1.
Remake your Organization
for the Future
Helping IT Leaders Become Trusted
Service Providers in the Cognitive Era
An IBM Systems Story
October 2015

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Welcome to the Cognitive Era:
A new era in technology, a new era in business
Data is transforming
industries and
professions
Computing is
entering a new
Cognitive Era
The world is being
reinvented in code
Where code goes, where data flows, cognition will follow.

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…while maintaining their core businesses
IT leaders must drive innovation at unprecedented speed and scale ….
Driving innovation: Maintaining business:
IoT will connect 30 billion
devices by 2020
48% of shoppers want on-
demand personalized promotions
6.75 TBs of data will be created
per person per day by 2018
65% of transactions with
healthcare organizations will be
mobile by 2018
Average cost of a data breach in
2020 will exceed $150 million
Average hourly cost of downtime is
over $1.6 million

4.
Digital is not the destination, but it is required . . .
Reshape the customer experience
Reshapetheoperatingmodel
Value proposition focus
Valuedeliveryfocus
Sources:
1.“Digital reinvention”, IBM institute for Business Value, December 2013
2.“Inside the mind of Generation D”, IBM Center for Applied Insights, October 2014
+10pts
+6pts
+6pts
Performance vs non-digital
peers on key metrics
Share of customer wallet
3-yr customer
retention
% of new product dev
initiatives released
| 4IBM Systems

5.
An architectural foundation for Cognitive Business
APIs
Enterprise Infrastructure Digital Innovation
Integration
Partners Apps Access
Info Process Interaction
Hybrid Cloud
IBM StorageIBM LinuxONE
Data
IBM z Systems IBM Power Systems IBM Middleware
IBM BlueMix
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Hybrid Cloud is a key enabler that means evolving IT infrastructure
in three areas
Accelerate speed of innovation
for new services
Deliver real-time business
visibility and insights
Ensure secure, compliant and
predictable IT services
Integration for Mobile Services
Tap into the API economy and extend infrastructure
investments to drive innovation
Data for Analytics Services
Integrate data from various sources and derive real-
time insights from oceans of data
Operations for Service Predictability
Provide visibility and control across all IT services to
deliver continuous operations

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Integration for mobile
services

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Integration for mobile services
accelerates innovation to
differentiate from competitors
and access cognitive services
Enabled rapid customer growth by
quickly extending business operations
to mobile devices
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Connecting to enterprise IT and digital ecosystems requires
thinking differently about APIs, scalability and security
Open up to ecosystem partners in a
safe and controlled way?
Support the flood of new users,
transactions and services?
Protect enterprise data from
unauthorized users?
APIs to enable external partners to securely
connect to your core systems and data
Infrastructure that scales to accommodate rapid
growth without service disruption
Enhancing security through encryption, workload
isolation, and API management
How do you… Requires…
Future MadeFuture MadeIBM Systems | 9

10.
Relationship
Extraction
Questions
&
Answers
Language
Detection
Personality
Insights
Keyword
Extraction
Image Link
Extraction
Feed
Detection
Visual
Recognition
Concept
Expansion
Concept
Insights
Dialog Sentiment
Analysis
Text to
Speech
Tradeoff
Analytics
Natural
Language
Classifier
Author
Extraction
Speech to
Text
Retrieve
&
Rank
Watson
News
Language
Translation
Entity
Extraction
Tone
Analyzer
Concept
Tagging
Taxonomy
Text
Extraction
Message
Resonance
Image
Tagging
Face
Detection
Answer
Generation
Usage
Insights
Fusion
Q&A
Video
Augmentation
Decision
Optimization
Knowledge
Graph
Risk
Stratification
Policy
Identification
Emotion
Analysis
Decision
Support
Criteria
Classification
Knowledge
Canvas
Easy
Adaptation
Knowledge
Studio
Service
Statistical
Dialog
Q&A
Qualification
Factoid
Pipeline
Case
Evaluation
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The Waston that competed on Jeopardy! in
2011 comprised what
is now a single API—Q&A—built
on five underlying technologies.
Since then, Watson has grown to
a family of 28 APIs. On average there are
1.3B Watson API calls / month.
By the end of 2016, there will
be nearly 50 Watson APIs—
with more added every year.
Natural Language
Processing
Machine Learning
Question Analysis
Feature Engineering
Ontology Analysis
Cognitive Business is powered by IBM Watson

