Gerhard Satzger, Director of the Karlsruhe Service Research Institute and two former students and IBMers, Sebastian Hirschl and Kathrin Fitzer, presention"Joining Industry and Students for Cognitive Solutions at Karlsruhe Services Research Center" as part of the Cognitive Systems Institute Speaker Series.

1. KARLSRUHE SERVICE RESEARCH INSTITUTE (KSRI)
www.kit.edu
www.ksri.kit.edu
KIT – The Research University in the Helmholtz Association
Joining industry and students for
cognitive solutions @ KSRI
Prof. Dr. Gerhard Satzger, Sebastian Hirschl, Kathrin Fitzner
April, 2017

2. Karlsruhe Service Research Institute
www.ksri.kit.edu
Joining industry and students for cognitive solutions
@ KSRI
Introduction to KSRI
Three examples:
Watson showcases (Gerhard)
Cognitive / analytics assistance for car insurance:
reserving for damages (Sebastian)
Cognitive / analytics support for health insurance:
processing medical documents (Kathrin)
Discussion
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2
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3. Karlsruhe Service Research Institute
www.ksri.kit.edu
KSRI – An “industry-on-campus” model with focus on
interdisciplinary and application-oriented research
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Discrete Optimization &
Logistics
Prof. Dr. Stefan Nickel
Knowledge
Management
Prof. Dr. Rudi Studer
Prof. Dr. York Sure-Vetter
Information &
Market Engineering
Prof. Dr. Christof Weinhardt
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Digital Service Innovation
Prof. Dr. Gerhard Satzger
Energy Economics
Prof. Dr. Wolf Fichtner
Information Systems
& Service Design
Prof. Dr. Alexander Mädche
Value Stream
Services
Dr. Markus Bauer,
Prof. Dr. Kai Furmans
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4. Karlsruhe Service Research Institute
www.ksri.kit.edu
OR CS ElectiveMgt.
KSRI Education Program – Offering Majors and Minors in
Digital Service Systems
Job Profiles
Digital Service Systems
Economics / Mgt:
Information & Service Systems
ServiceInnovation,
Design&Engineerg.
ServiceDesign
ServiceEconomics
&Management
ServiceAnalytics
ServiceSociety
ServiceMarketing
ServiceOperations
ServiceComputing
DigitalServiceSystemsI
DigitalServiceSystemsII
B.Sc.M.Sc.
Fundamentals of Service Systems
I D E A S
Master Thesis
Bachelor Thesis
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5. Karlsruhe Service Research Institute
www.ksri.kit.edu
KSRI one of first European institutions to introduce
cognitive technologies / IBM Watson into program
Seminars since 2015; 4 groups of 5 students each
High demand, interest, and enthusiasm with
students
Watson APIs, e.g. Watson AlchemyAPI
2016 and 2017: Students present @ CeBIT fair
Examples:
Watson Travel Advisor Watson Formula 1 Expert
Watson Game of Thrones Expert Watson Takes the USMLE
5
Example 1

6. Karlsruhe Service Research Institute
www.ksri.kit.edu
Cognitive / analytics assistance for car insurance:
reserving for damages
6
Situation – Why? Approach – How?
§ 3.6 million claims
§ Comprehensive insurance only
§ Claims between 2011 and 2016
§ Provided by large German insurance
company
§
Claim Reserve
1A123456 400 EUR
2B801234 1200 EUR
3C129398 300 EUR
6F471123 2500 EUR
Claim Payments
1A123456 400 EUR
2B801234 1200 EUR
3C129398 300 EUR
6F471123 2500 EUR
! 𝐶𝑙𝑎𝑖𝑚'
Current reservation technique
Required reservation technique
Example 2

7. Karlsruhe Service Research Institute
www.ksri.kit.edu
Cognitive / analytics assistance for car insurance:
reserving for damages
7
Results – What? Future use cases
§ Connect the developed model to a cognitive
system
§ Develop insurance claim assistant to automa-
tically handle claims for insurance company
§ Insurance claim assistant leverages
developed model to autonomously handle
claims and to suggest immediate payment
Dimension New model Old model
Average
deviation %
38.1 % 60%
Average 1011 € 1011 €
! 𝐶𝑙𝑎𝑖𝑚'
?
Example 2

8. Karlsruhe Service Research Institute
www.ksri.kit.edu
Cognitive / analytics support for health insurance:
processing medical documents
8
Example 3
Situation
§ High volume of unstructured data (20000 documents
per day)
§ Medical records contain technical language, codes,
abbreviations, Latin terms, …
§ Time-consuming and costly processing by SMEs
§ Goal: Accelerate decision making by Watson support
Approach
Information
extraction by
Watson
Raw medical
document
Surgery reports:
Machine learning
based approach
Psychological
reports: Rule-
based approach
Annotated
document
Results
§ Appropriate approach must be chosen
§ Rule-based approach is very powerful, but
expensive to develop
§ ML approach based on Watson API provides
quick results, but limited customization
§ F-Scores of 0.55 – 0.57: Cognitive systems are not
mature enough for automatic processing, but provide
high potential

9. Karlsruhe Service Research Institute
www.ksri.kit.edu
www.ksri.kit.edu
Thank you for your attention –
We are always happy to continue the conversation …
Prof. Dr. Gerhard Satzger
Karlsruhe Service Research Institute (KSRI)
Karlsruhe Institute of Technology (KIT)
Kaiserstraße 89, D-76133 Karlsruhe, Germany
Director KSRI
IBM Deutschland GmbH
IBM-Allee 1, D-71139 Ehningen
Phone: +49 (0) 721 6084-3227 (KIT)
+49 (0) 7034 15-1594 (IBM)
Email: satzger@de.ibm.com
www.ibm.com
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