Cognitive Future In Customer Engagement
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Cognitive computing enables new ways of understanding vast amounts of structured and unstructured data. This document discusses how cognitive systems can be applied across industries to enhance customer experience by discovering new insights, making evidence-based recommendations, and engaging with customers in natural language. It provides examples of how cognitive computing is being used in healthcare to help oncologists develop personalized treatment plans, in banking to power virtual assistants and fraud detection, and in retail to better understand customers and guide personalized shopping experiences. The document argues that cognitive systems can augment existing analytics and software solutions to continuously learn from new data and interactions.
Cognitive Future In Customer Engagement
- 1. 1 A New Era of Thinking © 2016 IBM Corporation Cognitive Future in Customer Experience A new era of thinking
- 2. 2 A New Era of Thinking 2 | A New Era of Thinking Cognitive Computing in Enterprise Putting Cognitive Computing to Work Adoption Challenges to Consider Charting the Way Forward Welcome to the Cognitive Era
- 3. 3 A New Era of Thinking 3 We all know this “The last, best experience that anyone has anywhere becomes the minimum expectation for the experiences they want everywhere.” – Paul Papas, Global Leader, IBM Interactive Experience
- 4. 4 A New Era of Thinking 4 of companies say they have or are close to having a holistic view of their customers of consumers say their favorite retailer understands them Source: The Consumer Conversation – eConsultancy Report The Great Customer Experience Divide
- 5. 5 A New Era of Thinking 5 Advancements in technology and their convergence are creating unprecedented opportunities to improve customer experience and stay relevant Source: 2015 Retail Outlook, page5. http://www.cit.com/wcmprod/groups/content/@wcm/@cit/documents/images/2015-retail-outlook-report.pdf CONSUMER INDUSTRY Social Mobil e Cloud 3-D Printing Internet of things Analytics Organizations must adopt new technologies and embrace new operating models to stay relevant The consumer industry is vulnerable to disruption 5x 58% of retailers predict that brick – and – mortar only stores will not survive in future1 72% believe one or more prominent retailers will likely disappear in the next 1-3 years, or at least decline in value1 Cloud
- 6. 6 A New Era of Thinking 6 Harnessing these technologies are critical to overcome the challenges a consumer industry faces today Customer expectations Self-serve retail Technology progress Eroding margins Security breaches Falling margins and returns for shareholders Expanding customer expectations fueled by awareness around technology Rising instances of identity theft and credit card fraud Increasing self-serve retail, and customers taking greater ownership of their consumption journey Accelerating technology progress, redefining the way people and organizations interact
- 7. 7 A New Era of Thinking 7 Data that’s coming Customer records Transactional systems Predictive models Institutional expertise Operational systems News Events Geospatial Weather Social media Internet of Things Sensory data Images Video Data outside your firewall Data you possess ++ Structured and active Unstructured and dark Digital Intelligence is your competitive advantage to uplift your customer experience
- 8. 8 A New Era of Thinking 8 Three distinct areas of focus to create a differentiating customer experience using digital intelligence Provide better collaboration between with suppliers, partners and customers and enables seamless experience across channels Engage DecideDiscover Provide ability to digest vast amounts of data to identify new avenues and implement new ideas Provide contextual, evidence-backed recommendations, with changing business models, cost structures and customer behavior
- 9. 9 A New Era of Thinking 9 Data sources Call center Web Mobile Apps Transactional data Customer interaction history Customer demographic data Twitter Weather Location Multiple customer touchpoints SMS E-mail Direct mail Chat Call center Social Mobile Apps Web IBM’s Predictive customer analytics provide the foundation for customer centricity
- 10. 10 A New Era of Thinking 10 IBM Behaviour Based Customer Insight delivers intelligence by industry Behavior-based Customer Insight for Banking Behavior-based Client Insight for Wealth Management Behavior-based Customer Insight for Telecommunications Behavior-based Customer Insight for Insurance Behavior-based Audience Insight for Media & Entertainment Customer Experience Analytics for Telecommunications Behavior-based Fan Insight for Media & Entertainment
- 11. 11 A New Era of Thinking 11 Only cognitive unlocks the potential in all data Think of all that has been accomplished using only a fraction of the available data Unlock the possibilities. What answers lie in the 88% that is dark?1 By the year 2020, about 1.7 MB of new information will be created every second, for every human being on the planet.2 SOURCES cited in notes
- 12. 12 A New Era of Thinking 12 Cognitive systems are fundamentally different from what you have today 1 Adapt and make sense of all data; “read” text, “see” images and “hear” natural speech with context Understand Reason Interpret information, organize it and offer explanations of what it means, with rationale for the conclusions Learn Accumulate data and derive insight at every interaction, perpetually
- 13. 13 A New Era of Thinking 13 Programmable computing responds to requests and makes determinations, analyzing data according to predefined parameters. Cognitive systems interact with humans naturally to interpret data, learning from virtually every interaction and proposing new possibilities through probabilistic reasoning. Cognitive systems differ from traditional analytics
- 14. 14 A New Era of Thinking 14 Cognitive computing can augment or supplement these offerings to enrich the consumer and user experience Engage DecideDiscover Source: IBM Institute for Business Value Analysis 2015 Expert assistance to human users In natural language context- and evidence- based reasoning discover insights far above human levels Discover patterns and connections Generates hypothesis and validates theories like experts Offers evidence-based recommendations Evolves continually towards more accuracy based on new information, outcomes, and actions Provides traceability to audit why a decision is made
