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How Quickly Are Industries Adopting the Internet of Things?

Kai Goerlich

Science fiction writer William Gibson is credited with saying, ”The future is already here—it’s just not evenly distributed.” Such is the case with the Internet of Things (IoT).

Digital business requires both data and the equipment to capture, store, manage, and analyze that data before enterprises can better inform their decisions, automate actions, and improve operations. IoT technology provides a way.

According to IDC, companies are ramping up their IoT investments rapidly, which can be seen in seven major industries with high levels of physical products or assets. Overall, the market research firm forecasts that IoT spending will increase 19% on average through 2018. Some industries, such as discrete manufacturing, have already invested significantly; others, such as healthcare, have spent less to date but are expected to expand quickly in the future.

Opportunities for Connection

The IoT is poised for rapid growth across a wide variety of industries that are connecting physical assets 2016_Q1_charted_09
Download the infographic here.

The IoT Creates New Revenue Models

The Internet of Things represents a new course for automation and data-enabled decision making. Companies can use data collected from sensors on machines to create new business processes and revenue models.

It’s no wonder the numbers that researchers at Gartner cite—6.4 billion connected things in use in 2016, an increase of 30% over 2015—sound both large (billions, up 30%) and small at the same time (we’re just getting started). The future is being distributed unevenly, but it will reach just about everywhere, eventually.

2016_Q1_charted_02Utilities

Utilities are still in the early stages of connecting their physical assets, a McKinsey Global Institute analysis finds. Deregulation and new market entrants are expected to prompt greater investments in the future. For example, smart metering systems and renewable energy sources, both growing activities in this industry, require IoT connections.

And to compete, utilities will need to invest in systems that monitor and analyze data from smart devices at homes and businesses, Tata Consultancy Services notes. IDC predicts that eventually this industry will see a high impact from its IoT investments because both utility companies and consumers have a stake in making energy production and use more efficient.

2016_Q1_charted_03Healthcare

The industry as a whole has been slowed by regulatory and privacy concerns, Tata Consultancy Services research finds. But as healthcare providers install more equipment to connect medical devices to networks, they, too, will adopt more data-driven devices. Ultimately, IDC suggests that the IoT will have a high impact through monitoring applications and sensors that enable patients to manage their health and fitness.

2016_Q1_charted_04Wholesale

The IoT promises to bring new capabilities to distributors, including new opportunities to sell goods through industrial vending machines and automated transportation systems. However, the industry as a whole has been what McKinsey Global Institute calls a medium-level player on
the road to digitization.

 

2016_Q1_charted_05Discrete Manufacturing

Companies ranging from consumer goods makers to industrial manufacturers are applying IoT investments to monitor production and the flow of goods. Sensors enable predictive applications to schedule maintenance for jet engines, for example. And consumer goods makers are starting to experiment with marketing applications enabled by machine sensors and smartphones, Tata Consultancy Services notes.

2016_Q1_charted_06Retail

As VDC Research Group points out, the drive to digitize business has been going on since well before 2013. Prices for RFID transponders have dipped over the past decade, which has enabled retailers to affix tags to goods, speeding up inventory tracking and shipments processing and reducing shrinkage, RFID Journal reports.

 

2016_Q1_charted_07Logistics

Logistics firm DHL and networking vendor Cisco predict that there will be 50 billion connected devices by 2020, while making the point that this “represents only a tiny fraction of what could be connected—something on the order of 3% of all connectable things.” The resulting connectivity will reshape how decisions are made about the way goods are stored, monitored, serviced, and delivered. According to IDC, the IoT will have a high impact on the logistics industry because the benefits are clear and easy to measure.

2016_Q1_charted_08Process Manufacturing

Companies in process industries have been heavy investors in technologies that make their assets more productive, including enterprise resource planning and supply chain management software. Leading players see the IoT as a way to extend the value of these investments. For example, Deloitte researchers note that oil and gas companies can wring more efficiency from resource processing and distribution by collecting and analyzing data from sensors and by monitoring equipment to reduce unplanned equipment outages.

By Michael S. Goldberg and Kai Goerlich

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Idea Director of Thought Leadership at SAP. His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.

