Money 20:20 ibm cognitive engagement raisch
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The document discusses the impact of cognitive engagement and data analytics on the banking industry, highlighting the need for financial institutions to adapt to customer expectations in a digital landscape. It emphasizes the importance of leveraging data and artificial intelligence to improve customer experiences and address challenges posed by new entrants in the market. By embracing cognitive solutions, banks can enhance their operational efficiency and better understand their customers, thus driving growth and profitability.
Money 20:20 ibm cognitive engagement raisch
- 1. Watson Customer Engagement Cognitive Engagement In The Age Of The Customer Warren D. Raisch Executive Strategist Watson Customer Engagement [email protected] 760.468.5018
- 2. 2 Banking In The Age Of The Customer The Current State Of Cognitive In Financial Services Welcome To The Cognitive Era The Cognitive Maturity Model The Roadmap to Cognitive Customer Engagement Innovation Break Outs AGENDA
- 3. Watson Customer Engagement EASY IS THE NEW LOYAL Know MeDeep Analytics Compare Me Goal analysis & Peer Analysis Protect Me Secure Engagements Advise Me Be A Trusted Advisor Alert Me Keep My Informed Find Me Location Awareness & Context Awareness Engage Me Contextual Engagement Inspire Me Frictionless Commerce Stick with Me Be Central to My Life Customer Expectations
- 4. Watson Customer Engagement The Digital revolution of banking 1 Customers are increasingly comfortable with mobile banking and rarely using a branch Four trends that are disrupting banking Flood of data from many sources 2 Banks must improve infrastructure, systems and analytics to properly leverage the data available from their systems; for example from ~74 billion credit card transactions every year Peer-to-Peer, lending and payments3 Peer-to-peer payments & lending, crowdfunding and blockchain threaten incumbents' existing business Threats from adjacent industries like Internet firms and Retailers Entering Bankers4 Amazon, Facebook, Alibaba, Square, and Apple have all emerged with products that undermine the traditional banking model
- 5. Top 10 Industry Challenges 1. Growth & Profitability 2. Customers 3. Digital Disruption 4. Digitalization 5. Becoming Cognitive Cognitive Digital Traditional 6. Cloud 7. Operating Model 8. Compliance 9. Security & Fraud 10. Ecosystems Counter-party records Party C’s Records Party B Records Party A’s Records Bank records Auditor records Ledger Ledger Ledger Ledger Ledger Ledger Consensus, provenance, immutability, finality, permissioned 30 35 40 2011 2012 2013 2014 2015 0 100 200 300 400 Public R&D IT Energy Services Retail Financial Education © 2017 IBM
- 6. 6 Banks face new challenges in how they deliver engaging digital experiences By 2020, customer experience will overtake price and product as the key brand differentiator1 By 2020, the customer will manage 85% of the relationship with an enterprise without interacting with a human2 89% of marketing leaders expect to compete primarily on the basis of customer experience by 2018 Source: 1 – Walker Info, 2 – Gartner, 3 - Gartner
- 7. Easy is the new loyalty. If your customers can’t go from “want” to “have”, your competitors are only a tap away. 7 © 2017 IBM But Easy is one of the hardest challenges you will ever face…
- 8. DATA IS DRIVING DISRUPTION 8
- 9. “COGNITIVE IS THE NEW CRM” “I DON’T NEED TO KNOW EVERYTHING ABOUT EVERYBODY, I JUST NEED TO KNOW A LITTLE BIT ABOUT A LOT OF PEOPLE”. Bradley Voytek, Head of Data At Uber © 2017 IBM Uber is a technology company That arranges peer-to-peer transportation with no inventory of vehicles driving $1.3 billion in peer-to-peer payments without using a bank
- 10. Watson Customer Engagement Airbnb is a technology company that arranges peer- to-peer lodging with no hotel or house inventory
- 11. Watson Customer Engagement My company, on an average day: - $3 trillion in business and institutional financial flows —$9 trillion on peak days, or more than half the entire U.S. GDP. - Nearly all of that is moved electronically. In many ways, 11 Michael Corbat Chief Executive Officer Citigroup “We see ourselves as a technology company with a banking license.”
- 12. Watson Customer Engagement Will JPMorgan Chase & Co.'s more than $9.5 billion technology budget leave rivals playing catchup? $3 billion spent in 2016 just on innovation, specifically the areas of robotics and machine learning. Zames estimates the bank could save $30 million in 2017 by using bots to address 1.7 million systems-access requests such as employee password resets with "substantially" more savings to come. It has also piloted virtual- assistant technology -- which combines robotics and machine learning to mimic human judgment to deal with employee requests. 12 Matt Zames Chief Operating Officer
- 13. Amplify 201713 How do today’s Financial Services firms leverage their size, unique advantages and customer focus to win in this changing landscape? © 2017 IBM
- 14. © 2017 IBM Winning Against The Big Teams! Focus on winning & keeping loyal customers. Leverage the power of data & cognitive as a game changer for your business Size & budget are not the barriers to exceptional growth it’s about thinking and acting differently. Moneyball Video Clip https://youtu.be/-4QPVo0UIzc
- 15. The demands of the customer have outpaced our human ability to deliver customer experiences at scale. Business and technology have become forever interconnected. … Adapt or Die!
