IBM Watson Overview

Welcome to Watson
2017
January 2017
Mike Pointer, Watson Sr. Solution Architect

A COGNITIVE BUSINESS HAS SYSTEMS THAT CAN
ENHANCE DIGITAL INTELLIGENCE EXPONENTIALLY.
4
REASON
They can reason, grasp
underlying concepts,
form hypotheses, and
infer and extract ideas.
UNDERSTAND
Cognitive systems
understand imagery,
language and other
unstructured data
like humans do.
LEARN
With each data point,
interaction and outcome,
they develop and
sharpen expertise, so
they never stop learning.
INTERACT
With abilities to see,
talk and hear, cognitive
systems interact with
humans in a natural way.

IBM WATSON CAPABILITIES
5
Watson
Microservices
Language
Services
Speech
Services
Vision
Services
Data
Services
Embodied
Cognition
Watson
Knowledg
e
Studio
25+ Services

Discovery
25+ WATSON MICROSERVICES
6
Language Services
AlchemyLanguage
Conversation
Document Conversion
Language Translator
Natural Language Classifier
Personality Insights
Retrieve and Rank
Tone Analyzer
Entity Extraction
Sentiment Analysis
Emotion Analysis
Keyword Extraction
Concept Tagging
Relation Extraction
Taxonomy Classification
Author Extraction
Language Detection
Text Extraction
Microformats Parsing
Feed Detection
Linked Data Support
Speech Services
Speech to Text
Text to Speech
Vision Services
Visual Recognition
Similarity Search
Data Insight Services
AlchemyData News
Discovery
Tradeoff Analytics
Embodied Cognition Services
Intu
Watson’s APIs are the cognitive
building blocks that harness our data.
Vision
Recognition
Conversation

Key Watson Offerings
Watson Developer Cloud
Watson Virtual Agent
Watson Conversation Service
Watson Discovery Service
Watson Knowledge Studio

Watson Developer Cloud
3 models
8

LEVEL SET - IBM WATSON DEVELOPER CLOUD WILL BE DEPLOYABLE IN 3
MODELS:
Shared is a cloud deployment of
WDC deployed on Bluemix
Shared. It offers a solid data
security in a multi-tenant
environment and encryption of
data in transit and at rest.
Premium is a single-tenant virtual
environment deployment of WDC
deployed on Bluemix Shared. This
adds isolated compute in addition
security features of Shared.
Dedicated is a private cloud
deployment of WDC built on top of
Bluemix Dedicated. The
Dedicated deployment addresses
data security and regulatory
compliance requirements by
offering hardware isolation and
data encryption, hosted in a
SoftLayer data center.
Select Services
Available July
1st; others 2H16
Available Today
GA 1Q17
(with a few early
customers in
2016)

Watson for engagement
10

Watson as the Center of Customer Engagement
11
Create an omni-channel experience for
better user engagement
Flexible, cost-effective solutions for building chat bots and virtual agents
Detect emotional states* and
responds in appropriate ways
Build from the ground up or buy pre-built capabilities
Build once, deploy across
multiple platforms
*Leveraging Watson Tone Analyzer
Create natural language interactions with
your end-users, including Q&A and
onboarding
Advanced Machine Learning
capabilities
Walk customers through business
processes like application forms or
resetting a password

13
A New Partnership With Watson

Choose the Solution that Best Meets Your Needs
14
Build Your Own
Buy Pre-Built
API for Developers or Technical LOB that want to BUILD a chat bot or
virtual agent from the ground up
Create conversational experiences across any channel (e.g. mobile,
messaging, robots etc.)
Integrated dialog builder allows subject matter experts the ability to easily
construct dialog flows for chat bots and virtual agents
To jumpstart conversational app development, IBM offers an array of
software development kits, code examples, and simplified tooling created
for developers, by developers.
SaaS solution for Business Users that allow you to quickly
CONFIGURE virtual agents, using pre-built content, without
needing specific technical skills
Bot Configurator
Cross-industry, trained on customer service content
Rich, real-time engagement analytics
Streamlined publishing process and integration with systems of
record
Or, Use a Combination of the Two

