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Manoj Saxena | General Manager
IBM Watson




IBM Watson Update
From Wow to How to Now
Brief History of IBM Watson

        IBM         Jeopardy!          Watson             Watson          Watson
      Research        Grand              for            for Financial     Industry
       Project      Challenge         Healthcare          Services        Solutions
       (2006 – )     (Feb 2011)       (Aug 2011 –)      (Mar 2012 – )      (2012 – )




                                                                        Cross-industry
                                                                         Applications
                                                         Expansion

                                   Commercialization

                   Demonstration

        R&D                          New IBM Division

2
Data is rapidly becoming the foundation for a Smarter Planet




                                   Watson




3
Businesses are “dying of thirst in an ocean of data”

       90%                    80%                    20%
    of the world’s data   of the world’s data      amount of data
    was created in the          today is         traditional systems
       last two years         unstructured         leverage today




        1 in 2                     83%                      2.2X
    business leaders         of CIOs cited BI and      more likely that top
    don’t have access         analytics as part of      performers use
    to data they need         their visionary plan     business analytics
4
IBM Watson combines transformational technologies


                                              2 Generates and
                                                  evaluates
                                                  evidence-based
1 Understands                                     hypothesis
    natural language
    and human
    communication




     3 Adapts and learns
        from user
        selections and
        responses
                                          …built on a massively parallel
                               architecture optimized for IBM POWER7
5
In 2012, Watson became smarter, faster, and more scalable

                       6                                     90%                           75%
        Instances of Watson                          Nurses follow                    Reduction in time to
         deployed in the last                          Watson’s                        market with new
             12 months                             Recommendations                     cancer therapies




            Smarter                                              Faster                         Scalable
        605,000 pc. evidence                                 240% faster                       Scales on demand
           2M pages of text                                  75% smaller                   Millions of Trx. per month
        25,000 training cases                            Runs on single server              In Cloud or on premise
        14,700 clinician hours                                                             PC, tablet or smartphone
6
    Based on preliminary pilot results, may not be representative of all situations
    1
Watson Healthcare Products – 1H 2013

            Watson                    Watson                    Watson
        Clinical Insights      Diagnosis & Treatment        Care Review and
            Advisor                   Advisor             Authorization Advisor




          Therapy
          Designer                    Oncologists                  Nurses

      Assists with efficient     Assists in identifying     Streamlines manual
    trials and reduces time    individualized treatment      review processes
       to market with new         options for patients      between a physician
        cancer therapies        diagnosed with cancer         and health plans

     Accelerate Research         Improve Diagnosis          Improve Decisions
         and Insights             and Treatments              and Outcomes


7
Watson Products and Infrastructure

                        Watson for                                 Watson for Client                                               Watson For                                           Watson for
                        Healthcare                                  Engagement                                                    Financial Svcs.                                        Industry
            Advisor Solutions                                            Advisor Solutions                                  Advisor Solutions




                                                                                                                                    Institutional
                                                                                                Knowledge




                                                                                                                                                    Retirement
                                                                    Call Center




                                                                                                                                                                 Institution
          Utilization

                        Oncology




                                                                                  Help Desk
                                             Diabetes




                                                                                                            Technical
                                   Cardiac




                                                                                                                        Banking
                         ASK Services                                                         DISCOVER Services                                                         DECISION Services




        NLP & Machine                                   Big Data                              Analytics                 Cloud                                                  Mobile   Workload Optimized
          Learning                                                                                                                                                                           Systems




                         Source                                                   Model                                            Train                                                 Learn


8
Watson Business Model: Cloud Delivery and Outcome Based Pricing

                          Dynamic Capacity           Hybrid Delivery
                            Automate and control     Extend & integrate
                              service provisioning   on-premise solution
                                                      with cloud offering

         Flexible
    Consumption                                                             Time to Value
    Support alternative                                                     Enable incremental
     delivery and value                                                      automation and
         pricing models                                                       business agility




