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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

108.0. "new company strategy" by SELECT::KELLY (grasshopper) Tue May 23 1989 22:15

Greetings,

         
           We just had a meeting/information session/question session in the 
AITC with 4 top VPs: Jack Smith, Bill Strecker, Jim Flanagan, and Bill Johnson.
Here is the upshot of that meeting.

---------------
Jim Flanagan spoke first. 

DEC is now #30 on the Fortune 500 list

Our mission: We must become more productive.
That means profit improvement must now come from cost competitiveness. We can
no longer grow out of our problems as we have in the past. We are in a new
competive environment in which some of our old methods of improving profit
will no longer work. The cost of cpu capacity and performnace has been halfed
in the last 4 years. We must now compete using VMS and RISC and Industry 
Standards. We can no longer rely on VAX/VMS alone.

Hardware sales and profits are growing far more slowly than software and 
services profits in DEC.

DEC now has only a 15-20% growth rate. And our competitors have grown 
stronger in the last few years.

Gross margins and operating profits will be down for this year and next, but
should be back up in FY92.

The percent of our profits generated by hardware are -7% (minus 7%)
                         operating systems and tools 34%
                                            networks 21%
                                        applications 20%.
So, software and services are now supporting hardware which is losing money.

DEC has the lowest productivity of the major computer vendors and we have to
address that problem. The highest, by far, is COMPAQ, then SUN, Tandem, Apple,
IBM, HP, and DEC.

The problem is our costs are growing faster than our revenues, so we will use
an "affordability process" in the PBUs to curb those costs.

We should have a 6% operating profit in FY89. There are considerable industry
pressures to decrease our profits. Our revenue/employee ratio is too low. We
need to manage fixed costs and write clear business plans. We will have a
9% cap on spending growth.

------------
Bill Strecker spoke next.

He said there will be changes in DEC's product strategy.
We used to rely on VAX, Digital Storage Architecture for hardware,
VMS for software, and DECNet for networks. And we offered a broad range of
compatible products.

These changes are forcing us to change our strategy:
microprocessor performance is increasing at 50%/year
industry standards are emerging
interfaces have become graphical
computing has become distributed (micros on nets, not mainframes)
multi-vendor integration is now a customer demand
our competition is IBM, SUN, HP.
SUN is trying to do to us what we did to IBM - sell a better product.
HP has mimicked our strategy.

These changes offer us opportnities in:
- distributed computing
- information systems

Where DEC will focus its energy:

1) Desktop Computing - development of 32 bit (3100,3500)
   workstations operating under UNIX and VMS.

2) Enterprise-wide Networking - build a network strategy based on industry
   standards.

3) Industry Standard Operating Systems
   Our strategy: 
     develop ULTRIX and VMS
     even-handed selling of UNIX and VMS (great customer demand for UNIX)
     evolve ULTRIX to the OSF UNIX reference 
     develop POSIX (UNIX call from VMS)

4) Databases and Transaction Processing
    based on RDB, 
             DECforms, 
             ACMS, 
             DECintact (CICS style of TP), 
             DECtp environment

5) Contemporary Application Environment
   AIA - application integration architecture

6) Distributed Information Systems Model (in a multi-vendor environment)
   ULTRIX + VMS
   MSDOS, OS/2
   Apple MacIntosh
   IBM SNA gateway

7) Systems Engineering/ Application Platforms
   We will sell "suites" of applications (normally created by third parties).
   We will provide the platforms - because customers don't want to go throuh
   OEMs; they want one stop shopping. We will provide this for Engineering,
   Factory, Lab, and Office.

Our mission is:
to become the leader of distributed information systems and to support those
systems. 

Our new strategy is:
ULTRIX and VMS, VAX and RISC as the foundation
with DECNET/OSI on top of that
and ULTRIX and VMS/POSIX on top of that
and DDA (DEC Database architecture (VIA evolved) on top of that
and ULTRIX, DECWindows, VMS on that
and Applications on top

---------
Jack Smith spoke next - answering questions from AITCers.

