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January 13, 2014 in Big Data, Business Analytics, Business Collaboration, Business Intelligence (BI), Business Performance Management (BPM), Cloud Computing, Customer Performance Management (CPM), Financial Performance Management (FPM), Governance, Risk & Compliance (GRC), Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Location Intelligence, Operational Intelligence, Operational Performance Management (OPM), Sales Performance Management (SPM), Social Media, Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM) | Tags: Analytics, Big Data, CIO, Cognitive Computing, Discovery, Exploration, IBM Watson | by Mark Smith | Leave a comment
With much fanfare and a rarely seen introduction by CEO Ginni Rometty, IBM launched IBM Watson as a new business unit focused on cognitive computing technology and solutions, now being led by Senior Vice President Mike Rhodin. The announcement is summarized here:. Until now IBM Watson was important but had neither this stature in IBM’s organizational structure nor enough investment to support what the company proclaims is the third phase of computing. As IBM tells it, computing paradigms began with the century-old tabular computing, followed by the age of programmatic computing, in which IBM developed many products and advancements. The third phase is cognitive computing, an area in which the company has invested significantly to advance its technology. IBM has been on this journey for some time, long before the IBM Watson system beat humans on Jeopardy!. Its machine-learning efforts started with the IBM 704 and computer checkers in the 1950s, followed by decades of utilizing the computing power of the IBM 360 mainframe, the IBM AS/400, the IBM RS/6000 and even IBM XT computers in the 1980s. Now IBM Watson is focused on reaching the full potential of cognitive computing.
If IBM is right that cognitive computing will be the next wave of innovation in the industry and a new phase of computing, it has placed itself at the center of a substantial new market opportunity. Even at the most basic level to simplify the process of making information more available is what IBM Watson provides and our information optimization research finds is very important to 65 percent of organization. The company says it has invested $1 billion and placed up to two thousand skilled people in the new business unit. It also is spending $100 million on the incubation of companies that are building on the Watson platform, and has a new and dedicated building in Lower Manhattan, known as Silicon Alley, its focal point for cognitive computing ideas that IBM has unveiled to the public. There is no question that IBM Watson is innovate as we recognized in 2012 as being the recipient of our overall operation innovation technology innovation award.
These recent actions build on IBM’s announcement last fall that it is commercializing IBM Watson to enable developers and partners to innovate on the platform. Its launch of the IBM Watson Developers Cloud marketplace introduces new offerings and content essential to building its ecosystem of resources to meet existing and future demand for applications of cognitive computing. The step is essential in that it will maximize the number of products using IBM Watson and provide IBM with a springboard to exponentially grow its efforts. At the same time, IBM is working with academic institutions
IBM’s announcements included new products to complement the IBM Watson portfolio and give it a broader footprint and value to customers. The first new product announced is IBM Watson Discovery Advisor, a tool that helps pharmaceutical companies plow through massive volumes of big data. This is a good place to start, as harvesting the right information for specific roles and purposes is the foundation of cognitive computing, enabling organizations not just to access information but to synthesize it.
The next announcement was IBM Watson Analytics, a product previously known as Project Neo and introduced to the market last fall, which my colleague Tony Cosentino covered. Incubated in IBM’s business analytics group and using a spectrum of analytic and discovery technology, the product and people who worked on it and other efforts are being transferred to the IBM Watson business unit. Though it was not initially built for IBM Watson today, the discovery and exploratory technology integrates the pillars of analytics, helping facilitate a knowledge discovery process whereby you can explore data through natural language and discover new insights. The move to shift IBM Watson Analytics was unexpected and introduces new pressure to market and sell the product. It has growing potential for line-of-business analysts, who will want to examine this and other tools from IBM’s business analytics group. Only time will tell if IBM will be able to fully monetize the product’s potential through its IBM Watson effort, but the move could be its short-term method to gain customers and revenue. It definitely will be a complement when it interfaces to IBM Watson and utilizes the knowledge that Watson creates.
The next major product announcement was IBM Watson Explorer, a big data analytics tool that enables collaborative discovery, navigation and search across information in applications. Both analytics tools advance the science of big data technologies but focus on more than just the mechanics of what big data does, as described by the “four V’s”: volume, variety, velocity and veracity. Rather, they address the value of what is possible through the so-called W’s, focusing on the who, what, where, when and why. This is what we call information optimization, facilitating the business potential of not just big data but of cognitive computing. For its part, IBM is applying its big data and information management efforts to IBM Watson, categorizing them as IBM Watson foundations. This is critical as our information optimization research finds that organizations do not have enough capabilities to integrate and normalize information from disparate sources as the largest shortcoming of technology in 45 percent of organizations. By integrating and utilizing these big data and business analytics tools as part of IBM Watson, cognitive computing will from a competency perspective be more advanced even if these products are not directly needed for enabling IBM Watson.