9
Watson is ushering in a new era of computing . . .




         1900                 1950                               2011

                          . . . enabling new possibilities and outcomes
     1
10                                                 © 2012 International Business Machines Corporation

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IBM Watson Progress and 2013 Roadmap

  • 1. Manoj Saxena | General Manager IBM Watson IBM Watson Update From Wow to How to Now
  • 2. Brief History of IBM Watson IBM Jeopardy! Watson Watson Watson Research Grand for for Financial Industry Project Challenge Healthcare Services Solutions (2006 – ) (Feb 2011) (Aug 2011 –) (Mar 2012 – ) (2012 – ) Cross-industry Applications Expansion Commercialization Demonstration R&D New IBM Division 2
  • 3. Data is rapidly becoming the foundation for a Smarter Planet Watson 3
  • 4. Businesses are “dying of thirst in an ocean of data” 90% 80% 20% of the world’s data of the world’s data amount of data was created in the today is traditional systems last two years unstructured leverage today 1 in 2 83% 2.2X business leaders of CIOs cited BI and more likely that top don’t have access analytics as part of performers use to data they need their visionary plan business analytics 4
  • 5. IBM Watson combines transformational technologies 2 Generates and evaluates evidence-based 1 Understands hypothesis natural language and human communication 3 Adapts and learns from user selections and responses …built on a massively parallel architecture optimized for IBM POWER7 5
  • 6. In 2012, Watson became smarter, faster, and more scalable 6 90% 75% Instances of Watson Nurses follow Reduction in time to deployed in the last Watson’s market with new 12 months Recommendations cancer therapies Smarter Faster Scalable 605,000 pc. evidence 240% faster Scales on demand 2M pages of text 75% smaller Millions of Trx. per month 25,000 training cases Runs on single server In Cloud or on premise 14,700 clinician hours PC, tablet or smartphone 6 Based on preliminary pilot results, may not be representative of all situations 1
  • 7. Watson Healthcare Products – 1H 2013 Watson Watson Watson Clinical Insights Diagnosis & Treatment Care Review and Advisor Advisor Authorization Advisor Therapy Designer Oncologists Nurses Assists with efficient Assists in identifying Streamlines manual trials and reduces time individualized treatment review processes to market with new options for patients between a physician cancer therapies diagnosed with cancer and health plans Accelerate Research Improve Diagnosis Improve Decisions and Insights and Treatments and Outcomes 7
  • 8. Watson Products and Infrastructure Watson for Watson for Client Watson For Watson for Healthcare Engagement Financial Svcs. Industry Advisor Solutions Advisor Solutions Advisor Solutions Institutional Knowledge Retirement Call Center Institution Utilization Oncology Help Desk Diabetes Technical Cardiac Banking ASK Services DISCOVER Services DECISION Services NLP & Machine Big Data Analytics Cloud Mobile Workload Optimized Learning Systems Source Model Train Learn 8
  • 9. Watson Business Model: Cloud Delivery and Outcome Based Pricing Dynamic Capacity Hybrid Delivery Automate and control Extend & integrate service provisioning on-premise solution with cloud offering Flexible Consumption Time to Value Support alternative Enable incremental delivery and value automation and pricing models business agility 9
  • 10. Watson is ushering in a new era of computing . . . 1900 1950 2011 . . . enabling new possibilities and outcomes 1 10 © 2012 International Business Machines Corporation