- 16. How are You going to compete and win against the new realities in your market? Knowledge is Power. Data is Key – What story is your data telling you? Data growth is out pacing most organizations’ ability to capture, interpret and leverage effectively 448,800 New Tweets 156,000,000 e-Mails Sent 29,800,000 Messages 4,100,000 Videos Viewed 3,300,000 Posts 1,800,000 Snaps Created 46,200 Posts Uploaded 3,500,000 Searches © 2017 IBM
- 17. Watson Customer Engagement17 AUGMENTED INTELLIGENCE WELCOME TO THE COGNITIVE ERA
- 18. AUGMENTED INTELLIGENCE State of Artificial Intelligence Usage 79% 32% 38% 49.3% US Senior Marketers Who Believe Consumers Are Ready for Artificial Intelligence Voice recognition and response solutions Predictive analytics and modeling for customer success Predictions on activity related to customers or business or financial health © 2017 IBM
- 20. Watson Customer Engagement DISRUPTIONFrom The Sharing Society Peer-to-Peer Lending Forecast $300 Billion -2020 Morgan Stanley Global Forecast
- 21. Watson Customer Engagement With Watson 21 Welcome To The Cognitive Era!
- 22. + Half of our footprint will be in cognitive solutions and software platforms business + Our mix will continue to shift as it has for the past 100 years + These new technologies are embedded into and enrich our base offerings – Power, z, storage,.. + All is underpinned by IBM Security IBM’s next era is all about the power of cognitive solutions, Cloud platform, delivered to transform industries 1. Cognitive 2. Cloud 3. Industry
- 23. + Half of our footprint will be in cognitive solutions and software platforms business + Our mix will continue to shift as it has for the past 100 years + These new technologies are embedded into and enrich our base offerings – Power, z, storage,.. + All is underpinned by IBM Security IBM’s next era is all about the power of cognitive solutions, Cloud platform, delivered to transform industries 1. Cognitive 2. Cloud 3. Industry
- 24. The North Face customers shop with Watson Transforming the Tax Preparation Industry Watson Insights helps Under Armour fitness app users make better health decisions Cognitive systems augment human intelligence, allowing faster and more informed decisions 24 + Watson is at the core of our cognitive technology + 1 billion customers will be reached by Watson in 2017 + Watson solutions are being built, used and deployed in more than 45 countries and across 20 different industries + Watson is being trained in eight languages besides English
- 25. 25 Welcome To The Cognitive Era Where Personalized Customer Experiences Scale With Watson! Understand Like humans do Reason to extract ideas Learn From past results Interact In a natural way cog·ni·tive /ˈkäɡnədiv/
- 26. Watson Customer Engagement 26 Cognitive systems are creating a new partnership between humans and technology Humans excel at Cognitive Systems excel at DILEMMAS COMPASSION DREAMING ABSTRACTION IMAGINATION MORALS GENERALIZATION COMMON SENSE (with many biases) ELIMINATING BIASES LOCATING KNOWLEDGE PATTERN IDENTIFICATION MACHINE LEARNING NATURAL LANGUAGE PROCESSING AT SCALE REGULATORY COMPLIENCE SUPPORT FRAUD DETECTION AT SCALE PROTECTING Customer DATA Watson reads 800 million pages per second
- 27. DIMENSIONS OF A COGNITIVE CREDIT UNION
- 28. DRIVING THE CUSTOMER FOCUS IMPERATIVE LEARN & IMPROVE BUILD SPEED & AGILITY COLLATE HUMAN INTELLIGENCEINTERACT IN A NATURAL WAY
- 29. Watson Customer Engagement Who is Innovating? With Watson
- 30. Watson Customer Engagement30 H&R Block With Watson Click on Image to launch Video or go directly to: https://youtu.be/pVK5UeimatQ From the Cloud to the Tax Desk, IBM Watson to Help Tax Pros Maximize Tax Outcomes with H&R Block. For more information, visit http://ibm.co/2kseLOj
- 31. H&R Block Tax pros are working with Watson to help clients maximize their refunds, across 11,000 U.S. locations running the Watson program H&R • Two-point increase in overall client satisfaction • Two-point intent-to-return increase, • Three-point price-to-value increase. • Increase web traffic and retail appointments RESULTS:
- 32. 32 ING Needed to rapidly analyze client behaviors for personalized marketing offers across all channels Benefits: • Improved offer acceptance for incomplete product requests by 50% • Earned $35M in 8 months • A 98% increase in key client interaction performance metrics such as click stream data, analytical reporting and queries • IMG marketing division is exploring additional applications given the success of the solution
- 33. Watson Customer Engagement First Tennessee Bank Needed a more granular understanding of each customer’s banking needs to improve offers and cross sell. They also wanted to improve the accuracy and speed of their predictive models. 33 © 2016 IBM Corporation Benefits • An increase of 3.1% offer response rate for marketing campaigns • A 600% ROI on predictive analytics • Achieved a 20% reduction in mailing costs due to campaign efficiency
- 34. Credit card arm of large Japanese bank Needed to analyze massive amounts of customer data to more quickly target and deliver reward programs and offers to more granular customer segments 34 © 2016 IBM Corporation Benefits • Significant improvement in offer response rate • Increased net margin 13% • Faster processing of massive amounts of customer data including transactions, contact history, and customer behavior • More timely and responsive marketing activities, as a result of real-time campaign analysis
- 35. Needed the ability to uncover insights about customers and their entire relationship with the bank to improve cross sell. Benefits • Reduced the time required to generate summary reports by more than 95%, from as many as 10 hours to seconds. • Increased credit card marketing response rate from 3% to more than 10% • Improved the bank’s ability to identify customer attrition risk and take preventive measures to improve customer retention 35 © 2016 IBM Corporation Large Chinese bank improved marketing response rate by 300%
- 36. Watson Customer Engagement © 2017 IBM Are You Ready To Become Cognitive? It all starts with the power of data.
