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E-GUIDE<br />
<strong>COGNITIVE</strong><br />
<strong>BUSINESS</strong><br />
How cognitive solutions are<br />
enhancing the way we live & work<br />
IN ASSOCIATION WITH
INTRODUCTION<br />
THE MOST<br />
TRANSFORMATIVE<br />
TREND TO HIT<br />
TECHNOLOGY<br />
By Shruti Tripathi Chopra,<br />
Editor, LondonLovesBusiness.com<br />
At this year’s Consumer Electronic<br />
Technology event in Las Vegas,<br />
keynote speaker and IBM CEO, Ginni<br />
Rometty, applauded the pace that we, as<br />
a society, are developing and embracing<br />
digitisation. Yet she also posed an important<br />
question. When everyone – and everything –<br />
becomes digital; “Then what? Who wins?”<br />
As we all race towards digital, it can be<br />
easy to lose sight of the real benefits at the<br />
heart of digitisation. Why is it important? Why<br />
do we all need to do it? How useful can Big<br />
80%<br />
of data is still in the dark<br />
Data and the Internet of Things (IoT) really be<br />
without fully understanding what they bring to<br />
our lives – and our businesses?<br />
“Digital,” says Rometty, “is not a<br />
destination. It’s a foundation.” There’s no first-<br />
past-the-post winner in this race; the key to<br />
getting the most out of digital and data is how<br />
much understanding we glean from it. The<br />
winners, so to speak, are those who can bring<br />
the most intelligence and insight to Big Data<br />
and IoT.<br />
It’s estimated that 2.5 quintillion bytes of<br />
data are created every day; in fact, 90% of the<br />
data in existence today was created in the<br />
last two years. Yet the way we process that<br />
data is not developing as fast; roughly 80% of<br />
data is still in the dark. We know it’s there, but<br />
we can’t see it, we can’t use it, it can’t help<br />
us – although that is now changing, thanks to<br />
cognitive solutions.<br />
Rometty predicts that in the future, every<br />
decision that mankind makes will be informed<br />
by a cognitive system like IBM’s Watson, and<br />
our lives will be better for it. In this e-guide,<br />
we take a look at how cognitive solutions are<br />
informing the decisions that we make today,<br />
and how our lives – and our businesses – are<br />
better for it.<br />
Are cognitive solutions<br />
already a part of your<br />
business?<br />
Tweet me @Shrutitripathi6<br />
or @Londonlovesbiz<br />
2 <strong>COGNITIVE</strong> <strong>BUSINESS</strong> | LondonLovesBusiness | IN ASSOCIATION WITH IBM
CONTENTS<br />
04 FOREWORD<br />
By Paul Chong, Director of Watson Group, EMEA at IBM Corporation<br />
05 WHAT ARE <strong>COGNITIVE</strong> SOLUTIONS?<br />
Infographic: how cognitive solutions are changing the way we interact with data<br />
06 SOUND & VISION: BIG DATA GETS PERSONAL<br />
How cognitive capabilities are revolutionising the way<br />
we process and understand human data<br />
08 SMEs: WHAT CAN <strong>COGNITIVE</strong> BRING<br />
TO YOUR <strong>BUSINESS</strong>?<br />
Cognitive is bridging the gap between staff and systems to bring expertise,<br />
agility and insight to businesses today<br />
10 FIRST STEP: WATSON ANALYTICS<br />
Add insight with predictive analytics<br />
11 BIG <strong>BUSINESS</strong>:<br />
TAKING <strong>COGNITIVE</strong> TO THE NEXT LEVEL<br />
How large enterprises are transforming the way they do business<br />
14 WHAT NOW?<br />
How to introduce workforce analytics in your organisation<br />
This e-guide is brought to you by<br />
LondonLovesBusiness.com, in association with IBM.<br />
LondonLovesBusiness.com is the new digital<br />
newspaper for established entrepreneurs and<br />
executives of London’s mid-market companies. We<br />
aim to further the ambitions of London businesses,<br />
celebrate good business and success, and bring<br />
you frank debate about the issues facing London<br />
businesses. We are fast becoming the must-read<br />
website for London’s business community through<br />
our mix of the latest business news across all<br />
sectors, profiles of London’s greatest entrepreneurs,<br />
