IBM Watson Innovation Day Presentation given on May 21, 2014 at the IBM Innovation Center in Foster City, CA

1. Welcome to Watson
Innovation Day

2. © 2014 International Business Machines Corporation 4
Watson is one of IBM’ greatest innovations in its 100
year history
Goals for today’s session:
• Ignite your imagination for how Watson can be put to work in your
business changing the competitive landscape and redefining the
art of the possible
• Help establish a proven and actionable business approach for you
to bring Watson to market
• Demonstrate the process to build a Watson application and the
tools and resources available to help you succeed.
• Describe IBM’s investment to help ensure your success in putting
Watson to work, from design and development through go-to-market

3. © 2014 International Business Machines Corporation 4
Agenda
Time Agenda
9:00am – 9:45am
The New Era of Computing: IBM Watson and the
Watson Ecosystem
9:45am – 10:30am
Behind the Scenes. The Process of Building a
Powered by Watson” Application
10:30am – 10:45am Break
10:45am – 11:30pm How Watson is Changing the Game In Retail: Fluid
11:30am – 11:45am Wrap Up: Where Do I Go From Here?
11:45am – 1:00pm Networking Lunch
1:00pm – 3:00pm “Work With Watson” Time

4. What is Cognitive
Computing?

5. © 2014 International Business Machines Corporation 4
On February 14, 2011
made history

6. Mobile Social
Cloud
Analytics
The mega trends

7. Bringing Watson technology to market
© 2013 International Business Machines Corporation
size
speed
corpus
flexibility
#users
size
speed
corpus
flexibility
#users2880 cores
Single user system
2-3 sentences input
5+ days to retrain
Wikipedia, general corpus
Single Power 750, 240% faster
1000s of users
20 pages of input
< Day to ingest and train
Medical corpus
Watson cloud service
Millions of users
Dialog chaining
Few hours
Broad industry corpus
s
sp
corp
flexibi
#users
Jeopardy
Cognitive
Products
Cognitive
Ecosystem

8. Understands
natural language and
human style
communication
Adapts and learns from
training, interaction, and
outcomes
Generates and
evaluates evidence-
based hypothesis
1
2
3
Cognitive computing is changing the game

9. So why is it so hard for computers to understand humans?
 Noses that run and feet that smell?
 How can a house can burn up as it burns down?
 Does CPD represent a complex comorbidity of lung cancer?
 What mix of zero-coupon, non-callable, A+ munis fit my risk
portfolio?
Person Organization
L. Gerstner IBM
J. Welch GE
W. Gates Microsoft
“If leadership is an art
then surely Jack Welch
has proved himself a
master painter during
his tenure at GE.”
Welch ran
this?

10. © 2014 International Business
Answer
Scoring
Models
Responses with
Confidence
Inquiry
Evidence
Sources
Models
Models
Models
Models
ModelsPrimary
Search
Candidate
Answer
Generation
Hypothesis
Generation
Hypothesis and Evidence
Scoring
Final Confidence
Merging & Ranking
Synthesis
Answer
Sources
Inquiry/Topic
Analysis
Evidence
Retrieval
Deep
Evidence
Scoring
Learned Models
help combine and
weigh the Evidence
Hypothesis
Generation
Hypothesis and Evidence
Scoring
Inquiry
Decomposition
How Watson works: DeepQA architecture
1000’s of
Pieces of Evidence
Multiple
Interpretations
of a question
100,000’s Scores from
many Deep Analysis
Algorithms
100’s
sources
100’s Possible
Answers
Balance
& Combine

11. Watson is ushering in a new era of computing
Tabulating
Systems Era
Programmable
Systems Era
Cognitive
Systems Era
1900 1950 2011

12. © 2014 International Business Machines Corporation 4
2013 – A pivotal year
Watson Engagement
Advisor - May 21st
Cross-industry and
cross-geography
play
January April July October
First Two
Commercial
Offerings – Feb 8th
2014
Watson Ecosystem
Announced –
Nov. 14th
Watson Healthcare
Update – Oct. 18th
MD Anderson launches
Expert Oncology
Advisor powered by
Watson

13. © 2014 International Business Machines Corporation 4
Bringing Watson to market
Transforming
industries and
professions.
Advancing cognitive
computing across the
enterprise.
Delivering the
cognitive experience
to the masses.

