Becoming a Cognitive Business Tim GreisingerVP, Cognitive Solutions, ASEAN@TimGreisinger

© 2016 International Business Machines Corporation 1

The biggest taxi companyowns no cars.

The largest accommodation companyowns no real estate.

The biggest media companyowns no content.

The largest retailercarries no inventory.

Disruption is upon us.

This disruption is fueled by three forces

The power ful c apabi l i t i es and

outc omes brought on by c ogni t i v e c omput ing.

The abi l i t y t o bui l d bus ines s i n c ode

wi th t he API ec onomy.

The prol i f erat i on of di f f erent t y pes of data.

What is Cognitive Computing?

Three capabilities differentiate cognitive systems from traditional programmed computing systems…

ReasoningThey reason. They understand underlying ideas and concepts. They form hypothesis. They infer and extract concepts.

LearningThey never stop learning getting more valuable with time. Advancing with each new piece of information, interaction, and outcome. They develop “expertise”.

UnderstandingCognitive systems understand like humans do.

…. allowing them to interact with humans.

How Watson Learns….

Becoming a Cognitive Business

• Deeper Engagement

• Scale Expertise

• Change Products & Services

• Change Operations

• Evolve Research & Discovery

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Deeper Engagement

SoftBank has infused Watson into their "empathetic" robot Pepper, enabling it to understand and answer questions in real time, opening up new possibilities for the use of robotics in business scenarios such as banking, retail and hospitality.

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Deeper Engagement – Banking Agent

CONFIDENTIALhttps://www.youtube.com/watch?v=c91UwLDipkU

Deeper Engagement - Hospitality

Hilton Hotel and IBM Watson teamed up to pilot a smart robot, dubbed Connie, that will act as a hotel concierge, answering guests' questions and learning as it works. Connie is designed to interact with hotel guests and answer questions about hotel amenities, local attractions and dining options.

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Deeper Engagement - Hospitality

Go Moment, a Watson ecosystem partner, launched Ivy—a guest engagement platform—to help hotels anticipate and react to service failures, welcome guests, measure and help staff improve satisfaction and deliver instant service.

Results: Ivy is on track to serve 20M hotel guests in 2016.

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Deeper Engagement - Retail

Deeper Engagement - Citizens

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Deeper Engagement - Students

Deployed an always-on one-stop personalized service that aggregates essential information for every student –to help students to get instant answer on all queries around Student Services Trained entirely by students to ensure Watson understands the ‘student voice’.Online access through the web and mobile devices for 50,000+ students.

Scale Expertise

Watson for Oncology is trained by the best doctors and can also read medical notes, MRIs and scientific research.

Results: Doctors from BumrungradInternational Hospital use Watson to bring the world’s best expertise to 1M+ patients in S.E. Asia.

Scale Expertise – Watson for Oncology

Scale Expertise – Visual Intelligence

Scale Expertise – Video Intelligence

Scale Expertise – Educating Children

Scale Expertise

Australia’s largest independent oil and gas producer leveraged IBM Watson to create a cognitive advisory service called “Lesson Learned” which pulls together decades of engineering data from numerous sources including testing, projects and messages and makes it accessible to a wide group of employees.

Scale Expertise

BeforeWatson

DecisionmakingDaysofmanualkeywordsearchesthroughthousandsofdocuments

ExpertiseAvailabilityExpertiseandhistoricalreferencesisolatedwiththemostexperiencedengineers

CulturaltransformationKnowledgebaselostwithemployeeretirement

AfterWatson

DecisionmakingInseconds,evidence-weightedinsightsfromover20Kdocuments

ExpertiseAvailabilityOver30yearsofexpertiseatthefingertipsof1000+engineers/staff

CulturaltransformationCorporatememoryandlegacyofexpertsemergedwithopenaccessforall

Scale Expertise

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Medtronic and IBM took 600 past patient cases and applied cognitive analytics to the data from Medtronic insulin pumps and glucose monitors. Watson was able to predict hypoglycemia –extreme low blood sugar – up to three hours in advance of onset —early enough so a person with diabetes could take action to prevent a potentially dangerous health event.

Change Products and Services

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u Medtronic will use IBM’s Watson to predict hypoglycaemic events up to 3 hours in advance

u Using the Medtronic App to interact with patients on meals eaten, planned meals and the impact they will have on blood sugar levels

u Enabling artificial pancreas to anticipate changes in blood sugar levels, to then pause or release insulin or glucagon to prevent glycaemic episodes

u Pull in EMRs, health insurance claims, population health data to analyze patterns and predict risks

u Data will be stored anonymized in IBM’s Watson Health Cloud

Change Products and ServicesMedtronic: Predicting hypoglycemic events up to 3 hours in advance

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Change Products and Services

Change Products and Services

• UnderArmour will use IBM’s Watson to serve as a Cognitive Coaching Assistant

• Using the UA Record App, users can compare health and fitness insights with more than 45M people in the database

• Insights will originate from three sources: UA Connected Fitness community, academic research and IBM Watson similarity analytics

• The combination of Watson’s learning and UA user community data has opportunity to offer unprecedented value

• New Watson powered capabilities will include behavioral and performance management, nutrition management and weather and environmental factors

Creating a personalized health consultant

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Elemental Path, a Watson ecosystem partner, developed Cognitoy, a dinosaur toy, that answers its playmate’s questions, and even learns their sense of humor by listening to and adapting its personality to play differently with each child.