Both Watson Conversation and Watson Virtual Agent Offer
15
Greater client control over how data is used – ability to keep proprietary data private
Cloud delivery for continuous development cycle for ongoing feature enhancements so
customers are always on the latest version
Fast time-to-value; start for free
Enterprise ready, Premium Plans that offer single tenancy, data isolation, PII support,
SLAs, end-to-end encryption
Multi-lingual capabilities (Watson Conversation Service – now, Watson Virtual Agent –
2017)
Analytics across multiple areas - trend analysis, engagement levels, improving system
performance, activity in production systems

16
An API for Developers or Technical LOB that want to BUILD a chat bot or virtual agent from the ground
up.
Create conversational experiences across any channel (e.g. mobile, messaging, IoT, etc.)
Integrated dialog builder allows subject matter experts the ability to easily construct dialog flows for chat
bots and virtual agents
Combines intents, entities and dialog into a
seamless experience
Includes:
• Code samples
• Software Development Kits (SDKs)
• Access to a broad set of platform services that
can augment conversational use cases (e.g.
Speech, Empathy)
• Enterprise support with the Premium Plan (e.g.
data isolation, e2e encryption, PII support)

Question Distribution
17
Watson
Conversation
Unique Intents
100s 100,000+
FrequencyofQuestions
Long Tail
Turn on my headlights.
My exhaust is making a rattling
sound, how do I troubleshoot
the problem?
Here Watson uses
reasoning strategies
that focus on the
language and
context of the
question.
Short Tail
Watson
Discovery
Service
Here Watson uses
reasoning strategies
that focus on
identifying the most
appropriate answer.

Cognitive Customer Engagement Platform
18
A cognitive, self-service digital assistant for customer service
SaaS offering for continuous delivery of features and content enhancements
Engage with customers via a configurable chat/messaging interface
Handles inquiries based on personalized input and context

19
Includes Pre-built Content Out-of-the-box:
• Pre-Trained Natural Language Understanding for
Customer Self-Service
• Simple, Complete Dialog flows
Tooling Included:
• Engagement Metrics Dashboard
• Usage & Activity Trends
• Transaction Success Rate
• Bot Configurator
• Tailor Dialog & Create Related Intents, Entities
• Integration with enterprise systems, Reference UX

20
Benefits
• Delivers omni-channel experience to your end-users through the channel they choose
• Enables increased first-contact resolution – higher level end-user satisfaction
• Absorb deflected contacts from higher cost channels
• Lessens the burden for live agents, resulting in cost savings
• Decreased agent-agent transfers
• Increased revenue through re-tasking human reps
• Sheds light on key customer issues and themes
• Increases in end-user lifetime value, Net Promoter Scores

Content Class Structure/Intents – Complete Map (as of end - Oct 2016)
21 * Notes existing workflow for intent
Account Management Service Management
Off TopicDevice Management
Order Management
Sales
Billing
Help
Information
Complaints
Payment
Online Account Access
Customer Profile
Account Number Inquiry
Billing Address Inquiry
Email Change
Update/Change Address*
Update/Change Contact
Phone*
Name Change
Authorized User
Profile Password
Profile Security Questions
Privileges
Upgrade Eligibility Timing
Upgrade Eligibility Status
Close/Cancel Account
Balance Inquiry
Credit Status
Bill Explanation
One Time Charge
Recurring Charges
Billing Cycle
Bill Copy
Online Statements
Paper Statements
Dispute
Request Adjustment
Payment Reminders
Swap Device
Activation
About Us
Jobs
Contact Us
Find Nearest Store*
Store Location
Store Hours
Store Phone Number
Store Products
Store Services
Make Store Appointment
Change Store
Appointment
Troubleshooting
Network
Create Product Order
Modify Product Order
Get Product Status
Cancel Product Order
Make a Payment*
Recharge
Method of Payment Inquiry
Payment Locations
Method of Payment Update
Payment Due Date
Late Fees
Payment Arrangement
Recurring Payment Autopay
Installments
Defer Payment
Payment Due Date Change
Research Payment
Payment History
Verify Payment
Missing Misapplied Payment
Refund Payment
Port in
Return Device
Price Plan Inquiry
Price Plan Change
Coverage Area Inquiry
International Rate Plan
Inquiry
Roaming Inquiry
Add Service Features
Active Roaming
Activate Prepaid Plan
Remove Service Features
De-activate Roaming
De-activate Prepaid Plan
Network Unlock
Add Insurance
Change Mobile Phone
Number
Greetings
Help
Connect to Agent
Ending

