IBM Watson IoT Strategy

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1 IBM Watson IoT Strategy Eran Gery CTO, WIoT customer solutions 1 Watson / Presentation Title / Date

2 Organizations are looking to IoT for three primary outcomes Improve operations and lower cost Enhance customer experience Transform and generate new revenue streams 2

3 WIoT Connected Products Stack Industrytailored Capabilities and Content Automotive Industry Solutions (IoT4 ) Insurance Connected Products Cognitive Sensing Digital Twin Continuous Engineering Cross-Industry Application Capabilities Tracking & Planning Requirements Management Quality Management Document Publishing Advanced Configuration Management Model-based Engineering Engineering Lifecycle Management 3 Cross-Industry Platform Capabilities Watson IoT / Monthly Operations Review / 11 May 2017 Automotive Aerospace & Defense Industrial Products Electronics Banking & Insurance IoT Platform / Blockchain IBM PaaS/Bluemix/Watson Data Platform Public Consulting

4 IBM Watson IoT Platform & Services Make sense of data to optimize operations, manage assets, rethink products and services, and transform customer experience. DEVICES EQUIPMENT PEOPLE Cognitive Analytics Services Natural Language Processing Video and Image Analytics Machine Learning Text Analytics ANALYTICS Real-time Machine Learning Cognitive Edge RISK MANAGEMENT Proactive Protection Security Analytics Anomaly detection CONNECT Secure connectivity Device management Visualization INFORMATION MANAGEMENT Store & Archive Transform & Integrate Augment Weather 4

5 Node-RED wiring the IoT together 5

6 Platform UI & Dashboarding Boards: Multiple dashboards Device Cards: Generic card Real-time chart Bar chart Donut chart Value Gauge Usage Cards: Device type Registered devices Data consumption 6

7 Realtime Data Analytics A structured approach to handle data ingested from devices Use a declarative approach to specify rules and actions on incoming data Various action types ready for usage Based on Spark Streams for efficient data ingestion Can be extended to connect to advanced analytics Cognitive Predictive 7

8 WIoT Edge Analytics Agent Based on Apache Edgenet (formerly Quarks ) 8

9 IBM IoT for Connected Products Embedded Common Services IoT Platform Cloudant DashDB Object Store SSO... IoT for Connected Products Embedded Common IoT Services Ind Soln Code, UIs, APIs, Data Sets, Analytics, Custom Code Infrastructure 10 Watson ML, Message Hub (avail in subsequent release) Industry Content IoT4E Service User registration UI APIs Data Sets / Analytics Weather / Video / Acoustic Industrial Products Industrial Equipment Farming Equipment Office Products & Medical Computers Devices Network Equipment Providers Drones Consumer Electronics Consumer Appliances Other (Parking Meters, Street Lights, etc)

10 What are Connected Products clients doing? Whirlpool is connecting to appliance sensors to use usage and diagnostics data to improve service levels and customer satisfaction. 11 Whirlpool is using IoT Industry Solutions in the cloud to gain realtime insight from connected-appliance data. They provide diagnostic information to call center agents and repair technicians for faster and less costly service calls up to 50% reduction projected in service and parts provision costs. Engineers incorporate customer-use data in new product designs. Use appliance connectivity to create new services such as automated retail purchases for laundry products. 11

11 IBM Watson IoT for Automotive is the platform for the connected vehicle Driver Behavior identify risky behavior and help improve efficiency Understanding of the individual driving patterns of a vehicle operator to identify risky behavior, and violation of policies. Drivers are 10 times more likely to get into an accident if they re distracted, emotional, or upset Context for your location-based applications Highly accurate map matching foundation capabilities to locate the geospatial data to the road network geometry Quickly create navigation that updates based on live information Smarter resource and optimization Utilize cognitive ability to learn who the driver is, personality in the moment, environment inside and outside the vehicle, natural language interactions between the people and the vehicle Auto companies intend to increase their digital interaction with consumers 76% in the next 5 years IBM Watson IoT Platform 12

12 13 What are Connected Products clients doing? Honda R&D is developing autonomous technology for the Japan 2020 Olympics Honda R&D has a goal to develop the next generation of vehicles that operate cooperatively, enabling more efficient, low-stress and, ultimately, collision-free mobility. IoT for Automotive enables Honda to accelerate their development by understanding from vehicle sensors what is happening in and around the vehicle and share insights with other road users immediately. 13

13 IBM Watson IoT for Insurance Improve customer satisfaction and retention More interactions to partner and connect with policy holders Full contextual view changes the nature of risk for the policy holders Deeper understanding of policy holder enabling new engagement models (e.g. home shield) Claims avoidance and/or reduction Claims payments and processing expenses is 68.7% of all losses for P&C Insurance Avoidance of claims provides economics for utilizing IoT Risk is personalized and associated with individual policy holder Manage and mitigate risk Risk is personalized and associated with individual policy holder Provides insurers ability to address employee risk including capabilities to preempt minor and major injuries before they arise. Less expensive to retain customers Reductions of claims Real time full contextual risk IBM Watson IoT Platform 14

14 15 What are Connected Products clients doing? Erie Insurance is providing proactive personalized protection to policy holders with IBM IoT for Insurance To develop more proactive and personalized home insurance, reduce claims and stay ahead in a rapidly changing market Erie Insurance wants to gain greater insights from IoT devices utilized in the home. By adopting an IoT for Insurance solution that provides them real time insight into the conditions of the home, such as unwanted water intrusion, Erie is able is able to provide predictive claims response around water intrusions that minimize or avoid any potential loss to 15 their policy holders.

15 Connected Operations- Advanced analytics solutions for asset optimization & manufacturing IBM Watson IoT Analytics Plant Performance Analytics Manufacturing/Equipment Analytics Prescriptive Maintenance Prebuilt industry models Role specific user interface Quality Analytics Proven algorithms Warranty Analytics New Cognitive Offerings PMQ Packaged analytics tools Custom build and execute models BI customizable interface Equipment Advisor Visual Inspection Acoustic Insights 16

16 Pratt & Whitney uses predictive analytics to prevent costly aircraft-onground engine events Pratt & Whitney 90% accuracy uses predictive analytics to prevent costly aircraft-on-ground engine events predicting in-flight shutdowns 50% decrease expected in shut-downs based on predictive analytics 14 projects involving predictive analytics underway Business challenge: This US-based aircraft engine manufacturer collects a vast amount of data about its engines through various databases and sensors, but it had no holistic way of integrating and analyzing the information to proactively address engine issues. Solution components IBM Predictive Maintenance and Quality IBM DB2 V9 IBM Cognos Business Intelligence V10 Solution: An analytics platform creates predictive models that automatically alert the manufacturer to different types of impending engine events. These alerts, and a 360-degree dashboard visualization of engine-fleet health and risk status, enable the company to take proactive measures such as ordering and arranging preventive maintenance. These can help prevent a range of engine issues and potentially help the company s customers avoid millions of dollars in costs associated with grounded planes. The analytics solution helps us answer, at a glance, the big question: how is our engine fleet doing today? 17

17 Summary: What Makes IBM Watson IoT Different? Industry Leading Capabilities Unmatched Scale and Scope Trusted and Secure Watson Cognitive analytics Natural language, Machine Learning, Text, Video & Image Industry models Third party data sources Edge analytics Enterprise integration Global Data center presence for Geo specific delivery IBM Bluemix Hybrid IoT Platform delivery model Data and analytics at scale with Weather company technology Blockchain Device and data neutral Built on open standards Role based security and access control Platform of platforms IoT specific security IBM Watson IoT Platform 18

18 Thank You! 19