IoT Can Keep You Healthy — Even When You Sleep [VIDEO]

Christine Donato

Today the Internet of Things is revamping technology. IoT image from American Geniuses.jpg

Smart devices speak to each other and work together to provide the end user with a better product experience.

Coinciding with this change in technology is a change in people. We’ve transitioned from a world of people who love processed foods and french fries to people who eat kale chips and Greek yogurt…and actually like it.

People are taking ownership of their well-being, and preventative care is at the forefront of focus for both physicians and patients. Fitness trackers alert wearers of the exact number of calories burned from walking a certain number of steps. Mobile apps calculate our perfect nutritional balance. And even while we sleep, people are realizing that it’s important to monitor vitals.

According to research conducted at Harvard University, proper sleep patterns bolster healthy side effects such as improved immune function, a faster metabolism, preserved memory, and reduced stress and depression.

Conversely, the Harvard study determined that lack of sleep can negatively affect judgement, mood, and the ability retain information, as well as increase the risk of obesity, diabetes, cardiovascular disease, and even premature death.

Through the Internet of Things, researchers can now explore sleep patterns without the usual sleep labs and movement-restricting electrode wires. And with connected devices, individuals can now easily monitor and positively influence their own health.

EarlySense, a startup credited with the creation of continuous patient monitoring solutions focused on early detection of patient deterioration, mid-sleep falls, and pressure ulcers, began with a mission to prevent premature and preventable deaths.

Without constant monitoring, patients with unexpected clinical deterioration may be accidentally neglected, and their conditions can easily escalate into emergency situations.

Motivated by many instances of patients who died from preventable post-elective surgery complications, EarlySense founders created a product that constantly monitors patients when hospital nurses can’t, alerting the main nurse station when a patient leaves his or her bed and could potentially fall, or when a patient’s vital signs drop or rise unexpectedly.

Now EarlySense technology has expanded outside of the hospital realm. The EarlySense wellness sensor, a device connected via the Internet of Things, mobile solutions, and supported by SAP HANA Cloud Platform, monitors all vital signs while a person sleeps. The device is completely wireless and lies subtly underneath one’s mattress. The sensor collects all mechanical vibrations that the patient’s body emits while sleeping, continuously monitoring heart and respiratory rates.

Watch this short video to learn more about how the EarlySense wellness sensor works:

The result is faster diagnoses with better treatments and outcomes. Sleep issues can be identified and addressed; individuals can use the data collected to make adjustments in diet or exercise habits; and those on heavy pain medications can monitor the way their bodies react to the medication. In addition, physicians can use the data collected from the sensor to identify patient health problems before they escalate into an emergency situation.

Connected care is opening the door for a new way to practice health. Through connected care apps that link people with their doctors, fitness trackers that measure daily activity, and sensors like the EarlySense wellness sensor, today’s technology enables people and physicians to work together to prevent sickness and accidents before they occur. Technology is forever changing the way we live, and in turn we are living longer, healthier lives.

To learn how SAP HANA Cloud Platform can affect your business, visit It&Me.

For more stories, join me on Twitter.

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Christine Donato

About Christine Donato

Christine Donato is a Senior Integrated Marketing Specialist at SAP. She is an accomplished project manager and leader of multiple marketing and sales enablement campaigns and events, that supported a multi million euro business.

Size Doesn't Matter For Businesses In The Digital Economy

Christine Donato

SAP_Talks_Banner_2When I first entered the job market, I interviewed at a few different companies, one of which was a small insurance firm outside Philadelphia. My interviewer was a C-level executive, and he gave me a piece of advice I’ll never forget. He said, “You know, at a large corporation, you’re going to learn a lot about a little. Here with us, at a small business, you will learn a lot about a lot.”

He meant, of course, that employees of small to mid-sized companies wear many hats.  And usually, their organizational leaders are accessible resources and serve as CEO, CMO, CIO, CFO, and more all at one time.

Size doesn’t matter

Today, small businesses can be just as successful as, if not more successful than, their larger competitors. Why? Because with the right technology, small businesses can easily cause positive disruption in the market.

Within the boom of the digital economy, small businesses now have the power to reshape their markets and industries. A couple popular examples of this are Uber disrupting the transportation industry and Airbnb disrupting the hospitality industry.

