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Two former Qualcomm engineers are using AI to fix China’s healthcare problem

Posted by on Feb 11, 2019 in 12 sigma, Artificial Intelligence, Asia, chief executive officer, China, Health, healthcare, Hospitals, idc, imaging, Infervision, medical imaging, medicine, Qualcomm, san diego, Sigma, Tencent, Tsinghua University | 0 comments

Artificial intelligence is widely heralded as something that could disrupt the jobs market across the board — potentially eating into careers as varied as accountants, advertising agents, reporters and more — but there are some industries in dire need of assistance where AI could make a wholly positive impact, a core one being healthcare.

Despite being the world’s second-largest economy, China is still coping with a serious shortage of medical resources. In 2015, the country had 1.8 physicians per 1,000 citizens, according to data compiled by the Organization for Economic Cooperation and Development. That figure puts China behind the U.S. at 2.6 and was well below the OECD average of 3.4.

The undersupply means a nation of overworked doctors who constantly struggle to finish screening patient scans. Misdiagnoses inevitably follow. Spotting the demand, forward-thinking engineers and healthcare professionals move to get deep learning into analyzing medical images. Research firm IDC estimates that the market for AI-aided medical diagnosis and treatment in China crossed 183 million yuan ($27 million) in 2017 and is expected to reach 5.88 billion yuan ($870 million) by 2022.

One up-and-comer in the sector is 12 Sigma, a San Diego-based startup founded by two former Qualcomm engineers with research teams in China. The company is competing against Yitu, Infervision and a handful of other well-funded Chinese startups that help doctors detect cancerous cells from medical scans. Between January and May last year alone, more than 10 Chinese companies with such a focus scored fundings of over 10 million yuan ($1.48 million), according to startup data provider Iyiou. 12 Sigma itself racked up a 200 million yuan Series B round at the end of 2017 and is mulling a new funding round as it looks to ramp up its sales team and develop new products, the company told TechCrunch.

“2015 to artificial intelligence is like 1995 to the Internet. It was the dawn of a revolution,” recalled Zhong Xin, who quit his management role at Qualcomm and went on to launch 12 Sigma in 2015. At the time, AI was cereping into virtually all facets of life, from public security, autonomous driving, agriculture, education to finance. Zhong took a bet on health care.

“For most industries, the AI technology might be available, but there isn’t really a pressing problem to solve. You are creating new demand there. But with healthcare, there is a clear problem, that is, how to more efficiently spot diseases from a single image,” the chief executive added.

An engineer named Gao Dashan who had worked closely with Zhong at Qualcomm’s U.S. office on computer vision and deep learning soon joined as the startup’s technology head. The pair both attended China’s prestigious Tsinghua University, another experience that boosted their sense of camaraderie.

Aside from the potential financial rewards, the founders also felt an urge to start something on their own as they entered their 40s. “We were too young to join the Internet boom. If we don’t create something now for the AI era, it will be too late for us to be entrepreneurs,” admitted Zhong who, with age, also started to recognize the vulnerability of life. “We see friends and relatives with cancers get diagnosed too late and end up  The more I see this happen, the more strongly I feel about getting involved in healthcare to give back to society.”

A three-tier playbook

12 Sigma and its peers may be powering ahead with their advanced imaging algorithms, but the real challenge is how to get China’s tangled mix of healthcare facilities to pay for novel technologies. Infervision, which TechCrunch wrote about earlier, stations programmers and sales teams at hospitals to mingle with doctors and learn their needs. 12 Sigma deploys the same on-the-ground strategy to crack the intricate network.

12 sigma

Zhong Xin, Co-founder and CEO of 12 Sigma / Photo source: 12 Sigma

“Social dynamics vary from region to region. We have to build trust with local doctors. That’s why we recruit sales persons locally. That’s the foundation. Then we begin by tackling the tertiary hospitals. If we manage to enter these hospitals,” said Zhong, referring to the top public hospitals in China’s three-tier medical system. “Those partnerships will boost our brand and give us greater bargaining power to go after the smaller ones.”

For that reason, the tertiary hospitals are crowded with earnest startups like 12 Sigma as well as tech giants like Tencent, which has a dedicated medical imaging unit called Miying. None of these providers is charging the top boys for using their image processors because “they could easily switch over to another brand,” suggested Gao.

Instead, 12 Sigma has its eyes on the second-tier hospitals. As of last April, China had about 30,000 hospitals, out of which 2,427 were rated tertiary, according to a survey done by the National Health and Family Planning Commission. The second tier, serving a wider base in medium-sized cities, had a network of 8,529 hospitals. 12 Sigma believes these facilities are where it could achieve most of its sales by selling device kits and charging maintenance fees in the future.

