Read the full report here: http://bit.ly/CognitiveFutureInGov Welcome to the age of cognitive computing, where intelligent machines simulate human brain capabilities to help solve society’s most vexing problems. Early adopters in government and other industries are already realizing significant value from this innovative technology, and its potential to transform government is enormous. Currently, cognitive systems are helping government organizations navigate complexity in operational environments and foster improved engagement with constituents. Our research indicates that government leaders are poised to embrace this groundbreaking technology and invest in cognitive capabilities to improve outcomes for government organizations across mission areas.

1. ©2015 IBM Corporation1
Your cognitive future in government
Mission: Possible!
http://bit.ly/CognitiveFutureInGov

2. ©2015 IBM Corporation2
Three disruptive forces are forcing government industry to focus on
three key areas …
Increased demand for services
and citizen expectations
Placing greater pressures and
demands on and expectations for
public resources and services
requiring organizations to operate
smarter and more efficiently
Increased complexity
Challenging decision making
capabilities in navigating complex
operating and information
environments and increasing the
need for enhanced innovation
capacity to drive operational
improvements
Stagnant economic growth and
resource constraints
Challenging organizations to do more
with less and requiring them to better
leverage existing resources and
expertise while reducing instances of
fraud and error
Provide expert assistance and
extend capabilities of human
experts by leveraging deep insights
from vast amounts of information
Engage DecideDiscover
Provide ability to digest vast
amounts of data to identify new
avenues, navigate complexity,
and implement new ideas
Provide personalized,
contextual, evidence-backed
recommendations to support
decision making at all levels

3. ©2015 IBM Corporation3
Successful organizations have stronger capabilities in engagement,
discovery and decision making
Engage DecideDiscover
Outperformers are 43% more
competent in consumer
engagement than
underperformers
44% more outperformers are
strong in decision making
48%
Outperformers
18%
Underperformers
167% more outperformers make
innovation a major priority
60%
Outperformers
42%
Underperformers
62%
Outperformers
43%
Underperformers
43% 167% 44%
Source: IBM Institute for Business Value Cognitive Computing Survey , 2015.

4. ©2015 IBM Corporation4
Government organizations need to engage with citizens, discover
insights and make effective decisions to succeed
Sources: See notes
.
Government CXOs actively pursuing
industry model innovation1
Government CXOs that believe
citizens demand more personalized
experiences1
Engage DecideDiscover
Today In 3 years
54% 59% 54% Annual spend of U.S. Federal
Government3 …
… amount allocated based on basic
evidence2
$3 trillion
<1%

5. ©2015 IBM Corporation5
They are faced with few key challenges pertaining to personalized
experience, insufficient skills and lack of effective decision making
Government organizations are
weak in making cost reduction
decisions
Government CXOs that believe
they’re not competent in providing
personalized citizen experience
Key challenges of Government
CXO in pursuing disruptive
innovation
Engage DecideDiscover
58%
53%
54%
55%
58%
Insufficient skills
Lack of quality/ reliable data
Lack of analytical tools
Organizational complacency
67%
Source: IBM Institute for Business Value Cognitive Computing Survey , 2015.

6. ©2015 IBM Corporation6
Data is growing fast – in volume, variety, and complexity – and
traditional analytics solutions are not able to fully exploit its value
Data is growing with time, but usability is
limited..
... because of the limits of traditional
analytics
Amount of world’s data being analyzed 1
.5%  Addresses predefined problems but
cannot adopt to new problem domain
 Provides accurate and definitive
answers but cannot handle ambiguity or
gray areas
 Handles structured and unstructured
information with known semantics –
thus cannot make use of data from new
and varied sources
 Interacts in formal digital means (e.g.,
commands, screens) with human – thus
limits the engagement of end user
2.63 PB
Projected volume of data stored on average by in
US Federal agencies in 20152,3
Sources: See notes
.

