Hi, I’m Rebecca - IBM€¦ · Cognitive Explorers. Analytic capabilities include the operational use of cognitive computing solutions Analytic capabilities include the pervasive

© 2017 IBM Corporation

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Hi, I’m Rebecca

Find all the IBM Institute for Business Value research

@ www.ibm.com/iibv or download the IBMIBV app.

IBM Institute for Business Value

❖ Fact-based research

❖ Global scope

❖ Executive focus

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❖ Ranked #1 Thought Leadership team in the world

❖ Free externally …Rebecca Shockley

Global Analytics Research Leader

IBM Institute for Business Value

RebeccaShockley/Houston/IBM

[email protected]

Twitter @rashockley

http://www.ibm.com/iibv

http://www.linkedin.com/in/rebeccashockley

http://twitter.com/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.

www.ibm.biz/cognitiveanalytics

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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



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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




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




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




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Examining the data and analytics traits that differentiate Cognitive Explorers emphasizes what’s needed succeed in 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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Today, we will compare the Cognitive Capable organizations within Government to organizations globally




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




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Cognitive Explorers





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Cognitive organizations embrace the science of data, and foster a culture that infuses insight into every action, interaction and decision




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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






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Most Cognitive Explorers recognize data as a strategic asset, governed by business executives and led by a Chief Data Officer





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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




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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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Cognitive Explorers





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Most Cognitive Explorers have made significant investments in the platform components needed for a modern data ecosystem

Cognitive data foundation




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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


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




Cognitive Explorer

Cognitive Capable


Social media

Customer-generated text

Real-time events and data

Market data

69% 52% 51%

Cognitive Explorer

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




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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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Cognitive Explorers





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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




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Cognitive Capable organizations use at least one advanced analytic technique that could be enhanced by a cognitive solution





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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





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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.





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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





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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?






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Hi, I’m Rebecca - IBM€¦ · Cognitive Explorers. Analytic capabilities include the operational use of cognitive computing solutions Analytic capabilities include the pervasive