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The boom in Xaas and the knowledge graph

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Alan Morrison

The document discusses the growing importance of digital twins, knowledge graphs, and data-centric approaches to managing large, diverse datasets. It notes that current methods often struggle to integrate and contextualize data at scale. Effective digital twins and AI require integrated, disambiguated data flowing to where it's needed. Knowledge graphs are presented as a way to achieve this by providing a unified semantic model that treats relationships as a first-class citizen. The document outlines the large and growing markets for knowledge graph technologies and discusses how a data-centric approach can help enterprises better leverage emerging technologies.

Business
Related topics:
Knowledge Graph Insights • Data Management Insights
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Alan Morrison Graphorum October 2019 The boom in XaaS, the mirrorworld and the knowledge graph
PwC | Data-centric design and the knowledge graph Agenda 2 A useful vision Growth and emerging markets Data-centric methods Use cases Adoption Takeaways
A useful vision
PwC | Data-centric design and the knowledge graph In the mirrorworld, everything will have a paired twin. Kevin Kelly in Wired Feb 12, 2019 June 2019 4
PwC | Data-centric design and the knowledge graph What’s a digital twin? Depends on who you ask 5 GE: “At its core, the Digital Twin consists of sophisticated models or system of models based on deep domain knowledge of specific industrial assets. The Digital Twin is informed by a massive amount of design, manufacturing, inspection, repair, online sensor and operational data.” Goals: Predictive analytics, knowledge representation, etc. From “What is a digital twin?” GE Digital, 2019 Finger Food, “We Are Industry-leading Digital Twin Holographic Service Providers…. Imagine taking all of your disparate data sets from multiple spreadsheets and diagrams and combining them into one live-streaming visual holographic representation of your data – at full scale.” Goals: “We can take your data from your spreadsheets and turn it into clear, actionable context like never before…” From “Digital Twin Solutions to Improve your Bottom Line,” Finger Food Advanced Technology Group,“ 2019
PwC | Data-centric design and the knowledge graph What digital twin environments and AI need versus what they have 6 •What they need: Contextualized, disambiguated, highly relevant and specific integrated data, flowing to the point of need •What they have: Single batch datasets cleaned up to be good enough by data scientists, who spend 80% of their time on cleanup •What they need: Knowledge engineers, and many bold Data Visionaries in addition to big D Data Scientists, data-centric architects, pipeline engineers, specialists in many new data niches •What they have: A growing group of tool users versed only in probability theory, neural networks, python and R, including small D data scientists, engineers and architects, plus scads of entrenched application-centric developers Finance Operations Marketing Input Output Input layer Hidden layer 1 Hidden layer 2 Output layer
PwC | Data-centric design and the knowledge graph Consider how long it took to build out the world’s oil & gas infrastructure. Now think about where we are with traditional data management: • How do we free ourselves from legacy IT? • How do we build sharable digital twins? • How do we scale a shared data infrastructure? The mirrorworld poses a massive global data infrastructure challenge 7
PwC | Data-centric design and the knowledge graph Why treating smart data as a strategic asset is so critical right now 8 Challenge of the 2020s: Feeding your AIs enough relevant, quality data • Emerging tech often gets adopted just in pockets, • That’s particularly the case with AI. • Retraining, hiring new people, or buying more tools isn’t enough. • Many never figure out how to take advantage of important AI-enabling tech. They’ll just use it in ad- hoc projects or subscribe to AI-enhanced apps. • But the impact on decision making will be minimal without an industrial-scale approach to data and flow. Opportunity of the 2020s: Pipelines, distribution networks and volumes of quality, contextualized smart data flowing to the point of need The challenge we face is the same as the oil and gas industry faced in the 1920s: • Collecting enough raw material • Refining and enriching it • Distributing it to the places that need it most • Creating enough supply to generate massive demand and drive down the cost of AI
Growth and emerging markets
PwC | Data-centric design and the knowledge graph Global software market — knowledge graph addressable segments 10 Excerpted from Andrew Bartels, “Global Tech Market Outlook Update For 2019 To 2020,” Webinar, Forrester Research, 2019 68 percent of DBMS growth is cloud related, says Gartner. 76 percent of total software growth is cloud related, says Forrester, who says that cloud services infrastructures “are becoming the new data management platform.” $billions
PwC | Data-centric design and the knowledge graph Emerging techs – How are all these things interrelated? Are they addressable too? Knowledge graphs—the manifestation of a data- centric architecture--can empower the other technologies in these ways: 1. Accelerate machine learning training set development 2. Enable multi-domain virtual assistants/chatbots 3. Add reasoning to conversational ai platforms 4. Become means of sharing and interoperation of digital twins 11
PwC | Data-centric design and the knowledge graph Emerging markets — related to most relevant hype cycle techs 12 Total projected revenue: $58.2 billion (2021) Source: Tractica, Grandview Research and PwC analysis, 2019
