Joseph Spagnoletti, former CIO of Campbell Soup Co., has an idea, model and methodology that could revamp how enterprises think about information technology and business alignment. The concept is ridiculously simple yet hard to pull off. The mission: Deploy a framework for a transparent view of return on investment and focus on tech projects and services as if it were a financial portfolio. In IT, most of the budget goes to managing services and "keeping the lights on." These processes keep the business running, but the value to the business is largely unknown.
The first generation of robo-advisors use a method known as "passive portfolio management" to buy and hold a fixed balance of exchange-traded funds. This method relies on price averages in order to match market returns. Vancouver-based online investment service Responsive aims to outperform this first generation of robo-advisors using a data-rich Artificial Intelligence approach. "Passive investing is a good start, but it ignores the data", Responsive CEO Davyde Wachell explains. Google's AlphaGo AI has been racking up wins against humanity's best Go players.
Columbus actually wanted to find a faster way to India and discovered America. The situation is similar for a German asset manager in the 21st century. For years, he has been trading successfully on the basis of an options strategy. Then he asks his IT administrator to test new strategies. Unplanned they develop an artificial intelligence that has recently become the manager of a new fund by the company.
Launched in December 2018, this fund invests in international equities. It is first thematic fund to invest in artificial intelligence, using artificial intelligence (AI) in its investment process. Nicolas Chaput, global CEO and co-CIO of ODDO BHF Asset Management, said: "This fund represents a breakthrough innovation in the asset management industry. We have built a unique investment process, artificial intelligence and many years of know-how in the asset management industry quantitative equity management. Our goal is to provide our customers with an innovative solution for long-term alpha generation.