- 15. 15 A New Era of Thinking 15 Cognitive systems adoption in industry is happening at three different levels Industry transformation through moon shot application of cognitive technologies Deep Industry expertise Customers and Ecosystem partners leverage Cognitive functional APIs on IBM Development platform (Bluemix) to build new capabilities or enhance existing solutions Cognitive function APIs IBM product suite including solutions like Behaviour Based Customer Insight enriched with Cognitive technologies Embedded in software solutions
- 16. 16 A New Era of Thinking 16 Bumrungrad International Hospital – Elevate the ability of physicians The vision We can improve the effectiveness of Bumrungrad oncologists overloaded with patients and strapped for time to customize treatments based on the latest medical research. The disruption The expertise of the very best oncologists from Memorial Sloan Kettering is now in the hands of physicians. The result: More than one million patients received more informed, personalized treatment plans. Patient data Memorial Sloan Kettering cancer expertise IBM Watson for Oncology+ + Decide
- 17. 17 A New Era of Thinking 17 Growing library of cognitive functions that enable understanding, reasoning, and learning to enhance, scale and accelerate human expertise 20152014 2016 © 2016 International Business Machines Corporation
- 18. 18 A New Era of Thinking 18 EMPOWERED ADVISORS TRANSFORMED INTERACTIONS OPTIMIZED OPERATIONS Self Service Reduce call center volume & expense, improve customer satisfaction Digital Virtual Agent Increase success rate of online transactions results in increased sales Call Center Rep Assist Decrease call durations/transfers. Consistent and accurate responses Knowledge Advisor Improves knowledge of best practices Sales & Service Advisor Increased effectiveness of sales and service Wealth Advisor Improves effectiveness of wealth advisors through more complete understanding of clients Relationships & Impacts Hypothesis free discovery of casual relationships the possible impacts Underwriting Reduction of underwriting expenses, consistency of decision making, democratization of experience Regulatory Policy Compliance Reduced time and expense incurred in meeting regulatory and internal requirements. Use Case Value Proposition Banking usage categories with Watson API’s © 2016 International Business Machines Corporation Engage Decide Discover
- 19. 19 A New Era of Thinking 19 Retailers can leverage cognitive to guide shoppers and provide a delightful personalized experience Retailers use cognitive to understand shoppers behavior, search intent and guide them with personalized advice and accurate product recommendation Retailers need to provide better shopping experience to customers by guiding them in their shopping journey and providing personalized experience Retailers get deep insights using data from disparate sources that helps them to provide highly tailored experiences to the customers BENEFITSOLUTIONNEED Source: See notes Engage
- 20. 20 A New Era of Thinking 20 Retailers can use cognitive to have a complete view of customers across demographic, affinity, and personality insights Retailers use cognitive to analyze diverse types of customer data (e.g., psychographic, behavior, purchase etc.) in constructing 360°view of customers and finding personality insights Based on the personality type and segments, retailers can run campaigns and promotions effectively BENEFITSOLUTIONNEED Retailers do not understand their customers thus struggle to create campaigns and promotions that target right segment of customers and maximize return on investment. Source: See notes Discover Visualization of Personality data
- 21. 21 A New Era of Thinking 21 IBM Watson Trend – Gift guide to holiday heroes Engage Driven by the power of Watson ibm.com/watsontrendhub IBM Watson Trend IBM is putting the cognitive power of Watson into the hands of shoppers this holiday season with the IBM Watson Trend app.
- 22. 22 A New Era of Thinking 22 Key Metrics Attrition Rate New Customer Acquisition Products per Customer Filters Tree Map – Predicted Events Regional Management Dashboard Easy Going Highway Warriors OtherFamily Feud Hi Fliers Homebodies Students Enhance capabilities of existing solutions through cognitive adoption
- 23. 23 A New Era of Thinking 23 Regional Management Dashboard Customer Insight Dashboard Enhance capabilities of existing solutions through cognitive adoption
- 24. 24 A New Era of Thinking 24 Game to infuse Cognitive in Fashionista?
- 25. 25 A New Era of Thinking 25 There are three critical factors for cognitive computing success Lay the foundation Manage the changeDefine the value 1 2 3 Find the right opportunities For cognitive Define the value proposition and chart a course for cognitive Be realistic about value realization Invest in specialist human talent Build and ensure a quality data corpus Consider impacts, business processes, and policy requirements Ensure executive involvement along the cognitive journey Communicate the cognitive vision at all levels Continue to raise the cognitive IQ level of the organization
- 26. 26 A New Era of Thinking 26 Organizations should follow a structured road map that nurtures optimism and reduces complacency 1 2 3 4 Chart the course • Identify candidate opportunities across mission and functional areas • Define business benefits case • Develop organization’s cognitive computing journey/road map Experiment • Prototype use cases • Test and validate use case scenarios with users • Test business case hypotheses Develop and train • Develop and train the system • Build and improve required corpus • Train and educate solution end users and the organization Deploy, explore and evolve • Deploy baseline solution • Continuous learning and corpus improvement • Further use case exploration
- 27. 27 A New Era of Thinking 27 Key takeaways Cognitive computing is coming of age and finding commercial applications across industries to enable improved engagement, discovery and decision support. Cognitive computing use cases are evolving through industry specific applications or through adoption of functional APIs. Cognitive computing adoption in enterprise calls for an experimentation approach with rapid prototyping and testing before investing in development and training.
- 28. 28 A New Era of Thinking 28 | A New Era of Thinking Learn more: • IBM Analytics Solutions: http://www.ibm.com/analytics/ae/en/ • IBM Marketing Solutions: http://www.ibm.com/commerce/ae- en/marketing/?lnk=WH_marketing • IBM Customer Experience Solutions: http://www.ibm.com/commerce/ae- en/customeranalytics/?lnk=WH_customeranalytics