PwC | Data-centric design and the knowledge graph The DaaS market in some forms has existed for eons—some segments are quite mature, others such as KGaaS brand new 13 8.5 9.0 9.5 10.0 10.5 11.0 2018 2019 2020 2021 2022 2023 $billions Data as a Service Organization domain only Lynne Schneider, Worldwide Data-as-a-Service Organization Domain Forecast, 2019–2023, IDC 201 Providers include Bloomberg, D&B, Lexis-Nexis, Moody's, Refinitiv, et al.) • Overall CAGR: 2.6% • Knowledge graphs in use but growth potential here as well, just in pockets • Knowledge graphs as a service (KGaaS) from GraphPath and Refinitiv offer discovery platforms, access to libraries, etc. Refinitiv via Giovanni Tummarello of Siren.io. “Seven great advancements in enterprise knowledge graphs in 2018”, https://siren.io/enterprise-knowledge-graphs-advancements/
PwC | Data-centric design and the knowledge graph Platform as a service providers include collaboration environments for working with multiple datasets in the cloud 14 $billions
PwC | Data-centric design and the knowledge graph Summary: A very large available market, but of course there’s a catch…. 15 4% 5% 5% 8% 8% 9% 14% 13% 8% 26% Summary of global target markets for knowledge graph technology, 2021 Digital twins PaaS--data mgmt. DaaS (org. domain) Virtual assistants Conversational AI Deep learning PaaS--integration, orchestration Info mgmt software Integration software DBMS software Total: $205 Billion Sources: Gartner (hype cycle only), IDC, Tractica, PwC analysis, 2019
PwC | Data-centric design and the knowledge graph Semantic PaaSes are becoming more collaboration friendly 16 Exploring Knowledge Graphs on Amazon Neptune Using Metaphactory, AWS Partner Network Blog, January 11, 2019
Data-centric methods
PwC | Data-centric design and the knowledge graph Three steps to understanding smart data 18 Step I: A logical, unified model in data at the data layer clears a path to actionable understanding Under- standing Knowledge Interpretation Contextualization Recognition Data collection Smart data for decisionmaking Actionable Data maturity levels 5: Unified model 3 to 4: Competency with knowledge graphs 1 to 2: Struggles with basic entity resolution Enables IT rationalization and AI at scale
PwC | Data-centric design and the knowledge graph • “Carole Cole disappeared in 1970 after running away from a juvenile detention center in Texas. She was 17. • A year later an unidentified murdered body was found in Louisiana. It was Carole, but Louisiana police had no idea. They couldn’t identify her. Carole’s disappearance went cold, as did the unidentified body. • Thirty-four years later Carole’s sister posted messages on Craigslist asking for clues into her sister’s disappearance. At nearly the same time, a sheriff’s department in Louisiana made a Facebook page asking for help identifying the Jane Doe body found 34 years before. • Six days later, someone connected the dots between the two posts. • What stumped detectives for almost four decades was solved by Facebook and Craigslist in less than a week.” From “Three Big Things: The Most Important Forces Shaping the World,” blogpost, Morgan Housel, Oct 4, 2019 19 One big force shaping the world How do enterprises make these connections more reliably so that machines can replicate human discovery? Put more people and machines together in feedback loops.
PwC | Data-centric design and the knowledge graph Largest changes in market cap by global company, cross industry, 2018 20 1. Change in market cap from IPO date 2. Market cap at IPO date Source: Bloomberg and PwC analysis • Other major tech, FS and pharma cos. are also working on cross-enterprise knowledge graphs • Many have cross-enterprise knowledge graph ambitions, but most are focused on a single use case • S&P does cross-enterprise data management using relational tech Company name Location Industry Change in market cap 2009 – 2018 ($bn) Market cap 2018 ($bn) 1 Apple United States Technology 757 851 2 Amazon.Com United States Consumer Services 670 701 3 Alphabet United States Technology 609 719 4 Microsoft Corp United States Technology 540 703 5 Tencent Holdings China Technology 483 496 6 Facebook United States Technology 3831 464 7 Berkshire Hathaway United States Financial 358 492 8 Alibaba China Consumer Services 3021 470 9 JPMorgan Chase United States Financials 275 375 10 Bank of America United States Financials 263 307 Known knowledge graph builders Operator of Taobao and AliBot KG builder Known KG builders The most value-creating companies in the world are using knowledge graphs
PwC | Data-centric design and the knowledge graph Why traditional data management doesn’t scale 21 1. Relational databases don’t treat relationship data as a first-class citizen 2. As a result, most companies have buried or are missing the relationship data they need for contextualization 3. Tables alone don’t help you dynamically model your data or share the models 4. Managing large numbers of tables soon gets unwieldy 5. Limiting your database resources to tabular methods ensures you won’t take full advantage of today’s compute, networking and storage Relationship richness Relationship sparseness Static selective fragmented labor intensive Additive Index friendly Immutable versioning possible More dynamic More inclusive More integrated More machine assisted Relational: Row and column headers And up-front taxonomies Document: Nested, cumulative hierarchies Graph: Any-to-any relationships PwC, 2016 When overused, RDBMSes perpetuate the provincial data mentality of the 1980s, back when computing didn’t scale Lots of data is missing from relational datasets—namely the contextual clues needed for disambiguation via entity resolution and, therefore, large-scale integration
