carried out to ensure industrial safety and efficiency.

Artificial Intelligence Will Shape the Fourth Industrial Revolution

It is fitting that the sequel to the global best-seller that coined the term “Fourth Industrial Revolution” was released at the same time that we unveiled the XtractEdge Asset Efficiency Solution. In the new book Shaping the Fourth Industrial Revolution, World Economic Forum (WEF) founder Klaus Schwab calls on corporate leaders to match the nimbleness of their technologies and the private-sector players who create them, to constantly update and rethink rules in collaboration with other sectors.

For businesses, greater experimentation with new technologies and greater investment in people and skills are required to maximize firms’ ability to develop and bring to market winning innovations” according to the WEF.

Indeed, XtractEdge Asset Efficiency Solution rethinks the rules of asset efficiency, utilization and the collaboration between human employees with AI-powered solutions. Its four modules work together to provide an overview of the health of an enterprise’s assets, thus improving utilization and extending asset lifespan.

XtractEdge M2M Gateway directly connects with equipment sensors to gather data. XtractEdge Data stores real-time data ingested from XtractEdge M2M Gateway and from various enterprise knowledge repositories. This includes everything from design documentation and engineering drawings to operational and maintenance logs.

XtractEdge Knowledge platform captures and represents organizational knowledge related to the assets. It then operationalizes this knowledge and makes it available in real-time at all consumption points. XtractEdge Automation automates tasks that do not require humans. For example, when it senses an anomaly in equipment data, it raises a ticket in enterprise asset management systems.

XtractEdge Asset Efficiency Solution in Action

Real-Time Condition Monitoring: In another case, a refrigeration plant knew it had valuable data related to its asset but was unable to access and leverage the same to improve asset efficiency. We worked with the company to improve operational efficiency and rationalize costs. XtractEdge Asset Efficiency Solution helped reduce energy costs by 35 percent and decrease per capita energy consumption by 50 percent. Maintenance professionals experienced a 75 percent drop in the average time it took to resolve issues, and overall, the enterprise saw a 75 percent improvement in productivity.


AR Assisted Maintenance: All of these modules come together to provide a real-time view of the asset condition. When overlaid on the asset, Augmented Reality it can provide the operator with a real-time view of the asset condition or provide step-by-step maintenance instructions in real time. Thus providing field technicians with all necessary information to conduct their maintenance.


Predictive Maintenance: We worked with a large automobile manufacturer who was following spec-based maintenance on their industrial spindles. They were experiencing frequent downtime when the spindles broke down unexpectedly or were being replaced despite having some more useful life.


The unpredictable downtime was causing delays and the premature replacements were increasing their capital expenditure. With the XtractEdge Asset Efficiency Solution, the automobile manufacturer was able to move to condition-based maintenance predicting the remaining useful life of the devices. The result was a 30 percent reduction in the company’s efforts to detect anomalies and a lower cost of maintenance that was possible due to the elimination of unnecessary spindle replacement.

Leveraging Data Purposefully

XtractEdge empowers all stakeholders on the maintenance team – the manager, engineer, and technician – with the capability to take real-time conditions based preventative actions rather than reactive actions, which can be an expensive move. With the XtractEdge’s Asset Efficiency Solution, the stakeholders will not just be able to leverage insights from data but do so in a purposeful way that allows them to maximize the promise of the next new wave – the Fourth Industrial Revolution – to amplify human potential.

Ecosystems #Reimagined – The Rise of the API Economy

APIs, the simple interfaces that facilitate the communication or exchange of data between software programs are the cornerstone of a truly digital enterprise. From frictionless and fast customer onboarding to the cultivation of richly diverse ecosystems to comprehensive automation and insight-driven decisions, APIs are essentially fueling the digital future of banking.

Regulations such as Open Banking and PSD2 and the pressure on banks’ interest income further bring APIs into sharper focus. In 2017, we predicted the future of banking to be driven by open APIs, applications, app stores, and the extended developer ecosystems built around banks’ APIs. Heading into 2018, we see the adoption of APIs in banking evolving in four key ways:

Read the full report here – #ReimagineBanking – 10 Strategic and Technology Trends to Watch Out for in 2018

Intelligence #Reimagined – AI Comes of Age

AI is displacing jobs across industries, but at the same time is creating an opportunity to elevate people into more challenging roles that allow them to maximize their potential. Gartner estimates AI will create 2.3 million jobs by 2020.

As organizations strive to strike the right balance between man and machine, here’s some AI action we expect will take place in banking in 2018.

