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Hi, I’m Rebecca
Find all the IBM Institute for Business Value research
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IBM Institute for Business Value
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❖ Free externally …Rebecca Shockley
Global Analytics Research Leader
IBM Institute for Business Value
RebeccaShockley/Houston/IBM
Twitter @rashockley
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Analytics: Dawn of the cognitive eraHow early adopters in Government have raised the bar for data-driven insights
An industry perspective from the IBM Institute for Business Value
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Page 3 Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
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Descriptive
Diagnostic
Predictive
Prescriptive
Cognitive
Reports past events
Assesses past outcomes
Identifies potential outcomes
Identifies (and may automate execution of)
optimal outcomes
systems
Learning systems based on probabilistic reasoning
Analytic maturity
Increasing analytic maturity is cumulative; for example, most prescriptive analytics use predictive analysis; most cognitive systems leverage prescriptive analysis.
Once a majority of organizations achieve pervasive use of an analytics level, the competitive advantageevolves to the nextlevel
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Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
www.ibm.biz/cognitiveanalytics
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IBV research has tracked global analytic maturity for seven years
Descriptive
Diagnostic
Predictive
Prescriptive
Cognitive
2010
2011
2012
2016era … starting now
Majority of organizations achieved pervasive use of the techniques in the year noted above, based on annual analysis of the global marketplace by the IBM Institute for Business Value.
Global analytics maturity level
tipping point
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Cognitive systems redefine the use of data to add fundamentally new capabilities designed to impactbusiness activities and outcomes
Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
www.ibm.biz/cognitiveanalytics
Advanced analyticsrespond to specific, coded
requests to make
determinations,
analyzing predefined data
based on predefined
parameters Cognitive systems
interact with humans
naturally to interpret data,
learn from virtually every
interaction, and propose
new possibilities through
probabilistic reasoning
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Operational use of cognitive is nascent, but we foresee rapidadoption
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Cognitive Explorers
Analytic capabilities include the operational use of cognitive computing
solutions
Analytic capabilities include the pervasive use of at least one prescriptive programmed analysis technique
70%Cognitive
Capable
4%
15%Considering
Note number of surveyed:
n= 6,050 total respondents
n= 219 Cognitive Explorers
n = 4,229 Cognitive Capable
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Early adopters – Cognitive Explorers – are market leaders within every industry, now seeking a new frontiers of differentiation
4%Cognitive Explorers
Present in all 19 industry groups surveyed
84% report they outperformcompetitors in revenue
91% report they are more effectivethan similar organizations
89% report they are more efficient at what they do than competitors
89% report they are more innovativethan most in their industry
These organizations have at least one cognitive system in already in operation
Source: Analytics: Dawn of the cognitive era
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Examining the data and analytics traits that differentiate Cognitive Explorers emphasizes what’s needed succeed in the cognitive era
Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
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Cognitive Explorers
Create an organizational cornerstone for cognitive
Build a solid cognitive data foundation
Focus on the skills of the future
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Today, we will compare the Cognitive Capable organizations within Government to organizations globally
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The sample size of Cognitive Explorers in the Government Industry is too small to be statistically significant (i.e. below 30 respondents).