… one perfectly
informed decision at
a time
Profitable,
billion-dollar
oil drilling …
Watson technology culls
through 30 years of
Woodside’s documented
knowledge.
Engineers augment their
expertise with a virtual
advisor, “Lesson Learned.”
Each outcome is added
to collective knowledge,
informing future decisions.
G R O W K N O W L E D G E F R O M D A T A E N H A N C E E X P E R T I S E L E A R N A N D A D A P T

The Cognitive Business Narrative / 05.18.2016
23
Student
advice is
powered
24/7/365 by
IBM Watson

25
Business Challenge
To provide anywhere, anytime service, Staples sought to remove the friction of ordering from its stores and
websites and instead use its Easy Button to become part of the customer’s daily routine.
Transformation
Using IBM Watson® APIs, the company transformed its Easy Button into a cognitive ordering ecosystem that
customers can use to order supplies from a variety of devices using voice, text or email.
Results
Higher Order Frequency
Expected by embedding the ordering process into office managers’ work routine
Increased Order Sizes
Anticipated by enabling customers to order using voice, text and email across a variety of devices
Improved Service Scores
Predicted by facilitating anywhere, anytime service across channels
Solution Components
• IBM® Bluemix®
• IBM Watson®
– Developer Cloud
– AlchemyLanguage
– Conversation
– Retrieve and Rank
– Speech to Text
– Text to Speech
– Tone Analyzer
http://ecc.ibm.com/case-study/us-en/ECCF-WUC12550USEN

Royal Bank of Scotland Engages IBM Watson for
Cognitive Insights to Better Serve Customers
26
New York and Edinburgh - 06 October 2016
IBM (NYSE: IBM) and Royal Bank of Scotland today announced the first pilot with customers of ‘Luvo’
a cognitive chat bot that allows people to interact with an AI-powered platform. Luvo leverages IBM
Watson Conversation, a cloud-based cognitive service, to enhance the customer service experience.
https://ibm.biz/BdrWdq
“Luvo frees advisors from spending time on simple, easily-addressed
queries so they can help customers with more complex issues and
questions.”
–Jane Howard, Head of Personal Banking, NatWest and Royal Bank of Scotland

Watson Discovery 28
A powerful set of
APIs built to help
developers find
value in your data,
fast.

Watson Discovery 29
*https://www.nytimes.com/2014/08/18/technology/for-big-data-scientists-hurdle-to-insights-is-janitor-work.html?_r=0
Many data scientists spend
as much as 80 percent* of
their time on so-called “data
janitor” work – collecting,
cleaning and organizing
data sets.
Developers face numerous
barriers that slow them
down when building
applications to leverage
unstructured data:
Massive amounts of diverse
and dispersed unstructured
content
NLP APIs are difficult to
integrate
Analysis requires complex
queries and manual filtering.
Watson Discovery
packages cognitive
technologies together in an
easy-to-use end-to-end
system to focus on specific
business problems.
It simplifies the
infrastructure, scale and
algorithm challenges
associated with enriching
and analyzing large data
sets.