Firstly, in 2018 banks will develop a more nuanced understanding of the technology and will begin to appreciate the key building blocks – a strong foundation of data and analytics, machine learning, deep learning, natural language processing and generation, and visual recognition.

Among the applied solutions of AI, cognitive RPA will continue to garner interest, as will machine learning and deep learning. Natural language-based applications – chat bots, smart assistants etc. – will also find their way into banks that don’t have them yet. Progressive banks have experimented with NLP and NLG, and these have found application in a significant number of use cases. In 2018, fast followers and late comers will also adopt these.

2018 is also the year when AI use cases will go beyond the established applications of fraud prevention, customer service and risk management. For example, in the era of PSD2 and open banking, when banks will have unprecedented access to customer information, AI could accurately forecast future spends based on a customer’s activity dating back several years. Having said that, cyber security will still be the foremost use case for AI in banks in 2018.

However, while embracing the potential of AI, banks must also beware of its pitfalls. For example, machine learning is widely used, but there is limited understanding of how a result is arrived at or why it forecasts one thing and not the other. What complicates this, is that banks will not be able to validate a credit decision for the length of the credit cycle – in many products this is a year at the least!

AI will usher banks to the next level of efficiency and personalization. The technology will prove to be a huge differentiator for banks that understand it well, invest early, and work towards leveraging their workforce efficiently in the age of AI.

Read the full report here – #ReimagineBanking – 10 Strategic and Technology Trends to Watch Out for in 2018

Business #Reimagined – From Platforms for Business to the Business of Platforms

World’s top 15 public platform businesses account for $2.6 trillion in market capitalization. Some of the most successful modern businesses are platform companies such as Uber, Airbnb, Alibaba, Amazon, or even social media giants and chat services such as Facebook and WeChat. And some of these platform companies don’t operate in a single industry, but compete in several sectors. Alibaba is a retailer, but also a payment service provider. Amazon is an e-commerce giant, but also a company that dabbles in logistics and cloud services. WeChat has also made a move into the payments space with WeChat Pay. Looking at the diverse presence and high valuations of these digital natives, one wonders if platform is the mantra for success in the new (digital) normal.

Banks are no exception to this growing trend. In 2017 we predicted that a truly digital bank will resemble the digital models of highly successful platform businesses. Clearly, banks have refined their ecosystem strategy, and in 2018 we see the shift from a pipeline business to a platform business in banking gain momentum and pace. Following trends mark this shift that will play out faster this year:

Next, banks will look to earn revenue from their platform or distribution business. They will devise ways to monetize their APIs, and will form partnerships to open up new avenues of growth. A case in point is German digital bank Fidor’s arrangement with communication service provider O2, where the latter has built a mobile only bank on the former’s platform. In addition to interest income, Bank Fidor earns shared revenue from transaction fees and from O2’s business growth. 2018 will see more such partnerships, as the platform model in banking evolves.

Read the full report here – #ReimagineBanking – 10 Strategic and Technology Trends to Watch Out for in 2018

Workforce #Reimagined – From the Right Talent for Strategy to the Right Strategy for Talent

The future banker will be very different from the traditional banking professional in ways more than one.

Automation is disrupting the banking workforce, and transformation of the workforce is increasingly becoming a topic of board room conversations. Nina, an intelligent virtual assistant delivers 78% first-contact customer query resolution at Swedbank. Nina can also identify the financial services best suited for customers’ needs. Another bank has programmed a robot to sense customer emotions and to speak 19 different languages. The robot can assist customers with different services at the bank. But to say that automation is only stealing and eliminating jobs is akin to saying that the invention of the wheel as a tool to traverse greater distances in shorter time robbed man of his capability to walk. Emerging digital technologies are taking over routine and repetitive jobs and are creating a demand for new professional skills and increased reliance on innately human capabilities such as critical thinking, empathy and problem solving.

The second factor contributing to the transformation of workforce is the new tech-savvy generation of bankers and customers. As bankers and banking customers become younger, new-age skills such as customer experience design, product design based on customer empathy and journeys, data science, and knowledge of AI will be in huge demand. Scrum masters, agility coaches, machine learning engineers and full stack architects will be an essential part of the talent pool. With the boundaries between business and technology breaking down in banking operations, banks will develop multidisciplinary teams and talent with an appreciation of different domains.

Thirdly, the progressive millennial talent is more inclined towards impacting a change and associating with a purpose, and has different priorities and interests than the previous generation. Recent research into the workplace choices of IT and engineering professionals found that there were no banks in the top 25, and only 2 in the next 25, indicating that the sector has not been so successful in tapping into the interests and aspirations of this talent. Therefore, in 2018, banks will need to effectively articulate their purpose. In addition to hiring the right talent, the new banking organization will need to accelerate learning and development to retain the right talent for business.

