Lead Retail in the Cognitive Era

IBM Analytics

September 22, 2016

Digital Disruption is upon us

expect more

competitors

from outside

their industry

54% of CxOs

2 SOURCE cited in notes

Immediacy is the new consumer habit

Innovation happens in hours and days

A sea of data is both the fuel and result

of digital transformation

3

4

Transforming

fabric source

information and

patterns found in

digital media …

IBM® Watson™ application

programming interfaces

(APIs) reduce more than

40,000 potential fabrics to

35 viable, unique options.

Watson technology

analyzes hundreds of

images to provide color

palettes suited to human

sentiments.

Sentiment extracted in real

time is used to shift the

color of light-emitting diodes

(LEDs) woven into the

gown.

G R O W K N O W L E D G E F R O M D AT A E N H AN C E E X P E R T I S E L E AR N AN D AD AP T

… into living couture fashion that respondsto observers’ emotions.

Today’s industry leaders recognize the gap in their analytic capabilities

Believe they

can’t deliver a

personalized

experience

60%

5 SOURCE cited in notes

Say the quality,

accuracy or

completeness

of their data is

insufficient

31%

Say they are not

confident in

making spending

and strategic

decisions

53%

Harnessing

unstructured

data to improve

profitability…..

Unstructured data from

customer call center, online

forums, and surveys held

untapped insights

Cognitive analysis of call

center data to find

patterns, understand

customer sentiment and

spot emerging trends

Emerging customer trends

incorporated into new

products and offering

G R O W K N O W L E D G E F R O M D AT A E N H AN C E E X P E R T I S E L E AR N AN D AD AP T

+

Tomorrow’s disruptors will be organizations that can converge digital business with a new

level of digital intelligence.

Digital business Digital intelligence

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Cognitive business

Structured and active Unstructured and dark

Data that’s comingData outside your firewallData you possess ++

How you invoke insights from all data will determine your digital intelligence

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• Customer records

• Transactional systems

• Predictive models

• Institutional expertise

• Operational systems

• News

• Events

• Social media

• Weather

• Geospatial information

• Internet of Things (IoT)

• Sensory data

• Images

• Video

… one perfectly informed decision at a time

Profitable,

billion-dollar

oil drilling …

9

Watson technology culls

through 30 years of

Woodside’s documented

knowledge.

Engineers augment their

expertise with a virtual

advisor, “Lesson Learned.”

Each outcome is added

to collective knowledge,

informing future decisions.

G R O W K N O W L E D G E F R O M D AT A E N H AN C E E X P E R T I S E L E AR N AN D AD AP T

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.

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© IBM Corporation 2016

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all countries in which IBM operates.

Trademarks and notesEmpower buyers

with unbiased

opinions…..

Harness the power of

customer reviews and

expert opinions on wines

and proper pairings

Help customers, via Q&A,

express preferences for

flavor profiles, food

pairings, price

requirements

Take the guesswork out of

wine buying, empower

customers, increase sales

via unbiased wine lists and

food pairings

G R O W K N O W L E D G E F R O M D AT A E N H AN C E E X P E R T I S E L E AR N AN D AD AP T

12

Translate expansive,

ever-growing data sets into

differentiation when you

act on game-changing

knowledge.

Redefine industries and

professions when you

make expertise a

scalable resource.

Transform how you do

everything together

when you can learn and

adapt perpetually.

GROW

KNOWLEDGE

FROM DATA

ENHANCE

EXPERTISE

LEARN AND

ADAPT

With cognitive, reimagine what is possible

Cognitive systems are 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

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We can help you get started

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DATA

Keep up with the

mountains of contextual

data available to you,

even when most of it is

unstructured in format

COMPLEXITY

solve for great complexity

by giving the skill and

knowledge of the informed

few to the empowered

many

VOLATILITY

Stay ahead of

the ever-changing

expectations customers

have for what’s possible,

leading your market

segment in new ways