Results: Cognitoy is able to take on a unique personality that evolves over time based on the child’s interactions and helps her learn rhyming, spelling, vocabulary, mathematics and more.

Change Products and Services

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Change Operations

• Single point of access to all unstructured content repositories with seamless security

• Expertise location

• Greater visibility into the supply chain for partners, suppliers & employees

• 80,000+ Airbus Internal• 40,000+ External Users• Dozens of Data Sources

“Reduced Call Resolution Time from 50 min. to 15 min = $36M in Savings”

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Evolve Research and DiscoveryBaylor College of Medicine used Watson to help analyze 70,000 scientific articles identified from 23M candidate documents. In just a few weeks, the Baylor Knowledge Integration Toolkit (KnIT), powered by IBM Watson, accurately targeted seven proteins that modify p53, an important protein related to many cancers.

Results: This type of discovery has typically taken the entire life science industry seven years to accomplish before Watson.

Future Innovations

Humans exce l a t:

Dilemmas

Compassion

Dreaming

Abstraction

ImaginationMorals

Generalization

Cognitive Systemsexce l a t:Common Sense

Natural Language

Locating KnowledgePattern Identification

Machine LearningEliminate Bias

Endless Capacity

Cognitive systems forge a new partnership between man and machine.

Man and machine collaboration

Watson’s Core Strengths

2. Deep sensory capabilities -in language, vision and speech. Watson is unique in its custom visual learning capabilities.

3. Emotional reasoning.We are far ahead of competitors in an AI approach which has both emotional intelligence and intellectual intelligence. We have developed unique ways in which machines can interpret emotion, tone and personality

1. Our approach to client data. We have the only model that allows clients to build their own AI vs contribute their data to a central knowledge graph. We work with enterprises and organizations who need to keep their most critical information private and proprietary.

4. Leveraging the rest of IBM. IBM has unique assets for developers and organizations who want to extend their lead in the cognitive era. GBS and S&D are huge advantages as clients build specialized AI that is unique to clients and industries.

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Relationship Extraction

Questions&

AnswersLanguageDetection

PersonalityInsights

Keyword Extraction

Image LinkExtraction

Feed Detection

VisualRecognition

Concept Expansion

ConceptInsights

Dialog Sentiment Analysis

Text to Speech

Tradeoff Analytics

Natural LanguageClassifier

Author Extraction

Speech toText

Retrieve& Rank

WatsonNews

LanguageTranslation

EntityExtraction

Tone Analyzer

ConceptTagging

Taxonomy

TextExtraction

MessageResonance

ImageTagging

FaceDetection

Answer Generation

Usage Insights

Fusion Q&A

Video Augmentation

Decision Optimization

Knowledge Graph

Risk Stratification

Policy Identification

Emotion Analysis

Decision Support

Criteria Classification

Knowledge Canvas

Easy Adaptation

Knowledge Studio

Service

Statistical Dialog

Q&A Qualification

Factoid Pipeline

CaseEvaluation

The Watson that competed on Jeopardy! in 2011comprised what is now a single API—Q&A—built on five underlying technologies.

Since then, Watson has grown to a family of 28 APIs.

By the end of 2016, there will be nearly 50 Watson APIs—with more added every year.

Natural Language Processing

Machine Learning

Question Analysis

Feature Engineering

Ontology Analysis

Cognitive Services via Watson API’s

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Try it Out!

https://www.ibm.com/smarterplanet/us/en/ibmwatson/developercloud/starter-kits.html

Sentiment and Emotion

Personality Insights Concept Insights

News Explorer

36 36

45Countries

50,000Studentsin Melbourne

5.5MCitizensin Singapore

5LanguagesLearned by Watson

200Universitiesoffering Watson courses

500+PartnersPowered by Watson

1.1MPatientsat Bumrungrad

20Industries

80KDevelopers building with Watson

As the Watson technology evolves and deepens, so are the ways it’s being put to work in the world.

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530Partners with developed cognitive applications

150Partner applications in market

100+Universities offering IBM Watson cognitive courses

28Cognitive Serviceslaunched

80,000Developers using Cognitive Services on Bluemix

1B+API Calls per Month

"Woodside to tap into IBM's Watson” - CIO

"IBM’s Watson Now Powers AI For Under Armour”- TechCrunch

"SoftBank's Pepper robot is getting an intelligence boost from IBM's Watson”- The Verge

"Medtronic, IBM team up on diabetes app to predict possibly dangerous events hours earlier.”- The Washington Post

"IBM’s Watson Helped Pick Kia’sSuper Bowl ‘Influencers’”- Wall Street Journal

"How Can I Help You? IBM's Watson Powers Hilton's Robotic Concierge"- Fast Company

"IBM and Apple can put Watson's A.I. insights inside Apple Watch”- ComputerWorld

"Thomson Reuters to deploy IBM Watson technology”- InfoTechLead

"IBM's Watson Lands A Job With KPMG.” - InformationWeek

"The North Face Uses IBM's Watson to Make Online Shopping Smarter" -The Street

Watson at work in the world

Watson at work in the world.

Cognitive is the newcompetitive advantage.