Watson Discovery 30
With Watson Discovery, go from data to
insights rapidly and with less effort
Confidential until 12-15-2016
Questions
??
“What are the top terms
mentioned by customers
in support interactions”
“How do I setup a new
connection for a customer
with a locked accounts”
“How many times was my
campaign mentioned over the
last 30 days”
Documents/Data

Apply cognitive enrichments to your data and extract
insights using a powerful and flexible query language
in real time
31
Watson DiscoveryConfidential Until 12-15-2016
Automated Data Ingestion
Automate ingestion using the APIs, web
upload, or data crawler, and feed through
Document Conversion to deal with
multiple files types.
Integrated Enrichment
Rapidly setup advanced Natural Language
Processing steps and custom models to
extract entities, relations, keywords,
sentiment, etc.
Diverse Content Sources
Create one-of-a-kind applications that
leverage data from the pre-enriched
news sources and private content from
across the enterprise.
Simplified Query Language
Perform multiple query types including
Boolean, filter, and aggregation queries to
discover patterns, trends, and answers.

32
Solution for answering questions that
require existing documents as a source
of answers
Combines the next generation of
Document Conversion, Retrieve and
Rank, Alchemy Language and
AlchemyData News into a single
service
Built to scale for large data sets
Integrates other Watson cognitive
APIs and services for natural
language understanding
Flexibility of data types and
sources
Access via REST API endpoints
and UI tooling
Watson Discovery
Watson Discovery Service extends functionality to allow for
cognitive search and content analytics capabilities to be combined
into new and existing applications.
Alchemy
Language
AlchemyData
News
Retrieve
and
Rank
Document
Conversion

33
The Automated Data Pipeline
Discovery Service lets you build an automated data pipeline once,
and then add it to existing solutions

© 2016 IBM Corporation
IBM Watson Knowledge Studio
Watson Explorer AlchemyLanguage on WDC
End-to-end system that enables developers and subject matters experts to teach Watson
the linguistic nuances of industries and knowledge domains.
Create, reuse & share custom text annotators built with WKS can be leveraged with Watson and, in future, other IBM offerings!
Available on IBM
Cloud Marketplace
Analytics Exchange (Beta)
Target Users
Deploy
Reuse/
ShareSME DEV

Understanding information extraction
John Smith works for IBM. He has been in Big Blue for 20 years.
PERSON PERSONORG ORG
employedBy employedBy
John Smith IBM Corp
“Information extraction is the method of distilling structured data from unstructured data.”
Source: MarketandMarkets NLP Markets by Technologies 2015

Various approaches for information extraction
Source: Rule-based Information Extraction is Dead! Long Live Rule-based Information Extraction
Systems! - Chiticariu, Li, Reiss; Market&Markets: NLP Markets by Technologies 2015
Rules-Based
• Uses rules to perform
natural language
analysis
• Easy to get started with
small corpus
• Easy to trace and debug
• Requires humans to
program rules with
significant learning curve
• Difficult to maintain as
the complexity grows
Machine Learning
• Uses inferences and
statistical models to perform
natural language analysis
• Taught by examples without
the need to write code
• Better approach where large
volume of growing data is
involved
• Somewhat opaque to the
developer and can be more
difficult to debug
• Requires creating ground
truth
Hybrid
• Combination of both
rule-based and ML
approaches
• Easy to get started with
RB and scale over time
using ML
• Use rules to accelerate
training and improve
precision of ML models
• Requires a solution to
integrate both
approaches
Watson Explorer Content
Analytics Studio
Watson Knowledge
Studio
TrainedUsing

Key Features
• Intuitive
• Keep track of performance statistics such as precision
and recall for annotator components
• Import dictionaries and pre-annotated documents to
accelerate the training process
• Collaborative
• Work with other subject matter experts to teach Watson
the linguistic nuances of an industry domain
• Leverage knowledge artifacts on IBM Analytics
Exchange (Beta) to expedite the model training process
• Cost Effective
• Iteratively improve performance over time of annotator
components
• Ability to deploy text annotators directly to Watson
Explorer and the Watson Developer Cloud