7. ©2015 IBM Corporation7
… that can be bridged using a mechanism for overcoming the
limitations of humans and current systems
Organizations need a tireless machine that can learn new problem domain,
reason through the hypotheses, resolve ambiguity, evolve towards more
accuracy, and interact in natural means to pursue three opportunities
Human Machine
 Human brain can consume and
process only limited amount of
information
 Human beings are subject to
physical and mental fatigue –
thus not scalable
 Human workers and experts can
make mistakes
 Traditional technology cannot
handle ambiguity
 Traditional paradigm of computing is
pre-programmed and rigid; it cannot
learn, reason, or relate
 Machines do not interact in
natural means

8. ©2015 IBM Corporation8
Cognitive computing with its three capabilities can be that new
vehicle that opens the door to new opportunities
Engage DecideDiscover
 Acts as a tireless agent
providing expert assistance
to human users
 Carries a conversation
naturally, e.g. in human
language
 Understands consumers
from past history and
enriches interactions with
context- and evidence-
based reasoning
 Helps people discover insights
far above human levels
 Finds insights and
connections, understands the
vast amounts of information
available
 Visualizes possibilities and
validates theories like experts
 Offers evidence-based
recommendations
 Evolves continually towards
more accuracy based on
new information, outcomes,
and actions
 Provides traceability to audit
why a particular decision is
made

9. ©2015 IBM Corporation9
Cognitive computing complements traditional analytics by creating a
value continuum
Analytics Cognitive computing
 Addresses predefined
problems
 Addresses ambiguous
problems
 Provides accurate and
definitive answers
 Provides answers with a
margin of error
 Handles structured and
unstructured information
with known semantics
 Handles unstructured
information without explicitly
knowing semantics
 Interacts in formal digital
means (e.g. commands,
screens) with human
users
 Interacts in natural
language with human users

10. ©2015 IBM Corporation10
20%
53%
27%
1-2
yrs
3-4
yrs
>=5
yrs
Government executives believe cognitive computing will play a
disruptive role in the industry and plan to invest in this capability soon
… of executives familiar with cognitive
computing believe it will be critical for their
business in future
… of executives familiar with cognitive
computing also believe it will play a
disruptive role in governments
100% of executives familiar with cognitive
computing indicated they are likely to invest
in this technology in the future with the
majority doing so in the next 4 years
83%
87%
Source: IBM Institute for Business Value Cognitive Computing Survey , 2015.

11. ©2015 IBM Corporation11
Cognitive is helping public organizations to provide better service,
discover insights and make effective decisions
Deakin University’s online
student engagement
advisor is reimagining the
way of engaging with
students, and providing
them improved service1
Baylor College of Medicine
is applying cognitive
computing to accelerate
research and make
discoveries with greater
precision2
MD Anderson Cancer
Center leverages cognitive
features to help oncologists
develop more personalized
care for their patients3
Engage DecideDiscover
Sources: See notes
.

12. ©2015 IBM Corporation12
Organizations should follow a structured road map that nurtures
optimism whilst break any complacency in their organization
1
2
3
4
Chart the course
 Identify candidate opportunities across mission & functional areas
 Define business benefits case
 Develop organization’s cognitive computing journey/road map
Experiment
 Prototype use cases
 Test and validate use case scenarios with users
 Test business case hypotheses
Develop & Train
 Develop & train the system
 Build & improve required corpus
 Train & educate solution end
users & the organization
Deploy, Explore &
Evolve
 Deploy baseline solution
 Continuous learning &
corpus improvement
 Further use case
exploration

13. ©2015 IBM Corporation13 18 November 2015
Study approach and methodology
Quantitative Insights
 Survey conducted by The Economist
Intelligence Unit with 813 respondents
 Survey conducted in February and March of
2015
 Industry cover: Healthcare, Banking,
Insurance, Retail, Government, Telco, Life
Sciences, Consumer Products, and Oil and
Gas
 Geographical cover : Australia, Brazil,
Canada, China, Egypt, France, Germany,
India, Iran, Israel, Japan, Kuwait, Mexico,
Netherlands, Oman, Qatar, Saudi Arabia,
Singapore, South Africa, Spain, Sweden,
UK, United Arab Emirates, and US
Field Research
 Interviews with subject matter experts
across IBM divisions
 Supplemental desk research

14. ©2015 IBM Corporation14 18 November 2015
Dr. Cameron Brooks
Director, Watson Public Sector Solutions
IBM Watson Group
camebroo@us.ibm.com
Study authors
Dr. Sandipan Sarkar
Cognitive Computing Leader
IBM Institute for Business Value
Sandipan.sarkar@in.ibm.com
Dave Zaharchuk
Global Government Industry Leader
IBM Institute for Business Value
david.zaharchuk@us.ibm.com
Patricia Martone Carrolo
Director, Public Sector
IBM Watson Group
carrolo@us.ibm.com