Company:Mad Intelligent Systems, Inc.

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MAD Intelligent Systems, Inc.
TypePrivate
IndustryComputers
FateOperating and IP assets divested
PredecessorMAD Computers, Inc.
Founded1982 (as Mad Computer, Inc.)
Defunct1990
HeadquartersSan Jose, California
Key people
John Nafeh, Chairman & CEO

Stephen J. DePaoli, VP Manufacturing Sandra B. Cook, VP Expert System

John McCarthy, Technical Consultant
ProductsP3200 (80286 processor, private labeled Philips)

D1000 (80286 processor) D3000 (80386 processor)

Expert Systems software

History

MAD Intelligent Systems, Inc. was founded in 1982 as Mad Computer, Inc. by John Nafeh in Santa Clara, CA to develop, manufacture and market IBM compatible microcomputer systems based on the Intel 80186 and 80286 processors. Mad Computer, Inc. discontinued entry level compatible PC production in late 1984 and restructured as MAD Intelligent Systems, Inc. in May 1985[1] and relocated to San Jose, CA to develop "...advanced intelligent systems that integrate state-of-the-art computer hardware with high performance software, based on artificial intelligence ("AI")"[2] The company created a European development and marketing subsidiary, MAD Intelligent Systems GmbH.

Strategy

The company's original strategy was to market the computers to original equipment manufacturers (OEM's) as additions to their respective product lines.[3] The company promoted the modular design of its computers, permitting expansion, along with operating software largely compatible with IBM standard equipment available in the market. The marketing and distribution strategy was to develop OEM alliances to generate significant orders. The company developed a three-year, OEM alliance with Philips International N.V. in 1985 for its computer product line based on the Intel 80286 chip.

The company shifted strategy in 1985 to focus on artificial intelligence, expert systems hardware and software, customized to vertical markets, starting with financial services. The company developed a desktop computer based on the Intel 80386 chip capable of supporting expert systems that applied decision analysis (DA) management sciences.[4]

The company's development strategy was to design and build major components in-house for both the OEM computer focused and AI-expert systems strategy. The company created an operating systems for proprietary version of MS-DOS for computers, called "MAD MS DOS", and proprietary expert system elements, including LISP for integration with its own database and the "shell", or rule interpreter. The company planned to develop proprietary expert system financial services solutions, which included evaluation of export trade support and financial products trading.

Strategic Alliances

The company formed a joint venture with ADS called Ariel Technology, Inc. in late 1984 to develop software and firmware products based on artificial intelligence.[5] The alliance was terminated after multiple Ariel manages and employees resigned. The jointly developed technology was subject to litigation.[6]

MAD entered into a three-year, OEM relationship with Philips N.V. in October 1985. The strategic alliance included Philips's acquisition of MAD's 80286 computer technology, designated P3200, to a wholly-owned subsidiary of Philips, Philips Information Systems, Ltd. of Canada. Philips also committed to partner with MAD on development of financial expert systems for Philips.[7]

Technology [8]

The company planned to develop distinct computational workstation, and artificial intelligence technologies to create a fully integrated, desktop, expert system based decision support system. The hardware designs were based on the Intel 80386 processor to be augmented by a symbolic processing environment. The intelligent systems would consist of a Knowledge Server with gateways to mainframes designed to be linked to networked workstations. The Knowledge server would consist of a Knowledge-Base system and an Inference Engine. The Knowledge Base was intended to contain Heuristic Knowledge, Procedural Theory Knowledge and Factual Data Base Knowledge.

Key People

Management

Dr. John Nafeh- Chairman and CEO - John Nafeh founded MAD Computer, Inc., later MAD Intelligent Systems, Inc., in 1982. He lead development of the first MAD product, the MAD-1 IBM compatible computer. Nafeh has previously formed MultiMedia Video, Inc.[9] to distribute Apple Computer's Apple II in the Middle East and held management positions at General Electric and Fore Aerospace.[10]                      

Stephen DePaoli-  VP Manufacturing- Stephen DePaoli joined MAD in 1983, responsible for manufacturing operations. DePaoli was previously VP manufacturing at Televideo along with manufacturing production engineering management positions at Cromemco, Inc. and Hewlett-Packard.[11]

Expert Systems

Sandra B Cook- Sandra Cook joined MAD in October 1985, responsible for defining and developing artificial intelligence application packages. Cook was previously head of Financial Expert Systems programs at SRI International, after a career in academia at London School of Economics and Wayne State University.[12]

Markets-Financial Services

MAD retained two experts from SRI International to support product development and entry into the financial services market. Mr. James B Lamb was previously head of SRI's Financial Information Systems Consulting Unit and Mr. Paul A Masson was previously head of SRI's Corporate Financial Services Consulting unit.[13]

Scientific Advisory Board[14]

MAD retained four experts from Stanford University in the combined fields of computational science and decision analysis. Dr. John McCarthy was a professor in the Stanford Department of Computer Sciences, and was an early developer of AI concepts, including development the LISP programming language for computing with symbolic expressions. Dr. Ronald A Howard was a company Director and professor at Stanford's School of Engineering, Department of Engineering-Economics, and a leading expert in decision analysis. Dr. David G Luenberger was Chairman of the Engineering-Economics Department with focus on optimization functions and software gained from experience in industry, academia and government. Dr. George Dantzig was a professor in the Standard Department of Operations Research and early developer of linear programming.