Both have significantly shaken their larger competitors because they are successfully leveraging the Internet of Things to provide customers with a simple and easy way to purchase a service. And according to a recent blog by Vivek Bapat, 70% of consumers will recommend brands that offer a simpler experience.  And 38% of consumers will pay a premium for it (The Digitalist).

Learn more… Listen to #SAPTalks

According to a recent Economist Intelligence Unit study, 59% of executives agree that in order for their businesses to survive with today’s customers, their businesses must embrace and adapt to hyperconnectivity.

To learn more about numerous small and mid-sized businesses that are ditching legacy processes and inside-the box thinking to become disruptive forces in their markets, check out the new podcast series, #SAPTalks…Small to Midsized Business, hosted by David Trites.

In about 20 minutes per episode, guest speakers from small and mid-sized companies share their unscripted and in-depth digital transformation experiences. They explain their industries, challenges, current technology projects, best practices, and lessons learned along the journey.

The first episode will air on the Voice America Channel on Tuesday October 13th and will feature Paula Muesse, CIO and CFO of Zhena’s Gypsy Tea. On the show, Paula will explain how Zhena’s adopted new technology to best sell organic, fair-trade, and competitive teas.

You can follow the conversation on Twitter by hash tagging #SAPTalks and by following @SAPSmallBiz.

Follow the blog series

Read about more companies that have broken the myth that SAP is only for big business:

How to be a World-Leading Publisher in a Digital World

Franklin Valve Shows How Small Business Tackles Rapid Growth

Who is Feeding China’s Half Billion Pigs?

How Prime Meats Cuts Through Business Complexity

High-Tech ERP Helps EvoShield Protect Athletes and Grow Business

Stick to Basics in Family Recipes and the Sausage Business

For more on how you can successfully sell into the small and mid-sized market, please click here.

For more stories, follow me on Twitter and LinkedIn.

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Christine Donato

About Christine Donato

Christine Donato is a Senior Integrated Marketing Specialist at SAP. She is an accomplished project manager and leader of multiple marketing and sales enablement campaigns and events, that supported a multi million euro business.

The Robotics Race

Stephanie Overby

As robotic technologies continue to advance, along with related technologies such as speech and image recognition, memory and analytics, and virtual and augmented reality, better, faster, and cheaper robots will emerge. These machines – sophisticated, discerning, and increasingly autonomous – are certain to have an impact on business and society. But will they bring job displacement and danger or create new categories of employment and protect humankind?

We talked to SAP’s Kai Goerlich, along with Doug Stephen of the Institute for Human and Machine Cognition and Brett Kennedy from NASA’s Jet Propulsion Laboratory, about the advances we can expect in robotics, robots’ limitations, and their likely impact on the world.

SAP_Robotics_QA_images2400x16002

qa_qWhat are the biggest drivers of the robot future?

Kai Goerlich: Several trends will come together to drive the robotics market in the next 15 to 20 years. The number of connected things and sensors will grow to the billions and the data universe will likewise explode. We think the speed of analytics will increase, with queries answered in milliseconds. Image and voice recognition – already quite good – will surpass human capabilities. And the virtual and augmented reality businesses will take off. These technologies are all building blocks for a new form of robotics that will vastly expand today’s capabilities in a diversity of forms and applications.

Brett Kennedy: When I was getting out of school, there weren’t that many people working in robotics. Now kids in grade school are exposed to a lot of things that I had to learn on the job, so they come into the workplace with a lot more knowledge and fewer preconceptions about what robots can or can’t do based on their experiences in different industries. That results in a much better-trained workforce in robotics, which I think is the most important thing.

In addition, many of the parts that we need for more sophisticated robots are coming out of other fields. We could never create enough critical mass to develop these technologies specifically for robotics. But we’re getting them from other places. Improvements in battery technology, which enable a robot to function without being plugged in, are being driven by industries such as mobile electronics and automotive, for example. Our RoboSimian has a battery drive originally designed for an electric motorcycle.

qa_qDo you anticipate a limit to the tasks robots will be able to master as these core technologies evolve?

