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Nasscom Big Data and Analytics Summit 2016: Session III: How Cognitive Computing can Rev Up your Enterprise - A CIO Perspective
- 1. Sri Donthi SVP and CIO for AMENA, PepsiCo Inc. 23rd June 2016 All copyrights and trademarks referenced herein are the property of their respective holders. The opinions expressed in this presentation are those of the author and do not reflect those of PepsiCo or any referenced third parties Promise of Cognitive Computing in Consumer Centric World
- 2. Imagine…..If machines could be taught to leverage data, learn from it, and, with a little guidance, figure out what to do with it?
- 4. Cognitive systems will transform industries by providing powerful analytics and insight to the end user
- 5. VOLATILITY The dynamics and nature of change . . . and the rate / speed of that change Lack of (and likelihood) of surprises predictability, the possibility UNCERTAINTY COMPLEXITY Multiplicity of problems and issues, some uncontrollable, causing chaos and confusion AMBIGUITY Mixed messages, intangible/unclear goals, poor communication, lack of meaning World we live in…
- 6. Data explosion in connected world… 2.5 quintillion bytes of data created every day 90% of the data in the world today has been created in the last two years alone Every minute 1.7 megabytes of data is created for every person on the planet. All 7.3Bn of us. ….and imagine the possibilities Retail Consumers post 500 million tweets and 55 million Facebook updates each day Source: IBM
- 7. Ever changing consumer… Increasing value conscious but tech-savvy and demanding customers Growth in the use of consumers using digital and mobile devices to shop (reading reviews / comparing prices) Confluence of these trends is the signal to use digital intelligence to drive superior growth Consumer buying behaviour can be very complex
- 8. Consumer Engagement Agricultural Intelligence Cognitive Cyber Security Smart Sales Execution
- 9. Hyper Performance 1:1 Consumer Engagement 81% of companies say they have or are close to having a holistic view of their customers 37% of consumers say their favourite retailer understands them Personalized shopping experience Discover unseen pattern Be responsive to consumer needs Efficient merchandizing Efficient supply chain Bring differentiation
- 10. Differentiating consumer experience using digital intelligence Better collaboration enabling seamless experience across channels Decide Digest vast amounts of data to identify and implement new ideas Evidence-backed recommendations, with BMC, cost structures and customer behavior Discover Enhancing the speed of processes, quality and integrity of products AutomateEngage Improving internal processes What does it mean for CPG Companies Source: IBM
- 11. Agricultural Intelligence Multi-sensor agriculture systems enable an ethical, efficient & high yield process • 28% global population directly or indirectly employed in agriculture • Worldwide agriculture accounts for 70% of all water consumption • Weather disasters have caused many failed harvests in the past decade • Greatest challenge our civilization has ever faced is feeding 8bn people in a sustainable way
- 12. T-Com 90% Unified insights for improved and accurate decision making Smart Sales Execution
- 13. Cyber Security Building instincts and expertise, supporting analysts outthink and outpace threats • 80% security information unstructured and inaccessible for traditional systems • 75,000+ documented software vulnerabilities • 10,000+ security research papers issued each year • 60,000+ blogs published a month Source: ISACA Source: IBM
- 14. Creating valuable consumer experience Enhancing Products and Services Automating Processes Uncovering Insights Ease of use and convenience Simplicity Emotional effects Empower consumers and instill purchasing confidence Benefits
- 15. Imagine the future….. Gather information about consumer preferences Engage consumers at each touch-point of the brand experience Offer products to meet consumers preference Provide consistent brand experience in all channels
- 16. Our approach… Develop a roadmap (Dream BIG) Experiment small (Fail/Learn Fast and Cheap) Deploy, explore and evolve (Aggressively Deploy) Develop and train the models (Key Opportunities) Source: IBM
Editor's Notes
- Image: Shutterstock Notes: Cognitive system can be self-learning. They are like bright students who are given educational material and they can learn by themselves
- Image Source: Shutterstock Cognitive computing technologies and solutions also face several obstacles. As with any new technology promising to change the world, business leaders wonder how to separate hype from real potential. But, executives shouldn’t let these concern obscure considerable likely benefits of cognitive computing. Examples of how cognitive technologies can be integrated into compelling business solutions. Computer vision: The ability of computers to identify objects, scenes, and activities in unconstrained (i.e naturalistic) visual environments. Natural Language processing: The ability of computers to work with the text the way humans do. For instance, extracting meaning from text or even generating text that is readable, stylistically natural and grammatically correct. Machine Learning: The ability of computer system to improve their performance by exposure to data without the need to follow explicitly programmed instructions.