He said we are in a different kind of transition than what we've
seen so far in DEC history, because the technology is changing across our 
whole product set and there has been a change in our customer base.

He said AI at DEC should focus on:
1) doing outside customer applications to generate revenue
2) increasing internal productivity (especially using AI in sales support)

     The reason it takes a long time and is a hard process to get an internally
developed AI products out the door and into the revenue stream is because of 
of all the support overhead attached to each product. The product has to not
only pay for its development, but also its support.
     His advice is to be aggressive in pushing what you've developed, to take
responsibility for it, not just hand it off to someone else and expect them
to take care of it. He advises doing your homework, being persistent and
making sure the application/product makes business sense.

     He said that DEC has made a large and obvious commitment to AI, and that
AI certainly has a place in DEC's future, and that the people doing AI work
at DEC should be active and aggressive in promoting their work to others
in DEC who might benefit from their AI knowledge and experience.

Bill Johnson then said that DEC strongly supports AI and that, in this
new company-wide environment, one of the groups in the best position to
benefit and contribute is the AITC.

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

My impressions of what I heard:

1) UNIX, like it or not, will be one of the Op Syss in DEC's future.

2) AI at DEC has commitment from the top, and a bright future at DEC, but it's 
   up to AIers to show what they can contribute to the company in the 
   way of revenue generation and internal productivity improvement - to take 
   the bull by the horns.


Dikk
T.RTitleUserPersonal
Name
DateLines
108.1Thanks again!HERON::ROACHTANSTAAFL !Wed May 24 1989 12:0811
    Thanks again Dikk for the excellent commentary. This all seems consistent
    with the messages put forth during the recent State of the Company
    presentation to the stockholders.
    
    I too feel that the time is ripe for the AI community to step out
    and show that we can add to the bottom line figures; both in internal
    cost savings and revenue generation.
    
    Thanks again oh great voice from across the waters!
    
    pat
108.2HERON::BUCHANANAndrew @vbo DTN 828-5805Fri May 26 1989 12:2526
	Yes, thanks, Dikk for taking the time.   It's a great summary.
To pick out a couple of points.

	(1) *Four* senior VPs make a presentation to the AITC?!   This is
a point to be made to customers to underline how seriously Digital takes
AI.

	(2) Expert systems for sales support?   What ideas immediately occur
to me:

		(a) Capacity planning / sizing

		(b) Business plan organization

		(c) Adminstrivia robots (zillions of point applications)

		(d) Risk advisor / estimator for software projects

		(e) 'XSEL' for layered products / applications / networking

		(f) Software license management

& more.

Regards,	
Andrew.
108.3SELECT::KELLYgrasshopperFri May 26 1989 18:5629
    Greetings,
    
               That one about XSEL for layered products and applications
    was specifically mentioned by Jack Smith. He said the salesfolks
    are still being inundated with updates on new products and revisions.
    They were getting several pounds of information on their desks every
    week and not reading any of it. So, DEC started sending it to their
    HOMES in hopes that they would read it at home. Not Likely.
    He'd like to see a little AI applied to that problem to do what
    AI is supposed to do: make life easier. 
    
         Dennis O'Connor is still in consultation with Jack Smith on
    the five big pushes that the AITC will make, but I strongly suspect
    this sales support issue will be one of them.
    --------         
    
        The one thing that everyone here noticed in Jack's speech was
    that he specifically stated that DEC AI should be used for BOTH revenue
    generation (customer work) and internal productivity amelioration.
    In fact, he mentioned revenue generation first. So, that squashed
    the idea that certain managers had been promulgating around here, that 
    internal projects were our principal focus. Apparently, they are
    not. And this statement certainly clarifies why so many groups doing
    just internal work here have been scrambling to try to crank some revenue
    out of their projects by selling them to customers.
           
    Very interesting,
                     
    Dikk
108.4New revenue generatorsHERON::ROACHTANSTAAFL !Fri May 26 1989 19:24131
    Speaking of revenue generation, have you all seen this announcement on
    two new, AI related products. Should make us a fortune! Can you imagine
    the sales into anyone writing proposals to the US government for
    grants, etc. Seems just like the product set!
    