Goerlich: Robots will take over more and more complex functions, but I think the ultimate result will be that new forms of human-machine interactions will emerge. Robots have advantages in crunching numbers, lifting heavy objects, working in dangerous environments, moving with precision, and performing repetitive tasks. However, humans still have advantages in areas such as abstraction, curiosity, creativity, dexterity, fast and multidimensional feedback, self-motivation, goal setting, and empathy. We’re also comparatively lightweight and efficient.

Doug Stephen: We’re moving toward a human-machine collaboration approach, which I think will become the norm for more complex tasks for a very long time. Even when we get to the point of creating more-complex and general-purpose robots, they won’t be autonomous. They’ll have a great deal of interaction with some sort of human teammate or operator.

qa_qHow about the Mars Rover? It’s relatively autonomous already.

Kennedy: The Mars Rover is autonomous to a certain degree. It is capable of supervised autonomy because there’s no way to control it at that distance with a joystick. But it’s really just executing the intent of the operator here on the ground.

In 2010, DARPA launched its four-year Autonomous Robotic Manipulator Challenge to create machines capable of carrying out complex tasks with only high-level human involvement. Some robots completed the challenge, but they were incredibly slow. We may get to a point where robots can do these sorts of things on their own. But they’re just not as good as people at this point. I don’t think we’re all going to be coming home to robot butlers anytime soon.

Stephen: It’s extremely difficult to program robots to behave as humans do. When we trip over something, we can recover quickly, but a robot will topple over and damage itself. The problem is that our understanding of our human abilities is limited. We have to figure out how to formally define the processes that human beings or any legged animals use to maintain balance or to walk and then tell a robot how to do it.

You have to be really explicit in the instructions that you give to these machines. Amazon has been working on these problems for a while with its “picking challenge”: How do you teach a robot to pick and pack boxes the way a human does? Right now, it’s a challenge for robots to identify what each item is.

qa_qSo if I’m not coming home to a robot butler in 20 years, what am I coming home to?

Goerlich: We naturally tend to imagine humanoid robots, but I think the emphasis will be on human-controlled robots, not necessarily humanshaped units. Independent robots will make sense in some niches, but they are more complex and expensive. The symbiosis of human and machine is more logical. It will be the most efficient way forward. Robotic suits, exoskeletons, and robotic limbs with all kinds of human support functions will be the norm. The future will be more Iron Man than Terminator.

qa_qWhat will be the impact on the job market as robots become more advanced?

SAP_Robotics_QA_images2400x16004Goerlich: The default fear is of a labor-light economy where robots do most of the work and humans take what’s left over. But that’s lastcentury thinking. Robots won’t simply replace workers on the assembly line. In fact, we may not have centralized factories anymore; 3D printing and the maker movement could change all that. And it is probably not the Terminator scenario either, where humanoid robots take over the world and threaten humankind. The indicators instead point to human-machine coevolution.

There’s no denying that advances in robotics and artificial intelligence will displace some jobs performed by humans today. But for every repetitive job that is lost to automation, it’s possible that a more interesting, creative job will take its place. This will require humans to focus on the skills that robots can’t replicate – and, of course, rethink how we do things and how the economy works.

qa_qWhat can businesses do today to embrace the projected benefits of advanced robotics?

Kennedy: Experiment. The very best things that we’ve been able to produce have come from people having the tools an d then figuring out how they can be used. I don’t think we understand the future well enough to be able to predict exactly how robots are going to be used, but I think we can say that they certainly will be used. Stephanie Overby is an independent writer and editor focused on the intersection of business and technology.

Stephanie Overby  is an independent writer and editor focused on the intersection of business and technology

To learn more about how humans and robots will co-evolve, read the in-depth report Bring Your Robot to Work.

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IoT, Sensors, And All Things Digital: Can We Handle It All?

Kai Goerlich

It seems we are all part of a big experiment. We’re testing our data-driven consciousness and determining how much information we can digest and at what speed. And if we continue at our current pace, we will soon see sensors and ambient computing infuse our personal and professional lives with a myriad of interactive things. Even items such as coffee mugs may be connected.

In such a digital-driven, hyperconnected world, our perceptions will heavily depend on virtual experiences and our biological view. To get a sense of where we are heading, I had the pleasure of sitting down with Dr. Yvonne Förster, professor of philosophy of culture at Leuphana University in Germany, to get her perspective.