PwC | Data-centric design and the knowledge graph The consequence of logic and data siloing – App-centric system-level complexity and disconnectedness spinning out of control (Result – Table and code sprawl) 22 Hardware DBMS OS Custom code Hardware Lots of OSes 1,000+ SQL/ NoSQL DBs Custom code ERP+ suites Hardware A few more OSes More DBMSes Custom code ERP+ suites Hardware Lots more OSes 5,000+ databases Componentized suites Custom code Cloud layer Hardware More types of OSes 10,000+ DBs + blockchains Multicloud layer Suites as services Various SaaSes Custom code Hardware A few DBMSes A few OSes ERP+ suites Custom code Threat of more application centric sprawl Early1990s Late 1990s 2000s 2010s1973-1990sPre 1970 2020s
PwC | Data-centric design and the knowledge graph Data-centric design at the micro level brings human and machines together, with the humans helping the machines build and scale relationship data 23 Relationship logic to shared at scale needs to be created in human-machine feedback loops and embedded in a standard form at the data layer for full reuse—not trapped in app silos Relationship- sparse, but highly articulated data context that humans need to help machines refine and enrich Relationship- rich smart data that uses description or predicate logic to scale integration, context and interoperation
PwC | Data-centric design and the knowledge graph The key opportunity – Large-scale integration and model-driven intelligence in a de-siloed and de-duplicated way 24 Previously dominant Rule-based systems (includes KR) Handcrafted knowledge” is the term DARPA uses; rule-based programming + procedure replication in process automation, + some knowledge representation (KR) • Strong on logical reasoning in specific concrete contexts - Procedural + declarative programming + set theory, etc. - Deterministic • Can’t learn or abstract • Still exceptionally common and useful On the rise and rapidly improving Statistical machine learning • Probabilistic • From Bayesian algorithms to neural nets (yes, deep learning also) • Strong on perceiving and learning (classifying, predicting) • Weak on abstracting and reasoning • Quite powerful in the aggregate but individually (instance by instance) unreliable • Can require lots of data Perceiving Learning Abstracting Reasoning Perceiving Learning Abstracting Reasoning Perceiving Learning Abstracting Reasoning Example: Consumer tax software Example: Facial recognition using deep learning/neural nets John Launchbury of DARPA (https://www.youtube.com/watch?v=N2L8AqkEDLs), Estes Park Group and PwC research, 2017 Nascent, just beginning Contextualized, model-driven approach • Contextualized modeling approach-allows efficiency, precision and certainty • Combines power of deterministic, probabilistic and description logic • Allows explanations to be added to decisions • Accelerates the training process with the help of specific, contextual human input • Takes less data Example: Explains first how handwritten letters are formed so machines can decide- less data needed, more transparency.
PwC | Data-centric design and the knowledge graph Origins of data-centric thinking 25 Software Wasteland How the Application- Centric Mindset is Hobbling our Enterprises Dave McComb The Data-Centric Manifesto Principles 1. Data is a key asset of any organization. 2. The current enterprise software paradigm is “Application-Centric.” 3. Hoarding data in proprietary and complex apps is a mistake. 4. Most of the excessive cost and complexity in Enterprise Apps stems from the relationship of the apps to the data. 5. We are committed to reversing this trend. 6. We understand that there is money to be made in the applciation-centric paradigm. http://datacentricmanifesto.org/principles/ Data-centric Architecture Forum Fort Collins, CO|February 3 – 5, 2020 February 2019 we hosted the inaugural Data-Centric Conference where we started a profound conversation about the exploding costs of enterprise systems, discussed strategic to reverse the application- centric mindset and committed to move the needle in the right direction forging data-centric projects going forward. We are very pleased to announce we’ll do this again February 2020 as the Data- centric architecture Forum. The theme of next year’s forum will be experience reports on attempting to implement portions of the architecture. Join us and our mission to get more people involved and skilled in data-centricity. Here’s a quick summary of our 2019 event to give you an idea of what to expect. Hold the date, and save some money: Super Early Bird Discount of $300 off if you register by June 30, 2019! https://www.semanticarts.com/dcc/
PwC | Data-centric design and the knowledge graph The solution – Data-centric architecture reduces both application and database sprawl 26 Trapped app code and databases Application centric versus Data centric Semantic model/rules Data lake or hub Applets    Applications for execution only Models exposed with the data
PwC | Data-centric design and the knowledge graph Rationalize – Identify and declare the few hundred business rules you need as a model 27 “In every company I’ve ever studied, there are only a few hundred key concepts and relationships that the entire business runs on. Once you understand that, you realize all of these millions of distinctions are just slight variations of those few hundred important things.” --Dave McComb, author of Software Wasteland, quoted in Strategy + Business See “Are you Spending Way too Much on Software at https://www.strategy-business.com/article/Are-You- Spending-Way-Too-Much-on-Software?
PwC | Data-centric design and the knowledge graph Reuse – Call the model to reuse those rules whenever necessary 28 “You discover that many of the slight variations aren’t variations at all. They’re really the same things with different names, different structures, or different labels. So it’s desirable to describe those few hundred concepts and relationships in the form of a declarative model that small amounts of code refer to again and again.” --Dave McComb (as previously cited) See “Are you Spending Way too Much on Software at https://www.strategy-business.com/article/Are-You- Spending-Way-Too-Much-on-Software?
