The investment banking industry is under pressure. The rise of information technologies has affected many industries, testing the traditional business models. It is argued that also big investment banking’s business models will be targeted and invaded; wealth management, private investment and small business lending. Scale and global reach have become increasingly important, putting pressure on current business models; which become complex due to the enormous amount of information within them.

Within the investment banking industry, the high level of information and complexity and the high costs were once a competitive advantage, but have now developed towards being encumbrances! (Accenture.com, 2017)

Although Capgemini states in the Fintech report 2017 that Fintech is the most overhyped yet underestimated term the industry has heard in a long time, I would like to elaborate on the underestimated part, by examining the Industry by using the Literature from our Information Management course. (https://www.se.capgemini-consulting.com, 2017)
To argue whether the investment industry is a newly vulnerable market we have to argue according to three conditions; newly easy to entry, attractive to attack and difficult to defend. (Literature, 2017)

First, it may be argued that the ease at which the investment industry may be entered has increased rapidly. Accenture argues that the cost of launching a Tech Start-up has dropped dramatically from $5 Million to only $5.000! Furthermore, the existing businesses have massive sunk costs, which used to be necessary but are now only barriers to innovation. The Accenture paper on digital disruption states that “research indicates that banks are devoting three times as much money to maintaining legacy systems as they are to building new platforms needed for growth’. These changes have indicated that regulatory changes have enabled entrants, changing technologies have reduced costs significantly and that the minimum scale has decreased. Furthermore, the rise of highly efficient communication networks and customer’s increasing preference towards engagement indicate there is a change in the distribution systems and customer preferences. (Accenture.com, 2017)

Second, it is not difficult to argue that the investment banking industry is an attractive industry to attack. The investment banking industry is a highly profitable industry in which a lot of money can be earnt. Furthermore, the rise of digital solutions to complex problems (e.g. Artificial intelligence) may increase the ease at which money can be earnt. Furthermore, the risks may be decreased as a result of new business models enabled by new technologies. We can also argue that there is a high difference in profitability across different investment customers. (Farmer, 2017)The number of FinTech deals in size in New York has respectively been in Lending, Payments, Wealth Management, Markets, other markets, Risk and Security and Insurance. (Accenture.com, 2017)

Last, we may argue that the investment banking industry is relatively difficult to defend. Not only have the barriers to entry decreased rapidly, the industry’s traditional structures are out-dated and are under continuous pressure. It is argued that the rising Fintech will not only disrupt the investment banking industry, it will become part of it. (Farmer, 2017) Furthermore, Accenture argues that the move to an integrated digital ecosystem is not an option for investment banking, it is an imperative!! (Accenture.com, 2017)

References:
Accenture.com. (2017). Cite a Website – Cite This For Me. [online] Available at: https://www.accenture.com/_acnmedia/Accenture/next-gen/top-ten-challenges/challenge8/pdfs/Accenture-2016-Top-10-Challenges-08-Digital-Disruption.pdf#zoom=50 [Accessed 16 Oct. 2017].

Farmer, N. (2017). FinTech Ready to Disrupt Investment Banking. [online] B2b.com. Available at: http://www.b2b.com/blog/reality_check/index.php/uncategorized/fintech-ready-to-disrupt-investment-banking/ [Accessed 16 Oct. 2017].

https://www.se.capgemini-consulting.com. (2017). World FinTech Report 2017. [online] Available at: https://www.se.capgemini-consulting.com/sites/default/files/world_fintech_report_wftr_2017_final_web.pdf [Accessed 16 Oct. 2017].

After being inspired by Deniz Ozer about the use of Artificial Intelligence within the healthcare Industry I decided to do some research and write a blog post of my own. Within this post I will elaborate on the current use of Artificial Intelligence within he healthcare Industry and my beliefs.

