How technology is transforming the largest companies
Watching the markets over the past few months has made for unique viewing and, as many will have witnessed, the true outlier has been the technology industry.
Stock market winners over this period have crossed many different industries, but most have been underpinned by tech. Zoom soared through the enterprise need for video-conferencing, Amazon once again demonstrated its dominance as the e-commerce giant, and with online education platforms, like Chegg, and Telehealth providers, like Teledoc, we were able to maintain key services in our disrupted society.
Even with recent declines as some investors sell off technology stock amid US employment concerns, the transformation impact of technology in helping us adapt throughout the pandemic to the unknown – in our ability to work, consume services and socialise – has undoubtedly had a monumental impact on the market.
Yet, the transformative impact of technology on the stock markets is no new trend. One way to track its evolution is in the Fortune 500. Using , which explore the revenues and events that shaped the success of certain industries, looking back at the rise of the tech industry over the past 25 years makes for fascinating reading. While there are plenty of takeaways, the below particularly stood out:
The strong keep getting stronger
Since the addition of the Services sectors to the Fortune 500 in 1995, reflecting the transformation of US industry, Technology has joined a cohort of five sectors (including Financials, Energy Healthcare and Retailing) that have managed to hold onto the top spots in the industry analysis – both in the lead up to and aftermath of the Great Recession of 2008. Over this period, sector revenue for Technology rose from USD $242bn in 1995 to $1.63T 2020. Indeed, the ability for the sector to not just survive in, but accelerate during tumultuous times is testimony to the industry’s resiliency embedded in its core virtues of innovation, agility and diversity of ideas.
This doesn’t just play out in the success of the technology sector – it has been instrumental in establishing the leaders of other industries too. Today, just 56 of those on the inaugural Fortune 500 remain, and the success and survival of businesses and sectors in the markets alike is increasingly dependent on the way in which technology has been used to innovate. For example, at a sector level, Retailing managed to both pull away from the pack thanks to shift towards e-commerce. The Internet paved the way for new competitors, like Amazon, that catalysed a whole new way to shop.
“Software eats the world”
It’s been several years since venture capitalist, Marc Andreessen , but it has undoubtedly characterised the rise of Technology in the Fortune 500, with software now accounting for 21.7% of sector revenue in 2020. This reflects its growing necessity among businesses to provide digital alternatives to physical services, as well its influence in our everyday lives, transforming everything from how we consume content, to communicating with our friends and family. It comes into stark contrast with many Industrial sectors. Motor Vehicles and Parts companies, for example, stagnated so much that the Big Three (Ford, General Motors and Chrysler) were nearly wiped out in 2008.
Markets recognise innovators
At a company level, the continued success of General Electric (ranked 21 on the Fortune 500 in 2019) can be credited to its appreciation for innovation. The multinational conglomerate was not only the , but made “surprise” market expansions into areas like renewable energy, acknowledging through its investment that it will be the future of electricity generation.
The forward-thinking company nature is perhaps unsurprising given it was founded by Thomas Edison, one of the greatest inventors in American history. However, it deserves credit for how it has maintained that culture throughout the decades, right through to the current day with its business mission of: “” This examples highlights how constant innovation and adaptation are required to not just be another ‘flash in the pan’ on the Fortune 500.
But what comes next?
The influence of technology in the Fortune 500 extends far beyond its own sector’s growth. It underpins the success and survival of companies across all industries – a trend that will only accelerate further as software disrupts an increasing number of traditional industries, like automotive and healthcare.
But as it accelerates, so will it transform. I predict that in years to come we’ll see an increasing market divide between not only those that have adopted new technology services, but those that learn from the data these digital products and processes produce to continuously evolve – at breakneck speed – to market demands. The future is not which company will go digital, but which can draw out active intelligence from these new services to drive the next wave of the market leaders.
By James Fisher, Chief Product Officer, Qlik
Google launches Visual Inspection AI tool for manufacturers
Google Cloud has launched Visual Inspection AI, a new tool to help manufacturers identify defects in products before they're shipped.
Poor production quality control often leads to significant operational and financial costs. The American Society for Quality estimates that for many organisations this cost of quality is as high as 15-20% of annual sales revenue, or billions of dollars annually for larger manufacturers. Google Cloud’s new Visual Inspection AI solution has been purpose-built for the industry to solve this problem at production scale.
How does it work?
The Google Cloud Visual Inspection AI solution automates visual inspection tasks using a set of AI and computer vision technologies that enable manufacturers to transform quality control processes by automatically detecting product defects.
Google built Visual Inspection AI to meet the needs of quality, test, manufacturing, and process engineers who are experts in their domain, but not in AI.
- Run autonomously on-premises: Manufacturers can run inspection models at the network edge or on-premises. The inspection can run either in Google Cloud or fully autonomous on your factory shop floor.
- Short time-to-value: Customers can deploy in weeks, not the months typical of traditional machine learning (ML) solutions. Built for process and quality engineers, no computer vision or ML experience required. An interactive user interface guides users through all the steps.
- Superior computer vision and AI technology: In production trials, Visual Inspection AI customers improved accuracy by up to 10x compared with general-purpose ML approaches, according to benchmarks from several Google Cloud customers.
- Get started quickly, with little effort: Visual Inspection AI can build accurate models with up to 300x fewer human-labeled images than general-purpose ML platforms, based on pilots run by several Google Cloud customers.
- Highly scalable deployment: Manufacturers can flexibly deploy and manage the lifecycle of ML models, scaling the solution across production lines and factories.
Industry use cases
The demo video shows how Visual Inspection AI addresses use cases to solve specific quality control problems in industries such as automotive manufacturing, semiconductor manufacturing, electronics manufacturing and general-purpose manufacturing.
Kyocera Communications Systems, a manufacturer of mobile phones for wireless service providers, has been able to scale its AI and ML expertise through the use of the solution. “With the shortage of AI engineers, Visual Inspection AI is an innovative service that can be used by non-AI engineers,” said Masaharu Akieda, Division Manager, Digital Solution Division, KYOCERA Communication Systems. “We have found that we are able to create highly accurate models with as few as 10-20 defective images with Visual Inspection AI. We will continue to strengthen our partnership with Google to develop solutions that will lead our customers' digital transformation projects to success.”
Visual Inspection AI has fully integrated with Google Cloud's portfolio of analytics and ML/AI solutions, giving manufacturers the ability to combine its insights with other data sources. The tool integrates with existing products from Google Cloud partners, including SOTEC, Siemens, GFT, QuantiPhi, Kyocer and Accenture.