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Conference heron::euro_swas_ai

Title:Europe-Swas-Artificial-Intelligence
Moderator:HERON::BUCHANAN
Created:Fri Jun 03 1988
Last Modified:Thu Aug 04 1994
Last Successful Update:Fri Jun 06 1997
Number of topics:442
Total number of notes:1429

30.0. "aitc meeting minutes" by ISTG::KELLY (grasshopper) Thu Sep 29 1988 19:46

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Greetings,

          Herein is a synopsis of the AITC's last quarterly meeting - held in 
the midst of group/project/budget cuts and rearrangements which affected some 
folks in Valbonne. It's a little after the fact. But something in here may be
of interest to someone.

           Firstly, you should know that the AITC is now split into two
buildings. One building is entirely for customer interface work, the other
is for all other AI work. AIFellowship, Select, and the AI Training
program (formerly at VRO) are now all in DLB12 (across the street from DLB5).

           Secondly, I suspect everyone knows about the hits that the 
engineering group took in the US and in Valbonne.This note may obviate some
rumours by explaining what went on at the meeting.

           My general impression was that DEC is shifting its AI strategy,
but that the AITC, and DEC AI, are flourishing.

          Scott Flaig spoke to us first. He began by enumerating the AITC's
accomplishments in FY88:

- DEC has the largest AI market share in the world: 21%

..Internal Applications
- XCON had 5 cpus added and 5000 rules added to its knowledgebase in 88
- XNET was extended to include LANs
- XSAFE was fully implemented (25,000 nodes to check)
- 12 different AI systems were developed for internal use across the company
  (most in process control and scheduling, they were not named)

..Admin
- The AITC Board was formed in '88
- 100 people were added to the AITC in '88 (25% increase, in keeping with DEC's
  over-entire-company percentage: 25,000 people added in 88: total now 125,000)
- cross-functional committees were formed in the AITC (such as the SEC) in '88
- 20 patents are pending from the AITC (more than from Spitbrook)

..Recognition
- The AI Group received the top SIG award at the Spring DECUS
- DECWorld this year had 24 AI demos and 4 sessions/day in AI 
   (more than any other group)
- There were 200 customer visits to the AITC in '88 (25 different seminars)
- At AAAI there were 15 DEC AI demos, 11 announcements, 120 customer exec visits
  (last year there were 20); 500 tickets for booths were given out.
- The announcements include the availability of:
  + VAXLisp KEE (Better restrain your enthusiasm. KEE is still painfully slow 
    on GPXs because the bitmaps have to be forced through the Dragon chip.
    One of the folks in my group is working on this soluble performance 
    problem)
  + Decision Expert (ne� Gen-x from GE - a diagnostic paradigm-specific tool for
    use by cretins (managers?)
  + a new tech-transfer seminar
  + mini-Select (application analysis only)
  + Knowledgecrap, SIMcrap, SIMkit (from the people who brought you the
    project overrun) 
  + OPS, Lisp, the AIWorkstation (currently under scrutiny as to its value)
  + SPA (no idea)
  + 3rd Party agreements with CGI, Intellicorp, Neuron Data (Ultrix version
     of Nexpert), Quintus (to replace Valbonne's Prolog), and Epitool (which
     I've heard good things about, but haven't seen yet)


 In FY89, DEC is looking for 15-20% growth as a company. 

The big pushes for the company in 89 will be:
 OLTP, Ultrix, Wan, CVAX, PMAX, DECWindows, 3rd Party Software, and AI. 

Also:

     DEC now has a profit protection strategy.
     DEC will place greater emphasis on 3rd parties.
     More spending decisions will be made by the PBUs (product business units)
      who will have more responsibility for their own profit and loss.
     Recent cuts were called (by Scott Flaig) "short-term tactical behaviour".
     He said we will look back at upgrading old (previously shelved) tools
      rather than creating new ones.
     There will be a consolidation of DEC marketing efforts to cut redundancy 
      and costs.
     There will be a huge push to develop LOCAL AI expertise (Several questions
      ensued and it was revealed that there is actually no plan
      to develop these resources, just that we will do it.)
     The AITC will grow by 10% in 89 but the growth will be invisible in the
      AITC itself. Local groups (the SICs: Solution Integration Centres) will
      be the sole benefactors of the 10% growth. (Several almost hostile
      questions followed from people who have come in from the field and
      have heard these promises, but have seen hide nor hair of AITC training
      folks. They were told that perceived need would drive the development
      of local AI groups.)

