Cognitive BusinessWhere digital business meets digital intelligence

August 3, 2016

Ravesh LalaVice President,Watson Solutions

2 The Cognitive Business Narrative / 05.18.2016

The digital explosion of content is impossible for humans to make sense out of it all

The digital explosion of content makes it impossible for humans to make sense of it all

Humans excel at

DILEMMASCOMPASSION

DREAMINGABSTRACTION

IMAGINATIONMORALS

GENERALIZATION

Cognitive Systems

excel atCOMMON SENSE (but with many biases)

NATURAL LANGUAGE

LOCATING KNOWLEDGE

PATTERN IDENTIFICATION

MACHINE LEARNING

ELIMINATING BIASES

PROVIDING ENDLESS CAPACITY

Cognitive systems are creating a new partnership between humans and technology

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

What are some problems thata cognitive business is ideally suited to solve?

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

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

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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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Structured and active Unstructured and dark

Data that’s coming

• 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

Data outside your firewall

Data you possess ++

Cognitive businesses can access and use all types of data.

05/03/2023

Key elements to defining a cognitive strategy1. Establish a vision

• How would work get done in partnership between humans and smart machines

• Are you too focused on how work gets done today

2. Focus on value• What will it take to unlock key value

drivers from unstructured data in your organization

• How can you blend immediate value from solving comparatively easy problems with big payoffs from hardest challenges

2. Test your data• Do you have data that is clean and

machine readable • What weak signals can smart machines

detect with your data that you cannot 8

Becoming a cognitive business requires a thoughtful strategy.

3. Frame your journey • What is your target portfolio of use cases

and how do the use cases evolve as smart machines learn about your data

4. Execute cognitive pilot and scale • How to develop a 30/60/90 day plan for

the first uses cases including data selection and system training

• How to engage users and drive adoption • How to scale vertically (same use case)

and horizontally (new adjacent use cases) • How to leverage cognitive technologies

and drive process automation

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Identify a problem to solve. Cast a vision. Champion a new culture.

Assess progress towards your desired outcome.Measurespecific values. Ensure your process is working – iterate as needed..

Assess data requirements from internal and external sources. Collect, ingest, curate, annotate and build out taxonomies and ontologies.

Execute a staged roll-out based on a simple starter- prototypeInstrument for metrics and 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

To summarize

1 Develop your cognitive strategy

6Measure outcomes

3Apply cognitive technology

4Engage your organization

5Enhance cognitive capabilities based on learning

2Evaluate and curate data

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Thank you