IBM brings Watson to Africa
IBM has launched a 10-year initiative to bring Watson and other cognitive systems to Africa in a bid to fuel development and spur business opportunities across the world’s fastest growing continent.
Dubbed “Project Lucy” after the earliest known human ancestor, IBM will invest US$100 million in the initiative, giving scientists and partners access to the world’s most advanced cognitive computing technologies.
Kamal Bhattacharya, Director, IBM Research – Africa, said: “In the last decade, Africa has been a tremendous growth story -- yet the continent's challenges, stemming from population growth, water scarcity, disease, low agricultural yield and other factors are impediments to inclusive economic growth,”
“With the ability to learn from emerging patterns and discover new correlations, Watson's cognitive capabilities hold enormous potential in Africa – helping it to achieve in the next two decades what today's developed markets have achieved over two centuries.”
IBM's Watson represents a new era of cognitive computing, in which systems and software are not programmed, but actually improve by learning so they can discover answers to questions and uncover insights by analysing massive amounts of Big Data.
Watson technologies will be deployed from IBM's new Africa Research laboratory providing researchers with a powerful set of resources to help develop commercially-viable solutions in key areas such as healthcare, education, water and sanitation, human mobility and agriculture.
To help fuel the cognitive computing market and build an ecosystem around Watson, IBM will also establish a new pan-African Center of Excellence for Data-Driven Development (CEDD) and is recruiting research partners such as universities, development agencies, start-ups and clients in Africa and around the world.
By joining the initiative, IBM’s partners will be able to tap into cloud-delivered cognitive intelligence that will be invaluable for solving the continent’s most pressing challenges and creating new business opportunities.
“For Africa to join, and eventually leapfrog, other economies, we need comprehensive investments in science and technology that are well integrated with economic planning and aligned to the African landscape,” said Prof Rahamon Bello, Vice Chancellor, University of Lagos.
“I see a great opportunity for innovative research partnerships between companies like IBM and African organizations, bringing together the world’s most advanced technologies with local expertise and knowledge.”
Billionaire Kumar Birla Champions Regional Supply Chains
As the head of the Aditya Birla Group, a US$46bn firm that operates in 36 countries, Kumar Mangalam Birla is no stranger to splashy strategic moves. Yet his recent announcement that he no longer wants to acquire globally distributed supply chains stood out. While many companies have struggled to cope with shipping backlogs, his firm has chosen to pivot and focus on regional networks. Said Birla: ‘We wouldn’t look at a company or a business where you source in one corner of the world and sell in another’.
He cited protectionism, the pandemic, and the limited movement of products and people around the world as ABG’s primary causes of lost profits. And they aren’t alone. Over the past year, 900 of the U.S. and Europe’s biggest IT, defence, and financial services firms have lost an average of US$184mn apiece.
An Era of Global Disruption
Over the past few decades, low shipping rates and rapid delivery times have lulled multinational firms into a false sense of security. In the early 2000s, companies chose to take on significant global supply chain risks in exchange for increased profits. First, it made sense to manufacture higher-value goods, such as electronics, in low-cost regions throughout Southeast Asia, India, and Africa. Second, first-tier suppliers started to outsource the manufacturing of specific components to second-, third-, and even fourth-tiers—leaving supply chains with extremely limited visibility.
So when COVID-19 disruptions struck certain regions, companies were caught unprepared. Usually, these events come few and far between. But over the past ten years, we’ve seen a number of ‘black swan’ events that have thrown the supply chain industry into chaos. Here’s a quick history of the most significant events in recent years, thanks to the MIT Sloan Management Review:
- 2010. China creates export quotas for rare earth elements.
- 2011. The Tōhoku Earthquake hits East Japan; flooding sweeps throughout Thailand.
- 2016-present. Trade wars between the U.S. and China hurt suppliers.
- 2020-present. COVID-19 pandemic shuts down international shipping ports.
Now, Kumar Birla is one of many who want to re-evaluate how we run our supply chains. Though his company has acquired 40+ companies in the last quarter decade, Birla intends to build up local hubs rather than expand operations.
Why Pursue Regionalisation?
Combine Chinese economic dominance, global supply chain vulnerabilities, and major government policy shifts around the world, and you have a storm brewing on the horizon for big multinational firms. As Brookings noted, ‘the biggest risk for trading opportunities in the developing world is growing protectionism in more advanced economies, often dressed up as national security protection’.
Altogether, from the U.S. to the European Union, governments are trying to protect their domestic supply chains, secure adequate stockpiles of materials, and build world-class local networks. Consider Biden’s recent executive order, which seeks to bring semiconductor manufacturing back to home soil, or Japan’s bid to open more memory chip fabrication factories near Tokyo. The Aditya Birla Group intends to react in kind. Said Birla: ‘We’re looking at regionalism as a very big theme’.
Will Others Follow Suit?
In the post-pandemic economy, global businesses must decide whether to expand or contract. On one hand, the Alibaba Group’s Cainiao Smart Logistics Network recently launched a direct flight between Hong Kong, China, and Lagos, Nigeria. On the other, the Japanese government is desperate to make its chip manufacturing domestic. Indeed, as two supply chain strategies diverge in a post-pandemic world, the one businesses take may make all the difference.
Yet Birla is confident that regionalisation is the right call. According to his words at the Qatar Economic Forum, even necessary cross-border transactions should be smaller in scope. And as the Bloomberg Billionaires Index now lists his net wealth at US$10.4bn, up 52% from 2020, he may have the cash to test his theories out. ‘Regional hubs, regional presence, regional employment, catering to regional demand’, he stated. ‘We’re a global company rooted in local economics’.