Q: The speed of digital change is just incredible. It’s hard to imagine that we will always be able to keep up. Will humans find a way to cope with the speed of digital change?

A: Without a doubt, algorithms are faster than our conscious thinking. And although our physical reflexes and our intuition are quite fast, they are still slower than the latest computers available right now. From this perspective, we face many challenges.

Much of our future experiences in a digitized world will be powered by technological devices that operate on micro-timescales. The Internet of Things is a term that describes technologically permeated lifeworlds comprising billions of sensors and highly interconnected devices, which measure – or more precisely, sense – various activities in their environment. The interesting question is not so much about coping, but the perspectives and possible futures of human life itself. How will we evolve while changing our lifeworld?

Q: If we cannot operate at the speed of computers, will we experience disruptions between more direct, data-induced experiences?

A: Not necessarily. Disruptions are exactly what modern technology tries to avoid. Smooth operation and flow are ideal in technology and design, allowing applications to be invisible and creating self-learning systems.

Understanding how technology influences our perception today is a subject of aesthetic research. Media artists try the impossible: Make the invisible visible or render the nonexperiential rhythm and speed of algorithms experiential. It would be naïve to think that the exponential growth in exposure to technological devices would leave people unchanged.

Evolution goes on in culture. And nowadays, we are not just passively shaped by adaptive behavior; we can also actively alter our bodies and minds. New digitized environments and our own wish to extend human life will be fundamental forces in the game of evolution, which we should carefully reflect on.

Q: Will we still experience our environment without additional interactions? Will nature become a dull world to us?

A: I don’t think so. The world will be a fascinating place in the next few decades when it comes to technological development. It doesn’t necessarily mean that every device will remove us from our environments like the dystopian world portrayed in movies such as The Matrix or Surrogates. But, we also shouldn’t forget that our experiences in nature and everything else are always mediated by cultural concepts, attitudes, and technological devices.

Just think of the perception of time, which has been interceded through watches of all kinds for centuries now. Some would even hold that human culture is essentially rooted in technology from its very beginning. Still, as long as we preserve nature, our world will never be a dull place. There are just new perspectives to discover.

Q: How will wearables and sensors help us achieve new perspectives?

A: The interesting question here is: How will our lifeworld and behavior change when sensors are present everywhere? With the omnipresence of sensors and devices that sense locations and other types of human agency, we find ourselves in an environment that is not only tracked by living beings, but also by highly interconnected technological devices. You could even one day say that walls, streets, or cars have eyes in the most literal sense possible.

Sensing is not a concept only about living organisms anymore. Rather, it’s a ubiquitous property of our lifeworld. This will deeply change how we act and interact with each other – but more important, it will transform how we engage with objects. Our lifeworld is altered by the Internet of Things as objects sense and communicate among themselves. The impact of this technological development has yet to be estimated and described.

Q: Will everyone become digitized?

A: If we define digitization as a significant part of everyday life that is connected to digital technology, then we are already digitized. However, if we mean that technology will invade our bodies and turn us into cyborgs that are physically connected to the Internet, this is already becoming a reality in laboratories. This idea is strongly connected to enhancing the human body and mind. Still, most people remain skeptical when it comes to technology invading the body.

We can think of a third alternative of digitization: The co-evolution of humans and technology. When our world is deeply permeated by technology, it will present different and new opportunities to humans. We can develop new ways of behavior, creativity, and thinking. Also, we will need to engage with technology and actively reflect on its use.

This approach calls for an understanding of technology as a precondition for handling such innovation critically and creatively. We see these kinds of engagement emerging from artistic and scientific practice. Jennifer Gabrys, for example, works with sensor technology used by citizens in different environments, such as fracking areas, to better understand and build awareness around changing environmental conditions by using do-it-yourself technology.

Q: Will we have a choice in what we do – or do not – want to know?

A: Yes, we certainly have a choice. As biological beings, we are adaptive. The presence of technology is evolving – and will continue to change – our perception and behavior. If we don’t reflect on that process, we will remain passive and eventually feel outrun by technology.

Still, technology is our making, even though it is not entirely predictable and manageable. Given that technology functions according to emerging patterns of artificial intelligence, we should be prepared to engage in new processes of understanding and agency in computed environments.

