Presented by Susanne Hupfer and Nancy Pearson at IBM World of Watson Conference, Oct. 2016. Wondering how and why forward-thinking businesses are already adopting cognitive computing and artificial intelligence technologies? Curious about the top business challenges organizations are tackling with cognitive computing? The "IBM Cognitive Study," which surveyed 600 leaders and decision-makers from around the world, provides answers to these questions and more. About 70% of decision-makers say that cognitive computing is extremely important to their business strategy and success. Learn how smart companies are becoming cognitive businesses, and how they're already driving tangible results and ROI.

1. The intelligent enterprise:
How Companies Are Using Cognitive Computing to Drive Tangible Results
Susanne Hupfer
Senior Consultant, IBM
October 24, 2016
#IBMWoW #CognitiveStudy

2. Digital businesses are
disrupting virtually
every industry and
profession.
expect more
competitors
from outside
their industry
54%
of CxOs
2 SOURCE cited in notes
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3. +
3
Tomorrow’s disruptors will be organizations
that can converge digital business with a
new level of digital intelligence.
Digital business Digital intelligence
Cognitive business
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4. World of Watson
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How are organizations capitalizing on
the potential of cognitive computing?
We surveyed more than 600
cognitive decision makers
worldwide to discover insights
about cognitive adoption
say they already gain
major competitive
advantage from their
cognitive initiatives
50%
of users
say outcomes
from cognitive
initiatives exceed
their expectations
62%
of users

5. World of Watson
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Early adopters achieve a range of business
outcomes through cognitive capabilities
% of advanced users* that report
achieving with cognitive:
Grow knowledge
from data
improve decision
making & planning66%
enhance the learning
experience67%
* 2 or more cognitive technologies used >1 year

6. World of Watson
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Early adopters achieve a range of business
outcomes through cognitive capabilities
% of advanced users* that report
achieving with cognitive:
Increase market
agility
increase customer
engagement60%
enable faster
response to customer
& market needs
61%
* 2 or more cognitive technologies used >1 year

7. World of Watson
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Early adopters achieve a range of business
outcomes through cognitive capabilities
% of advanced users* that report
achieving with cognitive:
Foster innovation
& growth
accelerate innovation of
new products & services59%
expand business into
new markets62%
* 2 or more cognitive technologies used >1 year

8. World of Watson
20168
Early adopters achieve a range of business
outcomes through cognitive capabilities
% of advanced users* that report
achieving with cognitive:
Improve bottom-line
performance
improve productivity
& efficiency74%
Reduce costs
63%
* 2 or more cognitive technologies used >1 year

9. World of Watson
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Early adopters realize the need for
an IT infrastructure that supports
their cognitive workloads
say each of these will
play an important role in
their cognitive initiatives
within 2 years:
• cloud
• big data & analytics
• mobile
• security
9 in 10
say Internet of Things
(IoT) will play an
important role in their
cognitive initiatives
within 2 years
85%

10. Structured and active Unstructured and dark
Data that’s comingData outside your firewallData you possess ++
10
How you invoke insights from all data
will determine your digital intelligence.
believe cognitive is
essential to data challenges
that conventional analytics
cannot tackle
60%
of early
adopters
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11. World of Watson
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Early adopters recognize that data
and analytics are key to fueling
their cognitive transformation
Currently used for cognitive initiatives:
62%
use advanced analytics
(predictive / prescriptive)75%
38%structured
data vs. unstructured
data
Early adopters are analytically mature:
use descriptive analytics61%

12. World of Watson
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While early adopters
view cognitive as essential,
challenges remain
cite data issues as
a top challenge
• volume
• quality
• integration & conversion
54%
cite insufficient skills as
a top challenge
• computer scientists
with AI skills
• software developers
• subject matter experts
• data experts
54%

13. World of Watson
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Early adopters see the
enormous potential
of cognitive, but still
struggle with strategy
and roadmap
say adopting cognitive is
very important to their
organization’s strategy
and success
65%
have a comprehensive,
company-wide strategy
for cognitive (another
41% are developing one)
Only
7%
report they struggle with
a roadmap for adoption46%

14. How will you
get started?
14
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15. 15
Identify a
problem
to solve.
Cast a vision.
Champion a
new culture.
Assess progress
toward your
desired outcome.
Measure
specific values.
Ensure that your
process
is working, and
iterate as needed.
Assess data
requirements
from internal and
external sources.
Collect, ingest,
curate, annotate
and build out
taxonomies and
ontologies.
Execute a
staged rollout
based on a
simple starter
prototype.
Instrument for
metrics and key
performance
indicators (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.
Becoming a cognitive business in six steps
1
Develop
your
cognitive
strategy
6
Measure
outcomes
3
Apply
cognitive
technology
4
Engage your
organization
5
Enhance cognitive
capabilities based
on learning
2
Evaluate and
curate data
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16. World of Watson
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www.ibm.com/cognitive/advantage-reports

17. Notices and
disclaimers
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19. Thank you and be sure to
visit the cognitive business
show floor
ibm.com/cognitive