features exploring the trends you can capitalise on,<br />
and the best of London lifestyle.<br />
LondonLovesBusiness.com is published<br />
by Casis Media Ltd, 56 Buckingham Gate,<br />
London SW1E 6AE<br />
Editor: Shruti Tripathi Chopra<br />
shruti@londonlovesbusiness.com<br />
Consultant editor: Charlotte Rumsey<br />
charlotte.rumsey@nutcrackeragency.com<br />
Business development director: Jenny Knighting<br />
jenny.knighting@londonlovesbusiness.com<br />
0203 394 1847<br />
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FOREWORD<br />
WHERE IT AND<br />
<strong>BUSINESS</strong> COLLIDES<br />
By Paul Chong,<br />
Director of Watson Group, EMEA at IBM Corporation<br />
Cognitive computing can be a difficult<br />
concept to grasp. For most people,<br />
any mention of Artificial Intelligence<br />
has their imagination leaping straight to<br />
sinister thoughts of HAL 9000 or Skynet<br />
(sadly often forgetting the more helpful and<br />
less ominous J.A.R.V.I.S, or even Spike Lee’s<br />
Samantha). For many, the idea of machine<br />
learning resides firmly in futuristic fiction and<br />
far beyond the grasp of the average SME.<br />
Yet the reality is actually very different.<br />
In fact, with cognitive solutions, we’re seeing<br />
a paradigm shift between IT and business<br />
the likes of which we’ve never seen before.<br />
At odds with the idea of cognitive as a<br />
complex, inaccessible – perhaps unnerving<br />
– technology, cognitive solutions are actually<br />
providing a<br />
practical, even<br />
simple way to<br />
clarify Big Data<br />
in a way that can<br />
benefit us and our<br />
businesses.<br />
This shift sees<br />
business leaders<br />
having a direct input into how Cognitive<br />
systems are trained. Cognitive systems<br />
understand, reason and learn. While complex<br />
coding is essential to their initial development,<br />
it’s the way systems are trained – with<br />
protocols designed to help them learn from<br />
every interaction with data they experience –<br />
that allow cognitive solutions to improve over<br />
time. It’s this ability to learn and reason that<br />
makes cognitive solutions such an exciting<br />
opportunity for today’s businesses.<br />
Where in the past we’ve seen systems<br />
that look glossy and shiny at the beginning<br />
but begin to depreciate over time, cognitive<br />
solutions continue to develop without<br />
the need for extensive revisions and reprogramming.<br />
Cognitive systems gain in<br />
confidence, with each new set of data<br />
informing the way they react in future, helping<br />
them to evolve and better understand the<br />
information they process.<br />
Malcolm Gladwell famously stated that<br />
it takes 10,000 hours to become an expert in<br />
any skill. Thanks to Watson, experts in any field<br />
can pass on their expertise and share their<br />
knowledge, informing the next generation of<br />
experts and helping them to take that skill to<br />
the next level.<br />
As cognitive solutions develop, we’ll start<br />
to see even more natural, seamless relations<br />
between us and our IT systems. Programs<br />
like Siri are just the start; in future, our mobile<br />
devices will feature intelligent assistants<br />
that interact with us entirely naturalistically,<br />
transforming the way we ask for information.<br />
It’s an exciting era, not just for IBM, or the<br />
businesses using our cognitive solutions, but<br />
for all of us.<br />
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WHAT ARE <strong>COGNITIVE</strong> SOLUTIONS?<br />
Cognitive solutions are transforming industries and changing the way we interact<br />
with data, allowing us to outthink the limits of what’s possible.<br />
APIs<br />
Speech, sight and sound APIs can transform dark data into useful information<br />
Personal<br />
That means that our<br />
wearables, sensors and even<br />
medical equipment can gain<br />
better insight into who we are<br />
and what we need.<br />
SMEs<br />
Watson enables us to retain<br />
human expertise and share<br />