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With Integration from IBM, now you can:
Open new markets
by allowing ecosystem
developers to securely
leverage business assets
Provide average response
times of 30 milliseconds
supporting 50 million
mobile transactions daily
Scale up to
9 quintillion files and
yottabytes of data for
virtually unlimited growth
Support 675 million
messages and handle
$1 trillion of financial
traffic per day
Enable full disk encryption
and file-level encryption
on all tiers of storage with no
performance degradation
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M2M Technologies captures new
customer segments through their
partner ecosystem
Secure gateway platform safely exposes
sensitive data to authorized users
API management software unlocks core
systems to allow developers to create new
customized features
Portals help engage application developers and
help administrators establish policies for critical
API attributes
IBM Systems helps an electronics firm
expand their target market by creating
and managing APIs that allows their
partners to quickly add new capabilities.
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Data for analytics services

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Data for analytics services deliver
cognitive insights to improve
operational decisions and provide
superior customer experiences
Maximized advertising revenues by
providing advertisers with greater
customer visibility
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Delivering real-time analytics services requires thinking differently
about data acquisition, placement and compute
Develop a complete view of your
customers and business?
Improve analytics service
performance and efficiency?
Analyze oceans of data to derive
real-time decisions?
Acquiring and integrating enterprise and external
data using infrastructure optimized for big data
Placing data and analytics applications in the right
location to maximize speed
Servers and flash storage designed specifically for
the cognitive era
How do you… Requires…
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With Data from IBM, now you can:
Run analytics queries up to
2,000X faster by moving
analytics closer to the data
Increase analytics performance
by 2.5X with a balanced
system design delivering
greater I/O bandwidth, memory
and threads per core
Achieve 7.5X
increase in business
application performance
with low latency flash
storage
Deliver 400 GB per second data
throughput to storage architecture
Secure data integration to over 80
platforms, including industry standard
databases and ERP systems
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Data for analytics services deliver
cognitive insights to improve
operational decisions and provide
superior customer experiences
Delivered cross-sell and up-sell
opportunities to customers at
point of sale in seconds
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Operations for service predictability

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Operations for service
predictability ensures
superior availability in an
unpredictable world
Managed business change by
centralizing network operations activity
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20.
Providing superior service availability requires thinking differently
about systems design, service management and availability
Ensure that my IT services will meet
the needs of my business?
Safeguard that my IT operations are
running smoothly?
Prevent unplanned downtime and
outages?
Careful systems design of what services run where
to balance needs of cost, security and performance
Applying service management to gain visibility and
control across all IT operations
Always-on infrastructure that provides service
reliability and continuous data availability
How do you… Requires…
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21.
With Operations from IBM, now you can:
Reduce critical events by 98%
by identifying performance issues
before they affect your users
Reduce outages by more
than 50% by tracking all
transactions from start to finish
Search and diagnose
problems 60% faster
by analyzing customer
patterns from log data
Enable a global mirror recovery
point as low as 3 to 5 seconds
for near-continuous uptime
Provide 99.9999% availability
through metro mirroring with
HyperSwap
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SDV provides round-the-clock
availability to avoid disruptions
and customer losses
Integrated in-memory networking enables
high-speed data back-up
Advanced clustering with automated failover
in seconds provides continuous availability
System automation and cloud management
increases administration efficiency
IBM Systems helps an IT service provider
reduce total cost of ownership by 50%
and offers continuous service for banking
customers who cannot afford downtime
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1. A cognitive strategy
Determine what data you need, which experts will train the system; where
you must build more human engagement; which products, services,
processes and operations should be infused with cognition, and which parts
of the unstructured 80% of data you
most need to focus on to make discoveries for the future.
2. A foundation of data and analytics
Collect and curate the right data—data you own, data from
others, data available to all; both structured and unstructured. Apply
cognitive technologies to this data in order to sense, learn and adapt,
thereby creating competitive advantage.
3. Cloud services optimized for industry, data
and cognitive APIs
The building blocks for products and services are code, APIs and
diverse data sets. The platform you choose to develop on, and the agile
development culture and methods you embrace, will be critical to your
success.
4. IT infrastructure tuned for
cognitive workloads
Architect a new kind of IT core—a heterogeneous infrastructure that serves
as the backbone of your enterprise. Do this rapidly and affordably by
harmonizing technologies from public, private and hybrid cloud with
distributed devices, IoT instrumentation and your existing systems.
5. Security for a Cognitive Era
As cognition makes its way into cars, buildings, roadways, business
processes, fleets, supply chains—securing
every transaction, piece of data, and interaction becomes essential
to ensure trust in the entire system—and in your brand and
reputation.
The Journey to Cognitive Business
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Get started in your journey to become in today’s cognitive era.
Learn more about IBM Systems and
Download new thought leadership
showcasing how leading digital organizations are
thinking differently about IT infrastructure
ibm.com/systems/infrastructure-report
Learn more about Cognitive Business
and how to outthink the competition as we enter a
new era of computing
Ibm.com/cognitive/outthink
Ibm.com/systems

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Thank you.
ibm.com/systems