--------------------------------------------------------------------------------
     Barry Reynolds, who handles AITC's finances, then explained that, at DEC's 
present growth rate the company will need to increase sales in 89 by $2.2Billion
just to break even (the equivalent of 2 Sun Microsystems, if anyone is 
counting.)

Barry presented the numbers for AI at DEC (the reason I went to the meeting).
But I'm not sure I should include them in a public forum. If anyone wants
them, send me a note at ISTG::KELLY.
He offered numbers for:

Sales resulting from the AITC's operation in '88
(AI accounts for about --- of DEC's revenues)

Base Software ---
3rd Party Sales ---
Training/Consulting (largely Select) ---
Ed Services ---
AI Vaxstations/systems ---
Total direct revenue: ---
Leveraged: ---

(Note: As Fellowship has only begun counting up its leveraged sales, Fellowship
sales were not part of these figures. By my reckoning, Fellowship has leveraged 
sales of --- at DEC Japan, and --- in the US (from the program's inception
in September 87).

--------------------------------------------------------------------------------
Norma Abel then spoke to us. She said direct AI revenues are levelling off,
but INdirect revenues (leveraged) are increasing. The biggest push she sees in 
AI is toward integrated tools (hybrids and those able to interface easily with
DBs, etc.) 

Cuts....

She said the PRISM and Argonaut projects are dead.

VAX LIsp still generates the most revenue of DEC's AI tools, and Version 3.0 
 should come out. They want to put it on a MIPS processor (which is seen as 
 a wave of the future).

VAX Decision Expert (Gen-x) will have a big emphasis in terms of development
 and support.

The AIVaxstation is being reevaluated for long-term viability.

VAXOPS development in France is dead (e.g.,ODE). If Version 3 appears, it will 
be done by ISTG. (Recent Nota Bene: OPS development has, indeed, been picked 
up by ISTG. Ken Gilbert in the AITC may be able to answer questions on that 
score.)

Vax Prolog is also dead. Quintus will take over.

She said projects were cancelled because they would not have generated enough 
 revenue in the short-term to justify their existence. ALL favored projects
 in the near future will have to generate near-term revenue.

KBS1 and KBS2 are both dead.

There is a hiring freeze in the AITC to give the cast-adrift toolies a chance to
 find new homes.

The AIEngineering budget has been cut by 50%. 

Since the emphasis is now on short-term revenue, all internal tool developers
 should consider themselves in competition with 3rd party vendors of tools.

There has been a high-level recommendation to cut back DEC's investment in
 AI products (not services). And there will be some organizational changes as 
 a result.

There will be a push to integrate AI into products coming from Spitbrook, and
 to create solutions that address specific market needs.



Conclusion......

     This last bit seems a little morbid, but the tone of the meeting was rather
genial - in fact, almost ebullient. People were more interested in discovering 
DEC's new AI emphases than bemoaning the few killed projects. The company's 
commitment to AI has never wavered. AI at DEC is definitely flourishing. 


T.RTitleUserPersonal
Name
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30.1aitc meeting December 15, 1988ISTG::KELLYgrasshopperThu Dec 15 1988 23:1460
Greetings,

           Here is what was communicated during the most recent AITC
Information Meeting on December 13,1988.


Speakers: Dennis O'Connor, Ellen Glanz, Steve Gutz

--------------------------------------------------------------------------------
Topic: AITC Director

     Dennis will remain the Acting AITC Director (and ISTG director) until
at least the end of the fiscal year.

--------------------------------------------------------------------------------
Topic: Rewards and Recognition Program

    The AITC now has a Rewards and Recognition Program in which a $300
award will be made to employees for "significant contribution to short-term
business goals, or peak performance in cost-cutting, creativity, integration
and relationship building, or intensive individual effort". Any employee can
nominate any other employee, but the nomination has to get by management and
AITC staff representatives. 30-40 awards are expected annually.

--------------------------------------------------------------------------------
Topic: The AITC Business Plan

     On February 1st, Jack Smith will be given the AITC's business plan for
the next three fiscal years. The plan will be revealed to AITC staff in a 
three hour meeting in March 1989. The new plan will be divided into three 
segments: External Applications (Fellowship, Select, etc.), "Imbedded
Applications" (a new category including all instances in which AI is imbedded
in conventional products), and Internal Applications (AIAG, etc.).

     Also this summer marks 10 years of AI work at DEC and some kind of
event is in the works to commemorate that milestone.