knowledge within our teams.<br />
It can facilitate better client<br />
engagement and help leaders<br />
understand their processes.<br />
Large Enterprise<br />
Here, the possibilities seem<br />
endless. Enterprises are able to<br />
collate digital information across<br />
huge networks of staff and<br />
customers, gaining unparalleled<br />
insight into their operations.<br />
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SOUND &<br />
VISION: BIG<br />
DATA GETS<br />
PERSONAL<br />
How cognitive capabilities are revolutionising<br />
the way we process and understand human data<br />
It’s not so much the amount of data it can<br />
process that makes it useful in personal<br />
applications; it’s the type of data.<br />
Human activity is difficult to boil down<br />
into binary data. We can’t easily be distilled<br />
PERSONAL<br />
into numbers and statistics, charts and<br />
graphs. The majority of the digital information<br />
collected by our mobile devices, IoT<br />
connected homewares and wearable tech<br />
isn’t numerical. It is data that, before cognitive,<br />
was essentially invisible, comprising of natural<br />
language, sight and sound.<br />
Over 50 APIs – including language,<br />
vision and speech APIs – allow programs to<br />
recognise this information and transform it<br />
into useful data. Thanks to Watson’s cognitive<br />
capabilities, these APIs are learning all the<br />
time, with each transaction informing the<br />
way that the systems react in future. It’s this<br />
type of data that makes Watson so unique<br />
when embedded into applications that help<br />
us in our day-to-day lives, as it unravels our<br />
complicated interactions and transforms that<br />
data into usable information.<br />
Take Under Armour Inc, a sportswear<br />
company who have incorporated Watson’s<br />
cognitive solutions to create a fitness<br />
wearable that learns and evolves with its user.<br />
UA Record is a mobile device app, created<br />
by Under Armour as part of their Health Box<br />
connected fitness system. It is, essentially, a<br />
personal health consultant, a fitness trainer<br />
and a sports assistant, all rolled into one.<br />
Linked to Under Armour’s wearable, UA<br />
Record can provide athletes – or those of<br />
you who are taking your new year’s fitness<br />
resolution particularly seriously – with<br />
personalised coaching.<br />
Connected to the wearable device, the<br />
app does what you’d expect from a mobile<br />
6 <strong>COGNITIVE</strong> <strong>BUSINESS</strong> | LondonLovesBusiness | IN ASSOCIATION WITH IBM
fitness wearable – tracking steps, monitoring<br />
heartrate, measuring athletic performance.<br />
Yet UA Record goes a few steps further.<br />
Thanks to these learning capabilities<br />
and those language, vision and speech APIs,<br />
UA Record can tap into behavioural trends.<br />
It connects with a database of millions of<br />
individuals to compare your achievements<br />
to others ‘like you’. It can recognise – by<br />
sight – food images, to gauge nutritional<br />
intake. Its weather domain knowledge and<br />
news integration can help the<br />
device to tailor your exercise<br />
program every day to fit in<br />
with the world around you.<br />
The more you use it, the<br />
more the app learns<br />
about you.<br />
CASE STUDY IBM'S WATSON HEALTH UNIT<br />
IBM’s Watson Health unit is revolutionising<br />
diabetes management through its<br />
collaboration with Medtronic, a global<br />
healthcare provider. Combining cognitive<br />
computing with medical devices,<br />
Medtronic are developing personalised<br />
diabetes management solutions that<br />
can offer personal care plans in almost<br />
real-time. Diabetes device data<br />
CogniToy is essentially a<br />
supercomputer packaged into<br />
a cute toy dinosaur. That may<br />
sound like the concept of an ‘80s<br />
comedy sci-fi, but it’s real and it’s<br />
already interacting with kids in<br />
test rooms today. Launched on<br />
Kickstarter last year, CogniToy<br />
brings cognitive solutions into<br />
early years learning. Parents<br />
