IBM Watson UpdateFrom Wow to How to Now

Manoj Saxena | General ManagerIBM Watson

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Brief History of IBM Watson

R&D

Demonstration

Commercialization

Cross-industry Applications

IBMResearch Project

(2006 – )

Jeopardy!Grand Challenge

(Feb 2011)

Watson for

Healthcare(Aug 2011 –)

Watson Industry Solutions(2012 – )

Watson for Financial

Services(Mar 2012 – )

Expansion

New IBM Division

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Data is rapidly becoming the foundation for a Smarter Planet

Watson

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

1 in 2business leaders don’t have access to data they need

83%of CIOs cited BI and analytics as part of their visionary plan

2.2Xmore 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%amount of data

traditional systems leverage today

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Understands natural language and human communication

Adapts and learns from user selections and responses

Generates and evaluates evidence-based hypothesis

…built on a massively parallel architecture optimized for IBM POWER7

IBM Watson combines transformational technologies

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3

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In 2012, Watson became smarter, faster, and more scalable

90%Nurses follow Watso

n’sRecommendations

75%Reduction in time to

market with new cancer therapies

6Instances of Watson deployed in the last

12 months

Scalable605,000 pc. evidence

2M pages of text25,000 training cases 14,700 clinician hours

240% faster75% smaller

Runs on single server

Smarter FasterScales on demand

Millions of Trx. per monthIn Cloud or on premise

PC, tablet or smartphone

1Based on preliminary pilot results, may not be representative of all situations

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Improve Decisions and Outcomes

OncologistsTherapy Designer

Watson Healthcare Products – 1H 2013

Assists in identifying individualized treatment

options for patients diagnosed with cancer

Nurses

Assists with efficient trials and reduces time

to market with new cancer therapies

Streamlines manual review processes

between a physician and health plans

Improve Diagnosisand Treatments

Accelerate Researchand Insights

WatsonClinical Insights

Advisor

WatsonDiagnosis & Treatment

Advisor

WatsonCare Review and

Authorization Advisor

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Watson Products and Infrastructure

Watson for Healthcare

Watson for Client Engagement

Watson for Industry

Advisor Solutions Advisor Solutions

Utiliz

ation

Onc

olog

y

Card

iac

Diab

etes

Call

Cent

er

Help

Des

k

Know

ledg

e

Tech

nica

l

Model Train LearnSource

Workload Optimized Systems

Analytics MobileNLP & Machine Learning

Big Data Cloud

ASK Services DECISION ServicesDISCOVER Services

Watson For Financial Svcs.

Advisor Solutions

Bank

ing

Insti

tutio

nal

Retir

emen

t

Insti

tutio

n

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Watson Business Model: Cloud Delivery and Outcome Based Pricing

Dynamic CapacityAutomate and control

service provisioning

Flexible ConsumptionSupport alternative

delivery and value pricing models

Time to ValueEnable incremental

automation andbusiness agility

Hybrid DeliveryExtend & integrate

on-premise solution with cloud offering

10 © 2012 International Business Machines Corporation1

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

. . . enabling new possibilities and outcomes

1900 1950 2011