Use cases
PwC | Data-centric design and the knowledge graph State of the art knowledge graph – Blue Brain Nexus (1 of 2) 30 How do scientists record the provenance, curate, share in open source and collaborate on what they’re documented using 3D imaging techniques generated with the help of a supercomputer, such as the slices of a rat’s brain? From the EPFL Blue Brain Portal Gallery, https://portal.bluebrain.epfl.ch/gallery-2/
PwC | Data-centric design and the knowledge graph State of the art knowledge graph – Blue Brain Nexus (2 of 2) 31 Bogdan Roman, “Blue Brain Nexus Technical Introduction,” March 2018, https://www.slideshare.net/BogdanRoman1/bluebrain-nexus-technical-introduction-91266871
PwC | Data-centric design and the knowledge graph Montefiore’s semantic data lake 32 Montefiore Health, Franz, Intel and PwC research, 2017 Various data sources, some structured, some not, now all part of a knowledge graph with a simple patient care-centric ontology Hadoop cluster with high-performance processors and memory Scalable graph database supporting open W3C semantic standards Standard open source querying, ML and analytics frameworks, API accessibility HL7 feed Web services EMR LIMS Legacy OMICs CTMS Claims Annotation engine HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop AllegrographAllegrographAllegrographAllegrograph Allegrograph SDL loader ML-LIB/R SPARQL Prolog Spark Java API Doctors can query the graph or harness ML + analytics and receive answers from the system at the point of care via their handhelds. The system also acts as a giant feedback-response or learning loop which learns from the data collected via user/system interactions.
PwC | Data-centric design and the knowledge graph A semantic knowledge graph could enable the model-driven organization (a digital twin) at the data layer 33 Step One: Model the relevant elements of the organization, how they relate to one another and interoperate Step Two: Embed the model where it lives as machine-readable data Step Three: Integrate the source datasets as a target knowledge graph with model-driven mappings Step Four: Browse, query, disambiguate, detect and discover via the resulting knowledge graph Capability enables process Process uses information https://virtualdutchman.com/2018/10/14/moving-to-a-model-based-enterprise-the-business-model/ Clearvision, 2019. Used with permission. Prog/proj creates information Prog/proj Supports process Prog/proj Has person Prog/proj creates technology Person uses process Person uses information Person creates information Person uses technology Person uses capability Capability uses technology Information uses technology Technology Supports process Prog/proj has risk Portfolio has person Risk owned by personPerson Identified risk Company employs person Portfolio Has prog/proj Prog/proj outputs Work package Prog/proj Has role Prog/proj Has parente prog/pro Company Has prog/proj Prog/proj Delivers strategy Prog/proj Has milestone Company has portfolio Strategy has milestone Company Has role Role needs competenceWork package Needs competence Work package Process Information Person Risk Portfolio Milestone Strategy Company Role Competence Technology Capability Capability uses information Prog/proj Uses information Prog/proj Uses technology Prog/proj delivers capability Prog/proj Work Package has person Person has competence
Adoption
PwC | Data-centric design and the knowledge graph Seven obstacles to semantics and knowledge graph adoption and ways around them 35 Obstacle to adoption Nature of the problem Ways to overcome 1. Tribalism Each tribe works off on its own, rarely with other tribes Encourage activist leadership and hire to emphasize the blended nature of the solution 2. Low awareness in the trenches Few seem to acknowledge or care about what’s actually happening Find those who want to learn and be inspired 3. Magic bullet mentality Inflated, unrealistic expectations regarding “AI”, RPA, blockchain, etc. Promote foxes (breadth) rather than hedgehogs (depth) 4. Indifference about the back end While the front end seems always bright and shiny, few seem to care about the plumbing Highlight the end user benefits the back end and a systems approach enables 5. Lack of university coursework Few universities in the US seem to offer courses in semantics Follow the European example 6. Misplaced belief in the centrality of the app layer Shallow understanding of data + logic, declarative versus imperative programming, etc.; reinforcement of the status quo Focus on less mature areas where alternative approaches are more likely to be accepted 7. Buy rather than build habit Enthusiasm for the latest new products and services Focus on the system rather than the piece parts
Takeaways
PwC | Data-centric design and the knowledge graph Graphs (including hybrids) complete the picture of your transformed data lifecycle and how it’s managed 37
PwC | Data-centric design and the knowledge graph Bottom line – The 4D approach to insight 38 1. De-silo: Integrate all the relevant sources in a declarative fashion that enables reuse, cross-enterprise scalability, and continuous refinement. 2. Disambiguate: Triangulate using set theory and linguistic description logic in addition to statistical methods, enabling precise entity resolution. 3. Detect: Uncover weaker signals by articulating the most relevant and distant relationships between entities, via richer contextualization. 4. Discover: Radically expand the ability to discover insights, moving beyond keywords to concepts. Outlook and conclusion Kevin Kelly's concept of the mirrorworld describes the future vision, which he says will take 25 years to materialize. Poor data management is the main reason we're stuck at the starting gate with the mirrorworld. Moving to the cloud will not fix your data management problems.