connect the toy to a home<br />
Wi-Fi network and input a<br />
few preliminary details – age,<br />
CASE STUDY COGNITOY<br />
can be gathered and analysed instantly,<br />
before being combined with numerous<br />
other sources of data – including medical<br />
records and wider population health data<br />
– to predict risks and uncover patterns<br />
for the patient. It’s unlike any diabetes<br />
management solution that has come<br />
before it, and is set to transform the lives<br />
of diabetes sufferers.<br />
education level, a favourite sport or food.<br />
This helps the toy to jump straight into<br />
conversation with the child but, from there<br />
on in, there’s no need for programming<br />
– although parents can maintain full<br />
control via the Parent Panel. Using Watson,<br />
CogniToy constantly evaluates the child’s<br />
abilities, changing its interactions to help<br />
further develop their skills. It can answer<br />
questions (including those perplexing<br />
queries that have parents heading for<br />
Wikipedia) and tell jokes, engaging in a<br />
naturalistic, age-appropriate style.<br />
7 <strong>COGNITIVE</strong> <strong>BUSINESS</strong> | LondonLovesBusiness | IN ASSOCIATION WITH IBM
SME'S<br />
WHAT CAN<br />
<strong>COGNITIVE</strong><br />
BRING<br />
TO YOUR<br />
<strong>BUSINESS</strong>?<br />
Cognitive is bridging the gap between<br />
staff and systems to bring expertise,<br />
agility and insight to businesses today<br />
1<br />
EXPERTISE<br />
As Keith Mercier, IBM Watson’s<br />
Global Retail Leader, said<br />
recently; “by the time a<br />
medical professional becomes an expert in<br />
their field, they are often nearing retirement”.<br />
It’s not only in the field of medicine; in almost<br />
every industry, the point at which we feel most<br />
confident in our work is often the time we<br />
start looking to move on to pastures new, be<br />
it retirement or our next career challenge.<br />
With cognitive solutions, businesses can<br />
create a partnership between staff and systems<br />
that – to use Mercier’s words – enhances,<br />
scales and accelerates human expertise.<br />
Far from replacing human experience within<br />
the workplace, it helps businesses to draw<br />
on that experience continuously. With those<br />
language, vision and speech APIs, Watson<br />
can compile business data and convert it into<br />
useful information, to help businesses retain<br />
knowledge and expertise, even as staff move<br />
on. Having a Watson-powered system at your<br />
fingertips is like having an expert at hand, ready<br />
to help when needed.<br />
2<br />
AGILITY<br />
In the age of digital, agility is<br />
key to running a successful<br />
business. Businesses need<br />
8 <strong>COGNITIVE</strong> <strong>BUSINESS</strong> | LondonLovesBusiness | IN ASSOCIATION WITH IBM
to be ready to move, and move fast. IBM’s<br />
cognitive cloud capabilities allow businesses to<br />
manoeuvre quickly and build tailored solutions<br />
that can adapt and evolve to their needs.<br />
Through cloud-based platforms like<br />
Bluemix, Watson brings agility and innovation<br />
to businesses of any size. Bluemix is a<br />
responsive, easy to use app development<br />
platform that can transform ideas into useful<br />
applications in a matter of hours.<br />
Getting started is not only easy; it’s free.<br />
Customers only pay once the app reaches a<br />
certain threshold – in terms of users, licenses<br />
or requirements – making it perfect for SMEs<br />
to rapidly test and deploy pilot apps.<br />
3<br />
INSIGHT<br />
Imagine the insight your<br />
business could gain from<br />
a team member who had<br />
access to every client interaction, every email,<br />
every spreadsheet – in short, every piece of<br />
information generated by your business. Not<br />
only that, but they could trawl through that<br />
information at breakneck speed, revealing<br />
patterns based not only on facts and figures, but<br />
on human interaction, activity and behaviour.<br />
With Watson on your team, you can do<br />