14. In less than 180 days Watson Ecosystem delivered …
$100M
Direct Investments
Fund
100K+
Visit Watson Mobile
Developer
Challenge
2500+
Ecosystem Partner
Inquiries
8
Major Universities
Announce Cognitive
Course Fall 2014

15. 4
… and created over 1B impressions!
Want to Work with
IBM's Watson?
IBM's Watson Woos
Developers
Have at it,
programmers: IBM
makes Watson
available via API
IBM Opens Up Its Watson
Cognitive Computer for
Developers
IBM Offers Watson as
Cloud Application Tool
IBM to Open Up Jeopardy
Winner Watson's 'Brain'
for Everyone
Seismic shift underway
in computing thanks to
IBM Watson
Cognitive Computing
For All: IBM Releases
a Legion of Watsons
IBM to Open Up
Watson to Third-
Party Developers
Soon Everyone Will Be
Able To Use Watson
IBM's Watson Artificial
Intelligence to Get
New Homes
IBM to Announce More
Powerful Watson via
the Internet
IBM's Watson Plays a
New Role as an
Application
Development Platform
IBM to Launch Watson
Cloud-Based
Development Platform
IBM Adds Rent-An-
Artificial-Intelligence
Powers to Watson

16. What is the Watson
Ecosystem?

17. Watson Ecosystem
Tools, methodologies,
software developer kits
(SDKs) and API(s)
Free and fee based
content including general
knowledge and industry
content
Marketplace for critical
cognitive, big data, UI,
and mobility skills
• Cloud based sandbox
• Hosting Services
• Self-service portal – API
/ Tooling / SDK /
Methodology
• Starter Content
• General content
• Domain content
• Taxonomies
• Third-Party Content
• IBM subject matter
experts (500+)
• Third-party specialists
• Certification
WATSON
DEVELOPER CLOUD
WATSON CONTENT
STORE
WATSON TALENT
HUB

18. 4
Data
Ingestion
Training
Application
Scale at
Market
PartnerCo. & IBM
bring to market a
first of its kind
experience
PartnerCo., is
interested in the
Watson Ecosystem
Partner Program.
PartnerCo seeks
to personalize
customer
experiences.
PartnerCo.
identifies and
uploads content.
IBM collaborates
with PartnerCo. On
UX experience
Engaging the Watson Ecosystem
Key Enablers
 Watson Sandbox
 Watson Experience Manager
(APIs, Tools, SDKs)
 Watson Resources
 Launch Support & Scale Plan
Watson reads and
learns through Q&A

19. © 2014 International Business Machines Corporation 4
The Watson Content Store offers fuel for apps
51© 2014 International Business Machines Corporation
Content Providers
•New distribution channel
•New customers & consumption
model (license, subscription,
transaction)
•Incremental revenue
Benefits
ISVs
•Fuel your application with the
content needed for success
•Easily access multiple content
sources
•Test and validate content value
A data mart of fee and free based content, covering
general and domain specific areas, procured from a
variety of sources.

20. © 2014 International Business Machines Corporation 4
With Watson’s Talent Hub, help is just a click away

21. © 2014 International Business Machines Corporation 4
Three ways Watson Ecosystem Program benefits partners
Watson cognitive capabilities can be a game changer by
differentiating your offering in the marketplace.
The Program represents a unique opportunity to meet market
demands and demonstrate leadership, innovation, and agility.
Watson cognitive capabilities can drive incremental revenue
by attracting new users or growing current users.
1
2
3

22. Working with Watson
The Process of Building a
“Powered by Watson” Application

23. Design and Develop “Powered by Watson” apps using the API
Access Watson Developer Cloud
using Watson Experience Manager
Develop app “Powered
by Watson”
using APIs
Enrich Watson
with content
Train Watson
using tools and
experts
Test app
functional and
non-functional
Deploy application
1. Design interaction and integration patterns with Watson and implement
proof points as necessary
2. Establish the architecture with Watson and other components
3. Implement and model solution to scale as a product with customization

24. Application powered by Watson using QAAPI
Pose Natural
language question
Communicates
with Watson using
QAAPI
Get response
Optionally, further apply
Watson response
and/or other metadata
An example solution pattern used with Watson
• Design a solution with Watson as a key component
• Model the interaction patterns with Watson
• Create user experience mockups for the solution

