2016 IBV Analytics - Dawn of Cognitive - Telecommunications

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IBM Institute for Business Value

Analytics: Dawn of the cognitive era
How early adopters in the Telecommunications industry have raised the bar for data-driven
insights
An industry perspective from the IBM Institute for Business Value © 2016 IBM Corporation 1
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Page 2 Source: Analytics: Dawn of the cognitive era

IBM Institute for Business Value. © October 2016. © 2016 IBM Corporation 2
www.ibm.biz/cognitiveanalytics
Analytics: Dawn of the cognitive era
How early adopters in the Telecommunications industry have raised the bar for data-driven
insights
An industry perspective from the IBM Institute for Business Value © 2016 IBM Corporation 3
Welcome to the dawn of the cognitive era
of organizations
have the
74% data and analytics

capabilities needed

to start their
cognitive journey
of 6,050 organizations today
surveyed globally

IBV research has tracked global analytic maturity for seven years
Analytic maturity
Cognitive
systems
Prescriptive
Learning
Predictive Identifies (and
systems
may automate
Identifies execution of) based on

Diagnostic potential optimal probabilistic
outcomes outcomes reasoning
Assesses
past
Descriptive outcomes
Increasing analytic maturity is cumulative; for
Reports example, most prescriptive analytics use
past events predictive analysis; most cognitive systems
leverage prescriptive analysis.

Executive summary
Once a majority of organizations achieve pervasive use of an

analytics level, the competitive advantage evolves to the next level
Global analytics maturity level Prescriptive Cognitive

Descriptive Predictive
2010 2011 / 2012 2015 / 2016 

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.

Executive summary
Cognitive systems redefine the use of data to add fundamentally new

capabilities designed to impact business activities and outcomes
Advanced Cognitive
analytics systems
respond to specific coded interact with humans
requests to make naturally to interpret data,

determinations, learn from virtually every
analyzing predefined data interaction, and propose
based on predefined new possibilities through
parameters probabilistic reasoning

Executive Summary
Operational use of cognitive is nascent, but we foresee rapid adoption
4% Cognitive
Explorers
Analytic capabilities include the operational
use of cognitive computing solutions, as
well as use of at least one prescriptive
programmed techniques
15%

Considering
70%
Cognitive
Analytic capabilities include
Global
respondents
the pervasive use of at

least one prescriptive Note number of surveyed:
Capable programmed analysis n= 6,050 total respondents
technique n= 219 Cognitive Explorers
Global n = 4,229 Cognitive Capables
respondents
Executive Summary
Early adopters – Cognitive Explorers – are market leaders within

every industry, now seeking a new frontiers of differentiation
Present in all 19 industry
4% groups surveyed
84% report they outperform

competitors in revenue
91% report they are more effective

than similar organizations
89% report they are more efficient at what

Cognitive they do than competitors
Explorers
These organizations have at least one
89% report they are more innovative
than most in their industry
cognitive system in already in operation

Executive Summary
Examining the data and analytics traits that differentiate Cognitive

Explorers emphasize what’s needed succeed in the cognitive era
Create an organizational
cornerstone for cognitive
Cognitive Build a solid cognitive

Explorers data foundation
Focus on the skills of

the future

Industry perspective
In this industry perspective, we will compare the Cognitive Capable

organizations within Telecommunications to organizations globally
Of organizations
in the
Telecommunicati The sample size of Cognitive
ons industry are Explorers in the
Cognitive
Capable …
Telecommunications Industry is too
ready to start small to be statistically significant
their cognitive (i.e. below 30 respondents).
journey

The total number of respondents in
the Telecommunications industry: n
= 300
Total number of Telecommunications
industry respondents whose
organization is Cognitive Capable: n
= 226

Organizational cornerstone


the future

Cognitive organizations embrace the science of data, and foster a

culture that infuses insight into every action, interaction and decision

In the Telecommunications industry,
3 out of 10 respondents agree their

organization is ready to adopt cognitive computing
Case Study
Mueller, Inc. uses cognitive and analytics to gain a competitive

edge by finding valuable answers to questions not yet asked
“At Mueller, we’re committed to
technology; it’s a foundational pillar of
our company. And technology is helping
us gain efficiencies and differentiate
ourselves from others in the marketplace.
“Having these cognitive analysis

capabilities at our fingertips gives us
unlimited insight into how we can
improve our business. ”
Mark Lack,
Director of Cognitive Analytics,
Mueller, Inc. Photo source: www.muellerinc.com