Editor's Notes

  • #3: 01/18/12 Main point: Bringing about a transformation in what was as a society expect of technology does not happen overnight. Watson has been an iterative growth process that continues this day and into the future. Further speaking points: Watson was a research project in IBM starting in 2006. The effort was led by a team of 15 IBM researchers working in collaboration with a pool of top universities as a “Deep QA” project. Jeopardy! was selected as the ultimate test of the machine’s capabilities because it relied on many human cognitive abilities traditionally seen as out of scope for machines such as ability to discern double meanings of words, puns, rhymes, and inferred hints. It also demanded extremely rapid responses and the ability to process vast amounts of information to make connections typically requiring a lifetime of immersion in pop culture and participation in the general human experience. With Jeopardy! in the past, IBM and Wellpoint, one of the US ’s largest health insurers, announced a partnership to pilot Watson for use among member hospitals and the insurance organization itself with a goal of improving patient outcomes and health treatments. As a byproduct, it is also expected to improve the productivity of healthcare professionals. From Healthcare, Watson is expected to branch into other industries that rely on analytic solutions to managing unstructured data. Additional information : Financial services organizations and call center operations are seen as high potential areas. IOD2011 4/9/12 GS302_ManojSaxena_v7
  • #5: Main point: Data is growing at an astounding rate. It is growing so fast that we often lack the ability to use it to its full potential. The highly unstructured nature of this data makes the challenge that much more difficult. This is a real problem for business. It makes informed decisions more difficult to make. Business leaders need a way to find hidden patterns and isolate the valuable nuggets that they need to make business decisions. Further speaking points: Yet, the rewards for finding a way to harness the data into useful information are great; 54% of companies in this year ’s study with MIT/Sloan are using analytics for competitive advantage… and that number has surged 57% in just the past 12 months. “Dying of thirst in an ocean of data”… It’s an apt analogy. Data is everywhere. 90% of it didn't exist just two years ago. The vast majority of it is totally useless for any given goal and therefore amounts to noise and a hindrance to finding the key useful information needed in a specific time and place. Additional information : See information and stats
  • #6: Main Point: At the core of what makes Watson different are three powerful technologies - natural language, hypothesis generation, and evidence based learning. But Watson is more than the sum of its individual parts. Watson is about bringing these capabilities together in a way that ’s never been done before resulting in a fundamental change in the way businesses look at quickly solving problems Solutions that learn with each iteration Capable of navigating human communication Dynamically evaluating hypothesis to questions asked Responses optimized based on relevant data Ingesting and analyzing Big Data Discovering new patterns and insights in seconds Further speaking points: . Looking at these one by one, understanding natural language and the way we speak breaks down the communication barrier that has stood in the way between people and their machines for so long. Hypothesis generation bypasses the historic deterministic way that computers function and recognizes that there are various probabilities of various outcomes rather than a single definitive ‘right’ response. And adaptation and learning helps Watson continuously improve in the same way that humans learn….it keeps track of which of its selections were selected by users and which responses got positive feedback thus improving future response generation Additional information : The result is a machine that functions along side of us as an assistant rather than something we wrestle with to get an adequate outcome
  • #9: IOD2011_BA KEYNOTEIBM IOD 2011 02/23/13 D1_BA Keynote_v4
  • #11: Main Point: Watson represents a whole new class of industry specific solutions called cognitive systems. It builds on the current paradigm of Programmatic Systems and is not meant to be a replacement; programmatic systems will be with us for the foreseeable future. But in many cases, keeping pace with the demands of an increasingly complex business environment and challenges requires a paradigm shift in what we should expect from IT. We need an approach that recognizes today ’s realities and treats them as opportunities rather than challenges. Further speaking points: For example, most digitized information of the past was structured. It was organized into tables, stored in easily identified cells in databases, and easily searched and accessed. Unstructured information was largely ignored as too difficult to utilize…and therefore it lay fallow. Similarly, traditional IT has largely limited itself to deterministic applications. 2+2=4. 100cm in a meter. Situations where there is only one answer to a question But this rules out a whole world of real world situations that have a more probabilistic outcome. It is very likely that the car will not start because of a dead battery but there is a chance there is a clog in the fuel line. It is very likely to be sunny tomorrow but it may rain. Traditional IT relies on search to find the location of a key phrase. Emerging IT gathers information and combines it for true discovery. Traditional IT can handle only small sets of focused data while IT today must live with big data. And traditional IT interacts with machine language while what we as users really need is interaction the way we ourselves communicate – in natural language.