The bottom tier had 10,135 primary hospitals, which tend to concentrate in small towns and lack the financial capacity to pay the one-off device fees. As such, 12 Sigma plans to monetize these regions with a pay-per-use model.

So far, the medical imaging startup has about 200 hospitals across China testing its devices — for free. It’s sold only 10 machines, generating several millions of yuan in revenue, while very few of its rivals have achieved any sales at all according to Gao. At this stage, the key is to glean enough data so the startup’s algorithms get good enough to convince hospital administrators the machines are worth the investment. The company is targeting 100 million yuan ($14.8 million) in sales for 2019 and aims to break even by 2020.

China’s relatively lax data protection policy means entrepreneurs have easier access to patient scans compared to their peers in the west. Working with American hospitals has proven “very difficult” due to the country’s privacy protection policies, said Gao. They also come with a different motive. While China seeks help from AI to solve its doctor shortage, American hospitals place a larger focus on AI’s economic returns.

“The healthcare system in the U.S. is much more market-driven. Though doctors could be more conservative about applying AI than those in China, as soon as we prove that our devices can boost profitability, reduce misdiagnoses and lower insurance expenditures, health companies are keen to give it a try,” said Gao.


Source: The Tech Crunch

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Apple plans major US expansion including a new $1 billion campus in Austin

Posted by on Dec 13, 2018 in Apple, apple inc, apple store, austin, boston, boulder, Colorado, computing, cupertino, Electronic Arts, Energy, Governor, iPhone, Los Angeles, Louisiana, New York, Oregon, pittsburgh, Portland, san diego, Seattle, Steve Jobs, TC, Technology, texas, United States | 0 comments

Apple has announced a major expansion that will see it open a new campus in North Austin and open new offices in Seattle, San Diego and Los Angeles as it bids to increase its workforce in the U.S. The firm said it intends also to significantly expand its presence in Pittsburgh, New York and Boulder, Colorado over the next three years.

The Austin campus alone will cost the company $1 billion, but Apple said that the 133-acre space will generate an initial 5,000 jobs across a broad range of roles with the potential to add 10,000 more. The company claims to have 6,200 employees in Austin — its largest enclave outside of Cupertino — and it said that the addition of these new roles will make it the largest private employer in the city.

Beyond a lot of new faces, the new campus will include more than 50 acres of open space and — as is standard with Apple’s operations these days — it will run entirely on renewable energy.

Apple already has 6,200 employees in Austin, but its new campus could add up to 15,000 more

The investment was lauded by Texas Governor Greg Abbott.

“Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers. I thank Apple for this tremendous investment in Texas, and I look forward to building upon our strong partnership to create an even brighter future for the Lone Star State,” he said in a statement shared by Apple.

But Austin isn’t the only focal point for Apple growth in the U.S.

Outside of the Austin development, the iPhone-maker plans to expand to over 1,000 staff Seattle, San Diego and LA over the next three years, while adding “hundreds” of staff in Pittsburgh, New York, Boulder, Boston and Portland, Oregon.

More broadly, Apple said it added 6,000 jobs to its U.S. workforce this year to take its total in the country to 90,000. It said it remains on track to create 20,000 new jobs in the U.S. by 2023.


Source: The Tech Crunch

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Jam City is setting up a Toronto shop by buying Bingo Pop from Uken Games

Posted by on Nov 28, 2018 in 20th Century Fox, bingo, buenos aires, Chris DeWolfe, computing, Disney, Electronic Arts, Entertainment, entertainment software association, Gaming, harry potter, jam city, Los Angeles, MySpace, san diego, San Francisco, toronto | 0 comments

The Los Angeles game development studio Jam City is setting up a shop in Toronto with the acquisition of Bingo Pop from Uken Games.

Terms of the deal weren’t disclosed.

The deal is part of a broader effort to expand the Jam City portfolio of games and geographic footprint. In recent months the company has inked agreements with Disney — taking over development duties on some of the company’s games like Disney Emoji Blitz and signing on to develop new ones — and launching new games in conjunction with other famous franchises like Harry Potter.

The Bingo Pop acquisition will bring a gambling game into the casual game developer’s stable of titles that pulled in roughly $700,000 in revenue through October, according to data from SensorTower.