Financial Problems and Closure

The company was not profitable for the years 1982 through 1985, accumulating approximately $19 million in total losses. Of this total, approximately $9 million were accumulated losses during the period the company focused on selling IBM compatible computers. Another $10.8 million reported during the 1985 period the company shifted focus to expert systems. [15]

MAD continued financial losses through the operating years 1987 to 1989. The company had developed valuable operating and intellectual property assets, but accumulated debts to vendors that exceeded assets and projected cash flow. The company's three year strategic alliance with Philips NV concluded in 1989. The company had begun negotiations with creditors in 1985, resulting in sale of available assets to settle claims before declaring liquidation in 1990.[16]

See also (per Wikipedia)

·      IBM PC Compatible, https://en.wikipedia.org/wiki/IBM_PC_compatible

·      Original Equipment Manufacturer, https://en.wikipedia.org/wiki/Original_equipment_manufacturer

·      Artificial intelligence, https://en.wikipedia.org/wiki/Artificial_intelligence

·      Decision Analysis, https://en.wikipedia.org/wiki/Decision_analysis

·      Linear Programming, https://en.wikipedia.org/wiki/Linear_programming

·      Expert system, https://en.wikipedia.org/wiki/Expert_system

·      Inference Engine, https://en.wikipedia.org/wiki/Inference_engine

·      Knowledge-Based Systems, https://en.wikipedia.org/wiki/Knowledge-based_systems

·      John McCarthy (computer scientist), https://en.wikipedia.org/wiki/John_McCarthy_(computer_scientist)

·      Ronald A Howard, https://en.wikipedia.org/wiki/Ronald_A._Howard

·      MAD-1, https://en.wikipedia.org/wiki/MAD-1

·      Phillips, https://en.wikipedia.org/wiki/Philips

·      Intel, https://en.wikipedia.org/wiki/Intel

Computer History Museum, https://computerhistory.org/

Association for the Advancement of Artificial Intelligence, https://aaai.org/

SRI International, Artificial Intelligence Center, https://www.sri.com/research/information-computing-sciences/artificial-intelligence-center/

References

  1. ↑ Staff writer (1989), "MAD Intelligent Systems, Inc.". AI Trends: Annual Report 1989 (https://books.google.com/books?id=PcaAQAAMAAJ&q=%22Mad+Computers%22). DM Data Inc. p 248 via Google Books
  2. ↑ MAD Intelligent Systems. Inc.  Private Placement Memorandum, May 1, 1986, Internet Archive xxxx
  3. ↑ Bell, C. Gordon, High-Tech Ventures: The Guide for Entrepreneurial Success, Addison Wesley, Menlo Park, CA 1991, Page 52
  4. ↑ To Be Added
  5. ↑ Ibid MAD Intelligent Systems, Inc., Private Placement Memorandum, "Litigation", Page 25
  6. ↑ Ibid, MAD Intelligent Systems. Inc.  Private Placement Memorandum, Page 25,  Internet Archive xxxx
  7. ↑ Show Report, Comdex, MAD Intelligent Systems Receives Order for D-1000 from Philips, N.V., Australian Personal Computer, February, 1986, Page 73
  8. ↑ MAD Intelligent Systems, High Technology Business, September 1988, Pages 51-52
  9. ↑ Raess, John, "Small computer firm claims Apple targeted it for 'destruction'", July 25, 1984, The Peninsula Times Tribune: B10-via Newspapers.com, (https://www.newspapers.com/clip/116889571/small-computer-firm-claims-apple/).
  10. ↑ Ibid, MAD Intelligent Systems. Inc. Private Placement Memorandum, Page 16,  Internet Archive xxxx
  11. ↑ MAD Intelligent Systems. Inc. Confidential Private Placement Memorandum, May 1, 1986, Page 17,  Internet Archive xxxx
  12. ↑ Joint Venture Set to Use AI Software: Sandra Cook Hired to Head Development, Electronics Week, October 14, 19985, Page 31
  13. ↑ Memo, Strategy for Financial Services Market Entry, Paul Masson, MAD Intelligent Systems, Nov x, 1985.
  14. ↑ Bell, C. Gordon, High-tech Ventures: The Guide for Entrepreneurial Success, Addison Wesley, Menlo Park, CA 1991, Page 52, The Business Plan
  15. ↑ MAD Intelligent Systems. Inc. Confidential Private Placement Memorandum, May 1, 1986, Page 26,  Internet Archive xxxx
  16. ↑ Computer News, March, 1990, Page x



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