How Companies Are Using Cognitive Computing to Drive Tangible Results including information from the 2016 Cognitive Advantage Report: http://www.ibm.com/cognitive/advantage-reports/

1. The Intelligent Enterprise:
How Companies Are Using Cognitive Computing to Drive
Tangible Results
Nancy Pearson
Vice President, IBM Cognitive Business Marketing
October 26, 2016

2. Digital businesses are
disrupting virtually
every industry and
profession.
expect more
competitors
from outside
their industry
54%
of CxOs
2 SOURCE cited in notes
World of Watson
2016

3. +
3
Tomorrow’s disruptors will be organizations
that can converge digital business with a
new level of digital intelligence.
Digital business Digital intelligence
Cognitive business
World of Watson
2016

4. Structured and active Unstructured and dark
Data that’s comingData outside your firewallData you possess ++
4
How you invoke insights from all data
will determine your digital intelligence.
believe cognitive is
essential to data challenges
that conventional analytics
cannot tackle
60%
of early
adopters
World of Watson
2016

5. An organization that creates knowledge
from data to expand virtually everyone’s
expertise, continually learning and adapting
to outthink the needs of the market
5
Digital business +
Digital intelligence
Cognitive business
GROW
KNOWLEDGE
FROM DATA
ENHANCE
EXPERTISE
LEARN AND
ADAPT
World of Watson
2016

6. 6
A cognitive business has systems that can
enhance digital intelligence exponentially.
REASON
They can reason, grasp
underlying concepts,
form hypotheses, and
infer and extract ideas.
UNDERSTAND
Cognitive systems
understand imagery,
language and other
unstructured data
like humans do.
LEARN
With each data point,
interaction and outcome,
they develop and
sharpen expertise, so
they never stop learning.
INTERACT
With abilities to see,
talk and hear, cognitive
systems interact with
humans in a natural way.
World of Watson
2016

7. How are cognitive systems different?
Are not programmed
but pose hypotheses
based on data patterns
and probability
Can see, use and
operationalize
virtually all data
Can understand, reason,
learn and interact with
humans naturally
7
World of Watson
2016

8. World of Watson
20168
How are organizations capitalizing on
the potential of cognitive computing?
We surveyed more than 600
cognitive decision makers
worldwide to discover insights
about cognitive adoption
say they already gain
major competitive
advantage from their
cognitive initiatives
50%
of users
say outcomes
from cognitive
initiatives exceed
their expectations
62%
of users

9. World of Watson
20169
While early adopters
view cognitive as essential,
challenges remain
cite data issues as
a top challenge
• volume
• quality
• integration & conversion
54%
cite insufficient skills as
a top challenge
• computer scientists
with AI skills
• software developers
• subject matter experts
• data experts
54%

10. World of Watson
201610
Early adopters see the
enormous potential
of cognitive, but still
struggle with strategy
and roadmap
say adopting cognitive is
very important to their
organization’s strategy
and success
65%
have a comprehensive,
company-wide strategy
for cognitive (another
41% are developing one)
Only
7%
report they struggle with
a roadmap for adoption46%

11. How will you
get started?
11
World of Watson
2016

12. 12
The journey to cognitive business.
Cloud
Security
Analytics
Mobile
IT Infrastructure
Services
Industry Solutions for
Cognitive Business
Watson
Watson Health
Commerce Solutions
Industry Analytics
Digital business Digital intelligence+
Watson IoT
Watson Analytics
Data as information
Data as insights
Data as knowledge
World of Watson
2016

13. 13
Identify a
problem
to solve.
Cast a vision.
Champion a
new culture.
Assess progress
toward your
desired outcome.
Measure
specific values.
Ensure that your
process
is working, and
iterate as needed.
Assess data
requirements
from internal and
external sources.
Collect, ingest,
curate, annotate
and build out
taxonomies and
ontologies.
Execute a
staged rollout
based on a
simple starter
prototype.
Instrument for
metrics and key
performance
indicators (KPIs).
Prepare people
for new ways of
collaborating
with
technology.
Adapt
processes,
content and
roles as
needed.
Periodically
update
functionality and
training with new
content based on
learnings.
Becoming a cognitive business in six steps
1
Develop your
cognitive
strategy
6
Measure
outcomes
3
Apply
cognitive
technology
4
Engage your
organization
5
Enhance cognitive
capabilities based
on learning
2
Evaluate and
curate data
World of Watson
2016

14. Is someone else defining
your industry?
How much do you lose by not
monetizing your data?
Will your customers leave for
competitors that engage more
personally with them?
What’s the cost of not being
a cognitive business?
14
World of Watson
2016

15. The Cognitive Business
Narrative / 05.18.201615
http://ibm.biz/watsonmedtronic

16. Notices and
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17. Notices and
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18. Thank you
ibm.com/cognitive