- Image Source: Shutterstock
- Image Source Shoppers: Shutterstock Big Data Image and Facts: IBM Notes: Digital technologies are reshaping both consumer demand and competitive dynamics in the CPG. CPG is fast appraoching a tipping point. From now on, technology enabled innovations will drive much of the growth in CPG. Majority of data produced today is termed ‘Unstructured Data, this accounts for 80% of all data generated today and is only expected to grow to over 93% by 2020. Every minute, 100 hours of video are uploaded to YouTube, and more than 100 Billion Google searches are done every month. But what do we do with all of this data?
- Image source: Shutterstock Notes: UBER-COMPETITIVE ENVIRONMENT UBER-CONNECTED CONSUMER UBER-INFORMED GATE-KEEPERS
- Consumer Engagement : Image of person: Shutterstock, Diagram: IBM Agricultural Intelligence: blogs.worldbank.org Cyber Security Image : Shutterstock Smart Sales Execution: Shutterstock Notes: Every customer is unique and has little tolerance for businesses that fail to recognize their specific interests, wants and needs, Cognitive systems will help transform how companies serve each customers. Busineesses will be able to understand, reason and laearn from every customer interaction.
- Image Source Person: Shutterstock Notes: The days are over when retailers can target promotion to mass audiences based upon age, gender and income. Customer relationships are no longer built on isolated interactions. Its an on-going dialoge that must span touch points in the customers journey. There is a big divide between what companies think they know about their consumers and what consumers think the companies know about them. Hyper connected consumers expect a lot more from brands and are ready to share their information with them only if they could get personalized advice, recommendations from the companies. CPG companies must therefore look to reduce this gap. Anticipated benefits of 1:1 targeting Better consumer engagement leads to better conversion Discover unseen pattern hidden in their data Up-sell opportunities Be more responsive to your customers with fast and personalized sericves across all channels Bring data sources with merchadising to drive sales, margins and differentiation Stay ahead of competition with innovative ideas and future forward technologies that enhahnce customer experience and provide hyper personalization, ultra convinience, and a simplified shopping experience The retail industry is experiencing unprecedented change. Over the past decade, emergence of technology-enabled “smarter consumers” has upended traditional retail business models and changed consumers expectations. As the mountain of data continues to grow, existing analytics capabilities are not sufficient to gain the necessary insights to fully meet ever-growing and ever-changing consumer desires. Gone are the days when retailers can target promotions to mass . Today, there is only one channel that counts: the consumer. And consumers expect retailers to be relevant and responsive. The impact of using data can be substantial translating into bottom line. Retailers who understand this and redefine their data management strategy will stay ahead of competition in a world that is increasingly becoming data dependent. Understand, connect and engage customers by delivering personalized shopping experiences Build efficient merchandising and supply networks to meet the demands of empowered customers Transform and optimize operations to improve performance and operational efficiency Increase customers' spend and store visits by building customer- focused initiatives and marketing techniques Be more responsive to your customers with fast and personalized services across all channels. Stay ahead of competition with innovative ideas and future-forward technologies that enhance customer experience and provide hyper-personalization, ultra convenience, and a simplified shopping experience Bring together data sources with merchandising to drive sales, margins and differentiation
- Image Source: Shutterstock We see three broad areas of capability for cognitive systems. Opening new doors for innovations, these capability areas directly relate to the ways people think and work and demonstrate increasing levels of cognitive capability. In the future, we will see systems with higher-orders of cognitive capability. It is important to note that these capabilities are not mutually exclusive. A specific business solution may in fact leverage one or more of these capability areas. Engagement – These systems fundamentally change the way humans and systems interact and significantly extend the capabilities of humans by leveraging their ability to provide expert assistance and to understand. These systems provide expert assistance by developing deep domain insight and bringing this information to people in a timely, natural and usable way. Here, cognitive systems play the role of an assistant – albeit one who is tireless, can consume vast amounts of structured and unstructured information, can reconcile ambiguous and even self-contradictory data, and can learn. In this partnership, the two – human and machine – are more effective than either one alone. Much like the human brain, these systems begin to build models of themselves and the world around them. This world consists of the system itself, the knowledge ingested from information corpora and the users of the system. The models include the contextual relationships between various entities in a system’s world that enable it to form hypotheses and arguments. As a result, these systems are able to engage in deep dialogue with humans. Significant and proven capabilities have been built around this capability area. In the future, it is expected that increasingly more domain-specific question and answer (Q&A) systems will emerge. Many of them are likely to be pre-trained with domain knowledge for quick adoption in different business-specific applications. Additionally, future cognitive systems will advance to have free form dialogue and reasoning capabilities. (See USAA case study.) Decision – These systems have decision-making capabilities, to the degree humans can trust and rely on their judgment. Decisions made by cognitive systems are bias-free; however, certain standards are required for humans to fully trust their decisions. Currently, cognitive computing systems perform more as advisors by suggesting a set of options to human users, who ultimately make the final decisions. (See WellPoint Case Study.) Confidence in a cognitive system’s ability to make decisions autonomously without humans will depend on the ability to query and have traceability to audit why a particular decision was made, as well as improved confidence scores of a system’s responses. A confidence score is the quantitative value produced by a system representing the merit of a decision after evaluating multiple options. Discovery – Discovery is the epitome of cognitive capability. These systems can discover insights that perhaps could not be discovered by even the most brilliant human beings. Discovery involves finding insights and connections and understanding the vast amounts of information available around the world. With increasingly more volumes of data, there is a clear need for systems that help exploit information more effectively than humans could on their own. While still relatively immature, some early discovery capabilities have emerged, and the value propositions for future applications are compelling. Early advances in this capability area have been made in specific domains, such as medical research, where robust corpora of information exist. (See Baylor College of Medicine Case Study.)