    Pat
    -------------------------------------------------------------------
    
Subj:	New AI based product announcements - DECpolite and DECstretch -FYI


                            VAX DECpolite


VAX DECpolite is a new layered software product that works in conjunction 
with WPS+ to sweeten documents with niceties.  Often compared to DECspell,
DECpolite will review a document and make automatic adjustments, as 
appropriate.  And, like DECspell, you can apply the process to a word, a 
section of your document, or your entire document.

VAX DECpolite is easy to use!
----------------------------
All the user need do to run DECpolite is (at the VMS prompt) type:

   "Pretty please" <return>

VAX DECpolite will prompt the user for the file name to be sweetened - it
will display the following prompt to the user:

   "WOULD YOU BE SO KIND AS TO INDICATE THE FILE NAME THAT YOU WOULD
    LIKE TO RUN THROUGH DECpolite, NICE PERSON?"

The user then indicates the file name in the following manner:

   "Kind system, would you please sweeten (filename.ext)" <return>

The system replies with:

   "IT WOULD BE MY GREATEST PLEASURE"


DECpolite is fully-integrated!
------------------------------
DECpolite integrates with both All-In-1 and VAXmail - if you happen to 
receive a VAXmail message while DECpolite is running, instead of getting
that obnoxious prompt across your screen like

  "NEW MAIL FROM JONES ON NODE PLEXUS"

your prompt will appear as below:

  "SO SORRY TO INTERRUPT - YOU HAVE JUST RECEIVED SOME CORRESPONDANCE 
   FROM USER JONES.  HE IS REQUESTING THAT YOU READ HIS MESSAGE AT YOUR
   EARLIEST CONVENIENCE.  INCIDENTLY, HE HAPPENS TO BE ON NODE PLEXUS.
   ONCE AGAIN, SORRY FOR THE INTERRUPTION.  I'LL CERTAINLY TRY TO REFRAIN
   FROM THIS TYPE OF UNACCEPTABLE BOTHER TO YOU FOR THE REMAINDER OF WHAT
   I TRULY HOPE WILL BE A PLEASANT LOG-IN SESSION FOR YOU.  FINALLY, LET
   ME CLOSE BY SAYING THAT I HOPE YOU HAVE THE NICEST OF DAYS TODAY AND
   THAT YOU WILL CONTINUE TO LOOK TO ME AS A GUIDE AND AIDE DURING YOUR
   TIMES ON THE SYSTEM"


DECpolite is powerful and effective!
-----------------------------------
DECpolite incorporates an onboard library of appropriate memo headers
including:

    My dear, dear sir/madam:             Sorry to bother you:
    To my esteemed colleague:            Hello, my friend:
    Honorable sir/madam:                 If it pleases you:
    Distinguished recipient:             Dearest person:
    Most cherished of occupants:         Lovely creature:
    To whomsoever it may appropriately concern:

and many, many more.

But wait!  There's more: Another new product from Digital:  VAX DECstretch!

VAX DECstretch is a text-enhancement product which automatically expands
text by a factor of 4!  Your typical one-page document can be increased 
to four pages of flowing prose with DECstretched and sweetened with DECpolite
at the same time!  The combined shared directory (RMS-controlled ISAM
subfiles) of wordy phraseology (for the DECpolite/DECstretch combination)
will impress your co-workers who'll marvel at your tact, diplomacy, and
stunning manners - not to mention your astounding long-windedness!

VAX DECstretch integrates fully with VAX DECpolite!
---------------------------------------------------
DECpolite corrects all offensive language by substituting polite and
esthetically-appealing language that closely matches what was in the 
original text.  For example, if your document were to contain the
following:

  "Listen, you ass!  I've just about had it with your attitude!"

DECpolite (after one pass only) would coorect it to:

  "I simply adore listening to your assumptions!  I just can't seem to
   get enough of them.  Your attitude is inspirational."