WEX + WKS: All enterprise text analytics
needs addressed in an integrated solution!
• Native integration – Machine learning runtime
embedded in WEX
• Only offering with support for running ML
annotators on-prem
• First and only offering to use a hybrid approach
with custom rules and custom ML annotators
• Customer can use existing WEX-CA Studio
annotators to ”bootstrap” the machine learning
training process
• Machine learning supported on both foundational
and analytical components
• Supports real time NLP use case
• Limitation – Machine learning annotators are
supported on Red Hat Enterprise Linux only

WKS + AlchemyLanguage: Custom Real-
time NLP on cloud!
• Deploy models directly from WKS to
AlchemyLanguage on Bluemix
• Fully-customizable machine learning based
runtime for real-time NLP use cases
• Cloud-based pay-go model
• Ideal for business partners looking to build
custom text analytics solutions on cloud
• Lower cost of entry
• Note: Requires Advanced package of
AlchemyLanguage on Watson Developer
Cloud (available June 2016)

IBM Watson Knowledge Studio makes deployment of
custom cognitive applications faster than ever before.
Intuitive Collaborative Cost Effective
Use a guided
experience to
teach Watson
nuances of
natural language
without writing a
single line of
code
SMEs work
together to
infuse domain
knowledge in
cognitive
applications
Create and deploy
domain knowledge
infused annotators
faster than ever
before using an
integrated
development
environment

Thank You!
mpointer@us.ibm.com
January 2017

WATSON KNOWLEDGE STUDIO VISION
Watson Explorer Relationship Extraction
Service on WDC
Use Watson Knowledge Studio to teach Watson the nuances of industries and knowledge domains –
enabling rapid customization of cognitive applications.
Watson Offerings
Create, reuse & share knowledge artifacts built with WKS that can be leveraged with
Watson and, in future, other IBM offerings!
WKS Shared Repository
Target Users
• Subject Matter Experts
• Business Partners
• Application Developers
• Data Scientists

Watson & Analytics
January 2017

Cognitive Trends
Cognitive and analytics:
The engine that drives cognitive transformation
for clients in every industry and domain
We harness data in all its
forms, including:
• External and internal
• Structured and unstructured
• Image, voice, literature,
weather, social, news,
events and the Internet of
Things
We help clients understand the hidden
value within that data through cognitive,
and deliver technological innovations in:
• Analytics
• Natural language processing
• Artificial intelligence
• Machine learning
We insert prescriptive actions at
the point of action in order to
gain competitive advantage,
outthink the competition and
become a cognitive enterprise:
• In business processes
• Across platforms

Unstructured Data
47
Structured Data
Analytics
Commerce
IoT ..
0
2
4
6
A B C D
WORKING WITH WATSON
Data Source Runtime Human Interface

Internet
48
ClientFirewall
IBMFirewall
CRM …
Predictiv
e
…
Core Data
Analytics Models &
Other Systems
Enterprise Bus Services
(Service Catalog) S1 …
Orchestration
Engine
IBM CloudON PREMISES
Web
application
www.ClientWebsite.com
VA UI Widget
Proxy
Server
VIRTUALASSISTANT
(INTEGRATED)
Watson Center of Competency
Users
Customers
Privileged Users,
Download Logs Admin
API
Developers
Watson
Architects
TLS Bi Directional
SSLwithBasicAuthentication
Watson Micro-services
R&R TTS STT …PI
Auth provider
Warm
Handover to
Real Agent
Smart
phone
TabletOnline

LET’S LOOK AT AN EXAMPLE
John Smith works for IBM. He has been in Big Blue for 20 years.
PERSON PERSONORG ORG
employedBy employedBy
John Smith IBM Corp

HOW WKS WILL WORK WITH WEX?
• Import documents pre-
annotated using rule-based
annotators in WKS to
”bootstrap” the ML annotator
• Deploy directly to Watson
Explorer
• Use with both Content Mining
and Search use cases
• WKS models supported by both
WEX EE and AE
Watson Explorer
Content Analytics Studio
Rule-Based
Annotator
IBM Watson Knowledge
Studio
ML Annotator
Create
Pre
Annotation
Import
Training Data
Import Train
Deploy
Deploy

IBM Watson Overview

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