just that, allowing your staff to use cognitive<br />
insights to grow and develop your business.<br />
Brightminded, a creative<br />
coding SME based in<br />
the UK, teamed up with<br />
two experienced PTs to<br />
create their first cognitive<br />
supported app as part of<br />
the IBM Watson Mobile<br />
Developer Challenge. TRAIN<br />
ME is a cognitive application<br />
designed to help personal<br />
trainers manage their<br />
business, improving the way<br />
they engage with clients<br />
and access information.<br />
Powered by Watson, TRAIN<br />
ME brings personal trainers<br />
and fitness professionals<br />
CASE STUDY TRAIN ME<br />
a whole host of useful<br />
features in one app. From<br />
streamlining business<br />
management to accessing<br />
industry updates and<br />
legislation, TRAIN ME can<br />
help trainers improve their<br />
business and their expertise.<br />
By using IBM Watson, the<br />
team at Brightminded were<br />
able to draw on a wealth<br />
of industry information,<br />
research, and insights, to<br />
build an adaptable solution<br />
for their clients in the<br />
fitness industry.<br />
Anyone can teach Watson to become an industry expert.<br />
Through IBM’s Knowledge Studio, you can team up with developers<br />
and use ‘supervised learning’ techniques to teach Watson about<br />
your industry. From linguistic nuances to working relationships,<br />
Knowledge Studio can help Watson get to know you, your team<br />
and your industry.<br />
9 <strong>COGNITIVE</strong> <strong>BUSINESS</strong> | LondonLovesBusiness | IN ASSOCIATION WITH IBM
FIRST STEP:<br />
WATSON ANALYTICS<br />
Add insight with predictive analytics<br />
If fully cognitive solutions seem like a big<br />
leap for your business, Watson Analytics<br />
could be a step in the right direction. It can<br />
be used to various structured, or traditional,<br />
data types – including text, spreadsheets and<br />
social network statistics – to analyse digital<br />
information and provide a more accurate<br />
estimation of upcoming trends. Unlike other<br />
complex analytics programmes, it’s designed<br />
to be operated by ordinary business users<br />
without programming or support from IT staff.<br />
A FRESH PERSPECTIVE ON<br />
DYNAMIC DATA<br />
To better understand the dynamics of your<br />
business, all you have to do is upload your<br />
spreadsheets to be presented with userfriendly<br />
visualisations or dashboards. It will<br />
highlight information that it thinks might<br />
be useful to you and integrate results from<br />
multiple sources<br />
– data from social<br />
networks, for instance<br />
– to give you new<br />
insights into your<br />
customer base. By<br />
providing a new angle<br />
on your day-to-day<br />
operations, Watson<br />
Analytics allows you<br />
to react faster to new<br />
trends as they emerge.<br />
LEVEL UP<br />
Use Watson Analytics as an inroad to cognitive<br />
solutions. By deploying this easy to use<br />
tool, you’ll soon start to see how cognitive<br />
solutions can add value, efficiency and insight<br />
to your business. It can even become a core<br />
part of your service offering.<br />
CASE STUDY<br />
HONEST CAFE<br />
A disruptive start-up from Revive<br />
Vending, Honest Café operates six<br />
unmanned coffee shops across southern<br />
England. If you’re wondering what is so<br />
disruptive about a coffee shop chain, the<br />
answer is: analytics. Honest Café uses<br />
Watson Analytics to<br />
respond to customer<br />
behaviour, mining data<br />
from transactions,<br />
payments, even<br />
local weather. By<br />
making Watson<br />
Analytics a core<br />
part of the business,<br />
Revive Vending has<br />
uncovered insight into<br />
customer behaviour<br />
and preferences that<br />
would otherwise have been impossible<br />
to detect. After seeing that customers<br />
used the Café as a ‘hangout’, Honest Café<br />
developed their seating areas, offering<br />
more space and comfort for visitors using<br />
the cafés to socialise.<br />
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LARGE ENTERPRISE<br />
