The document discusses the rise of cognitive machines and their impact on various industries due to rapid digital disruption, with projections of 75 billion connected devices and significant economic implications by 2020. It emphasizes the importance of utilizing big data and cognitive systems like IBM Watson for enhanced decision-making and operational efficiency. Additionally, real-world applications and case studies demonstrate the transformative potential of cognitive technologies in sectors such as healthcare, aviation, and energy.

1. Rise of Cognitive Machines
Mac Devine
VP, IBM Fellow
Strategic Customer Success
IBM Watson & Cloud
wdevine@us.ibm.com
@mac_devine

2. Digital Winners

3. Physical and Digital worlds are colliding…

4. Digital Disruption is already here
75 BillionConnected devices by 2020
40 ZBData Collected by 2020
90%Data not used
$3.6T
Economic Impact
60%Loses value in ms

5. We are here
2016
Can you handle that?
The Data Explosion

6. Smart Scales:
Track health in
outpatients
Connected car:
Tracks location, status of
car parts
Mobile:
Mobile payments
Heating and Air
Conditioning:
Maximum efficiency using
weather predictions and
remote control
Building Security:
Facial recognition, remote
notification
Smart Deliveries:
Track parcel
Monitor and open garage
door remotely on arrival
Smart Meter:
Track and control
usage
Vending Machine:
Stock reporting,
temperature, shelf life
HealthCare:
Monitor patients at
home
Container Tracking:
End to end tracking,
prevent tampering
“Always Connected” Enterprise
C o m p o s a b l
B u s i n e s s
T h e
e
Cloud Mobile Social Big Data

7. The Perfect Storm: The Problem
7
Recipe for Disaster
60% Loses Value in ms
Data Never Used
Developer Business
Number of
Devices
Amount of
Data
Geographical
Distribution
• Billions of Devices
• Data Onslaught
• Borderless Networks
• Security
• Privacy
• Data Insights
Zettabytes of
data by 2020
4075 Billion connected
devices by 2020 90%
$3.6 T Economic Impact

8. Predictable Future =
Better Business Outcomes
Discover ActPredict

9. Traditional
Processing
Decision Speed
Analytics
Complexity
Low High
Low
High
Human decisions Automated decisions
Week(s)
Cognitive Decisions
Day(s) Hour(s) Sec(s) msecMin(s)
Complex Event
Processing
Streaming Analytics
Undiscovered territory
(Cognitive Decisions)

10. Current
Service Delivery
Centrally controlled & delivered
NextGen Service
Delivery
Peer to Peer, Decentralized

11. Surthrival Approach
11

12. Cognitive Systems, Like Watson…
Understand
Reason
Learn
Interact
Make Insightful Decisions

13. Locating Knowledge
Pattern Identification
Natural Language
Machine Learning
Eliminate Bias
Endless Capacity
Common Sense
Morals
Imagination
Compassion
Abstraction
Dilemmas
Dreaming
Generalization
Cognitive Excellence
Human Excellence
Amplify Human Intelligence
Love & War!!! Business Intelligence
Subjective Decisions Objective Decisions

14. Becoming a cognitive business
Data Ingestion - Integration - Governance
Data & Analytics PlatformCloud Security Mobile Social
Cognitive
Systems
Descriptive
Analytics
Predictive
Analytics
A culture that infuses insight into
every action, interaction or decision

15. The benefits of cognitive
Elevated expertise.
Deeper human
engagement.
Intelligent
exploration
and discovery.
Cognitive products
and services.
Cognitive
processes &
operations.

16. Influencing the future!!!
Discover ActPredict

17. Smart City Initiative – Seaside, FL

18. Real-time observations
from
the aircraft
Translate obs into
predicted areas of flight
risk
Reroute planes to
avoid severe flight
hazards
Aviation: Turbulence Alerts
50%
Reduction in maintenance
downtime

19. Insurance: Hail Alerts
Precise, hyper-local
forecasts
Hail detected in
next 30 minutes
Text/Mobile Alerts
52%
Avoided claims savings

20. Short-term, high
resolution accuracy
Translate forecast into
prediction of
electricity demand
Source generation
of energy to meet
demand vs. procuring
at higher cost
Energy/Utility: Load Forecast
$3M
Operating cost savings

21. University of Tokyo
Treatments
Baylor University
Discovery
Medtronic
Diabetes
Watson Health

22. Backup

23. 23
Vehicle
Environment
Infrastructure
Guest
IOT PLATFORM
Vehicle
Services Mobility
Services
Commerce
Services
360º View
Mobility Operator
Services
NETWORK &
COMMS DATA ANALYSIS &
COGNITIVE SERVICES
DATA STREAMS
Guest
Innovate from Edge to Core

24. Build your own
cognitive
applications
Deploy a
cognitive solution
Transform your
organization into a
cognitive business
Build some (Cognitive) sense into your apps

26. Marchesa – Cognitive Fashion