IBM presentation at Chief Data Officer Forum Europe 2016

Cognitive Business

Considerations for the CDO

Mark Wall

Partner,

IBM Global Business Services

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Outline

Cognitive Business UK context Considerations for the CDO What’s different about data in Cognitive 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 CDO’s play to increase 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

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

. (2

014)

Govern

ance in

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 CDO: 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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Distinction of Analytics+BI and Cognitive Analytics & BI Cognitive

Data Structured, 4’Vs, metadata,

integration, data movement

Corpus, concept extraction and understanding,

semantics;RDF’s Cognitive API’s & Algorithmics “Just add

data”, interoperability of processes through data

Models ETL, Normalisation, batch,

procedural

Unstructured, analytics as the model, Machine learning

and Natural Language Processing, on-demand, linked

data, federated, information inference

Answers Deterministic, rules driven, data

driven

Probabilistic, data ‘aware’

Impact on

Governance

roles

Stewardship of Data processes

(lineage)

Additional Stewardship of Data Provenance; ability to

explain how the answer was derived on demand at a

particular point in time;

Architectures ETL, EDW, 3NF Ontologies, Data Fabric

Services Reporting, Service Oriented

architecture (SOA)

Decomplet Micro services; Service Enabled Architecture;

Resource Oriented Architecture (ROA) & RDF’s

Ontologies

(relationship of

data to knowledge)

Semantics &

Semantic Web

(relationship of data

to other data)

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CDOs: 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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…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

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

The cognitive era is here. You must be an active participant in it to be a beneficiary of it.

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