pwc.com Thoughts? © 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. Alan Morrison PwC | Emerging Tech | Sr. Research Fellow +1 (408) 205 5109 alan.s.morrison@pwc.com https://www.linkedin.com/in/alanmorrison/ https://twitter.com/AlanMorrison https://www.quora.com/profile/Alan-Morrison

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The boom in Xaas and the knowledge graph

  • 1. Alan Morrison Graphorum October 2019 The boom in XaaS, the mirrorworld and the knowledge graph
  • 2. PwC | Data-centric design and the knowledge graph Agenda 2 A useful vision Growth and emerging markets Data-centric methods Use cases Adoption Takeaways
  • 4. PwC | Data-centric design and the knowledge graph In the mirrorworld, everything will have a paired twin. Kevin Kelly in Wired Feb 12, 2019 June 2019 4
  • 5. PwC | Data-centric design and the knowledge graph What’s a digital twin? Depends on who you ask 5 GE: “At its core, the Digital Twin consists of sophisticated models or system of models based on deep domain knowledge of specific industrial assets. The Digital Twin is informed by a massive amount of design, manufacturing, inspection, repair, online sensor and operational data.” Goals: Predictive analytics, knowledge representation, etc. From “What is a digital twin?” GE Digital, 2019 Finger Food, “We Are Industry-leading Digital Twin Holographic Service Providers…. Imagine taking all of your disparate data sets from multiple spreadsheets and diagrams and combining them into one live-streaming visual holographic representation of your data – at full scale.” Goals: “We can take your data from your spreadsheets and turn it into clear, actionable context like never before…” From “Digital Twin Solutions to Improve your Bottom Line,” Finger Food Advanced Technology Group,“ 2019
  • 6. PwC | Data-centric design and the knowledge graph What digital twin environments and AI need versus what they have 6 •What they need: Contextualized, disambiguated, highly relevant and specific integrated data, flowing to the point of need •What they have: Single batch datasets cleaned up to be good enough by data scientists, who spend 80% of their time on cleanup •What they need: Knowledge engineers, and many bold Data Visionaries in addition to big D Data Scientists, data-centric architects, pipeline engineers, specialists in many new data niches •What they have: A growing group of tool users versed only in probability theory, neural networks, python and R, including small D data scientists, engineers and architects, plus scads of entrenched application-centric developers Finance Operations Marketing Input Output Input layer Hidden layer 1 Hidden layer 2 Output layer
  • 7. PwC | Data-centric design and the knowledge graph Consider how long it took to build out the world’s oil & gas infrastructure. Now think about where we are with traditional data management: • How do we free ourselves from legacy IT? • How do we build sharable digital twins? • How do we scale a shared data infrastructure? The mirrorworld poses a massive global data infrastructure challenge 7
  • 8. PwC | Data-centric design and the knowledge graph Why treating smart data as a strategic asset is so critical right now 8 Challenge of the 2020s: Feeding your AIs enough relevant, quality data • Emerging tech often gets adopted just in pockets, • That’s particularly the case with AI. • Retraining, hiring new people, or buying more tools isn’t enough. • Many never figure out how to take advantage of important AI-enabling tech. They’ll just use it in ad- hoc projects or subscribe to AI-enhanced apps. • But the impact on decision making will be minimal without an industrial-scale approach to data and flow. Opportunity of the 2020s: Pipelines, distribution networks and volumes of quality, contextualized smart data flowing to the point of need The challenge we face is the same as the oil and gas industry faced in the 1920s: • Collecting enough raw material • Refining and enriching it • Distributing it to the places that need it most • Creating enough supply to generate massive demand and drive down the cost of AI
  • 10. PwC | Data-centric design and the knowledge graph Global software market — knowledge graph addressable segments 10 Excerpted from Andrew Bartels, “Global Tech Market Outlook Update For 2019 To 2020,” Webinar, Forrester Research, 2019 68 percent of DBMS growth is cloud related, says Gartner. 76 percent of total software growth is cloud related, says Forrester, who says that cloud services infrastructures “are becoming the new data management platform.” $billions
  • 11. PwC | Data-centric design and the knowledge graph Emerging techs – How are all these things interrelated? Are they addressable too? Knowledge graphs—the manifestation of a data- centric architecture--can empower the other technologies in these ways: 1. Accelerate machine learning training set development 2. Enable multi-domain virtual assistants/chatbots 3. Add reasoning to conversational ai platforms 4. Become means of sharing and interoperation of digital twins 11
  • 12. PwC | Data-centric design and the knowledge graph Emerging markets — related to most relevant hype cycle techs 12 Total projected revenue: $58.2 billion (2021) Source: Tractica, Grandview Research and PwC analysis, 2019
  • 13. PwC | Data-centric design and the knowledge graph The DaaS market in some forms has existed for eons—some segments are quite mature, others such as KGaaS brand new 13 8.5 9.0 9.5 10.0 10.5 11.0 2018 2019 2020 2021 2022 2023 $billions Data as a Service Organization domain only Lynne Schneider, Worldwide Data-as-a-Service Organization Domain Forecast, 2019–2023, IDC 201 Providers include Bloomberg, D&B, Lexis-Nexis, Moody's, Refinitiv, et al.) • Overall CAGR: 2.6% • Knowledge graphs in use but growth potential here as well, just in pockets • Knowledge graphs as a service (KGaaS) from GraphPath and Refinitiv offer discovery platforms, access to libraries, etc. Refinitiv via Giovanni Tummarello of Siren.io. “Seven great advancements in enterprise knowledge graphs in 2018”, https://siren.io/enterprise-knowledge-graphs-advancements/