The total number of respondents in the Government industry: n = 400
Total number of Government industry respondents whose organization is Cognitive Capable: n = 286
Of organizations in Government are Cognitive Capable … ready to start their cognitive journey
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Organizational cornerstone
Source: Analytics: Dawn of the cognitive era
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Cognitive Explorers
Create an organizational cornerstone for cognitive
Build a solid cognitive data foundation
Focus on the skills of the future
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Organizational cornerstone
Cognitive organizations embrace the science of data, and foster a culture that infuses insight into every action, interaction and decision
Source: Analytics: Dawn of the cognitive era
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In Government,
2 out of 10 respondents agree their
organization is ready to adopt cognitive computing
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Cognitive Explorers are evolving their data and analytics strategy to encompass cognitive, while Cognitive Capables lag behind
Organizational cornerstone
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Most Cognitive Explorers recognize data as a strategic asset, governed by business executives and led by a Chief Data Officer
Organizational cornerstone
Source: Analytics: Dawn of the cognitive era
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55% of Cognitive Explorers have a business-driven data
governance system
compared to 37%
of global Cognitive Capables
and 30% in the Government
industry
56% of Cognitive Explorers have appointed a Chief Data Officer
compared to 44%
of respondents overall
and 43% in the Government industry
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A growing city anticipates boosting productivity and lowering costs with a pioneering solution that delivers predictive modeling, advanced analytics and a unified view of city operations, enabling officials to plan, coordinate and prioritize activities across departments
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▪ The City of Cambridge comprises multiple agencies responsible for managing improvement
projects and manage more than 250,000 assets such as roads and buildings. The city had
volumes of data but could not exploit it to its full advantage.
▪ Agencies operated autonomously and reactively instead of proactively planning and
synchronizing projects with each other. The city faced an aging infrastructure, and its approach
was costly and unsustainable. To assure service and keep the city running, each agency had to
be functioning at maximum efficiency and operating with other agencies in a well-coordinated
fashion.
The opportunity
The solution▪ The City of Cambridge deployed a First-of-a-Kind project that combines asset
management innovations, predictive modeling, and geospatial and business analytics
to help it improve planning, operations and services across municipal departments.
▪ Through a sophisticated network of sensors, digital
closed-circuit television robots and geographic information system technology, the city
collects and aggregates a wealth of data about its roads, water and other key
infrastructure elements. This affords officials an unprecedented, holistic and unified
view of city operations.
▪ Then, by applying a deep and broad set of analytics against this data and insight, the
city can coordinate activities across the different agencies and prioritize improvement
and asset maintenance projects.
The results
▪ Anticipates saving USD100,000 per year in staff time spent on capital plan forecasting
▪ Reduced scenario and funding option assessment reporting time up to 90 percent -- from
hours to minutes
▪ Expects to reduce costs related to project coordination, operations and capital expenditures
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Create a cognitive mindset through strategy and structure
Organization: Course of action / recommendation
Source: Analytics: Dawn of the cognitive era
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Adopt a mindset that embraces the science of data
Use an enterprise-level strategy to provide the vision
and practical steps
Ensure business-driven leadership for data
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Source: Analytics: Dawn of the cognitive era
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Cognitive Explorers
Create an organizational cornerstone for cognitive
Build a solid cognitive data foundation
Focus on the skills of the future
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Most Cognitive Explorers have made significant investments in the platform components needed for a modern data ecosystem
Cognitive data foundation
Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
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Cognitive Explorer
Cognitive Capable
Government Cognitive Capable
Cloud-based data storage or analytic services
Streaming data acquisition or analysis
Shared operational information
Data curation services
66% 42% 39%
Cognitive Explorer
Cognitive Capable
Government Cognitive Capable
61% 35% 29%
61% 39% 35%
61% 36% 31%
have made significant investments in have made significant investments in
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A police
force in the
United
Kingdom
probes its
data more
deeply and
intelligently
to crack
down on
fraud-based
crime
The opportunityFrom credit card fraud to identity theft to money laundering, fraud was on the rise in this region in the United Kingdom, and the local constabulary was struggling to keep up. Analysts combed through millions of records stored on a wide variety of systems to tease out patterns that indicated nefarious activity, but they were losing the race against fraud-based crime.
The solutionThe force developed an innovative data management solution that draws together data from multiple sources, including banking data and tax information, and then uses automated task-driven analysis to identify patterns and uncover criminal networks hiding deep in the data. Whether it’s finding hidden links between stolen credit cards or discovering a new type of insurance fraud, the force is now staying a step ahead of fraudsters.
