©2017 IBM Corporation1

Becoming cognitiveHow cognitive technologies redefine engagement, innovation and transformation

Fast start in cognitive innovation

Gaurav Trikha, Executive PartnerFinancial Services LeaderCentral & Eastern Europe

IBM Global Business Services

©2017 IBM Corporation2

Cognitive systems are generally defined by the ability to understand, reason, learn, and interact

UNDERSTAND

Cognitive systems can understand unstructured information the same way humans do

REASON

They can reason, grasp underlying concepts, form hypotheses, and infer to extract ideas

LEARN

Each data point, interaction and outcomehelps to continuously sharpen expertise

INTERACT

With abilities to see, talk and hear, cognitive systems interact with humans in a natural way

Definition of Cognitive Technologies

©2017 IBM Corporation3

These systems are well suited to provide insights using complex and volatile data

DATA

How to keep up with the mountains of contextual data available to you, even when most of it is unstructured in format

COMPLEXITY

How to overcome and solve for great complexity by giving the skill and knowledge of the informed few to the empowered many

VOLATILITY

How to stay ahead of the ever-changing expectations customers have for what’s possible, leading your market segment in new ways

Cognitive Capabilities for Businesses

©2017 IBM Corporation4

IBM surveyed 6,050 respondents to gain insights into their use and understanding of Cognitive Computing around the globe

2,080Asia Pacific

Europe

1,967North America

877

South America

451

Middle East

& Africa

675

Global Distribution of Survey Respondents

©2017 IBM Corporation5

Financial outperformers see the transformative value of Cognitive Computing 2-3x more than underperformers

And are more ready to embrace it

Financial outperformers believe that Cognitive Computing is the future

33%

41%

36%

89%

88%

81%Cognitive Computing will be a disruptive force in our industry in the next three years

Cognitive Computing will play an important role in the future of our organization

Industry is ready to adopt Cognitive Computing

Organization is ready to adopt Cognitive Computing

34%

37%

87%

88%

Cognitive technology is mature and market ready

Financial Outperformers Financial Underperformers

Understanding of the Power of Cognitive by Financial Outperformers

QCA7 Please indicate to what extent you agree with the following statements. Rate on a scale of 1 to 5, where 1 = strongly disagree and 5 = strongly agree. *Respondents who gave a 4 or 5 (where 5 is significantly above peers) to self assessment performance questions on revenue and profitability(or effectiveness and efficiency) N = 5060 (Global) N=734 (Outperformers) N=2021 (Underperformers)

Financial outperformers are market leaders in innovation

22%

Underperformers

95%

Outperformers

Innovation

compared to

your industry

©2017 IBM Corporation6

Cognitive Innovators seek greater value from their cognitive projects

They are investing more They expect greater returns

8%

4%

CognitiveInnovators

All others

Percentage of IT spend on cognitive (Today)

21%

14%

CognitiveInnovators

All others

ROI expected to justify a cognitive initiative

Cognitive Innovators have a

3xhigher anticipated ROI than

all others

And seek greater value

Investment and Expectation of Returns by Cognitive Innovators

QCA16. What percentage of your organization's IT spend is dedicated to cognitive computing this year?QCA12. What Return on Investment (ROI) would your organization expect to justify a cognitive computing initiative?N=581 (Cognitive Innovators) N=5,469 (All others)

©2017 IBM Corporation7

Cognitive is underpinned by many advanced technologies and has the power to transform business

Artificial intelligenceSimulation of human intelligence processes

Robotics

Conception, design, manufacture, and

operation of robots

Machine learning

systems

Ability to learn and improve without explicit

instructions

Natural language

processing

Ability to understand human speech as it is spoken

Deep

learning

Machine learning with artificial neural network algorithms

Predictive

analytics

Predicting outcomes using statistical algorithms and

machine learning

Recommendation

engines

Analyze data and suggest something as

per user’s interest

Cognitive Technologies

Create new ways of interacting with

customers

Reveal more powerful on-demand business

insights through real-time access to data

Enable business model – and ecosystem –

transformation

Business Value

Impact of Cognitive on Business

©2017 IBM Corporation8

The ability to understand and learn with every interaction provides opportunities to reinvent client engagements