- Image source: blogs.worldbank.org World Resource Institute – 28% Global population – source http://ow.ly/rpfMN New York Times – Weather Comment Jonathan Foley University of Minnesota – 8bn People Cognitive computing is Minimizing use of pesticides Reducing water and other resource usage Reducing waster Improving quality of end products Understanding crop behavior through analysis of images pictures and video taken.
- Enterprise have plenty of sales and performance data and have several causal factors that impact the performance. For large multi national companies, it takes time to answer questions like “why”? It can be answered today, but can be time consuming. Many times the factors impacting the performance are finite in nature, but despite that, the analysts have to go through a repeatable process to identify potential causes to explain the performance in order to be accurate. What if this repeatability is provided to machines and through machine learning, they could bubble up the patterns and the factors causing the performance issue almost instantaneously. What if these insights are provided in an easily consumable natural language format? This will evolve to a smarter sales execution through machine learned recommendations and growth in sales revenue. Increased Efficiency in sales execution cycle Better and accurate decision making Unified Insights Recommendation communicated to the end user though one of the cognitive services. e.g. Text to Speech (or vice versa) ELABORATE ON TECHNOLOGIES LIKE NARRATIVE SCIENCE, VISUALIZATION AND RULE-BASED ANALYTICS Increased Efficiency in sales execution cycle Better and accurate decision making Unified Insights Recommendation communicated to the end user though one of the cognitive services. e.g. Text to Speech (or vice versa)
- Cognitive computing is Minimizing use of pesticides Reducing water and other resource usage Reducing waster Improving quality of end products Understanding crop behavior through analysis of images pictures and video taken.
- Image Source: Shutterstock Source: Deloitte University Press – The thinker and shopper Simplicity Fewer steps, Hands-free No arcane demands Real-time, natural conversations Enables self-service Anywhere, 24/7 usability Ease of Use and convenience Fewer knobs, dials, settings Seamless, pleasing design Reduces complexity Learns, adapts Anticipates/proactively meet needs Empower consumers & instil purchasing confidence Personalizes shopping experience Informs, recommends Encourages satisfaction with choices Reduces returns and their costs Emotional effects Amuses, entertains Engages Provides companionship Promotes well-being Fosters affinity and loyalty Cognitive Technologies Pepsi/Frito Lay Pongr image recognition technology Aether’s Cone L’Oreal’s Makeup Genius Aldebaran Robot
- Image Source: Shutterstock I WOULD FOCUS ON HOW KNOWLEDGE CAN BE CAPTURED, ENCAPSULATED AND LEVERAGE TO REDUCE SPEED TO MARKET, MAKE INNOVATION MORE RELEVANT TO CONSUMERS, IMPROVE QUALITY, IMPROVE OUT-OF-STOCKS AND CUSTOMER SERVICE AND IMPROVE COMPETITIVE ACTIONS Know everything they can about lifestyle of consumers because “machines” have learned their habits, preferences and behaviours Be able to engage with consumers by means of voice, videos and written communications at every touch-point of the brand experience Make products and package them to a consumer’s preference because cognitive computing has solved sourcing, manufacturing and logistics challenges Provide the brand experience without retail shops because cognitive computing will enable brands to learn what products consumers want and when to deliver to them
- Image Source: Shutterstock A FEW IDEAS DREAM BIG FAIL/LEARN FAST AND CHEAP FOCUSED ENERGY ON KEY OPPORTUNITIES AGGRESSIVELY DEPLOY REINVENT AGAIN Anticipated benefits of 1:1 targeting Better consumer engagement leads to better conversion Up-sell opportunities Win-win for consumers and brands