The results
Less time requiredto uncover fraud because data analysis is now automated
Enhanced abilityto identify fraudulent activities thanks to a comprehensive, integrated view of critical data
4-10% decreasein fraud-based crime as a
result of better insight into
multiple sources of data
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Cognitive systems require the ability to ingest and provision a wide variety of data sources while decreasing its analytic latency
Cognitive data foundation
Page 19 Source: Analytics: Dawn of the cognitive era
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Cognitive Explorer
Cognitive Capable
Government Cognitive Capable
Social media
Customer-generated text
Real-time events and data
Market data
69% 52% 51%
Cognitive Explorer
Cognitive Capable
Government Cognitive Capable
65% 57% 50%
60% 52% 49%
65% 52% 46%
collect and analyze collect and analyze
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Responding to budgetary demands to maximize resources, this US law
enforcement agency needed to discern where crimes were most likely to occur
and who might be likely to commit them so that it could effectively position
police officers where they were most needed. To deploy officers where the need
was greatest, officers needed a solution that would provide real-time information
about emerging patterns of criminal activity.
The agency developed a cloud-based predictive policing solution that delivers
statistical models that calculate the hour-by-hour probability of crime occurring
in different parts of the city and the risk of different types of crimes occurring in
each area. The solution supplies a holistic, topographical view of historical and
emergent criminal activities and uses analytical, quantitative techniques to
detect nuanced patterns of activity, identifying targets for effective intervention.
A law
enforcement
agency in the
US is using
predictive
policing to
provide near
real-time
insight for
more effective
resource
deployment
The opportunity
The solution
The results
220 hours
savedduring pilot phase
alone by replacing
manual spreadsheet
methods with
predictive modeling
9,000-fold
improvement on data acquisition and
analysis time, from days
to minutes, once system
was fully implemented
1,000x
reduction in time needed o identify focus
areas, enabling officers to
quickly allocate resources to
areas of critical need
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Safety is the most important goal for carmakers. To get a head start on solving
safety issues and other problems, one carmaker based in Japan examines
customer incidents reported across all carmakers in the US. But the constant
flow of detailed descriptions is too massive to fully analyze with conventional
search tools. The company needed a faster way to understand volumes of
unstructured customer feedback.
The new solution pulls unstructured feedback into a data warehouse, where it
applies cognitive analytics and natural language processing (NLP) with
correlation and prediction analysis. Together, these cognitive capabilities find
trends, suggest reasons, recommend preventive measures and continually
learn the warning signs for new issues and complex connections that the
company needs to understand.
Automaker in
Japan is
keeping
vehicles on
the road with a
system that
learns from
unstructured
customer
posts
The opportunity
The solution
The results
50% fewer
new-car
problemsin the first 3 months of
ownership
50% fewer
defective
componentsfrom third-party suppliers
50% faster
problem
resolutiondue to expedited
decision-making
processes
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Construct a data ecosystem that adds context and depth
Course of action / recommendations
Source: Analytics: Dawn of the cognitive era
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Establish data ecosystem needed to support cognitive
systems
Augment the ecosystem with new sources of data
Ensure well-governed data curation services
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Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
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Cognitive Explorers
Create an organizational cornerstone for cognitive
Build a solid cognitive data foundation
Focus on the skills of the future
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Many Cognitive Explorers use 5 to 9 types of advanced analytics within their organization, more than double that of Cognitive Capables
Skills of the future
Source: Analytics: Dawn of the cognitive era
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Cognitive Capable organizations use at least one advanced analytic technique that could be enhanced by a cognitive solution
Skills of the future
Source: Analytics: Dawn of the cognitive era
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www.ibm.biz/cognitiveanalytics
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Adoption of prescriptive analytics techniques by Cognitive Capable organizations
Global Government Global Government
46% 39%
44% 38%
Image analytics
Machine learning
Natural language processing
38% 36%
Algorithmic automation
36% 31%
Sentiment / behavior analysis
36% 30%
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Phone records. Social media posts. Faces from surveillance video. These and
many more pieces of unstructured data can provide the building blocks for
solving complex crimes. But the first and essential step to getting there is to
establish meaningful connections and correlations between these pieces of
information. To solve crimes faster, this city police force sought to provide its
investigators with a tool to automate the large-scale analysis of evidence data.
