Towards a Smarter Data Driven Future

© 2015 IBM Corporation
Baltimore, MD
October 13th, 2015
Opening Keynote:
Towards a Smarter Data Driven Future
Journey from Big Data to Smart Data
Piyush Malik
Global Business Services, @pmalik1 #IDQS15
IBM Silicon Valley

© 2015 IBM Corporation2
1
Our Data
World
Today
2
Emerging
Technologies
3
Future in a
Data-Driven
Economy
Outline

What movies you should
watch
What ads show up based
on browsing history, likes,
preferences, and so forth
or location even on your
phone as you are driving
around
How you connect to your
friends
What subjects you are
interested in, how YOU
influence the world
We live in a data-driven world

Change or Perish
Disrupt or be Disrupted
What interests you, how YOU influence the world and how would you like to TRANSFORM
Which is rapidly transforming

Data is an invisible thread permeating our lives in many ways

Data highlighted in Mainstream News

Big Data & Analytics has been a popular topic in client discussions
2012 2013 2014 2015
Volume
Velocity
Variety
Veracity
Confluence of
Social, Mobile,
Cloud, Big Data, and
Analytics
Systems of Insight
Data Transforming
Industries
Data will disrupt IT
in the every
industry
Mobile Social
Cloud
Internet of Things
Data
Big Data has been a popular topic in discussions

8
>80% Unstructured Data
+ External Data
“Untouched” Data
+ Stream of Data
Enterprise Data Machine Data People Data
Visualizing the concept of Big Data

AI Robotics etc placeholder
Data Deluge Continues unabated
Infographic Source: https://web-assets.domo.com/blog/wp-content/uploads/2015/08/15_domo_data-never-sleeps-3_final1.png

1 in 2
business leaders do
not have access to
data they need
83%
of CIO’s cited Business
Intelligence (BI) and
analytics as part of their
visionary plan
5.4X
more likely that top
performers use
business analytics
80%
of the world’s
data today is
unstructured
90%
of the world’s data
was created in the
last two years
20%
of available data can
be processed by
traditional systems
Source: GigaOM, Software Group, IBM Institute for Business Value"
Data Data Everywhere

11
As dataset size increases, so do anomalies

Make decisions on
untrusted information1in 3
60%
Don’t have necessary
information1in 2
Time spent per big
data project to find,
prepare, understand &
defend information
due to lack of context
80%
Have more data than
they can use60%
Our World today must deal with data uncertainty & ambiguity

Way the World Works with Data is evolving
Data is Growing at an
Accelerating Pace
Users Demand Better
Access to Data
Cloud Facilitates
Access for All
But there’s a problem .
13

Business
Users Want
to Access
More Data
Business Users
Already Suffer
from Information
Overload
The Big Data Paradox
All You Can Eat Buffet

Chief Marketing Officer
...could predict the right offer for the
right customer at the right time and
improve customer intimacy or
prevent churn?
Chief Product Designer
...could consider the risk and
profitability of the entire customer
relationship chain, lifetime value
and predict demand trends when
designing and pricing new product
offerings?
Chief Finance Officer
...could streamline compliance
and understand risk exposure
across businesses and
regions?
Chief Risk Officer
...uses anti fraud predictive analytics to
detect and prevent rapid fire anomalous
transactions or wire transfers identified as
high probability of fraud?
Chief Executive Officer
...could make better business decisions
using accurate data across all time
horizons: past, present and future?
Chief Information Officer
...could analyze oceans of machine generated logs to
predict which components or equipment in the
datacenter are likely to fail and thereby avert a disruption
during critical quarter end?
Big Data holds opportunities for a number of stakeholders
Imagine If..