90%accuracy

expected for FAQs

up from 65%

A Japanese telecommunications provider is enhancing its

robot product to engage with customers at retail outlets

A large Brazilian bank automates its contact centers as

part of its growth strategy

Case Studies

http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-A8AA6M&appname=crmdhttp://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-ABNUWX&appname=crmd

Leverages cognitive for its Salesforce to interpret natural-language queries

Returns increasingly accurate answers from structured and unstructured data

USD 710 million

in new sales

revenue expected

Fuels innovation

for sustained

growth

Improve agent

satisfaction

tremendously

~70%accuracy

achieved for written

queries

~70%accuracy

achieved for spoken

queries

Adopted cognitive self learning technology to interact with agents through spoken & written inquiries

First anywhere in Portuguese as part of its process transformation

©2017 IBM Corporation9

Streamlining and accelerating the process of filtering complex data help deliver contextually accurate insights

95%increase in

outage event

detection accuracy

An oil and natural gas producer in the USA leverages

machine learning algorithms to increase overall productivity

An e-learning company applies AI to enhance its

capabilities to detect data security threats

Case Studies

Incorporated self correcting machine learning algorithms to automatically build rules

These rules identify if changes in vibration patterns, pressure etc., are true anomalies

Reduced production

outage through more

accurate analysis of

equipment sensor data

Improved

productivity

through actionable

insights

Removed many manual processes

Saved 20% -50%

of time spent

on security tasks

1 million malicious

IP addresses were identified

Adopted cloud based cognitive analytics solution that applies artificial intelligence

Uncovers trends and patterns to deploy defense mechanism against any new threat

http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-ABDQEU&appname=crmdhttp://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-9ZRMKH&appname=crmd

©2017 IBM Corporation10

Ability to generate robust insights, which were not possible earlier, drives disruptive business models

Improves company’s

competitiveness in

the Chinese market

A Chinese automobile manufacturer is applying self learning

cognitive models to reduce air pollution

A European cancer treatment institute is leveraging

Natural Language Processing to gain new insights

Case Studies

Streaming analytics and mapping techniques are fused with self learning cognitive models

Generate actionable recommendations on reducing air pollution exposure

Creates new revenue

streams by encouraging

customers to purchase

air quality sensors

Improves quality of

life for drivers by

providing actionable

recommendations

Improves likelihood of successful outcomes

Huge potential to eliminate unnecessary treatments

Reduction in overall cost of the treatment is expected

The institute uses NLP algorithms to pull an enormous amount of unstructured data

Uses semantic analysis to understand clinical and patient-specific treatment data

http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-AAGC3S&appname=crmdhttp://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-AA3TPP&appname=crmd

©2017 IBM Corporation11

How do you get started with cognitive innovation?

Pick a Challenge

Leverage Design Thinking and

Agile approaches to develop

meaningful use cases

Identify business outcomes for

use cases

Articulate impact to user

experience

Prove it FastIdentify right data sets to

solve the challenge

Demonstrate value, in

terms of benefits and

outcomes, early and

often

Create a series of

periodic demonstrable

playbacks and

prototypes

Plan the ProgramDevelop a roadmap for the

organization

Set milestones for success

during the cognitive journey

Train and educate teams on

how Cognitive solutions

work

Develop a Center of

Competency to build

awareness, skills and best

practices

Secure Buy-in from

stakeholders

Measure the

Outcomes

Create project scorecards

to monitor the program

Listen, iterate, learn, and

course correct while

continuously learning

Moonshots +

tactics = win

Better data =

better outcome

Training is different

than programming

Ubiquitous

cognitive on cloud

Proactively

address AI anxiety

Checklist for success

Guidelines for your Cognitive Journey

…with the right partner

©2017 IBM Corporation12

IBM Global Business Services is the partner of choice for many clients on their cognitive journeys

Leader in the Cognitive services,

Worldwide as well as Europe

Expertise of more than 2,000 consulting

professionals

Professionals in machine learning,

advanced analytics, and data science

Deep industry understanding

Numerous projects and PoCs delivered in

Europe for clients in Banking, Insurance,

Public, Telecommunications etc.