  • 14. PwC | Data-centric design and the knowledge graph Platform as a service providers include collaboration environments for working with multiple datasets in the cloud 14 $billions
  • 15. PwC | Data-centric design and the knowledge graph Summary: A very large available market, but of course there’s a catch…. 15 4% 5% 5% 8% 8% 9% 14% 13% 8% 26% Summary of global target markets for knowledge graph technology, 2021 Digital twins PaaS--data mgmt. DaaS (org. domain) Virtual assistants Conversational AI Deep learning PaaS--integration, orchestration Info mgmt software Integration software DBMS software Total: $205 Billion Sources: Gartner (hype cycle only), IDC, Tractica, PwC analysis, 2019
  • 16. PwC | Data-centric design and the knowledge graph Semantic PaaSes are becoming more collaboration friendly 16 Exploring Knowledge Graphs on Amazon Neptune Using Metaphactory, AWS Partner Network Blog, January 11, 2019
  • 18. PwC | Data-centric design and the knowledge graph Three steps to understanding smart data 18 Step I: A logical, unified model in data at the data layer clears a path to actionable understanding Under- standing Knowledge Interpretation Contextualization Recognition Data collection Smart data for decisionmaking Actionable Data maturity levels 5: Unified model 3 to 4: Competency with knowledge graphs 1 to 2: Struggles with basic entity resolution Enables IT rationalization and AI at scale
  • 19. PwC | Data-centric design and the knowledge graph • “Carole Cole disappeared in 1970 after running away from a juvenile detention center in Texas. She was 17. • A year later an unidentified murdered body was found in Louisiana. It was Carole, but Louisiana police had no idea. They couldn’t identify her. Carole’s disappearance went cold, as did the unidentified body. • Thirty-four years later Carole’s sister posted messages on Craigslist asking for clues into her sister’s disappearance. At nearly the same time, a sheriff’s department in Louisiana made a Facebook page asking for help identifying the Jane Doe body found 34 years before. • Six days later, someone connected the dots between the two posts. • What stumped detectives for almost four decades was solved by Facebook and Craigslist in less than a week.” From “Three Big Things: The Most Important Forces Shaping the World,” blogpost, Morgan Housel, Oct 4, 2019 19 One big force shaping the world How do enterprises make these connections more reliably so that machines can replicate human discovery? Put more people and machines together in feedback loops.
  • 20. PwC | Data-centric design and the knowledge graph Largest changes in market cap by global company, cross industry, 2018 20 1. Change in market cap from IPO date 2. Market cap at IPO date Source: Bloomberg and PwC analysis • Other major tech, FS and pharma cos. are also working on cross-enterprise knowledge graphs • Many have cross-enterprise knowledge graph ambitions, but most are focused on a single use case • S&P does cross-enterprise data management using relational tech Company name Location Industry Change in market cap 2009 – 2018 ($bn) Market cap 2018 ($bn) 1 Apple United States Technology 757 851 2 Amazon.Com United States Consumer Services 670 701 3 Alphabet United States Technology 609 719 4 Microsoft Corp United States Technology 540 703 5 Tencent Holdings China Technology 483 496 6 Facebook United States Technology 3831 464 7 Berkshire Hathaway United States Financial 358 492 8 Alibaba China Consumer Services 3021 470 9 JPMorgan Chase United States Financials 275 375 10 Bank of America United States Financials 263 307 Known knowledge graph builders Operator of Taobao and AliBot KG builder Known KG builders The most value-creating companies in the world are using knowledge graphs
  • 21. PwC | Data-centric design and the knowledge graph Why traditional data management doesn’t scale 21 1. Relational databases don’t treat relationship data as a first-class citizen 2. As a result, most companies have buried or are missing the relationship data they need for contextualization 3. Tables alone don’t help you dynamically model your data or share the models 4. Managing large numbers of tables soon gets unwieldy 5. Limiting your database resources to tabular methods ensures you won’t take full advantage of today’s compute, networking and storage Relationship richness Relationship sparseness Static selective fragmented labor intensive Additive Index friendly Immutable versioning possible More dynamic More inclusive More integrated More machine assisted Relational: Row and column headers And up-front taxonomies Document: Nested, cumulative hierarchies Graph: Any-to-any relationships PwC, 2016 When overused, RDBMSes perpetuate the provincial data mentality of the 1980s, back when computing didn’t scale Lots of data is missing from relational datasets—namely the contextual clues needed for disambiguation via entity resolution and, therefore, large-scale integration
  • 22. PwC | Data-centric design and the knowledge graph The consequence of logic and data siloing – App-centric system-level complexity and disconnectedness spinning out of control (Result – Table and code sprawl) 22 Hardware DBMS OS Custom code Hardware Lots of OSes 1,000+ SQL/ NoSQL DBs Custom code ERP+ suites Hardware A few more OSes More DBMSes Custom code ERP+ suites Hardware Lots more OSes 5,000+ databases Componentized suites Custom code Cloud layer Hardware More types of OSes 10,000+ DBs + blockchains Multicloud layer Suites as services Various SaaSes Custom code Hardware A few DBMSes A few OSes ERP+ suites Custom code Threat of more application centric sprawl Early1990s Late 1990s 2000s 2010s1973-1990sPre 1970 2020s