Although Artificial Intelligence (AI) can be experienced within everyday life (for example Siri) the use of AI within the healthcare industry might evolve more quickly than the general public might believe. Not only because the use of machine learning, big data and AI is a specialized subject which can only be truly understood with deep knowledge of the subject, but also because the same is true within the healthcare industry. Several thought leaders believe that we are experiencing a new industrial revolution; a revolution that is fusing physical, digital and biological worlds, impacting all types of business, and arguable in specific the healthcare industry. In accordance to the third lecture of the Information Strategy course by Ting li, focussed on Disruptive technologies, we can argue that the healthcare industry is being disrupted by current technologies.

Dr. Bertalan Mesk, the medical futurist, argues that AI within the healthcare industry will help us live better, and is actually happening right now. Wearable devises help us monitor our current vital signs, surgical robots enable doctors to perform surgeries that were not possible within the past and hundreds of thousands have access to their genetic data, which enables them to prevent illnesses. These are all shifts that change the fundamentals of the healthcare business, indicating a disruption. It can argued that investing in A.I. can be extremely beneficial for both company revenues as the general public. (the (The Medical Futurist, 2017)

As argued above Philips, which is currently a 100% healthcare company, states that 60% of their R&D is dedicated to software and a large part of these researchers are working on AI as well. To be able to “perform precise diagnosis, support personalised therapy and intervene early to avoid deterioration” it is essential that Information is structured. According to Jeroen Tas, Philips’ Chief Innovation & Strategy Officer, Over 75% of all information on patients is not structured, which is one of the areas where A.I. could make a difference. Being able to perform correlations across variables within large data sets will enable Philips to better understand a patient’s health situation. Although there is a lot to be improved, Tas mentions that his company is already looking into what role AI, machine learning and analytics can play in navigating these mountains of data. (Philips, 2017)

In another article on Philips’ website it is mentioned that A.I. and the analysis of patient’s big data can breast cancer diagnosis. According to the article deep learning enables the analysis of the vast amount of data extracted from tumour tissue and related patients, stated as the proliferation of digital pathology. Philips argues that as a pioneer in the digitization of pathology, they have created a leading digital pathology business through strategic investments, partnerships and technology licenses. More about this disruptive technology can be seen in the video below. (Philips, 2017)

To conclude we can argue that there is a lot to be learnt and improved with regard to the use of A.I. Within the healthcare industry, but that a lot of steps have certainly already been taken. Although the general public does not directly realize the disruption is taking place, it may have a large influence on the general public’s quality of life. Because Big data can enable the shift within the healthcare industry towards more efficient treatments, diagnosis and rehabilitation, I believe sharing this data is of vital importance. Nevertheless, the disruption within the Healthcare industry may also have negative effects, a topic I will elaborately cover within my next blog post.

VIDEO: https://www.youtube.com/watch?time_continue=5&v=cUeScCtTng4

References:
The Medical Futurist. (2017). Embrace Disruptive Medical Technologies – The Medical Futurist. [online] Available at: http://medicalfuturist.com/grand-challenges/disruptive-medical-technology/ [Accessed 9 Oct. 2017].

Philips. (2017). Philips and PathAI team up to improve breast cancer diagnosis using artificial intelligence technology in ‘big data’ pathology research. [online] Available at: https://www.philips.com/a-w/about/news/archive/standard/news/press/2017/20170329-philips-and-pathai-team-up-to-improve-breast-cancer-diagnosis.html [Accessed 9 Oct. 2017].

Forbes.com. (2017). Forbes Welcome. [online] Available at: https://www.forbes.com/sites/mariyayao/2017/06/01/u-s-falls-behind-china-canada-in-advancing-healthcare-with-a-i/#611ad77206a3 [Accessed 9 Oct. 2017].

Philips. (2017). Connecting Machine Intelligence to Healthcare – Research | Philips. [online] Available at: https://www.philips.com/a-w/research/research-programs/ai-research-at-philips-research-north-america.html [Accessed 9 Oct. 2017].