BIG <strong>BUSINESS</strong>:<br />
TAKING <strong>COGNITIVE</strong><br />
TO THE NEXT LEVEL<br />
For large enterprises, the potential for cognitive solutions to transform<br />
business processes is seemingly endless. Cognitive solutions have the<br />
capability to draw together disparate parts of a business, collating client<br />
information, bringing together colleagues in offices all over the world and<br />
unifying corporate strategy. Just like SMEs, large enterprises can bring greater<br />
agility, expertise and insight to their businesses through cognitive solutions.<br />
Here are two large enterprises who are embracing this new era, taking<br />
cognitive solutions to the next level.<br />
11 <strong>COGNITIVE</strong> <strong>BUSINESS</strong> | LondonLovesBusiness | IN ASSOCIATION WITH IBM
CASE STUDY THE NORTH FACE<br />
In 2015, globally recognised outdoor apparel brand, The North Face,<br />
launched an interactive shopping experience. The brand’s mission<br />
was to apply technology to the retail experience in a way that adds<br />
to, rather than detracts from, the consumer’s overall shopping<br />
experience. The result was an interactive shopping experience<br />
powered by Watson and Fluid XPS, a digital commerce platform.<br />
The intuitive online shop allows The North Face customers to use<br />
natural conversation to find the products they are looking for,<br />
via a dialog-based recommendation engine.<br />
Utilising natural language processing capabilities, the e-commerce<br />
portal is a comprehensive search engine that naturalistically asks<br />
consumers questions to find out more about what they need,<br />
learning from each interaction. It can then factor in details like<br />
location and temperature, to recommend products that suit the<br />
customer’s needs; so no one ends up purchasing a spring walking<br />
jacket for a climb to Kilimanjaro.<br />
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CASE STUDY ROBOTICS<br />
No cognitive eGuide would be complete<br />
without at least one mention of robots.<br />
Introducing Pepper, a collaboration between<br />
SoftBank’s robotics division and Watson.<br />
Aimed at global enterprise customers,<br />
Pepper is a humanoid robot who was initially<br />
designed to be a personal companion.<br />
Currently installed in over 140 SoftBank<br />
Mobile stores in Japan, Pepper meets and<br />
greets customers as they come into stores.<br />
assistant that he recently became the<br />
first humanoid robot to be adopted into<br />
Japanese homes.<br />
If you’re worried that poor little Pepper<br />
might get lonely, fear not. It’s estimated<br />
that by 2019, the market for consumer and<br />
business robots could reach$1.5 billion.<br />
Unlike other humanoid robots, Pepper is able<br />
to interact in a natural, intuitive way, and –<br />
thanks again to those language, vision and<br />
speech APIs – he can recognise and react to<br />
human emotions. He even responds personally<br />
to the mood of a conversation, expressing his<br />
‘feelings’ through his tablet, the colour of his<br />
eyes and the tone of his voice.<br />
As with all Watson-powered technology,<br />
Pepper can learn from his perceptions<br />
and interactions, gradually memorising<br />
personality traits and preferences. Such is<br />
Pepper’s popularity as a customer services<br />
13 <strong>COGNITIVE</strong> <strong>BUSINESS</strong> | LondonLovesBusiness | IN ASSOCIATION WITH IBM
WHAT<br />
NOW<br />
?<br />
If you’re ready to<br />
embrace cognitive in<br />
your business, it’s time<br />
to find out more. These<br />
IBM resources are<br />
your next step towards<br />
introducing cognitive<br />
solutions to your<br />
organisation.<br />
CONTACT<br />
RONAN<br />
HETHERINGTON,<br />
<strong>COGNITIVE</strong><br />
SOLUTIONS<br />
SPECIALIST<br />
RHetheri@ie.ibm.com<br />
44-239 228 9747<br />
JOIN THE <strong>COGNITIVE</strong><br />
CONVERSATION<br />
MORE<br />
INFORMATION<br />
ON IBM<br />
<strong>COGNITIVE</strong><br />
SOLUTIONS<br />
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