Cognitive Explorers are evolving their data and analytics strategy to

encompass cognitive, while Cognitive Capables lag behind

Most Cognitive Explorers recognize data as a strategic asset,

governed by business executives and lead by a Chief Data Officer

55% of Cognitive Explorers 56% of Cognitive Explorers
have a business-driven data have appointed a
governance system Chief Data Officer
compared to 37% compared to 44%
of global Cognitive Capables of respondents overall
and 37% in the and 51% in the Telecommunications
Page 16 Telecommunications industry Source: Analytics: Dawn of the cognitive era industry
Recommended approach to dynamic data and cognitive strategies

Update
 Prioritize business needs
 Allocate enterprise resources
 Identify new requirements
Evaluate Agree
 Scan technology advances  Implement technologies needed

 Assess business challenges  Adopt ‘fail fast’ approach
 Identify expansion opportunities  Plan for enterprise deployment
Business-driven
governance team
Act
 Assess current business needs
 Evaluate skills improvements
 Identify gaps via lessons learned

Organization: Course of action / recommendation
Create a cognitive mindset through strategy and structure
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



the future

Cognitive data foundation
Most Cognitive Explorers have made significant investments in the

platform components needed for a modern data ecosystem
Cognitive Cognitive Telecommunicatio Cognitive Cognitive Telecommunicatio

Explorer Capable ns Cognitive Explorer Capable ns Cognitive
Capable
have made significant investments in Capable
have made significant investments in
66% 42% 46% 61% 39% 41%

Cloud-based data storage or analytic services Shared operational information

61% 35% 39% 61% 36% 38%
Streaming data acquisition or analysis Data curation services

Cognitive data foundation: Case Study
The Weather Company uses cognitive to map the globe’s atmosphere

The Weather Company (TWC) continuously
maps 62 vertical miles of the atmosphere, all
around the globe to deliver 15 billion
forecasts to users along with 24 terabytes of
data every single day.
It collects data daily from more than

100,000 weather sensors, 50,000 aircraft,
millions of smartphones, buildings, and
moving vehicles.

This is all possible because in 2012, TWC re-
designed its legacy system into a new cloud- Cognitive Cognitive Telecommunicatio
based, cloud-agnostic, data-driven Explorer Capable ns Cognitive
infrastructure. Dubbed "The SUN Platform", Capable
the weather data, storage, and prediction 35% 18% 25%
capabilities of SUN make it a data platform
at the intersection of IoT, analytics, cognitive.
collect weather data

Cognitive systems require the ability to ingest and provision a wide

variety of data sources while decreasing its analytic latency
Cognitive Cognitive Telecommunicatio Cognitive Cognitive Telecommunicatio

Explorer Capable ns Cognitive Explorer Capable ns Cognitive
collect and analyze Capable collect and analyze Capable
69% 52% 57% 60% 52% 53%

Social media Real-time events and data

65% 57% 54% 65% 52% 56%
Customer-generated text Market data

Executives recognize the fundamentals of the data ecosystem don’t

change in the cognitive era, seeking to improve what already exists

Course of action / recommendations
Construct a data ecosystem that adds context and depth
Establish data ecosystem

needed to support cognitive
systems
Augment the ecosystem with

new sources of data
Ensure well-governed data

curation services



the future

Skills of the future
Many Cognitive Explorers use 5 to 9 types of advanced analytics

within their organization, more than double that of Cognitive Capables
Pervasive use of advanced analytics technqiues

44% 45%
41%
38%
36% 37%
25%

19%
16%
Cognitive Explorers Cognitive Capables Telecommunications Cognitive Capables

0-2 techniques 3-4 techniques 5-9 techniques

Cognitive Capable organizations use at least one advanced

analytic technique that could be enhanced by a cognitive solution
Adoption of prescriptive analytics techniques by Cognitive Capable organizations
Global Telecommunicatio Global Telecommunicatio

ns ns
46 %
Image analytics
46 % 36% 39%
Algorithmic automation

44% 43% 36% 39%
Machine learning Sentiment / behavior analysis
38% 40%
Natural language processing

Cognitive Explorers want analytics skills, while Cognitive Capables

are seeking more data management and visualization skills

Cognitive Explorers use shared analytic resources to optimize

valuable resources while diversifying the available skillset overall.

