ibm at the chief analytics officer forum, europe
TRANSCRIPT
Cognitive Business
Considerations for the CAO
Mark Wall
Partner, IBM GBS
March 2016
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Outline
Cognitive Business UK context Considerations for the CAO What’s different about Cognitive analytics How to begin your Cognitive journey
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Limits to growth: global productivity gap
Source: The Independent newspaper
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As a business leader, what role can CAO’s play to increasing productivity?
Source: http://www.telegraph.co.uk/business/2016/02/26/lord-mervyn-king-why-throwing-money-at-financial-panic-will-lead/ (27 February 2016)
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Views from COO and CEO
Fox, Bob; Ravesh Lala; Owen C. Coelho; Rob van den Dam; and Sandipan Sarkar. “Dialing in a new frequency: Your cognitive
future in the communications industry.” IBM Institute for Business Value. December 2015. ibm.com/
business/value/cognitivecommunications
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Shifting the bell curve
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To outthink challenges, competitors and limits, you must conceive of new opportunities you couldn’t imagine before.
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Example: Applying computer Vision and Speech to Text at scale to reinvent content
Read more: http://uk.businessinsider.com/ibm-watson-and-
ted-talks-2015-5#ixzz3bYHjYiIO
*Source: Floridi, Luciano (2014) The Fourth Revolution:
How the Infosphere is Reshaping Human Reality
“IBM's supercomputer
Watson ingested 2,000
TED Talks & can answer
your deepest questions”
Extracts text from voice and video Linking concepts extracted from speech, video, text..
… to people, ideas, values, emotions and the Infosphere*
… linked and Understood by IBM Watson to Answer your specific questions
http://watson.ted.com/welcome/
Analysing data from sensors embedded in KONE’s
equipment helping to identify and predict issues
Instead of having to send in a service engineer, engineers work with Cognitive analytics to predict and resolve selected technical issues remotely by sensing and deciding on action algorithmically over the Cloud
Reducing downtime, increasing successful outcomes per engineer per day.
Source: Based on a news article originally printed in Fierce Mobile: http://www.fiercemobileit.com/story/ibm-inks-major-watson-iot-deals-finnish-firms/2016-02-19?eid=4437
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Real example of Cognitive Algorithmics: Next time you step into a lift…
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Competitors will continue to accelerate disruption and blur the lines among categories
“The biggest threat is new competitors that aren’t yet classified as competitors.”
—Piotr Ruszowski, chief marketing officer, Mondial Assistance, Poland
expect more competitors from outside their industry, while only 29 percent expect more competition from within their industry.
54% of CxOs
SOURCE cited in notes
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Three- to five-year strategies for CxOs:
They’ll be hampered by limited insights when only:
CxOs sense the opportunity, but are limited by lack of visibility
80 percent are set on being the first
to market with innovation
66 percent plan to focus more
on customers as individuals
81 percent expect to shift to more
digital, virtual client engagement models
51 percent draw on customer
feedback
39 percent draw from adjacent
industries
29 percent draw from blogs and
social media sites
SOURCES cited in notes
Data that’s
coming
Customer records
Transactional systems
Predictive models
Institutional expertise
Operational systems
News
Events
Geospatial
Weather
Social media
Internet of Things
Sensory data
Images
Video
Data outside
your firewall
Data you
possess +
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+
Your digital intelligence is your competitive advantage
Structured and active Unstructured and dark
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Think of all that has been
accomplished using only
a fraction of the
available data
Unlock the
possibilities.
Only cognitive unlocks the potential in all data
What answers lie in the 88% that is dark?1
By the year 2020, about 1.7 MB of new information will be created every second, for every human being on the planet.2
SOURCES cited in notes
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Cognitive systems are fundamentally different from what you have today
Adapt and make sense of all data;
“read” text, “see” images and “hear”
natural speech with context
Understand
Reason Interpret information, organize it and
offer explanations of what it means,
with rationale for the conclusions
Learn Accumulate data and derive
insight at every interaction,
perpetually
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Add completely new abilities to your business technologies
Programmable computing responds to requests and makes determinations, analyzing data according to predefined parameters.
Cognitive
systems interact with humans
naturally to interpret data,
learning from virtually every
interaction and proposing
new possibilities through
probabilistic reasoning.
Shift technology’s role
from enabler to advisor
Cognitive business The next evolution of human
and systems capabilities, where technology enhances, scales and
accelerates human expertise
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Enhance, scale and accelerate human expertise to empower all people, all roles.
Go beyond analysis to
hypothesis, conclusion and
action—in weeks instead of
months or years
Collate decades of knowledge and
data to create an evidence-based,
virtual advisor and elevate entire
teams to the level of your best experts
Teach your system to learn and
uncover patterns and insights
from all kinds of information
such as research data, images
and notes
Build workflows that can be coached
by humans to grow ever more effective,
safe or productive with each interaction
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INTERACT
SENSE
Ontologies
Knowledge graphs
Concept Extraction
Semantic Web
DECIDE
So
urc
e:
Adapte
d f
rom
Colli
ns,
R.