With this much at stake IBM was not going to leave customer endorsements to chance, and while it has taken some criticism that customer commitment might not be as high as it has claimed, that question was answered at the IBM Watson event. For one, the medical and healthcare industry was front and center to validate its commitment to IBM, represented by organizations such as the Cleveland Clinic and Memorial Sloan-Kettering Cancer Center. Most interesting was an early peek at the potential of mass consumerization of IBM Watson. The first example was presented by e-commerce facilitator Fluid: Its Fluid XPS is focused on changing the digital experience of consumers by gaining access to information about their needs for products and services in a holistic manner. The example it promoted cold weather gear for camping by asking a question as a front end to the North Face website. A second example was the potential to have IBM Watson be the natural language interface for finding a vacation destination, specifying certain criteria like class, price, type and climate of location; today this requires repetitive tasks such as filling out forms and making your own comparisons to determine where you want to go and for what price. The concept was presented by Terry Jones, the former CEO of Sabre and Travelocity and chairman of Kayak. He has more than 40 years of experience in the travel industry and now consults about business innovation through his company, called Essential Ideas. IBM also demonstrated how cognitive computing can provide the next generation of marketing can synthesize the interactions and psychology of individuals to more effectively market to them. These examples point to the potential of enabling natural-language recognition technology to discover relevant responses that guide users’ actions and decisions.
As part of my analysis over the past couple of years, I’ve been following this step forward and wrote about the new category of cognitive computing. In 2013, IBM brought forward IBM Watson Engagement Advisor and focused on smarter customer service through a simpler engagement approach to improving the customer experience, a topic my colleague Richard Snow has assessed. This effort by IBM is as our customer engagement research has found is centered on improving the customer experience as found in 74 percent of organizations. I have also seen IBM demonstrate similar solutions for employees and managers as part of human capital management. More important, these solutions embrace mobile computing whereby devices can be used as input and response tools anywhere, at any time which our research finds smartphones accessible to be used in 73 percent of organizations according to our information optimization research. Intellectually, IBM continues to advance its research and scientific developments to ensure that it can transition its work into products that customers can use. At the launch of the IBM Watson business unit, IBM Research’s Dr. Guruduth Banavar brought forward some of the latest thinking on cognitive science and the ability to teach machines to reason and what is called neurosynaptics, a discussion that is available on IBM Research’s cognitive computing page. The material is fascinating; it provides insight on the future of computing and how it will impact roles and businesses in the next decade.
As it begins to scale its offering, part of IBM’s challenge is to manage the continuous information feeds that effectively make IBM Watson smarter. While IBM does not talk much about the content aspects of what is required, it is clearly more than just loading files, and these efforts are just as important as librarians are to libraries, whereby they are not just stewards to a collection of books but ensure the value and improvement of the library. There is still a level of mystery on the technical mechanics and readiness of the platform that the company needs to address before the natural-language interface is ready to work its magic. In addition, IBM is still using a natural-language form of text and working through how it can make voice mainstream with IBM Watson, as Apple and Google and others have done. IBM has been working on speech in research for some time and more recently with Nuance, who IBM announced a partnership with back in 2011, but it has yet to demonstrate this capability to the mainstream public, which indicates hesitation on how fast it plans to use voice and speech as the interface. While IBM was not able to fully monetize its early efforts in speech technology, it is now becoming mainstream in the consumer market but has yet to evolve significantly in the business markets as part of enterprise software. I am looking forward to seeing more of what it can do in terms of voice and speech input and Watson talking iteratively to help expedite what is truly natural language for humans.
IBM does not often create new business units and elevate them to this level of commitment and investment for the future. While the business goals for IBM Watson are lofty from both revenue and computing perspectives, no other company – not even Microsoft, Oracle or SAP – has both the established technology foundation and the people and financial resources that IBM has to make this a reality. IBM should be congratulated for making the investment in cognitive computing and helping create new jobs and opportunity that will incubate not just in Silicon Alley but across the globe as others realize the full potential. Our technology innovation research finds that increasing the value of an organization is very important to over half (56%) of organizations which is exactly what IBM is hoping will increase its business opportunity. If you want to catch up on the dialogue and resources related to this topic, you can search #IBMWatson on Twitter and follow @IBMWatson. If you want to learn more about IBM Watson and cognitive computing, go to www.ibm.com/watson and you will find more information about the technology, our research on the topic and the value of this new computing paradigm.
