Business intelligence (BI) has limitations, especially for enterprise IT. Retroactive insights are fantastic, but only if they boil down to the bottom line; that’s where innovation is occurring, especially with the brain power of machine learning technologies. Today, 75% of IT projects are not delivered on time or within budget, resulting in over $300 billion in enterprise losses (in the US alone!). The solution? Operational Intelligence (OI). OI is the evolved version of BI, although it’s predominantly focused on agile real-time insights designed for executive decision making and perfect for IT leaders of large-scale enterprise departments that need to make split-second decision and see immediate results. Israeli AI startup DeepCoding is aiming to lead the OI revolution in IT delivery.
DeepCoding was founded in mid-2017 by entrepreneurs Sebastien Adjiman and Arnon Yaffe. Interestingly, their approach went contrary to the traditional Israeli startup roadmap; idea conceived, technology invented and not vice-versa. DeepCoding’s product monitors your entire IT delivery operation and uses cutting-edge Artificial Intelligence (AI) technologies to detect and predict IT delivery failures before they happen, measure their business impact and suggest mitigation options.
Adjiman honed his expertise in enterprise sales while working at Clarizen as VP of Sales for the EMEA region. While working with C-level executives, he learned that inadequate IT intelligence oversight was a major pain point for most organizations. So with the problem identified, he tapped his brother Phillippe Adjiman, an AI guru and machine learning team leader at Outbrain, a behemoth AI startup dominating marketing and recommendation content. With a proof of concept and the contributing genius of co-founder Arnon Yaffe, DeepCoding was ready to deliver their product: Operational Intelligence for enterprise IT delivery.
Their flagship product is DeepCoding’s Delivery Intelligence Platform (DIP), a PaaS solution which connects to all IT delivery tools and uses AI to generate instant insights and recommendations on the software teams’ product delivery, silos and systems. For example, it can predict bottleneck occurrences in skill resources and recommend actions to mitigate and manage development deliveries in real time. It could also collect data from all platforms and tools in use by the software engineers, such as Jira or ServiceNow, and run a series of tests to generate insights on how they’re impacting the IT operation at large.
The current focus is on IT delivery for change request intelligence, incident intelligence, and project intelligence.
The distinction between BI and OI is becoming ever more apparent with the help of AI and data science. “Post-mortem analytics is BI” according to Adjiman. “BI enables the organization to learn from their mistakes, while OI is helping operations-facing professionals make better proactive business decisions” added Adjiman. DeepCodiing’s DIP cognitive engine use a combination of Business Process Mining and Predictive analytics in order to issue it’s alerts. A complex blend of Deep Learning Neural Networks (Unsupervised and Reinforcement Learning), pattern recognition and anomaly detection algorithms are behind their patent pending secret sauce.
The startup employs 7 employees and received $1.6 million in Seed funding from venture and angel investors including StageOne Ventures and Axxess Ventures. In addition to Philippe Adjiman, their advisory board includes Israeli serial entrepreneur Benny Schnaider, (co-founder of Ravello Systems and Qumranet), and Amnon Beck, (former CIO fo the First International Bank, one of the leading financial organizations in Israel) who support the DeepCoding platform rationale and offerings for CIOs of incumbent IT organizations.
Between Adjiman and Yaffe, the startup is no stranger to big ticket sales and their efforts have already come to fruition with two multi-year strategic partnerships announced in 2018, and many more to come in 2019.
The startup is working with customers in the US, Europe, Canada and Latin America, and typical contracts generate revenues ranging from $20,000 to $50,000 per month. “With DeepCoding’s unique business model and quick ROI for customers, approximately 600 customers can generate over $100 million revenues, which would translate to a $1 billion valuation within three years” according to Adjiman. And with a total addressable market that can be constitutes any corporation with an IT department totaling 50 people or more, in any vertical, the net is cast very wide for the startup.
In three years from now, there might very well be another Israeli AI unicorn startup by the name of DeepCoding, the clock is ticking…