The agency built a cognitive crime data analysis tool that uses advanced
natural language processing (NLP) and entity extraction technology to uncover
the hidden strands between even the most disparate pieces of unstructured
information. Reflecting that crime solving is a team effort, the solution enables
investigators across agencies to collaboratively build cases by adding new
sources to create a richer understanding of criminal patterns.
Law
enforcement
agency in a
European city
uses cognitive
technology to
find and
connect the
puzzle pieces
of complex
crime
The opportunity
The solution
The results
>90%
reductionin the average time
required to solve a
crime
Improves
collaborationof evidence and case
analysis with other
departments and
agencies
Optimizes
resourcesby enabling staff to focus
on core investigative
activities
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Cognitive Explorers want analytics skills, while Cognitive Capables are seeking more data management and visualization skills
Skills of the future
Source: Analytics: Dawn of the cognitive era
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When this country in South America got to be expert at detecting money
laundering activities, criminal gangs adapted toward contraband smuggling,
which is harder to detect. Clues that point to shell companies and illicit
shipments are often buried in the content of shipping manifests, legal
documents and other unstructured sources. Its customs investigators needed to
find these smuggling patterns and act while leads were still hot.
Having automated the capture and consolidation of data from disparate police
and customs databases, the agency is using powerful analytics to detect and
visually display the connections within data that point, with a high level of
accuracy, to suspicious activity. By deploying a cognitive search analysis tool,
the organization can funnel whole new sources of information into the mix and
find subtle connections across them that had been all but impossible to detect.
Tax and
customs
agency in
South America
uses cognitive
analytics to
connect the
dots to
pinpoint
smuggling
rings quickly
enough for
agents to act
The opportunity
The solution
The results
85%
reductionin the time required to
consolidate and
analyze data from
internal databases
Improves
efficiencyby providing data-driven
guidance to tactical
response teams
Speeds
detectionand improves
opportunities for
apprehension and
prosecution
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Cognitive Explorers use shared analytic resources to optimize valuable resources while diversifying the available skillset overall.
Skills of the future
Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
www.ibm.biz/cognitiveanalytics
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In 2015, this city in Western Canada launched a mobile citizen engagement app
to provide anytime access to information about a wide range of city services.
However, menu-driven navigation, keyword-based FAQs and searches requiring
specific wording posed significant obstacles to users. Too many responses, or in
some cases none at all, frustrated citizens who then turned to city service
centers, creating additional costs for the city.
The city was among the first public sector organizations to deploy a mobile
self-serve information service that uses natural language processing (NLP) to
analyze and answer customer inquiries. Through the mobile app, users
receive more accurate and concise results because the solution understands
and interprets their questions, even when it has not been specifically trained
on a topic, such as the number of chickens city dwellers can keep.
A city in
Western
Canada Using
the power of
cognitive
communicatio
ns to
transform
citizen
engagement
The opportunity
The solution
The results
81% ‘good
answer’ ratebased on user
feedback
Improves
productivity by reducing inbound
requests, freeing resources
for more critical service
provision
Generates
deeper insightsinto citizen concerns and
unmet needs for information
and services
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Amplify analytic capabilities with cognitive systems
Course of action / recommendations
Source: Analytics: Dawn of the cognitive era
IBM Institute for Business Value. © October 2016.
www.ibm.biz/cognitiveanalytics
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Use accelerators to expand the ecosystem and acquire
key capabilities
Diversify and augment the data sciences team
Share analytic resources across the organization
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As you prepare to join the cognitive era,
we offer five key questions to ask yourself as you get started:
• How can I expand the use of my current prescriptive capabilities
to take advantage of cognitive capabilities?
• Do I have the capabilities needed for self-service analytics?
• How can I transform business processes to actively engage
with customers?
• IAre there processes that could benefit from automation?
• s my organizational data platform designed for "fast fail"
projects and cognitive analytics?
Are you ready?
Course of action / recommendations
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