  • 23. PwC | Data-centric design and the knowledge graph Data-centric design at the micro level brings human and machines together, with the humans helping the machines build and scale relationship data 23 Relationship logic to shared at scale needs to be created in human-machine feedback loops and embedded in a standard form at the data layer for full reuse—not trapped in app silos Relationship- sparse, but highly articulated data context that humans need to help machines refine and enrich Relationship- rich smart data that uses description or predicate logic to scale integration, context and interoperation
  • 24. PwC | Data-centric design and the knowledge graph The key opportunity – Large-scale integration and model-driven intelligence in a de-siloed and de-duplicated way 24 Previously dominant Rule-based systems (includes KR) Handcrafted knowledge” is the term DARPA uses; rule-based programming + procedure replication in process automation, + some knowledge representation (KR) • Strong on logical reasoning in specific concrete contexts - Procedural + declarative programming + set theory, etc. - Deterministic • Can’t learn or abstract • Still exceptionally common and useful On the rise and rapidly improving Statistical machine learning • Probabilistic • From Bayesian algorithms to neural nets (yes, deep learning also) • Strong on perceiving and learning (classifying, predicting) • Weak on abstracting and reasoning • Quite powerful in the aggregate but individually (instance by instance) unreliable • Can require lots of data Perceiving Learning Abstracting Reasoning Perceiving Learning Abstracting Reasoning Perceiving Learning Abstracting Reasoning Example: Consumer tax software Example: Facial recognition using deep learning/neural nets John Launchbury of DARPA (https://www.youtube.com/watch?v=N2L8AqkEDLs), Estes Park Group and PwC research, 2017 Nascent, just beginning Contextualized, model-driven approach • Contextualized modeling approach-allows efficiency, precision and certainty • Combines power of deterministic, probabilistic and description logic • Allows explanations to be added to decisions • Accelerates the training process with the help of specific, contextual human input • Takes less data Example: Explains first how handwritten letters are formed so machines can decide- less data needed, more transparency.
  • 25. PwC | Data-centric design and the knowledge graph Origins of data-centric thinking 25 Software Wasteland How the Application- Centric Mindset is Hobbling our Enterprises Dave McComb The Data-Centric Manifesto Principles 1. Data is a key asset of any organization. 2. The current enterprise software paradigm is “Application-Centric.” 3. Hoarding data in proprietary and complex apps is a mistake. 4. Most of the excessive cost and complexity in Enterprise Apps stems from the relationship of the apps to the data. 5. We are committed to reversing this trend. 6. We understand that there is money to be made in the applciation-centric paradigm. http://datacentricmanifesto.org/principles/ Data-centric Architecture Forum Fort Collins, CO|February 3 – 5, 2020 February 2019 we hosted the inaugural Data-Centric Conference where we started a profound conversation about the exploding costs of enterprise systems, discussed strategic to reverse the application- centric mindset and committed to move the needle in the right direction forging data-centric projects going forward. We are very pleased to announce we’ll do this again February 2020 as the Data- centric architecture Forum. The theme of next year’s forum will be experience reports on attempting to implement portions of the architecture. Join us and our mission to get more people involved and skilled in data-centricity. Here’s a quick summary of our 2019 event to give you an idea of what to expect. Hold the date, and save some money: Super Early Bird Discount of $300 off if you register by June 30, 2019! https://www.semanticarts.com/dcc/
  • 26. PwC | Data-centric design and the knowledge graph The solution – Data-centric architecture reduces both application and database sprawl 26 Trapped app code and databases Application centric versus Data centric Semantic model/rules Data lake or hub Applets    Applications for execution only Models exposed with the data
  • 27. PwC | Data-centric design and the knowledge graph Rationalize – Identify and declare the few hundred business rules you need as a model 27 “In every company I’ve ever studied, there are only a few hundred key concepts and relationships that the entire business runs on. Once you understand that, you realize all of these millions of distinctions are just slight variations of those few hundred important things.” --Dave McComb, author of Software Wasteland, quoted in Strategy + Business See “Are you Spending Way too Much on Software at https://www.strategy-business.com/article/Are-You- Spending-Way-Too-Much-on-Software?
  • 28. PwC | Data-centric design and the knowledge graph Reuse – Call the model to reuse those rules whenever necessary 28 “You discover that many of the slight variations aren’t variations at all. They’re really the same things with different names, different structures, or different labels. So it’s desirable to describe those few hundred concepts and relationships in the form of a declarative model that small amounts of code refer to again and again.” --Dave McComb (as previously cited) See “Are you Spending Way too Much on Software at https://www.strategy-business.com/article/Are-You- Spending-Way-Too-Much-on-Software?
