The document discusses the evolving role of Chief Information Officers (CIOs) in integrating emerging technologies such as AI, IoT, and blockchain into business strategies to enhance performance and customer experience. It highlights the necessity for CIOs to adapt to new responsibilities, including data analytics, cybersecurity, and collaboration with other executives to drive digital transformation. Additionally, it categorizes organizations into three archetypes based on their approach to innovation and digital reinvention—reinventors, practitioners, and aspirationals—each with different capabilities and ambitions.

1. Cristene Gonzalez Wertz | IBM Institute for Business Value
Putting new technologies to work
From Architecting
to Activating Disruption

2. 2
Which way to the future?
CIOs - Today and Tomorrow The New Tool Kit Proofs of Value The Outperformers

3. 33
The growing responsibilities of the CIO
Introduction
“There’s never been
a better time to be a
great CIO, and
there’s never been a
worse time to be an
average one.”
George Westerman
Principal Research Scientist
with the MIT Sloan Initiative on
the Digital Economy
CIO
Integrating
emerging technologies
Driving and enabling
business strategy
Empowering the
organization
Finding the
best talent
Improving customer
experience
Leveraging data and
analytics
Creating new products
and services
Implementing
security

4. 4
The CIO Role is
changing…
You’ve said your
organizations
had to be top
performers in
these areas
Link to Report
76%
70%
68%
74%
69%
75%
69%
73% 73%
38% 34% 35% 49% 46% 47% 37% 43% 46%
Enabling the extraction
of insight and
intelligence from data
Facilitate digital
reinvention with an
enterprise-wide digital
strategy
Finding and developing
talent with necessary
emerging technology
skills
Collaborating with C-
suite peers on strategy
execution
Updating legacy
information technology
(IT) platforms
Improving cybersecurity
risk posture for the
enterprise, customers,
and partners
Building a digital
platform for the
enterprise's ecosystem
of partners and
customers
Driving business and
technology integration
Flawlessly executing IT
operations
The CIO in 2020
2-3 yrs Today
The IBM C-Suite Study

5. 5
Some effort (experimentation) Significant effort
Source: CIO.3 What level of effort is your IT organization currently dedicating to integrating the following technologies into your enterprise? (3 =
experimentation, 4/5 = significant effort) [n=2094]
Cloud computing
Internet of Things
Robotic process automation
AI/cognitive computing
Virtual reality
Augmented reality
Physical robots
3D printing
CIOs show maturity with
mobile, cloud and IoT –
as tech visionaries, they are
experimenting with multiple
emerging technologies
Many options: Efforts integrating technologies into the
enterprise
Mobile technologies and applications
Blockchain
66%28%
45%39%
38%36%
17%26%
17%24%
14%21%
13%19%
11%19%
10%19%
8%16%
Mature
technologies
Emerging
technologies
The IBM C-Suite Study

6. 6
Blockchain
A shared immutable
ledger for recording
transaction history. IBM
uses Hyperledger Fabric
and Composer, working
in concert to create an
open, standardized and
enterprise-grade
distributed ledger
framework & code base.
IoT
A network of physical
devices, vehicles,
home appliances etc
embedded with
electronics, software,
sensors, actuators, and
connectivity which
enables these objects
to connect and
exchange data.
AI
A field of AI focused on
getting machines to act
without being
programmed to do so.
Machines "learn" from
patterns they recognize
and adjust their
behavior accordingly.
Definitions
This ambitious team (you, yes you) asked me here to talk
about real use cases in three technologies

7. 7
GA:
1 in 6
Americans
owns a smart
speaker that
uses voice
commands and
returns a voice
response.
Artificial Intelligence

8. You’re asking about who trains AI,
and I’d answer that by saying in
terms of general AI, we’re all
responsible.
We have a toddler and it’s our job
as a community to raise her.
Dekai Wu
Professor of Computer
Science and
Engineering, HKUST
Distinguished Research
Scholar, ICSI, Berkeley
Artificial Intelligence

9. 9
#Fail: Speech and text doesn’t always work as we planned
with technology. Continuity, negation, persistence – context!
Artificial Intelligence

10. 10
And that challenge is not simply limited to language
Artificial Intelligence

11. 11
A few simple
API calls
Understanding
an unfathomable
tax code
Decoding genes,
drugs and patient
care options
While
consumer
availability
seems to
indicate
commercial
viability, AI for
business is a
fundamentally
different beast
Artificial Intelligence
Identifying
cybersecurity
threats

12. 12
We talk about AI as if it were going to replace humans.
It’s not.
The jobs we’re giving to AI are jobs humans can’t do. 10, 50 or
even 1,000 humans can’t collect, classify and adjudicate data
at the speed and scale in which its coming at us.
- Krishna Nathan
EVP and CIO S&P