CEO & Chief Research Officer
August 31, 2013 in Big Data, Business Analytics, Business Collaboration, Business Intelligence (BI), Business Mobility, Business Performance Management (BPM), Cloud Computing, Customer Performance Management (CPM), Financial Performance Management (FPM), Governance, Risk & Compliance (GRC), Information Applications (IA), Information Management (IM), IT Performance Management (ITPM), Location Intelligence, Operational Intelligence, Operational Performance Management (OPM), Sales Performance Management (SPM), Social Media, Supply Chain Performance Management (SCPM), Workforce Performance Management (WPM) | Tags: Agility, Analytics, Big Data, Business Analytics, Business Intelligence, CIO, Cloud Computing, Collaboration, Contact Center, Customer, DataMeer, Datawatch, ESRI, Financial Management, Globoforce, GRC, HCM, HortonWorks, IBM, Informatica, Information Builders, Information Management, Information Optimization, Information Technology Leader, IT Analytics or Performance, Johnson Controls Panoptix, Kronos, KXEN, Kyriba, Location Analytics, Marketing, mobile, NetBase, Office of Finance, Operational Intelligence, Oracle, Overall Operational Leadership, Peoplefluent, Planview, Roambi, Sales, Service & Supply Chain, Social Media, SQLstream, Sustainability, Upstream Works, Vertex, VMWare, VPI, Xactly Corporation | by Mark Smith | Leave a comment
In the realm of technology that matters for business and IT, our firm as part of our responsibility continually assesses the latest technology and how it can impact organizations’ efficiency and effectiveness. Our benchmark research in technology innovation found that 87% of participants indicated the importance of increasing the organization’s value through technology innovation. Every year we take our knowledge from research and technology briefings to focus on our Technology Innovation Awards and determine the vendors and products that have the potential to drive change in the market, the competitiveness of an organization’s business and sometimes just how efficiently a company operates. Our firm believes that Innovation can come from any size technology vendor from the smallest to the largest that are measured on a spectrum of attributes that contribute to the specific impact of the technology.
Our process with the Technology Innovation Awards is to separate out and find the vendors and products that have innovative technology that has the most potential and might be game changing or what might be just a necessity for organizations to use to compete in the market. We methodically assess and score those technologies according to more than 26 categories, and then rate and validate within each category to determine the winner of the Technology Innovation Award. Our methodology looks at the relevance of key aspects of technology, including people, processes, information and technology, along with any best practices for applying the technology and the resulting potential impact and benefits to organizations. To apply an additional lens on the technologies being assessed we also employ the technology evaluation categories (functionality, capability, reliability, manageability, adaptability, TCO and ROI, and vendor validation) that we use to methodically assess vendors and products in our Value Indexes. This year we have kept a closer eye on usability of technology and where it can have use across a larger number of individuals in an organization or easier to use for a specific set of people or department, as our research found that usability had the highest level of importance for technology and vendor consideration in 64% of organizations.
Our award categorization makes it self-evident where the technology is relevant and is part of our research focus that is built around innovative technology, as I previously outlined. In the end our Technology Innovation Awards are not just about being a cool vendor but about having innovative technology in either a shipping product or one coming to market in the near future that is worth recognition.
According to our research, almost half of organizations (49%) are planning to change the way they assess and select innovative technology for business and IT through 2014. With that backdrop let me introduce you to the Technology Innovation Award recipients for 2013 so you can see for yourself what technologies could change how your organization operates significantly.
- Big Data: Hortonworks for Hortonworks Data Platform 2.0
- Business Analytics: Datameer for Datameer v3.0
- Business Collaboration: Peoplefluent for Peoplefluent Social Collaboration
- Cloud Computing: VMware for VMware vCloud Hybrid Service
- Mobile Technology: Kronos for Kronos Mobile
- Social Media: NetBase for NetBase Social Media Management Systems
- Office of Finance: Vertex for Vertex Enterprise
- Financial Management: Kyriba for Kyriba Enterprise
- Governance, Risk & Compliance (GRC): IBM for IBM Algorithmics
- Human Capital Management: Oracle for Fusion Human Capital Management
- Sustainability: Johnson Controls Inc. for Panoptix
- Overall Operational Innovation: Globoforce for Globoforce
- Contact Center: Upstream Works for Finesse by Upstream Works
- Customer: VPI for VPI VirtualSource
- Marketing: KXEN for KXEN InfiniteInsight
- Sales: Xactly Corporation for Xactly Objectives
- Service & Supply Chain Excellence: Agility for Agility Multichannel
- CIO: Planview for Planview Enterprise 11
- Overall IT Leader: Datawatch for Datawatch Panopticon
- Analytics: IBM for IBM SPSS Catalyst
- Business Intelligence: Roambi for Roambi Business
- Information Optimization: Informatica for Informatica Vibe
- Information Management: Information Builders for iWay 7
- IT Analytics or Performance: SQLstream for SQLstream s-Server, s-Cloud, s-Analyzer and s-Transport
- Location Intelligence: Esri for Esri Maps
- Operational Intelligence: IBM for InfoSphere Streams v3.1
If you want to learn about technology innovation and see examples including from ones that received a Technology Innovation Award, come to our Technology Innovation Summit. At the summit you’ll learn why it’s critical to assess innovation and look beyond what you are doing today to determine where you can make changes to drive improvement. Our research found that organizations are changing the way they evaluate innovation technology mostly to drive business improvement initiatives (60%) and improve the quality of business processes (57%). If you want advice or guidance to help you leverage technology innovations, just let me know, as we are always happy to help organizations be smarter and faster.
Congrats to this year’s award recipients for innovations that are worthy of our recognition and your time to see where they might help your organization.
CEO & Chief Research Officer