Customer Retention
and Growth
Next Best
Action
Claims Fraud
Smart Meters
Asset Performance
Management
Next Best
Action
Network
Analytics
Tax Fraud,
Waste and Abuse
Consumer360
Insights
Provider Outcome
Analytics
Deliver a Smarter
Shopping Experience
Merchandise
Planning &
Optimization
Track & Trace
Supply Chain
Management
Actionable
Consumer Insight
Compliance
and Risk
Social Program
Integrity
Banking E & U Government Retail
Insurance Telco Healthcare Industrial
Popular use cases of Data across all Industries

Overview of Analytics, Big Data & Watson Module
Data is the new natural resource
that needs to be harnessed amidst
characteristics of rising volumes,
variety and velocity
Embracing Analytics enhances the
chances of an enterprise to
succeed amongst its peers by a
factor of 5
Complexity of integrating Big Data
and Analytics is driving demand for
cloud based BD&A solutions
We are unleashing a new era of
computing
Data is an asset ..are you treating it as a liability?

© 2014 IBM Corporation
18

1
Our Data
World
Today
2
Emerging
Technologies
3
Future in a
Data-Driven
Economy
Outline

Hot & Emerging Technologies
Artificial Intelligence
Robotics
Deep Learning/NLP/Machine
Learning
Contextual & Cognitive Computing
Internet of Things
SyNAPSE: Neurosynaptic Computer
chips mimicking human brain

Evolution of Artificial Intelligence (AI) through history
21
1974- 1980: 1st AI “Winter”
1950s 1960s 1970s 1980s 1990s 2000s 2010…
1956: “Birth” of AI
John McCarthy coins term
artificial intelligence (AI) at
Dartmouth Conference
1965: First Expert System
Stanford team led by Ed
Feigenbaum creates DENDRAL
1987- 1993: 2nd AI “Winter”
1950: Turing Test
Turing introduces way to
test for intelligent behavior
1990s: AI on www
AI-based extraction
programs prevalent on www
1997: Deep Blue
IBM Deep Blue defeats
World Chess Champion
2011: Watson
IBM’s Watson competes
and wins on Jeopardy!
2005: Autonomous Car
Stanford-built autonomous car wins
DARPA Grand Challenge
2014: Key Market Moves
IBM formation of Watson Group and
Google acquisition of Nest Labs
1860-1900s
1869: “Birth”
of Intelligent
Machines
William S Jeavons
creates Logic
Piano
1887: Birth
of Early AI
Charles S
Pierce

1960-2000 Industrial robots revolutionize manufacturing
2000-2010 Cuddly pet “Aibo” entertaining to room cleaning Roomba get mainstream
2011: “New UCSF Robotic Pharmacy Aims to Improve Patient Safety”
2011: “Japanese Robot Debones 1,500 Chickens Per Hour”
2014: “Royal Caribbean's Quantum of the Seas Features a Bionic Bar with Robot
Bartenders”
2015 “Chinese factory replaces 90% staff with robots, productivity up 163%, reduces
quality problems 5 folds”
2012: “Meet South Korea’s New Robotics Prison Guards”
2013: “New Sedation Machine Promises Cheaper
Colonoscopies; Doctors Fight Back”
AI powered robots are ready to take up any challenge

“Thinking Machines” emerging from science fiction are
now a reality and sometimes fear inducing

Yet, Race to supremacy continues with Multi-Billion Dollar
Investments
2012 Foxconn - 1 million robots
2012 Amazon – Kiva $775 million
2013 Facebook – AI lab, DeepFace
2013 Yahoo - LookFlow
2013 Ebay – AI lab
2013 Allen Institute for AI
2013 Google – DNNresearch, SCHAFT, Industrial Perception, Redwood Robotics, Meka
Robotics, Holomni, Bot & Dolly, Boston Dynamics
2014 IBM - $1 billion in Watson
2014 Google – Nest $3.2 Billion & DeepMind $500 million
2014 Vicarious - $40 million
2014 Microsoft – Project Adam, Cortana
2015 Baidu – “China Brain” AI project akin to Apollo Space Program
2015 IBM – Merge Health $1Billion

Warning sirens of Danger have been sounded as well
The Famous Physicist
Success in creating AI would be the biggest event in
human history. Unfortunately, it might also be the last,
unless we learn how to avoid the risks.
– Stephen Hawking
Out of the world thinker and Entrepreneur
We need to be super careful with AI. Potentially
more dangerous than nukes.
– Elon Musk

From science fiction to reality We’ve come a long way
Imagination Innovation
… and this is only the beginning!