(2014)
Govern
ance i
n the a
ge o
f B
ig D
ata
–A
Poin
t of
Vie
w (
IBM
GB
S)
UNDERSTAND & INFER
Role of Cognitive
Learn
ing fro
m in
tera
ctio
n
Manage
Cognitive
Considerations for the CAO: The role of analytics, BI and cognitive in performance management
UNDERSTAND &
DECIDE
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The role of analytics, information in Cognitive Business • Analytics objective: “Better” decision making leading to better business outcomes
• Cognitive is different
• scales the organization aptitude for total and instant recall of all available knowledge
• Supports real time decision making and learning across the Enterprise in discursive interactive
manner: Natural Language Processing + Machine Learning
• Influence decisions directly inside the process or longer term exploration and discovery to allow the
improvement of processes
• Cognitive capability is a learning capability.
• Analytics is Determinative in decision making (prescriptive analytics)
• Cognitive tends to influencing “soft” human expert decision processes either individual or
collective.
• Quality of the decision depends on the quality of the data and information used and the power of the
analytic test or technique used
• Not only do business need to understand how information and analytics support decision making and
risk taking but increasingly need to justify this to regulators and others
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Role of Analytics, BI and Cognitive. Analytics & BI Cognitive
Data Structured, 4’Vs, metadata, Corpus, concept extraction and understanding, semantics;
Cognitive API’s & Algorithmics “Just add data”
Models ETL, Normalisation, batch,
procedural
Unstructured, analytics as the model, Machine learning
and Natural Language Processing, on-demand, linked
data, federated
Answers Deterministic, rules driven Probabilistic, data driven
Impact on
Governance
roles
Stewardship of Data processes
(lineage)
Additional Stewardship of Data Provenance; ability to
explain how the answer was derived on demand
Architectures ETL, EDW, 3NF Ontologies, Fabircs,
Services Reporting, Service Oriented
architecture (SOA)
Micro services; Resource Oriented Architecture (ROA)
Ontologies
(relationship of
data to knowledge)
Semantics &
Semantic Web
(relationship of data
to other data)
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CAOs: Expanding Role of Metadata Governance
Traditional
Metadata
(about data
points)
Business Rules
Automation
• Inference
• Linking of information algorithmically: analytics as the model • Resolving entities
External standards
External Information
Open Data
APIs
Other company/industry data
Regulatory Data Provenance is key
Real-time, streaming, batch and data at rest
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CAO’s need to govern many different analytics and info types
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Design Thinking: People-oriented methods
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…Predictive analytics weaved together with Cognitive analytics to personalize and enhance the experience
Customer
Segmentation
Action
Clustering
Personality
Analytics
Sentiment
Analytics
Image
Recognition
Next Best
Action
Predictive Analytics Cognitive Analytics
Internal Data Syndicated Data Social Data Device Data
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Today’s industry leaders recognize the gap in their organizations’ abilities
50% say available data limits
confidence in strategic
decisions
95%
plan to invest in cognitive
Healthcare
SOURCES cited in notes
believe they can’t
deliver on consumer
expectations
94%
plan to invest in cognitive
Retail
60% 30% say the quality of data is
insufficient for business
model innovation
98%
plan to invest in cognitive
Insurance
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Seize opportunities for disruption before your competitors do
Amplify knowledge, reimagine workflows
Transform the enterprise
Co
gn
itiv
e B
usin
ess
Accelerate learning and scale expertise
Institute processes and operations with learning built in
Deepen relationships through interactive, personal engagement
Develop applications, products and services that read, see, talk, hear and learn
Discover and explore intelligently to unlock new business models and accelerate evolution
Become indispensable to users and customers
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The vision
Improve the accuracy of supply
chain forecasting with a deeper
understanding of how weather,
local events, and social media
can predict customer behavior
The disruption
Hyper-localized insights that are
now built into supply chain models
A retailer Creating a cognitive supply chain
The result: Decreased demand-forecasting errors by 50 percent
Supply chain
operational data
The Weather Company
Local events
IBM Watson
APIs + +
Amplify knowledge, reimagine workflows
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The vision
We can improve the effectiveness
of Bumrungrad oncologists
overloaded with patients and
strapped for time to customize
treatments based on the latest
medical research.
The disruption
The expertise of the very best
oncologists from Memorial Sloan
Kettering is now in the hands of
physicians.
Amplify knowledge, reimagine workflows
Bumrungrad International Hospital Elevate the ability of physicians
The result: More than one million patients received more
informed, personalized treatment plans.
Patient data Memorial Sloan Kettering
cancer expertise
IBM Watson for
Oncology + +
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Baylor College of Medicine Accelerate disease treatment research
The vision
We can identify a new path for
generating scientific questions
to accelerate the development
of new, effective treatments
for disease.
The disruption
Watson technology assisted
researchers by reading 70,000
scientific articles to find new
proteins that could be helpful in
the fight against cancer.
Baylor Knowledge
Integration Toolkit
Medical
journals
IBM Watson
Discovery Advisor™ + +
The result: Seven new proteins were identified in less time than it
historically took to discover one.