13. 13
Watson Genomics and Quest Diagnostics
“70% of cancer patients are treated in the community”
Personalized Care
Anywhere
• Addresses the precision care issue driven by genetic mutation
• Ingests 10,000 articles and 100 new clinical trials each month
• Uses sequenced genetic data to uncover potential therapies

14. 14
Cognitive + Security delivers a hyper-responsive and superfast
learning system for your SOC
Increase analyst
productivity for
faster incident
investigation
• Analysts were 50% faster in analyzing information, prioritizing and
respond to threats in minutes versus hours or days.
• Averages 10,000 events per second per client and 50,000 flows per
minute per client, with larger clients seeing substantially higher
volumes
“an insurer we work with was concerned hackers were
performing quote requests against their online quoting
apps to change their pricing model. Using QRadar, we
can easily build a use case to detect this type of
activity.”
Vincent Laurens, Sogetti Luxembourg

15. 15
Ashok Goel of Georgia Tech tricked students for a whole
semester into thinking his chatbot was a real TA
One student unwittingly
nominated Jill Watson
as outstanding TA in the
university’s teacher survey.
Optimizing
work/work balance
• Free up teaching assistants to answer more involved questions
• Controlled environment mitigates risks
• Digitized conversation and answers improves guidance for all users

16. 16
With a name like Compare and Comply, let’s hope it does
something exciting. (Hint: it does)
Understands what is
in contracts to make
procurement more
effective
• Turns documents into data to enable procurement, legal, analyst,
regulatory and governance teams
• Identify relevant clauses across contracts
• Spots risk and manage exceptions more quickly and with greater accuracy
• Locates the right set of discrepancies among payment terms

17. 17
The problem with IoT…
Consider a single sensor, delivering data every 10 seconds.
6x60x24x7x4… 241,920 pings per sensor per month—for an
only “mildly active” sensor.
For an IoT product—say a home automation system with
maybe 15 sensors, pinging every minute and a company with
500k customers using these systems, that amounts to 3e11 or
111,110,000,100,012—monthly.
Most IT systems weren’t designed to handle this.
IoT

18. 18
But the real problem with IoT is you’re thinking
waaaayyy too small.
PEOPLE DATA
Owner / Driver / Tenants / Patient / Doctor
ASSET DATA
Building / Appliances / Vehicles
ENVIRONMENT DATA
Local / Regional/Global
Behaviour
Occupancy / movement / activity
Intent / Context
Residential / location / weather / region
Personal Information
Age / lifestyle / preferences
Claim History
Insurance / legal
SENSORS GATEWAYS APPLICATIONSIoT PLATFORM
Map Event Management
Buildings nearby / mains supply / routes/
accessibility
Event Pattern Analysis
Accidents / crime / health /social/sports
Movement Pattern Analysis
flow / accidents / routes / satellite / traffic
3rd Party Data
weather / financial / regulatory / lifestyle access
trend / illness
History
Incidents / maintenance / repair
Diagnostics
Alerts / monitoring
Usage Context
Weather / time of day / road / temp
Origin
Manufacturer / warranty / recall
Usage Patterns
Journeys / location / remote control
IoT

19. 19
Autonomous transportation can make a real difference for the
almost 50% of adults over the age of 65 who have disabilities
IoT (plus AI!)
Ecosystems are at
the heart of making
IoT data come to life
• Leverages the full ecosystem – local motors, IBM, Panasonic Automotive,
LG Display and Ultrahaptics
• Uses AI for inputs and guidance, makes it easy to set destinations
• Remembers passengers and their unique needs
• Optimizes across variables simultaneously: routes, drop off, battery life

20. 20
Full body haptics are coming – and not just as a RPO experience.
They’ll be widely used in healthcare and eldercare by 2020
IoT (plus AI!)
Full body haptics
serve a wide variety
of industries
• Steady the hand of a surgeon during delicate interventions
• Address loss of mobility, provide strength to aging or fatigued workers
• Assist in physical therapy
• Enables education through immersion to train on specific skills in virtual
environments such as military, aerospace or interplanetary travel

21. 21
Connected Operations enables sensor data to understand reason
and learn, especially when coupled with digital twin approaches
IoT (plus AI!)
See operational data
connected across the
enterprise
• Workflows and processes can be combined with asset performance
• Optimization at the asset and aggregate levels
• Enables uptime and improved productivity metrics
• Provides the potential for new business models: opex versus capex

22. 22
40%
Blockchain
Of the cost of shipping
something is paperwork
Blockchain creates a new architecture of trust