By integrating DECpolite and DECstretch, the very same two sentences in
the original text:

  "Listen, you ass!  I've just about had it with your attitude!"

would become:

  "You know, the more I think about it, the more I realize just how much
   I adore, respect and admire those remarkable assumptions that have come
   to characterize the person that is you.  I often find myself in the
   situation of wanting more and more of them and, indeed, it might well
   be appropriate to say (with an air of confidence, inspired by my 
   association with you), that I just can't seem to get enough of them.
   By them, of course, I'm referring to your aforementioned astute
   assumptions.  I find myself in the pleasureable predicament of 
   affirmatively stating that I find your attitude truly inspirational, 
   motivating, moving, touching, and appealing.  Thank you for this and 
   for gracing us with your ever-invigorating presence."


DECtalk enhancements for "that final touch" of elegance!
--------------------------------------------------------
Now you can truly have the ultimate in EM (electronic manners)!  Utilize
the functionality of DECpolite and DECstretch with the already-popular
DECtalk and be able to create, edit, send and deliver multi-houred formal
and perfectly meaningless speeches to all members of your staff.

Look for further releases of these products....some will contain a 
voice-messaging capability to allow the final memo to be read in your own 
personal voice, with full intonation and spittle accentuations.  
108.5last AITC meetingSELECT::KELLYgrasshopperMon Jul 17 1989 21:0188
Greetings,

           In our last AITC meeting, the following things were discussed.
(The McDermott stuff at the bottom is mostly for folks who've been
following the AITC's research efforts.)


Dennis O'Connor:

Revenue growth will no longer cover our mistakes.
Profits will now come from cost containment and increased productivity.
AI is in the top 7 of investments DEC has made.
DEC higher-ups view AI very positively.

----

Steve Gutz:

In this new environment we should all propose solutions and methods of
generating revenue. Don't be afraid to take risks. But be prepared to follow
through on what you propose.

$100M (Editor's note: this amount has since been cut to $30M) was approved
by Dave Granger to leverage internal applications. Steve will make sure
AI is a part of that.

$100M in embedded AI has been allocated for next year.

He says:
- ask yourself what can you do
- can we sell what you do/have
- people's ears are open to suggestions now
- network with other groups and exchange information
- sell/promote your work
- be available when asked for suggestions

-----


John McDermott:

AITC current AI research focuses on "Programming For Non-Programmers".

A Non-programmer knows
1) task to be done
2) local cues that signal actions 
But
he doesn't know how to structure and specify a problem so computer will do it.

Problem-solving "methods" are structures which can be re-used for different
applications (solutions).

Hypothesis1: If non-programmer knows the method by which to solve the task, he 
can write a program to do it.

Hypothesis2: If non-programmer can describe the task, a method can be chosen 
for him.

An AI program should combine/configure "mechanisms" to build a "method" of
problem solution.

Three Research Foci in the AITC:
1) SPARK - mechanism identification, selection, and configuration based on the
tasks the user wants to undertake.
2) BURN - Knowledge elicitation and encoding tool which asks questions
to instantiate mechanisms so the program can run
3) FireFighter - looks for missing knowledge (missing mechanisms via SPARK) or 
changes mechanisms (in BURN). This program not yet begun.

Mechanism examples:
"Differentiation" - recognizes similarities in examples (cases in a training 
set) in order to classify them.
"Feature Evaluation" - find past example (the case) closest to your presented 
problem
"Quantitative Extrapolation" - calculates the answer to a new problem based
on similarities to past problems.

(Editor's note: I did the Software Evaluation Committee exegesis on BURN
a few months back, when several tools were being reviewed for productization.
I think BURN is a good idea because I like Induction in general. But I 
reported that
1) The tool, as it stands now, is painfully reliant on (and bound to) a single
application type (the sizing of computer systems: Selection paradigm)
2) Has no ability to do QUALitative extrapolation (but can handle qualitative
differentiation)
3) As with all Inductive case-based reasoning, you need a lot of examples
to train the system before getting any useful inferences out of it.)