Poor IBM i2: 15 Year Old Company Makes Headlines in Fraud Detection and Big Blue Is Not Mentioned
August 3, 2015
Before IBM purchased i2 Ltd from an investment outfit, I did some work for Mike Hunter, one of the founders of i2 Ltd. i2 is not a household name. The fault lies not with i2’s technology; the fault lies at the feet of IBM.
A bit of history. Back in the 1990s, Hunter was working on an advanced degree in physics at Cambridge University. HIs undergraduate degree was from Manchester University. At about the same time, Michael Lynch, founder of Autonomy and DarkTrace, was a graduate of Cambridge and an early proponent of guided machine learning implemented in the Digital Reasoning Engine or DRE, an influential invention from Lynch’s pre Autonomy student research. Interesting product name: Digital Reasoning Engine. Lynch’s work was influential and triggered some me too approaches in the world of information access and content processing. Examples can be found in the original Fast Search & Transfer enterprise systems and in Recommind’s probabilistic approach, among others.
By 2001, i2 had placed its content processing and analytics systems in most of the NATO alliance countries. There were enough i2 Analyst Workbenches in Washington, DC to cause the Cambridge-based i2 to open an office in Arlington, Virginia.
i2 delivered in the mid 1990s, tools which allowed an analyst to identify people of interest, display relationships among these individuals, and drill down into underlying data to examine surveillance footage or look at text from documents (public and privileged).
IBM has i2 technology, and it also owns the Cybertap technology. The combination allows IBM to deploy for financial institutions a remarkable range of field proven, powerful tools. These tools are mature.
Due to the marketing expertise of IBM, a number of firms looked at what Hunter “invented” and concluded that there were whizzier ways to deliver certain functions. Palantir, for example, focused on Hollywood style visualization, Digital Reasoning emphasized entity extraction, and Haystax stressed insider threat functions. Today there are more than two dozen companies involved in what I call the Hunter-i2 market space.
Some of these have pushed in important new directions. Three examples of important innovators are: Diffeo, Recorded Future, and Terbium Labs. There are others which I can name, but I will not. You will have to wait until my new Dark Web study becomes available. (If you want to reserve a copy, send an email to benkent2020 at yahoo dot com. The book will run about 250 pages and cost about $100 when available as a PDF.)
The reason I mention i2 is because a recent Wall Street Journal article called “”Spy Tools Come to Wall Street” Print edition for August 3, 2015) and “Spy Software Gets a Second Life on Wall Street” did not. That’s not a surprise because the Murdoch property defines “news” in an interesting way.
The write up profiles a company called Digital Reasoning, which was founded in 2000 by a clever lad from the University of Virginia. I am confident of the academic excellence of the university because my son graduated from this fine institution too.
Digital Reasoning is one of the firms engaged in cognitive computing. I am not sure what this means, but I know IBM is pushing the concept for its fascinating Watson technology, which can create recipes and cure cancer. I am not sure about generating a profit, but that’s another issue associated with the cognitive computing “revolution.”
I learned:
In pitching prospective clients, Digital Reasoning often shows a demonstration of how its system respo9nded when it was fed 500,000 emails related to the Enron scandal made available by the Federal Energy Regulatory Commission. After being “taught” some key concepts about compliance, the Synthesys program identified dozens of suspicious emails in which participants were using language that suggested attempts to conceal or destroy information.
Interesting. I would suggest that the Digital Reasoning approach is 15 years old; that is, only marginally newer than the i2 system. Digital Reasoning lacks the functionality of Cybertap. Furthermore, companies like Diffeo, Recorded Future, and Terbium incorporate sophisticated predictive methods which operate in an environment of real time information flows. The idea is that looking at an archive is interesting and useful to an attorney or investigator looking backwards. However, the focus for many financial firms is on what is happening “now.”
The Wall Street Journal story reminds me of the third party descriptions of Autonomy’s mid 1990s technology. Those who fail to understand the quantity of content preparation and manual, subject matter expert effort required to obtain high value outputs are watching smoke, not investigating the fire.
For organizations looking for next generation technology which is and has been working for several years, one must push beyond the Palantir valuation and look to the value of innovative systems and methods.
For a starter, check out Diffeo, Recorded Future, and Terbium Labs. Please, push IBM to exert some effort to explain the i2-Cybertap capabilities. I tip my hat to the PR firm which may have synthesized some information for a story that is likely to make the investors’ hearts race this fine day.
Stephen E Arnold, August 3, 2015
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Poor IBM i2: 15 Year Old Company Makes Headlines in Fraud Detection and Big Blue Is Not Mentioned : Stephen E. Arnold @ Beyond Search