Internet of Things and cognitive computing can 'change the world', claims Allianz Global CIO
IoT can improve all businesses, claims Dr Ralf Schneider
The combined power of the Internet of Things (IoT) and cognitive computing has the potential to "change the world" and make businesses more secure and resilient, the global CIO of insurance firm Allianz has claimed.
Dr Ralf Schneider made the comments at an IBM Watson Internet of Things event in Munich, Germany, where IBM has opened its global headquarters for IoT and cognitive computing research.
After describing Munich as the global capital of insurance - Allianz and other major insurers all have headquarters there - Schneider argued that the Bavarian capital can act as a "good starting point" for pushing IoT and cognitive systems in to order to make a "difference".
That difference, he boldly told the audience at IBM's offices in the HighLight Tower on the outskirts of Munich, has the power to alter the future of mankind for the better.
"The Internet of Things and cognitive systems, with the right software on top, could change this world," said Dr Schneider, adding that this combination will ensure that all businesses can be focused, fast and competent.
However, entering this new connected world, he said, can't be done with just people alone, it needs the help of machines, which is why Schneider claimed that Java - the language of many internet-connected sensors - will be the "most spoken language on the planet" next year.
That, he explained, is why Allianz turned to an organisation which he said understands the fundamentals of Java and could "do something about the challenges" of the future. That organisation is IBM and the Watson Internet of Things.
"Because, yes, we'll have endless data, infinite information and a lot of insights, and with technologies like Watson, we'll have those insights in seconds," said Schneider, explaining Allianz opted to partner with IBM not only to gain the insight, but have the proper tools to analyse and act upon data, something he described as "the real challenge".
"Insight and analytics are one thing but execution is the real challenge," he said.
"What is the next best offer, how do you mitigate the risks? There you see how the insurance business will change in how it gives services and mitigate risk with all the sensors," Schneider said, describing how IoT-connected devices could improve data-driven decisions.
He predicted that examining this sort of data would put Allianz ahead of other insurance firms, which are only just beginning to determine how big data can help them.
But while Schlender and Allianz view harnessing the power of the IoT as difficult to achieve without the use of machines and cognitive computing, he was also keen to stress the importance of people.
"We're living in the second age of the machines and the machines will make the difference, but I'm a strong believer in the interaction between competent machines and people and the difference it will make," Schneider explained, stating that humans have to be a part of the process to both mitigate risk and drive innovation forward.
"We're now jumping into a universe of possibilities, but of course with this universe of possibilities and opportunities, a lot of risks will come and they're risks everybody knows; data security, data privacy and IT security," he said, before going on to argue that collaboration in hubs like Munich is key.
"When we want to go towards this whole universe of the Internet of Things, there is a strong need - not only a technical need, but also an insurance need - how to make this manageable not only from an IT side, but also an insurance side," Schneider said, claiming that "a lot of risks you can't handle alone, therefore you need a community for support".
This vision of harnessing the power of the Internet of Things, cognitive computing and a supportive community, will ultimately lead to better outcomes for all parties, he claimed.
"We have to push for it, because machines like Watson will also mitigate the risks. This will not only be a strong enabler of new business models, but also make our business more secure and more resilient," Schneider concluded.
While Allianz is confident about the impact of the Internet of Things, there have been warnings that the technology could lead to security concerns.
Computing's inaugural Internet of Things Business Summit is set to take place in May 2016 and is free to attend for end users. Register here.