--------------------------------------------------------------------------------
Topic:New Ventures Group

     Another layer of management has been created to manage/generate DEC's 
external AI customer projects. It is the "New Ventures Group" under Doug Busack,
and it will be headed by Terry Potter. 
     It consists of an East Coast Branch with Terry Potter as business 
manager and Steve Gutz as head, a West Coast Branch with John Walters as 
business manager and Jim Fong as head, and a third group to handle the 
integration of various DEC groups on very large interdisciplinary projects 
(such as Mack Truck).

--------------------------------------------------------------------------------
Topic: AI/CAD Group moves

     The AI/CAD Group (14 people) under Bill Blake is transferring over to 
the Mid-Range Systems PBU in Boxborough.



Dikk 

30.2customers, competitorsISTG::KELLYgrasshopperMon Jan 09 1989 22:08146
Greetings,


                 Some general experiences with our competitors


     There are some experiences with competitors which occur often enough to 
be worthy of mention. Three competitors pop up wherever I go: Sun, Symbolics, 
and IBM.
     My experience of Sun is that they have a habit of lowballing, so that 
their price/performance is usually impressive. But, apparently, they don't 
sell any AI services. So, people who have bought Sun equipment seem to complain 
a lot about the lack of handholding and AI service/software support.  
     Symbolics customers are uniformly afraid of owning soon-to-be-orphaned 
machines. Whenever I go into a Symbolics shop, the people I deal with seem to
be on the defensive, as if they have been hearing taunts and snickers from
inside their own companies and are trying to recoup from a bad purchasing 
decision. They generally ask how to convert what they have in the Symbolics
onto a Vax, rather than how to create expert systems on a Vax.
     IBM does nothing but muddy the water for me. When they get to a shop 
first (usually, by offering to train someone in ESE for free) the customer is 
always gravely disappointed and virulently anti-AI by the time I meet with 
them. If IBM gets there after I do, the company usually looks at ESE, denounces 
it for the rubbish it is, and gets on with working with DEC. But there 
certainly are a remarkable number of people out there who believe that if 
anyone will have AI, it will be IBM - and, as a result, when ESE turns out to 
be a pitiful joke product, they toss all of AI out with the bath water. And 
then I waltze in to try to repair the damage.

                                                                                
          Some overall DEC AI Financial Customer concerns I've noticed               
                                                                                
                                                                                
Insurance:                                                                      
     In insurance companies, unsurprisingly, linkage of IBM to DEC is often of  
top concern. Everyone who will be talking to an insurance company should be     
given some kind of update, along with materials to distribute, that document    
our skill at this task. It is not going to go away as an issue.                 
      Also unsurprisingly, underwriting is the top application concern. It lends
itself to an AI approach because it is company specific (can't be pulled out 
of a textbook), knowledge-intensive (human processing has always appeared to be 
the only way to accomplish the task), resists conventional solutions (you       
can't write a Cobol program to automate the task), and expensive.               
      But document assembly (drafting of policy holder information) is number   
two on the list of candidates; and investment/portfolio management number       
three (my unscientific survey there).                                           
                                                                                
Brokerage:                                                                      
     Brokerage houses seem more interested in trading/dealing and securities    
analysis systems than in any kind of fee-for-service productization of expert   
systems. Trading and analysis both require attention to timing, pattern         
recognition, and anomaly detection. We should be ready to address those issues  
with financial services customers. The major technical problems I've had with   
the Houses include 1) the fact that they are often interested in realtime       
systems as first projects, 2) want substantially hybridized or integrated       
systems, and 3) want to use traders as domain experts (traders have ZERO time 
to contribute).   
        Also, what is interesting to me is that the securities analysis expert  
systems that houses think about are always from the technician's (chartist, elf)
perspective. AI can intelligently process technical analysis results, it's true.
But it's forte, I would think, would be the QuaLitative approach because        
qualitative analysis is more heuristic-dependant (less algorithmic) in nature.  
The emphasis on expert system technical analysis seems to be a hold-over from   
conventional programming with its emphasis on formulaic solutions. Houses       
might be pleasantly surprised to find we can finally handle qualitative         
information.                                                                    
                                                                                
Banking:                                                                        
    Bankers are also interested in trading applications. Systems that show      
real-time (or even delayed feed) analysis and recommendation in any market      
(especially forex) would be of great use here. Arbitrage/trading/dealing is     
where the money and the AI interest are. 
   The features of expert systems which seem to appeal most to traders are:     
1) The fact that expert systems can be designed for INDIVIDUAL traders (DP      
   programs are usually for a group and not to be changed once written.         
   And DP people have taught everyone to think one-program-for-all. It is       
   often a delightful shock to the people we speak with that expert systems     
   can be tailored to any particular trader's universe - provided he/she has    
   the time to tell us what is important to them.).                             
2) Intelligent consolidation of information. Expert systems become the nexus    
   for all information given to the trader to support his trading/hedging.      