Amplify analytic capabilities with cognitive systems
Use accelerators to expand

the ecosystem and acquire
key capabilities
Diversify and augment the

data sciences team
Share analytic resources

across the organization

Are you ready?

As you prepare to join the cognitive era,
we offer five key questions to ask yourself as you get started:
• Am I ready for the cognitive journey?

• How can I expand the use of my current prescriptive
capabilities?
• Do I have the capabilities needed for self-service analytics?

• How can I transform business processes to actively engage
with customers?
• Is my organizational data platform designed for "fast fail"
projects and cognitive analytics?
Download
Download the complete study today

Appendix
Survey definition of cognitive

Cognitive computing refers to
next-generation information
systems that understand, reason,
learn, and interact. These systems
do this by continually building
knowledge and learning,
understanding natural language,
and reasoning and interacting

more naturally with human beings
than traditional programmable
systems.


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 The latest version of this deck

IBM Institute for Business Value

IBM Institute for Business Value

Page 2 Source: Analytics: Dawn of the cognitive era

74% data and analytics

IBM Institute for Business Value

Page 4 Source: Analytics: Dawn of the cognitive era

IBM Institute for Business Value

Page 5 Source: Analytics: Dawn of the cognitive era

Once a majority of organizations achieve pervasive use of an

Global analytics maturity level Prescriptive Cognitive

IBM Institute for Business Value

Page 6 Source: Analytics: Dawn of the cognitive era

Cognitive systems redefine the use of data to add fundamentally new

IBM Institute for Business Value

Page 7 Source: Analytics: Dawn of the cognitive era

Operational use of cognitive is nascent, but we foresee rapid adoption

IBM Institute for Business Value

the pervasive use of at

Early adopters – Cognitive Explorers – are market leaders within

Present in all 19 industry

84% report they outperform

91% report they are more effective

IBM Institute for Business Value

89% report they are more efficient at what

Page 9 Source: Analytics: Dawn of the cognitive era

Examining the data and analytics traits that differentiate Cognitive

Cognitive Build a solid cognitive

IBM Institute for Business Value

Focus on the skills of

Page 10 Source: Analytics: Dawn of the cognitive era

In this industry perspective, we will compare the Cognitive Capable

IBM Institute for Business Value

Page 11 Source: Analytics: Dawn of the cognitive era

Cognitive Build a solid cognitive

IBM Institute for Business Value

Focus on the skills of

Page 12 Source: Analytics: Dawn of the cognitive era

Cognitive organizations embrace the science of data, and foster a

IBM Institute for Business Value

3 out of 10 respondents agree their

Mueller, Inc. uses cognitive and analytics to gain a competitive

“Having these cognitive analysis

IBM Institute for Business Value

Page 14 Source: Analytics: Dawn of the cognitive era

Cognitive Explorers are evolving their data and analytics strategy to

IBM Institute for Business Value

Most Cognitive Explorers recognize data as a strategic asset,

IBM Institute for Business Value

Recommended approach to dynamic data and cognitive strategies

IBM Institute for Business Value

Page 17 Source: Analytics: Dawn of the cognitive era

Create a cognitive mindset through strategy and structure

Adopt a mindset that

IBM Institute for Business Value

Page 18 Source: Analytics: Dawn of the cognitive era

Cognitive Build a solid cognitive

IBM Institute for Business Value

Focus on the skills of

Page 19 Source: Analytics: Dawn of the cognitive era

Most Cognitive Explorers have made significant investments in the

Cognitive Cognitive Telecommunicatio Cognitive Cognitive Telecommunicatio