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T T T The CDO Blueprint: Enabling the he CDO Blueprint: Enabling the he CDO Blueprint: Enabling the he CDO Blueprint: Enabling the C C C Cognitive ognitive ognitive E ognitive E E Enterprise nterprise nterprise nterprise Cognition-enabled CDO Strategy Discussion Chief Data Officer Perspective April 2017 Dr. Inderpal Bhandari IBM Global Chief Data Officer

Transformation starts with the Data Strategy Transformation starts with the Data Strategy Transformation starts with the Data Strategy Transformation starts with the Data Strategy 2

Value Proposition: Data Value Proposition: Data Value Proposition: Data Value Proposition: Data- -driven enablement of IBM (and its - - driven enablement of IBM (and its driven enablement of IBM (and its driven enablement of IBM (and its customers) to become a cognitive business capable of deriving and customers) to become a cognitive business capable of deriving and customers) to become a cognitive business capable of deriving and customers) to become a cognitive business capable of deriving and acting rapidly on cognitive insights from massive, structured and acting rapidly on cognitive insights from massive, structured and acting rapidly on cognitive insights from massive, structured and acting rapidly on cognitive insights from massive, structured and unstructured, internal and external datasets. unstructured, internal and external datasets. unstructured, internal and external datasets. unstructured, internal and external datasets. 1. 1. 1. 1. Consolidate critical enterprise data and make it available as- Consolidate critical enterprise data and make it available as Consolidate critical enterprise data and make it available as Consolidate critical enterprise data and make it available as -a - - a a a- - - - service. service. service. service. 2. 2. Enable data- Enable data -driven cognition driven cognition- -as as- -a a- -service for the enterprise. service for the enterprise. 2. 2. Enable data Enable data - - driven cognition driven cognition - - as as - - a a - - service for the enterprise. service for the enterprise. 3. 3. 3. 3. Transform IBM into a cognitive enterprise. Transform IBM into a cognitive enterprise. Transform IBM into a cognitive enterprise. Transform IBM into a cognitive enterprise. 4. 4. 4. 4. Share the journey. Every enterprise will need to develop a data Share the journey. Every enterprise will need to develop a data Share the journey. Every enterprise will need to develop a data Share the journey. Every enterprise will need to develop a data strategy to become a cognitive business. strategy to become a cognitive business. strategy to become a cognitive business. strategy to become a cognitive business. People Technology Technology 3

Cognitive systems have four main attributes They are able to learn their 1 behavior through EDUCATION EDUCATION EDUCATION EDUCATION They support forms of 2 EXPRESSION EXPRESSION EXPRESSION more natural for EXPRESSION human interaction Their primary value is their 3 EXPERTISE EXPERTISE EXPERTISE EXPERTISE And their reasoning approach 4 continues to EVOLVE EVOLVE as they EVOLVE EVOLVE And they do so at ENORMOUS experience new information, new scenarios, and new responses scale. 4

CDO Cognitive Journey Map Transformation From a siloed, largely relational, technical and cultural environment to a cloud-based, cognitive environment, capable of deriving and acting rapidly on cognitive insights from massive structured and unstructured, internal and external data. Cognitive Enterprise Cognitive Enterprise Processes Technology Development Information Governance Master Data Processes Blueprint Client 360 Data-as-a-Service Data Acquisition: Content Buyer Automate Warehouse Migration Increase seller productivity and Cognitive content reviewer on overlap, Automatic learning and generation Cognition-based Q&A, All components for increase revenue generation through scope, ”best” provider(s) of ingestion and integration rules enable business users Cognitive sales recommendation a CDO to render their enterprise Trust-as-a-Service Risk Insights Data Curation: Cognitive Metadata Digital Business Insights Privacy by design, in Cognitive data catalog management, cognitive: Anticipate and act on supply chain Expert assistance with individual addition to enabling automatic creation/ linkage of risk, deliver risk mitigation insights Organizational selection for marketing and sales regulatory compliance business to technical terms considerations, Cognitive Procurement Proactive Client Management technology, and Cognition-as-a-Service Data Integration: Entity Recognition Early warning of delivery risk, and Trusted buying advisor, deep business processes Watson Services and Single engine to assign common proactive opportunities for contract supplier insight, dynamic pricing APIs identifying code to entities. growth info � Intuitive conversational interface � Reduced time and effort User experience CDO experience � Holistic view of customer, both internal and external � Proactive monitoring and alerts journey journey � Self-service capabilities to inform and enable decision-makers � Continuous learning from data and user feedback � Directly usable by subject matter experts to derive insights � Build and improve repeatable/productized service offerings � All enabled through cognitive interaction � All enabled through cognitive interaction Outcomes: • Elimination of siloed data – view of data across the enterprise • Standardized KPIs • Reduced support costs and improved consistency and quality of data, • Improved service levels and uptime for business systems 5 access control and ability to monitor/report usage • Increased adoption of cognitive methods • Faster access times • Reduce set up time and cost of cognitive projects

Cognitive Enterprise Blueprint Cognitive Enterprise Blueprint Cognitive Enterprise Blueprint Cognitive Enterprise Blueprint • Data strategy catalysts • Transform and reinvest • Recruit, retrain, and retain talent • Cognitive applications trained • Business Unit leadership using industry specific data • Engage top technical talent: Data Scientists, Data and leading industry Engineers, Dev Ops, Deep Learning specialists expertise Organizational Governance and monetization expertise • • Cognition / AI Services with • Policy and risk Considerations ability to contextualize across • Essential communities all data • Addressing culture change • Trust-as-a-service: your data, your insights • Cloud services - open by • CDO Processes: Technology design; GPUs, fast development, information interconnect to accelerate AI Business governance, client and product training Technology master data processes Processes • Hybrid integration and Cognitive Enterprise: Supply Chain, • deployment choice Procurement, Finance, HR, etc • Enterprise cloud container support 5