   From A Marketing Standpoint (Not Actually My Job): My Biggest Problem here


    Non-disclosures alone may account for the fact that DEC is not better known
as the world leader in Expert Systems development.

     Non-disclosure agreements forbid me from telling any customer about what I
am doing with any other customer. ALL of my work in Fellowship and Select
is under strict non-disclosure (as is the work of all Select and Fellowship 
KEs).

      Because of the possibly dire legal implications (breach of contract suits)
I do, in fact, make a point of NOT telling certain DEC people (in sales) 
about the projects/companies I am working with. (It's been my experience that 
salespeople would stick pins in their own mum's bum to make a sale. So I say 
as little as possible to them about my work.) 


---------------


    Some Humble Opinions On Why Nihon DEC Is So Successful In Selling AI


      DEC Japan has had rather phenomenal success working with Japanese AI 
customers, especially in financial services. In my lowly engineer's opinion, 
the reason for the success of AI in Japan has as much to do with the customers 
as the deliverers.

     I work with Japanese customers often (almost every day, in fact) and even 
understand a little of the language and culture. And I've noticed some 
distinct differences between American/European AI customers and Japanese 
customers.

1) The Japanese are not afraid of AI.
2) There is a skilled labor shortage in Japan, which encourages automation
   of knowledge-intensive tasks.
3) Knowledge, skill, and the ability to teach that skill are highly respected 
   in Japan (unlike in the US where teachers receive one third the salary of
   bomb-designers).
4) Many Japanese companies have a policy of 
   rotating workers through different jobs on a 3-5 year cycle (to make them
   well-rounded managers in 15-20 years), which means expertise in one field 
   is often lost when the worker rotates (perfect expert system application 
   area).
5) MITI's (ministry of international trade and industry) 
   direction for the nation has changed, and that change is in favor
   of AI. After the war, the direction was in favor of heavy industry. Then,
   in the 60's it changed to electronics. Now it is "Bi, Kan, Yu, So" (beauty,
   feeling, play, creativity). Software development (along with travel, fashion,
   and the leisure industry) is at the top of the list. 
   And AI is at the top of the software development list. AI, then, is not 
   perceived as frivolous or experimental. It is seen as necessary for Japan's 
   economic survival.

   HOWEVER, the reason Nihon DEC is so successful may well be because Nihon 
DEC's approach and method of delivery are different from ours (and should 
certainly be emulated). Nihon DEC, for example, may not be hampered by 
non-disclosure agreements as we are here.


Dikk
30.3ISTG::KELLYgrasshopperTue Jan 10 1989 21:0061
From:	21568::ESG_FLASH "ESG MANAGEMENT FLASH  10-Jan-1989 1057"

                ESG MANAGEMENT FLASH

                   SPECIAL ISSUE

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           ********** THIS ISSUE INCLUDES *********

o  DECstation 3100 Performance News

           ****************************************

	DECstation 3100 Performance Eclipses Sun

Some Good News

Eight performance benchmarks show the DECstation 3100 (PMAX) to
be from 1.36 to 7.4 faster than the Sun 4/260.  When prices
of DECstations and Sun 4/260's are included with the performance
data, the DECstation price/performance advantage over the Sun 4/260
ranges from 3.6 times to 18.3!  The DECstation 3100 outperforms
ALL Sun 4 systems, for these industry standard benchmarks, at a
price comparable to the Sun 3/60!

This benchmark information is explained in detail and clearly
graphed in an ESG-produced document titled:

	DECstation 3100 Performance Summary - Part 1
	Price/Performance Overview.

Some More Good News

The document is available now in both hardcopy and electronic (Postscript)
versions.  

Some Even More Good News

These documents can be shown, copied and used with customers.

To get hard copies:

Contact: Melanie O'Leary (CURIE::PROGRAM_TEMP) - 
DTN: 297-5527

To get electronic (Postscript print format files):

 	HARBOR::SYS$PUBLIC:DS3100_PERF_SUMMARY_PART_1A.PS
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PART_1A is text
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