25. Access the Watson Developer Cloud using the
Watson Experience Manager (WEM)
 Use of the Watson Developer Cloud:
 Watson Experience Manger to enrich content, train, and
test your Watson application
 API to access the QA service to Watson
 Customizable user interface to embed into your app
 Guidelines on using Watson elements in the application
 Upload content into the Watson Content Store or
source through Ecosystem partners
 Access to a network of partners, customers,
content and talent
 Support from a collaborative community of IBM
technical, marketing and sales resources

26. Proprietary Content
Acquire
Cleanse
Curate
Aggregate
Contract
Identify
Public Domain & Social
IBM Watson
Validate
Application
Partners
Source Prepare
Ingest
Deploy
Select
Content
Build Apps
w/API’s
Leverage
App Users
Unstructured Data
From Enterprise Apps
CRM eComm
Workforce HR
Product
Catalog
Trouble
Ticket
Domain Specific
Content Providers
Email,
Collaboration,
Open Data
ECM KMS
End Users
The content journey
Publish
Publish
Watson Content
Store

27.  Understand graphics (images,
videos, sound …)
 Ingest directly from a
structured data source
(Database, Datawarehouse)
 There are architectural
patterns and capabilities in
Watson to be able to
integrate with structured
data sources
 Nested tabular data
 Call data records, sensor logs,
meter data, etc.
What Watson cannot ingest yet ….

28. What
Works?
Documents that are relevant to the use case under consideration
Understanding the validity of documents & frequency of changes
Well formed semantics – titles, sections, headings, sub-headings
What Does
Not?
Access to glossary, abbreviations would be helpful and preferred
If HTML – removing headers, footers, sidebars improves responses
Corpus contain answers to the intended questions
Scanned Docs (OCR), Charts, Non-English, Password Protected, Noisy Chat Logs
Nested Tables; Image right document with no descriptions; Log & Sensor Data
Mismatch in the content ingested and the questions end users are asking
General guidance on content selection

29. Content crawling & curation – Items to consider
 Content Acquisition
– Crawling
– Integration with
ECM/KMS/DMS systems
– Open Services for
Lifecycle Collaboration
 Content Curation
– Cleansing, Preparation,
Aggregation &
Enrichment
 Content Lifecycle
Management
– Stale content
– Refreshing content
 Content Metadata, Licenses &
Attribution

30. » Suite of tools for training
and testing Watson
» Test, train, and improve the
accuracy of the system
» SDK and a set of extensions
points to develop tools to add to
the platform
Training
Experiment,
Error Analysis
Key tools & capabilities – Watson common tooling platform

31. Summary - 3 key takeaways
1
2
3
Consider the possible interaction patterns when designing your Watson
app to create the optimal user experience (including factoids, descriptive,
Yes/No, procedural, procedural troubleshooting and definitions).
The Watson Experience Manager (WEM), provides a platform to upload
content, train Watson with question and answer pairs, and test the system
by asking questions.
The process for building a Watson app involves an iterative process of
integrating Watson capabilities using the QAAPI, uploading content, training
Watson, and testing the application for the appropriate response.

32. Let’s Take a Break…
Coming Next…
How Watson is Changing
The Game in Retail
Neil Patil
President, Software Group

33. Taking the Next Step
with Watson

34. © 2014 International Business Machines Corporation
4
How do I start my journey with IBM Watson?
1.What is the business value to the “Powered by Watson” application you
intend to build?
2.Does the application draw upon the unique characteristics and
capabilities of a cognitive offering?
3.Has the content that will fuel the application been identified and can it be
secured/licensed for the intended use?
Have a question and
answer interaction
pattern, with questions
posed in natural
language
Seek answers and
insights from a defined
content repository
comprised largely of
unstructured data
Need transparency and
supporting evidence
for confidence weighted
responses to questions
and queries
The best use cases…

35. © 2014 International Business Machines Corporation 4
Phase 1: Engage
Join IBM Partner World at http://ibm.com/PartnerWorld
Analyze use case for Watson business and technical synergy
Submit Watson Ecosystem application and receive acceptance
https://ibm.biz/watsonecosystemapply
Obtain access to the Watson Developer Cloud through the
Watson Experience Manager
1
2
3
4

36. © 2014 International Business Machines Corporation 4
Where can I go to learn more?
Apply:
https://ibm.biz/watsonecosystemapply
Share:
https://ibm.biz/watsondeveloper
Learn:
https://ibm.biz/watsonecosystem-youtube