“We are so proud to be continuing Jam City’s rapid global expansion with the acquisition of one of the most popular bingo titles, and its highly talented team,” said Chris DeWolfe, co-founder and CEO of Jam City, in a statement. “This acquisition provides Jam City with access to leading creative talent in one of the fastest growing and most exciting tech markets in the world. We look forward to working with the talented Jam City team in Toronto as we supercharge the live operations of Bingo Pop and develop innovative new titles and mobile entertainment experiences.”

Founded in Los Angeles in 2009 by DeWolfe, who previously helped create and launch Myspace, and 20th Century Fox exec Josh Yguado, Jam City rose to prominence on the back of its Cookie Jam and Panda Pop games. Now, the company has expanded through licensing deals with Harry Potter, Family Guy, Marvel and now Disney. Jam City has offices in Los Angeles, San Francisco, San Diego, Bogota and Buenos Aires.


Source: The Tech Crunch

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California may mandate a woman in the boardroom, but businesses are fighting it

Posted by on Aug 12, 2018 in author, board of directors, Business, California, Column, Director, economy, Finance, France, gender diversity, gender equality, Germany, Italy, law, Norway, president, san diego, Senate, Spain, TC | 0 comments

California is moving toward becoming the first state to require companies to have women on their boards –assuming the idea could survive a likely court challenge.

Sparked by debates around fair pay, sexual harassment and workplace culture, two female state senators are spearheading a bill to promote greater gender representation in corporate decision-making. Of the 445 publicly traded companies in California, a quarter of them lack a single woman in their boardrooms.

SB 826, which won Senate approval with only Democratic votes and has until the end of August to clear the Assembly, would require publicly held companies headquartered in California to have at least one woman on their boards of directors by end of next year. By 2021, companies with boards of five directors must have at least two women, and companies with six-member boards must have at least three women. Firms failing to comply would face a fine.

“Gender diversity brings a variety of perspectives to the table that can help foster new and innovative ideas,” said Democratic Sen. Hannah-Beth Jackson of Santa Barbara, who is sponsoring the bill with Senate President Pro Tem Toni Atkins of San Diego.”It’s not only the right thing to do, it’s good for a company’s bottom line.”

Yet critics of the bill say it violates the federal and state constitutions. Business associations say the rule would require companies to discriminate against men wanting to serve on boards, as well as conflict with corporate law that says the internal affairs of a corporation should be governed by the state law in which it is incorporated. This bill would apply to companies headquartered in California.

Jennifer Barrera, senior vice president of policy at the California Chamber of Commerce, argued against the bill and said it only focuses “on one aspect of diversity” by singling out gender.

“This bill basically mandates that we hire the woman above anybody else who we may be fulfilling for purposes of diversity,” she said at a hearing.

Similarly, a legislative analysis of the bill cautioned that it could get challenged on equal protection grounds, and that it would be difficult to defend, requiring the state to prove a compelling government interest in such a quota system for a private corporation.

Five years ago, California was the first state to pass a resolution, authored by Jackson, calling on public companies to increase gender diversity. In response, about 20 percent of the companies headquartered in the state followed through with putting women on their boards, according to the research firm Board Governance Research. But the resolution was non-binding and expired in December 2016.

Other countries have been more proactive. Norway in 2007 was the first country to pass a law requiring 40 percent of corporate board seats be held by women, and Germany set a 30 percent requirement in 2015. Spain, France and Italy have also set quotas for public firms.

In California, smaller companies have fewer female directors. Out of 50 companies with the lowest revenues, 48 percent have no female directors, according to Board Governance Research. Only 8 percent of their board seats are held by women.

The 2017 study said larger companies did a better job of appointing women, with all 50 of the highest-revenue companies having at least one female director and 23 percent of board seats held by women.

“The main issue is still that a lot of companies headquartered here don’t have women on their boards,” said Annalisa Barrett, clinical professor of finance at the University of San Diego’s School of Business. “We quite often like to think of California as progressive and a leader on social issues, so that’s kind of disappointing.”

Barrett publishes an annual report of women on boards in California. Public companies are major employers in the state, and their financial performance has a big impact on public pension funds, mutual funds and investment portfolios. “Financial performance does really impact the broader community,” she said.

The National Association of Women Business Owners, sponsor of the bill, says an economy as big as California’s ought to “set an example globally for enlightened business practice.” In a letter of support, the association cites studies that suggest corporations with female directors perform better than those with no women on their boards.

One University of California, Davis study did find that companies with more women serving on their boards saw a higher return on assets and equity, but the author acknowledges this may not suggest a cause-and-effect.


Source: The Tech Crunch

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