- 37. 37 Where Do I Start Building My Cognitive Roadmap? Cognitive End-To- End Lifecycle LOYALTY Customer Experience Front Office GROWTH Analytics Mid PROFITABILITY Operations Back-Office EFFICIENCY COGNITIVE CUSTOMER ENGAGEMENT COGNITIVE INSIGHTS COGNITIVE OPERATIONS • Risk Management • Regulatory Compliance • Call Center Optimization • Fraud Detection • Optimizing Ad & Marketing Spend • Streamlining Customer engagement process • Struggle Detection • Personalized Customer experiences • Omni-channel Marketing • Automated Real Time Marketing & Loyalty Cognitive Maturity Model
- 38. What if you could… 38 Enable all your marketing systems to speak to each other to improve performance? Predict which Customers are at the greatest risk of attrition? Leverage a trusted advisor to help create and optimize your campaigns? Modernize your marketing efforts to achieve your business goals? Automatically tag and classify the content in your CMS to use the right asset? Can your systems do this today? How much effort does is require? If you could, what kind of message or offer would you extend to them? How would you find someone who knew your campaigns well enough to do the job? How many vendors would you need to involve? Can one vendor really help? How much time do you spend doing this? Is the end result accurate?
- 39. Watson Customer Engagement Building A Cognitive Bank That Understands, Reasons, and Learns From Every Customer Engagement To Deliver Trusted Relationships At Scale Cognitive Computing Digital Network Enabling Infrastructure Business Ecosystems Cognitive Banking Mobile & Social Omni-channel Analytics Digital Operations Customer Value Chains Customer Economic Choices Integration Big Data IT Infrastructure Security Resilience Natural Language Processing Machine Learning Algorithms Ecosystem Services and Partners Predictive Analytics
- 40. Watson Marketing 40 Watson Commerce Watson Supply Chain Watson Customer Engagement Platform Cognitive Personalized Marketing Building Trusted Relationships Digital Experience Customer Insights Omni-Channel Commerce Order Management and Fulfillment Supply Chain Optimization Cognitive Platform Category Cognitive Solutions Built For Practitioners • CMO • VP of Customer Relationships • VP of Digital Marketing • VP of Digital Advertising • VP of eCommerce • VP of Merchandising • VP Store Operations • Dir. Inventory Management & Fulfillment • VP of Supply Chain • VP of Procurement • Chief Technology Officer • Dir. EDI / Data Trans, VP IT B2B Collaboration Watson Customer Engagement – The End-to-End Cognitive Customer Engagement Framework
- 41. Watson Customer Engagement 3 Core Business Areas of Cognitive Automation & Optimization 7 Cognitive Solution Sets ONE COGNITIVE END-TO-END CUSTOMER ENGAGEMNT PLATFORM
- 42. ONE COGNITIVE END-TO-END CUSTOMER ENGAGEMNT PLATFORM Watson Customer Engagement 21 Cognitive Modules
- 43. © 2017 IBM A View of Marketing With Watson Leverage the power of data & cognitive as a game changer for your business https://youtu.be/Z6fKqK HG9eY
- 44. Watson Customer Engagement Applying Cognitive To Drive Growth, Profitability and Operations Optimization at scale Cognitive Banking Breakout Sessions
- 45. Watson Customer Engagement Roundtable Topics Cognitive Driving Growth & Profitability Breakout Session
- 47. Watson Customer Engagement Roundtable Topics Cognitive Driving Customer Engagement Breakout Session
- 48. 48
- 49. Watson Customer Engagement Roundtable Topics Cognitive Operations & Regulatory Compliance Optimization Breakout Session
- 51. Watson Customer Engagement THANK YOU! Warren D. Raisch Executive Strategist Watson Customer Engagement [email protected] 760.468.5018