The Future Is Now: Edward Scott Of ElectrifAi On How Their Technological Innovation Will Shake Up The Tech Scene
An Interview With Fotis Georgiadis
Focus — you cannot be all things to all people. You need to solve client pain points better, faster, and cheaper than the alternative.
As a part of our series about cutting edge technological breakthroughs, I had the pleasure of interviewing Edward Scott.
Edward Scott is the CEO of ElectrifAi, a leading US-based machine learning software company serving Fortune 500 and mid-sized enterprises. Ed has over 25 years of experience in the technology and private equity sectors. Ed started his career in Drexel Burnham Lambert and joined the Apollo Investment Fund in 1990. Ed was a partner at the Baker Communications Fund and held senior-level positions at Napier Park Global Capital and White Oak Global Advisors. Ed graduated from Columbia University and earned an MBA from the Harvard Business School with second-year honors.
Thank you so much for doing this with us! Can you tell us a story about what brought you to this specific career path?
I started my career at Apollo and got heavily involved in TMT. That experience led me deeper into tech and helping to invest in and build Akamai and ultimately building Europe’s largest data center business called InterXion. And then finally to machine learning and computer vision at ElectrifAi where we help companies solve enterprise problems with data and pre-built machine learning software solutions.
Can you share the most interesting story that happened to you since you began your career?
It’s a collection. I have had the great fortune to work in the energy patch, mining industry, private equity industry, and technology industry. This has provided a great perspective. I have seen how these businesses work operationally from the ground floor and how automation, data, computer vision, and machine learning can help these and many other firms optimize quickly and drive margin improvement and cash flow creation.
Can you tell us about the cutting edge technological breakthroughs that you are working on? How do you think that will help people?
We are helping “productize” machine learning software solutions primarily for Tier 1 and Tier 2 companies that struggle with data. We help them turn data into a strategic weapon to solve basic enterprise problems (drive more revenue, cut costs, and optimize operations). We have automated the data and machine pipelines and brought to the market relevant pre-built machine learning software solutions that are easy to deploy in any cloud environment or on-premise if necessary. These pre-built solutions leverage all of the domain expertise we have captured dealing with large, global Tier 1 companies over the years in multiple verticals. The Tier 2 can take advantage of the same solutions as the big players and turn their data finally into a competitive weapon. Think about it as productizing machine learning.
How do you think this might change the world?
Tier 2 companies face an existential moment. Become a data-driven organization or face falling even further behind competitively or worse — perish. The trouble is how to achieve this given a world where data engineers and data scientists are in short supply or when your organization struggles with data engineering, data quality and machine learning. We have scaled those mountains, so our clients don’t have to. Clients can leverage our data expertise and automation, vertical domain knowledge, and pre-built machine learning software solutions.
Keeping “Black Mirror” in mind, can you see any potential drawbacks about this technology that people should think more deeply about?
I don’t. Our solutions are based on open source, and we show clients exactly how and why our solutions work. No black boxes.
Was there a “tipping point” that led you to this breakthrough? Can you tell us that story?
We saw Tier 1 companies struggling with data: data acquisition, data relevance, data quality, model creation, performance, accuracy deployment, monitoring, and management. These are the foundations that drive downstream ML performance and accuracy. And we felt if the Tier 1 players struggled, then the lift in Tier 2 must be extraordinary indeed. That’s when the light bulb went off to productize and automate this as much as possible and help the Tier 2 accelerate and catch up.
What do you need to lead this technology to widespread adoption?
A compelling value proposition: We will solve your basic business problems (top-line growth, cost reduction, and operational optimization) leveraging data (first party and third party), automation of the data pipeline, domain expertise, and pre-built machine learning solutions. All in 6–8 weeks. It’s all about compelling ROI and time to value. Our clients need results now and cannot afford to suffer long, expensive engagements associated with large systems integration firms.
What have you been doing to publicize this idea? Have you been using any innovative marketing strategies?
Starting with Medium and other world-class outlets. Let the customer success stories do the talking.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
My father taught me the value of discipline and hard work. He started as a professional hockey player who grew up in very modest circumstances in Bay Ridge, Brooklyn. Imagine that. Tough guy but humble. He persevered despite trying circumstances, got a hockey scholarship to a D-1 school, and played professionally for a short time before heading to law school and business — ultimately becoming a senior executive at one of the US’ largest life sciences firms. He taught by example: perseverance, humility, and loyalty. Other than that — all the original leaders of Apollo (current and former). And finally, Michael Hoffman (Smith Barney, Blackstone, and Riverstone). All tough, fair, and incredible mentors. Friends still to this day.
How have you used your success to bring goodness to the world?
I tutored math and science in the Bronx as part of the City Squash program. 1–2x per week focusing on the kids who had little confidence and whose families were struggling. I prioritized this over my busy travel schedule at a p/e firm. Very rewarding. All the kids I worked with got scholarships and that’s on to college.
What are your “5 Things I Wish Someone Told Me Before I Started” and why.
1. Focus — you cannot be all things to all people. You need to solve client pain points better, faster, and cheaper than the alternative.
2. Focus on cash. Cash is the oxygen of any firm. Companies that control their destiny survive.
3. If something isn’t working, tear the problem apart using First Principles to find a better way and don’t be afraid to pivot.
4. Hire the best people and get out of the way.
5. Stay humble.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
The next great entrepreneurs will come from unexpected places, not the wealthy zip codes or the fancy Ivy League colleges. Sorry, Harvard and Columbia! We need to bring an understanding of data and coding into the grade schools at very early stages, prioritize and let the creative process begin. The future of the US depends on it.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
“Sell your cleverness and buy bewilderment” (Jalaluddin Rumi 13th C). The basic point is to embrace curiosity and lifelong learning. In other words, always be inquisitive and humble.
Some very well-known VCs read this column. If you had 60 seconds to make a pitch to a VC, what would you say? He or she might just see this if we tag them :-).
We provide pre-built machine learning and computer vision software solutions that solve basic enterprise problems around demand forecasting, Dynamic Pricing, Spend Optimization, Contract NLP, Customer Engagement (new client acquisition, retention and product cross sell up sell etc.). This is high margin Annual Subscription (ARR) model. We drive operating leverage by (i) going to market mainly through GSI, cloud, platform, RPA, BPM and consulting partners, (ii) focusing on certain verticals, and (iii) re-using solution IP across the globe. We do this today for large global Tier 1 financial services firms, retailers, manufacturers, energy and petrochemical firms, and universities. We are now bringing this same capability to global Tier 2 firms. This is a very large market. Tier 2 firms understand the importance of data but lack the necessary data engineering and data science resources to realize the benefits of data and machine learning and to become a data driven organization. We can help the Tier 2 firms to cross this data chasm and accelerate with pre-built machine learning solutions. And we can leverage our data expertise to show them how to build data pipelines, focus on relevant data, and establish clean data consistently. It’s all about time to value and high ROI. Our solutions plug into any data platform and are deployable in any cloud or as part of any RPA or BPM orchestration. Becoming data-driven shouldn’t be so daunting for companies. We help make that a reality. And we are free cash flow break even. As one large VC in CT said to me: “free cash flow break-even? We haven’t heard those words in 10 years”. 😊
How can our readers follow you on social media?
https://www.linkedin.com/in/edward-scott-74354923/
Thank you so much for joining us. This was very inspirational.
The Future Is Now: Edward Scott Of ElectrifAi On How Their Technological Innovation Will Shake Up… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.
