Microsoft CEO Satya Nadella describes 2 new types of business software

  • Microsoft CEO Satya Nadella has two very specific examples of the next step in enterprise software.
  • Concretely, he sees the emergence of two new categories of software.
  • A new category will track product performance as customers use them. It is enterprise software based on the concept of the Internet of Things, where objects receive sensors and applications.
  • The second adds a layer of artificial intelligence magic to it all, which will be designed to anticipate problems (like something breaking) and act to prevent them (like sending a repairman).

Two new categories of enterprise software are coming to the corporate world soon, according to Microsoft CEO Satya Nadella.

And he should know: During his 27-year career at Microsoft, one of the world’s largest manufacturers of enterprise software, he has helped bring his fair share of new business technology to the world.

On Monday, he told reporters at an invitation-only editors meeting at Microsoft headquarters that two new categories of software were about to take off.

  • He calls one of them “observation systems,” which is software for the Internet of Things, the umbrella term for Internet-connected gadgets such as household appliances or autonomous vehicles.
  • The other one he calls “intelligence systems,” which uses artificial intelligence to predict what’s going to happen and react.

These two new categories follow what he calls “systems of record,” his term for financial planning applications that track everything a business buys and earns, also known as resource planning software. ‘business. They follow what he calls “systems of engagement,” his term for sales software also known as customer relationship management.

Read more: CEO Satya Nadella Didn’t Think It Was Worth Celebrating When Microsoft Became The World’s Most Valuable Company

Although the jargon is thick, the concept is not that hard to grasp, as Nadella described it.

Companies already track everything they buy from suppliers and every product they sell. They are already tracking who is making the purchase. Then they’ll make their products smart, adding sensors and apps that track how their products are used, how those products are performing, and when they show signs of failure, he said.

They will therefore use “observation systems” to observe this “digital trail” that these products, in the hands of customers, create.

At this point, companies can add software with artificial intelligence to the mix and “triangulate” issues or opportunities, Nadella said.

An artificial intelligence application will be able to monitor the patterns and then predict them. The best example is to identify signs of product failure, then, before the product actually breaks, order a replacement part from the supplier (using enterprise resource planning software) and coordinate a service professional to go to the customer’s site (via the customer relationship management system).

Read more: The Microsoft president said that key executives from the world’s biggest tech companies meet regularly to discuss the major issues facing Silicon Valley and the world.

Nadella calls this a “big change” – knowing who bought something, how they use it and what happens next can open up all kinds of exciting new opportunities.

“Once you have these three things, you can now say, let me do an intelligence system, which really triangulates these three and adds new value,” he said.

And, as you can imagine, Microsoft already has versions of this software, in the form of the Microsoft Dynamics 365 application suite. And it also already offers Internet of Things software and artificial intelligence technology. .

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