Transform the enterprise
Give workflows cognitive capabilities
Data
IBM Watson Developer Cloud
IBM Bluemix®
IBM Watson Ecosystem
Build cognitive applications today with Watson APIs
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Data
IBM Cognitive Business Solutions
Watson Engagement Advisor
Watson Health
Watson Discovery Advisor
IBM Power Systems™ and Storage
IBM Global Technology Services
Construct a cognitive system
Activate cognitive technology in your business with the right ingredients
Hybrid Cloud Infrastructure (SoftLayer®, IBM Systems)
Security Intelligence (QRadar®)
Data
IBM Marketing and Commerce clouds
IBM advanced analytics solutions
Partner apps, Powered by Watson
IBM Internet of Things Foundation
Watson Explorer
IBM Global Business Services
IBM Global Technology Services
Pick your
starting point
Evaluate and curate
data and knowledge
Ready your
organization
Apply cognitive
technology
Enhance
and expand
“I want to become
indispensable to
users and
customers.”
Build cognitive apps today
with Watson APIs
Select the appropriate Watson
APIs to build your cognitive
app; identify the knowledge
and content to form a
knowledge base - collect both
internal and external data
sources.
Configure and train new
cognitive applications.
Test and validate your new
cognitive app through
end user engagement.
Validate usage benefits.
Deploy and expand to other
domains across the
organization.
“I want to amplify
knowledge and
reimagine
workflows.”
Give workflows cognitive
capabilities
Locate and curate data;
identify gaps and prepare for
integration with existing
systems.
Define the community and
implementation plan –
emphasizing the new
value from cognitive
workflows.
Deploy and manage, while
driving usage and iterative
learning.
Decide if the cognitive
workflow you’ve deployed
creates new opportunities for
further development and
adoption.
“I want to transform
the enterprise.”
Construct a cognitive
system
Complete formal strategy
assessment. Collect, ingest,
curate, annotate and build out
enterprise-wide taxonomies
and ontologies.
Adopt and invent all-new
processes, content and roles
that will enable you to think
and act differently in a
cognitive era.
Define and execute
staged roll-out. Instrument
metrics and KPIs.
Collect and address metrics
and KPIs. Periodically update
functionality and training to
tune for new content. When
ready, deploy and expand to
other domains.
Assess your
foundation Data Development
Hybrid cloud
infrastructure Security Education
Develop your
cognitive strategy
Identify a problem to
solve that will lead to
critical breakthrough
opportunities.
Cast a vision. State a
clear use case, secure
executive support,
plan for adoption and
deployment.
Champion a new
culture. Prepare
people for new ways of
collaborating with
technology.
How to begin your cognitive journey
IBM cognitive landscape The world’s largest collection of cognitive capabilities
IBM Watson offerings
Domain solutions designed to elevate
expertise, redefine engagement, and
drive discovery and exploration
Watson Engagement Advisor
Watson Discovery Advisor
Watson Explorer
Watson Analytics
IBM Bluemix
Develop and extend cognitive capabilities
available for new applications and help
drive successful innovation.
Watson Developer Cloud
Watson APIs
Watson SDKs
Watson Ecosystem
IBM Watson Designed and created
for cognitive
Watson Edition Optimized for the delivery of
cognitive technology
Powered by Watson IBM industry and domain solutions
that embed Watson APIs to
significantly improve results and
change engagement
IBM Watson apps
IBM-developed applications that
showcase the capabilities of
Watson to deliver a unique
experience
IBM Watson Trend
Chef Watson™
Ecosystem solutions
Third-party applications that embed Watson APIs
IBM products, services and solutions
IBM Cloud
IBM Global Technology Services
IBM Security
IBM Systems
IBM Cognitive Business Solutions
Consulting solutions to accelerate client journeys to cognitive business.
Cognitive Value Assessment
Cognitive Strategy and Roadmap
IBM Global Business
Services®
IBM cognitive-enabled solutions
and infrastructure
IBM Analytics
IBM Commerce
IBM Security
IBM Global Technology Services®
IBM Internet of Things Foundation
Let cognitive abilities take root to set disruption in motion.
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“IBM’s Watson is already being used to apply cognitive computing in a wide range of industries and technologies, from education to banking to winemaking to urban planning, and so much more.” Fast Company
“Cognitive everything—by 2018, over 50 percent of developer teams will embed cognitive services in their apps (versus 1 percent today), providing U.S. enterprises with over USD$60 billion in annual savings in 2020.” IDC
“We wanted it to be more personal and intuitive with natural language…. the results change dramatically as more questions are asked. And customers can ask questions which would not be possible with filters.” Cal Bouchard, The North Face
SOURCES cited in notes
Outthink boundaries and unleash new opportunities with IBM
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IBM Watson portfolio
IBM strategic and data partnerships
IBM Watson Ecosystem
IBM Watson Developer Cloud
IBM cognitive expertise and research
The cognitive era is here. You must be an active participant in it to be a beneficiary of it.
@FastBigData 35
Welcome to the cognitive era
Join us on the journey
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Trademarks and notes
IBM Corporation 2016
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