  • 30. PwC | Data-centric design and the knowledge graph State of the art knowledge graph – Blue Brain Nexus (1 of 2) 30 How do scientists record the provenance, curate, share in open source and collaborate on what they’re documented using 3D imaging techniques generated with the help of a supercomputer, such as the slices of a rat’s brain? From the EPFL Blue Brain Portal Gallery, https://portal.bluebrain.epfl.ch/gallery-2/
  • 31. PwC | Data-centric design and the knowledge graph State of the art knowledge graph – Blue Brain Nexus (2 of 2) 31 Bogdan Roman, “Blue Brain Nexus Technical Introduction,” March 2018, https://www.slideshare.net/BogdanRoman1/bluebrain-nexus-technical-introduction-91266871
  • 32. PwC | Data-centric design and the knowledge graph Montefiore’s semantic data lake 32 Montefiore Health, Franz, Intel and PwC research, 2017 Various data sources, some structured, some not, now all part of a knowledge graph with a simple patient care-centric ontology Hadoop cluster with high-performance processors and memory Scalable graph database supporting open W3C semantic standards Standard open source querying, ML and analytics frameworks, API accessibility HL7 feed Web services EMR LIMS Legacy OMICs CTMS Claims Annotation engine HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop HDFS Hadoop AllegrographAllegrographAllegrographAllegrograph Allegrograph SDL loader ML-LIB/R SPARQL Prolog Spark Java API Doctors can query the graph or harness ML + analytics and receive answers from the system at the point of care via their handhelds. The system also acts as a giant feedback-response or learning loop which learns from the data collected via user/system interactions.
  • 33. PwC | Data-centric design and the knowledge graph A semantic knowledge graph could enable the model-driven organization (a digital twin) at the data layer 33 Step One: Model the relevant elements of the organization, how they relate to one another and interoperate Step Two: Embed the model where it lives as machine-readable data Step Three: Integrate the source datasets as a target knowledge graph with model-driven mappings Step Four: Browse, query, disambiguate, detect and discover via the resulting knowledge graph Capability enables process Process uses information https://virtualdutchman.com/2018/10/14/moving-to-a-model-based-enterprise-the-business-model/ Clearvision, 2019. Used with permission. Prog/proj creates information Prog/proj Supports process Prog/proj Has person Prog/proj creates technology Person uses process Person uses information Person creates information Person uses technology Person uses capability Capability uses technology Information uses technology Technology Supports process Prog/proj has risk Portfolio has person Risk owned by personPerson Identified risk Company employs person Portfolio Has prog/proj Prog/proj outputs Work package Prog/proj Has role Prog/proj Has parente prog/pro Company Has prog/proj Prog/proj Delivers strategy Prog/proj Has milestone Company has portfolio Strategy has milestone Company Has role Role needs competenceWork package Needs competence Work package Process Information Person Risk Portfolio Milestone Strategy Company Role Competence Technology Capability Capability uses information Prog/proj Uses information Prog/proj Uses technology Prog/proj delivers capability Prog/proj Work Package has person Person has competence
  • 35. PwC | Data-centric design and the knowledge graph Seven obstacles to semantics and knowledge graph adoption and ways around them 35 Obstacle to adoption Nature of the problem Ways to overcome 1. Tribalism Each tribe works off on its own, rarely with other tribes Encourage activist leadership and hire to emphasize the blended nature of the solution 2. Low awareness in the trenches Few seem to acknowledge or care about what’s actually happening Find those who want to learn and be inspired 3. Magic bullet mentality Inflated, unrealistic expectations regarding “AI”, RPA, blockchain, etc. Promote foxes (breadth) rather than hedgehogs (depth) 4. Indifference about the back end While the front end seems always bright and shiny, few seem to care about the plumbing Highlight the end user benefits the back end and a systems approach enables 5. Lack of university coursework Few universities in the US seem to offer courses in semantics Follow the European example 6. Misplaced belief in the centrality of the app layer Shallow understanding of data + logic, declarative versus imperative programming, etc.; reinforcement of the status quo Focus on less mature areas where alternative approaches are more likely to be accepted 7. Buy rather than build habit Enthusiasm for the latest new products and services Focus on the system rather than the piece parts
  • 37. PwC | Data-centric design and the knowledge graph Graphs (including hybrids) complete the picture of your transformed data lifecycle and how it’s managed 37
  • 38. PwC | Data-centric design and the knowledge graph Bottom line – The 4D approach to insight 38 1. De-silo: Integrate all the relevant sources in a declarative fashion that enables reuse, cross-enterprise scalability, and continuous refinement. 2. Disambiguate: Triangulate using set theory and linguistic description logic in addition to statistical methods, enabling precise entity resolution. 3. Detect: Uncover weaker signals by articulating the most relevant and distant relationships between entities, via richer contextualization. 4. Discover: Radically expand the ability to discover insights, moving beyond keywords to concepts. Outlook and conclusion Kevin Kelly's concept of the mirrorworld describes the future vision, which he says will take 25 years to materialize. Poor data management is the main reason we're stuck at the starting gate with the mirrorworld. Moving to the cloud will not fix your data management problems.
  • 39. pwc.com Thoughts? © 2019 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. Alan Morrison PwC | Emerging Tech | Sr. Research Fellow +1 (408) 205 5109 alan.s.morrison@pwc.com https://www.linkedin.com/in/alanmorrison/ https://twitter.com/AlanMorrison https://www.quora.com/profile/Alan-Morrison