Innovation unleashed with NLP/Deep/ Machine Learning

Smarter Data Driven Applications of Robotics/AI/Cognitive
are at work today to improve Humanity
Clean up pollution
Prevent medicinal errors
Disaster response
Cure cancer and other diseases
Create cheap power, food, water
Prevent crime
Increase trust in police
Eliminate drudgery
Simplify the law
Improve learning
Create financial stability
http://www.interiorholic.com/other/gadgets/ocean-robot-cleaner/
http://www.aaai.org/ojs/index.php/aimagazine/article/view/2345
http://www.pouted.com/wp-
content/uploads/2013/02/solar-
power-robot-operation.jpg
http://www.technologyreview.com/
news/428354/la-cops-embrace-
crime-predicting-algorithm/
http://www.salon.com/2014/08/22/m
ake_cops_wear_cameras_a_simple_w
ay_to_hold_the_police_accountable/
http://www.elearning-
technologies.com/artificial-intelligence/

© 2015 IBM Corporation29 29
Distribution to Creation
branches into new businesses
by leveraging viewing data to
create a
hit series
Fitness Data to Healthcare
leverages fitness data,
partners with activity trackers
to create HealthGraph
GPS to Fleet Management?
crowdsources traffic, road
hazard, and police
information – a credible
basis for fleet management
2
Netflix Runkeeper Waze
ORANGE
is
the
new BLACK
Innovative Uses of Data Creates New Businesses

Data is Disrupting Industries ..
t the world’s largest taxi company, owns no vehicles.
Face the world’s most popular media owner, creates no content.
the most valuable retailer, has no inventory.
e world’s largest accommodation provider, owns no real estate.
They are all new age Data – Driven companies!
Guess who will be next? Are you ready to disrupt?

3
Future in a
Data-Driven
Economy
Outline
1
Our Data
World
Today
2
Emerging
Technologies

5 Ways Data will drive our future
1. Hyper Personalization will become the norm
2. Contextual and Cognitive apps will make us smarter
3. Privacy will evaporate sooner than you think, while need for continuous
refinement to boost trustworthiness of data will be paramount
4. Digital currencies will make way for a nearly cashless society
5. Innovative Data Products will mushroom around us boosting Open Data
movement and creating opportunities to disrupt or create entire industries

5 ways Data will TRANSFORM the world
Automatic recognition of medical
images (131 categories)
MRI Brain Axial
DX Torso DX Cervical Spine
PET Color DX Appendage
MRI Knee
1. Lifesciences & Healthcare
Universal Access to best
healthcare ANYWHERE
Personalized Medicine
Wearables enable proactive
treatment and monitoring
Video Analytics

2. Automotive
Driverless cars reduce accidents
Preventive maintenance saves
lives
Connected Vehicles aware of
weather and road hazards
Insurance industry disrupted
Find
my car
Unlock
my car
Vibration
detected, details
published
Schedules service
appointment
Predicts part failure
Weather
Data

3. Smarter Cities
Data shared between agencies
Citizens Safer
Smarter Parking and Traffic management
IOC enables to plan ahead and respond to
emergencies in minutes

4. Education
Everybody will have access to educational resources
Free resources like MOOCs tailor and adapt to
individual learning patterns
Backoffice resources and processes optimized
Improved teaching effectiveness and learning
outcomes

One More Thing .
Dataiseatingourworld…
makesureitisTrustworthy
Dataiseatingourworld…
makesureitisTrustworthy

Summary
3
Future in a
Data-Driven
Economy
1
Our Data
World
Today
2
Emerging
Technologies

Q&A
any final
questions ?
Piyush Malik
WW Big Data Analytics CoE
Leader
Global Business Services
Slicon Valley Innovation Labs
4400 N First Street
San Jose CA 95131
+1 510 3049890
Piyush.malik@us.ibm.com
@pmalik1

Towards a Smarter Data Driven Future

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