23. 23
Blockchain removes the frictions in transactions and
facilitates existing markets
Blockchain
Carbon credits can be
easily traced
• IBM is working with Veridium to reduce the challenges of purchasing
carbon credits by making them digital
• Integrating E2E carbon accounting and offsetting on a public, permissioned
blockchain, ownership rights can be transmitted and traded more easily
•

24. 24
But blockchain isn’t just a big business thing.
Meet Atlanta’s Jasmine Crowe and Goodr (photo credit Goodr)
https://www.huffingtonpost.com/entry/meet-goodr-a-new-app-offering-solutions-to-feed-the_us_58e9435fe4b00dd8e016ec7c
https://www.fastcompany.com/40562448/this-app-delivers-leftover-food-to-the-hungry-instead-of-the-trash
Blockchain
Donating to help the
food insecure – that’s
on a blockchain
• Connects available meals to the food insecure, a $165B USD problem.
• An algorithm matches donors to drivers and partner agencies in nearby
locations
• Turns quantifiable statistics such as pounds donated and number of meals
provided into blockchain tax credits

25. 25
Blockchain can address warranties, fraud, and recalls for medical
devices providing confidence, consensus and provenance
Blockchain + IoT
Traceability and
transparency for
hardware and
medical consumables
• Addresses the needs of medical therapeutic devices, pharmaceutical and
device manufacturers, prescribers and end-user patients
• Reduces blanket recalls with transparency into the manufacturing process
• Prevents some of the estimated $7.5B in counterfeit electronics parts
• New and disposed of lots are recorded are the blockchain for regulatory
purposes

26. 26
Cluster analysis revealed
three archetypes
Organizations view opportunities based
on the vantage point of their own cluster
Seven variables
Customer experience focus
- Data and insights to innovate
products and services
Deploying digital technologies
- Latest technologies to transform
interaction and transactions
Competitive strategy
- Disrupt by changing the
rules of the game
- Data and analytics
to inform business strategy
Organization agility
- Rapid prototyping to test and
refine strategy
- Aligned IT and business strategy
- Short feedback and
adaptation cycles
Thoughts on Becoming an Outperformer
22% 43%Reinventors
27%
Practitioners
37%
Aspirationals
36%
Sampling: Global
All participants

27. 27
37%
Practitioners
- Capabilities don’t yet fully
match ambitions
- Ambitions to catch-up
and/or disrupt through
innovation
- Strategy execution needs
better alignment across
IT and operations
- Many are building or
planning to launch
platform business model
- Understand the value of
data and experimentation
but culturally not there
yet
36%
Aspirationals
- Most are challenged to
get the right vision,
strategy and execution
capabilities in place
- Few have or will pursue
new business models or
innovation
- Many are focused on
protective strategies
- Indicate digital skills gaps
are a significant concern
- Few reveal a culture of
experimentation, co-
creation
27
27%
Reinventors
- Exceptionally well aligned
strategy, IT and
Operations
- Confident in capacity to
transform and manage
disruption
- Collaborate and extract
value from ecosystems
- Leverage data to uncover
and create compelling
customer experiences
- Culture of
experimentation,
co-creation and design
thinking
Stages of
Digital
Reinvention™

28. 2828
Excellent at organizational change in response
to emerging business trends
Reinventors’ superior alignment wires them for
success in managing continuous change
Very successful at managing change in the past
Reinventors
Practitioners
Aspirationals
69%
44%
25%
70%
46%
25%
Thoughts on Becoming an Outperformer

29. 2929
73%
45%
33%
Reinventors demonstrate
that innovation is not only
the province of hungry
upstarts
Percentages represent the number of respondents who selected 4 or 5 on a 5-point scale. Source: Q3.7.a To what extent do you agree with the
following statements about your enterprise? – We have a culture that rewards both fast failure and successful innovation [To a large extent]
Reinventors
Practitioners
Aspirationals
We have a culture that rewards both
fast failure and successful innovation
Thoughts on Becoming an Outperformer

30. 30
Many
executives are
disconnected
from
customers
desired digital
experiences
Source: Berman PhD, Saul, Josh Goff and Carolyn Heller Baird. “The experience revolution: Digital disappointment - why some customers aren’t fans.” IBM Institute for Business Value. March
2017. https://www-935.ibm.com/services/us/gbs/thoughtleadership/custexperience/cx-disappointment/
Previous IBV study: factors driving customer willingness to try a
company’s digital experience initiatives
Executive ranking Consumer ranking
Improved sense of control | 1
7 | Improved sense of control
Digital savviness | 2
5 | Digital savviness
Improved convenience | 2
2 | Improved convenience
Ability to self-service | 3
6 | Ability to self-service
Easier processes | 4
3 | Easier processes
Takes less time | 5
1 | Takes less time
Curiosity | 6
8 | Curiosity
Faster results | 7
3 | Faster results
Less expensive | 7
4 | Less expensive