Q: Will digitization change the way I experience my body?

A: The playful element of digitization will change the way we learn as well as the knowledge space of what can be known. It’s not just transformation of the thinking process or the quality of decisions, but an evolution of the body as well. In gaming, for example, we use evolutionary, yet old and hard-wired, behaviors such as flight-or-fight reflexes. This means digital gaming is less about our culturally and highly rated reflection, but more on gut feeling and our intuitive mode of acting. But, it might also bring about completely new patterns of behavior and action or reaction.

Another aspect of bodily experiences in times of digitization is the measurement of movement and live data such as heartbeat, blood pressure, and more. This is accompanied by an objectification of a bodily experience. We tend to perceive ourselves as numbers, such as the number of steps we have walked or the calories we have eaten. This might be problematic because it can distract us from our actual bodily state, which is not tantamount to a number or chart appearing on a screen.

The flipside of this is the issue of Big Data and control. Where does this information go, and who uses it? Will your insurance company be interested what your everyday habits are? This seems very likely and should be observed carefully.

Q: How will we experience the world in the future? Will it be in the form of data streams?

A: The world around us is getting sense-driven; it will have eyes and ears. I am waiting for the day when my refrigerator starts arguing with me when I grab a piece of steak instead of a salad. But more interesting is the question of what happens when information goes beyond being presented as text, video, or speech to include body temperature, heart rate, and the pitch of our voice. What kind of knowledge will be generated out of this data?

In the movie Ex Machina, such information leads to the first self-conscious android named AVA. But, I am sure that we will not perceive data streams. Data by itself has no value as long as it is not interpreted. Also, our brains are not an information-processing organ. It generates information only through sense-making activities.

Life never deals with raw data. Movement and perception are to be understood as relational activities, which bring about meaningful structures such as me as an individual and you as another person. Similarly, we will conceive technology as part of our environment and, therefore, part of a sense-making process that extends beyond human perception.

Q: If data could be experienced directly one day, where is the border that separates us from it?

A: Current technologies, such as augmented reality and Google glasses, will not change very much. Even if the physical and virtual worlds merge, these technologies will not interfere with our sense of self. The sense of self is already a stretchy category since cultural practices can alter it profoundly. Mediation techniques, for example, can broaden our ability to be compassionate and make the self subside in meditation and agency.

Another interesting development is the use of invasive techniques that substitute or change our perceptual and cognitive abilities. An example is Neil Harbisson, who can hear colors, or Enno Park, who is using a hearing aid with a speech processor that transfers sounds into digital signals that are sent directly to the brain.

Merging human bodies and technology can create new forms of sensing and acting. Even the ontological gap between what is human and what is technology might become blurred. But this is old news. The self has – and never had – any fixed limitations. We become what we are by interacting with each other and our environment. And we are always evolving; no self is ever complete. The moment you meet another person, you undergo a change. This is why we should not be afraid of losing ourselves in the future.

Q: Will we co-evolve with machines, rather than creating a world similar to The Terminator?

Certainly the merging of humans and machines is an interesting idea as it promises to overcome human limitations. It’s part of our human nature to adapt, and I have the impression that we are entering an era of a new form of cultural evolution that combines biological, technological, and cultural practices.

The most important lesson we will learn is that technology will develop in unforeseen, not programmable, ways. This might destroy the myth of the human as a rational being who can understand and predict the reasons and consequences of an action. Humanity is a very creative species, but we have a hard time understanding complex and nonlinear processes. These processes have become ubiquitous since the Internet became our second nature and stock markets are partly controlled by algorithms.

Complex processes also lie at the core of life. The best example is our own brain whose inner workings are highly complex and nonlinear. Still, we lack the cognitive abilities to understand them. This is why we should experiment and reflect on the possibilities of a life form that engages with technology as a complex process and cannot be simply controlled and predicted. Issues of data privacy, information ownership, and governance need to be discussed in light of ecological entanglement with technology.

For more on this topic, see Live Business: The Importance of the Internet of Things.

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Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Idea Director of Thought Leadership at SAP. His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation. Share your thoughts with Kai on Twitter @KaiGoe.