2018 will also witness the emergence of a hybrid talent pool where there will be full-time employees and part-time/ short-term recruits who will flow in and out of the system, and will need to be trained, on-boarded and absorbed on a case-to-case basis. The learning and training programs will also need to change given the diversity of education and experience of part-time workers.

To fully leverage the potential of the changing workforce, banks have a lot of work ahead of them.

Read the full report here – #ReimagineBanking – 10 Strategic and Technology Trends to Watch Out for in 2018

Security #Reimagined – It’s Everybody’s Business

Amidst growing digitization, concerns about protecting customer information and interest are intensifying. The confluence of technologies is opening up a world of new possibilities. But at the same time it is creating a need for increased checks and controls as fraudsters devise ways to exploit these very same technologies. This is the beginning of the age of AI versus AI.

In 2017, we said that enterprises would need to adopt a more pervasive, adaptive, and integral view of security. The cyber security breach at US credit agency Equifax in 2017, the Uber data breach mounted through the world’s largest open source developer community, and the Mirai botnet attack are just a few examples of the increasing sophistication of malicious attacks. Heading into 2018, we believe enterprises need to pull out all stops and combine the power of AI, machine learning, analytics, big data, biometrics and anti-fraud technologies to combat the multifaceted threats in this increasingly connected world. In case of new investments, enterprises must make security a part of the architectural design itself.

Regulatory push with existing and new regulations such as GDPR (General Data Protection Regulation) is bringing protection of investor interest and individual’s data into sharper focus. Complying with the new rules is not just a business priority for banks but also an IT priority and banks must strive to enable applications to secure themselves instead of relying on external remediation.

2018 is also the year when banking ecosystems will multiply and unprecedented amounts of data will be shared within and between ecosystems. Once the entire banking organization becomes entrenched in the business of sharing data, the business of protection cannot be vested in a single department or authority. Hence in the years to come, security will be everybody’s responsibility in the bank.

But as banks secure themselves against these threats they must not introduce friction in user experience. Security must work to protect customer’s interest without affecting the customer’s experience of interaction with the bank and its services. In 2018, banks may also look at offering identity management and related services to clients. And lastly, banks and enterprises must ensure that security aids their innovation efforts, does not hinder them.

Read the full report here – #ReimagineBanking – 10 Strategic and Technology Trends to Watch Out for in 2018

Organization #Reimagined – Cultural Readiness fills the gap Between Business and Technology Readiness

2018 promises to be an exciting year. We’re particularly excited because we believe that we will begin to transcend the efficiency and experiential benefits of technology and see tangible benefits of technology in relationship creation and building.

In 2017, we stated that banks in the digital age would do well to transform their culture to one that is in total alignment with the customer. As we can see, organization transformation depends on the idea of embracing change, innovation, customer-centricity, and continuous learning. We believe that in 2018, organizations must embrace this culture of change, innovation, customer-centricity to sustain their businesses.

For a truly customer centric organization banks need to build multidisciplinary teams that cut across functional silos. Progressive banks are introducing programs to train their employees to view customer journeys, to enable them to see realities differently, and to help them connect the dots for creative solutions to deliver value to their customers as well as the end consumer.

To upskill and cross-skill their employees, banks are discarding the traditional class-room training programs in favor of unconventional ways. Axis Bank in India has launched Axis Bank Academies partnering with renowned institutes like INSEAD, CRISIL, ISOFE, encouraging its employees to identify areas of specialization that will help them become future ready as digital bankers. In 2018, banks will also look to train employees on relevant analytical skills to fill the gap between business and technology.

Banks have traditionally been known to avoid risks, but to keep up with the pace of innovation in the age of open APIs, platforms and ‘digital’, banks must move from a risk averse culture to one that values innovation and collaboration. At DBS, with hackathons to encourage greater collaboration with start-ups, digital skilling programs, and workshops for human centered design and agile methodology, the bank is building a culture to enable every employee to contribute to digital innovation without the fear of failure.

Lastly, in 2018 banks will revisit their KPIs to instill the new culture of learning, collaboration and innovation. With KPIs and rewards programs designed to cultivate the desired culture of customer centricity, innovation, change, collaboration, banks can successfully bridge the gap between technology and business readiness for the new world or re-imagined banking.

Read the full report here – #ReimagineBanking – 10 Strategic and Technology Trends to Watch Out for in 2018