1

1

Things that Think:

The Rise of Cognitive

IoT Business

Sandy CarterIBM General Manager

Developer Ecosystem and Startups

2

Connected devices are creating opportunities

and an explosion of IoT startups

$735Bmarket for

smarter devices

20163

$445Brev.

opportunity in

consumer

electronics2

$4.5Timpact on Global

Business2

$7.4Binvested in IoT

startups since

20101

@sandy_carter

1. https://www.cbinsights.com/blog/iot-market-map-and-company-list/

2. https://centerlinedigital.app.box.com/s/mq9x4h7qemoyyqnn38g2/1/1886226855/16548313435/1

3. http://www.ibmbigdatahub.com/video/ibm-internet-things-connected-cars-connected-homes-connected-lives

33

IoT will soon be largest

source of data on planet,

but

90% will go unused.

@sandy_carter

http://www.ibm.com/internet-of-things/

4

Question

&

Answer

Alchemy

Language

Concept

Insights

Dialog Natural

Language

Classifier

Personality

Insights

Concept

Expansion

Relationship

Extraction

Tone

Analyzer

Document

Conversion

Speech to

Text

Text to

Speech

Alchemy

Vision

Visual

Recognition

Tradeoff

Analytics

Language

Translation

Retrieve

and Rank

Visual

InsightsAlchemyData

News

Cognitive IoT is your startup’s competitive advantage

@sandy_carter

5

Example: Cognitive IoT insurance

Speeding

Breaking

Proximity to cars

Visual

Recognition

Motion and visual sensors can already tell us about our:

What if visual sensors could also:

Give 360 degree visuals

Assess damage

File insurance claims

@sandy_carter

66

Train Watson to visually recognize car type, model, damage...

Visual

Recognition

@sandy_carter

77

Test Watson and continue teaching her

Visual

Recognition

@sandy_carter

88

Auto-collect visual and motion sensor data and file report

Visual

Recognition

@sandy_carter

99

Example: Cognitive IoT for Manufacturing

9@sandy_carter

Tradeoff

Analytics

Energy Sensors

Time Sensors

Production Level Sensors

Labor Efficiency

Cost/unit$

Sensors and data collected:

10

You want to know: What’s the best

production method?

Tradeoff

Analytics

Pre-Cognitive

SolutionCognitive

Solution

• Results based on

filtering system

• Can’t weight

categories

• Automatically

eliminates options

that might have been

good

• You decide what

“best” means

• Make SMART

decisions

• Weight what’s most

important without

eliminating options

@sandy_carter

11

Combine sensor and other data from 10 methods

11

Tradeoff

Analytics

Ave. Energy Score Ave. Time (min) Ave. Production Level

Ave. Labor Efficiency

Score Ave. Cost

Is higher

better? no no yes no no

Method 1 1 4 44 34 $0.45

Method 2 5 2 87 62 $0.24

Method 3 4 7 23 77 $0.67

Method 4 3 4 78 43 $0.23

Method 5 7 9 34 29 $0.12

Method 6 9 6 23 69 $0.98

Method 7 3 8 12 86 $0.76

Method 8 4 4 89 14 $0.54

Method 9 2 2 67 42 $0.43

Method 10 5 1 45 15 $0.87

@sandy_carter

12

Weight importance – What is “best” to you?

Tradeoff

Analytics

Less important More important

Less important More important

Less important More important

Less important More important

Ave. Energy Score

Ave. Time (min)

Ave. Production Level

Ave. Labor Efficiency

Less important More important

Ave. Cost/Unit

@sandy_carter

13

Tradeoff

Analytics

Ave.

Energy

Score

Ave.

Time

(min)

Ave. Production Level

Ave.

Labor

Efficiency

Ave.

Cost/Unit

Best Production Method

@sandy_carter

14

Tradeoff

Analytics

Watson helps you look for small compromises that yield large gains

Ave. Energy Score Ave. Time (min) Ave. Production Level Ave. Labor Efficiency Ave. Cost/Unit

5

8

6

67

45

79

.50

.25

Spend a little

more time here and …

gain here!

@sandy_carter

15

Interact with SMART IoT devices in human language

Natural

Language

Classifier

Speech to

Text

Text to

Speech Dialog

@sandy_carter

Use multiple Watson APIs to make solution even more powerful!

Tone

Analyzer

16

Natural

Language

Classifier

@sandy_carter

How it works:

1. Interpret intent behind

words

2. Assign Classification

3. Trigger a corresponding

action

1. What’s the best museum

to visit?

2. Classification: Places

Confidence level: 89%

3. Trigger: Answer question

based on trained material

17

Dialog

@sandy_carter

Automate Branching Conversations

I’m Watson! I can help you order

museum tickets!

Great! Can I get 2 adult tickets for

the Art Institute?

Sure! Would you like to get tickets for the

private Fine Arts exhibit, too? It’s only

here for 2 more weeks!

• Respond to user

questions

• Cross-sell and up-sell

• Walk users through

processes or

applications

18

Speech to

Text

@sandy_carter

Text to

Speech

• Bridge the gap between

speech and text

• Make speech searchable

in data

• Convert speech or text

into multiple different

languages

19@sandy_carter

Tailor conversation to user’s tone of voice

I’m so far behind. I won’t

get 10,000 today.

If you just walk for 20

minutes you can double

that! You’ll feel so good!

Tone

Analyzer

Your fitbit shows you’ve

walked 1000 steps today.

Better than I thought! I’m

feeling good!

Good job today!

Your fitbit shows you’ve

walked 1000 steps today.

20

Startups are taking advantage of the IoT opportunity to:

20

Acquire

new

customers

Grow

ecosystems

Create

one-of-a-kind

customer

experiences

Company

Partner/s and

Alliances

Vendors

Communities

Distributors

What Really Matters

Integrated Solution The Right Focus Ecosystem

@sandy_carter

21

Cognitive IoT Parking

This initiative brought in new

opportunities to create

commercial relationships beyond

parking.

Acquire new customers

18

.

Connected Parking

Meters help drivers

find and pay for

spots

Sensors and

cameras patrol

spots and collect

data

Cloud-based

analytics discover

deep insights

@sandy_carter

22

IoT farming for smarter growing

OnFarm is driving rapid

growth for the farming

ecosystem by reaching

150M sensor readings

per month and 100Kconnected devices by

end of year

19 @sandy_carter

Company

Partner/s and

Alliances

Vendors

Communit

ies

Distributo

rs Grow ecosystems

23

Robotic dress tech kit

2320

Company

Partner/s and

Alliances

Vendors

Communit

ies

Distributo

rs Grow ecosystems

IBM-360Fashion & Tech “Startup; Designer: Shenova; Dress: Shenova HeartBeat Dress

Expanding their ecosystem

through sales of IoT kits to

other designers.

Watson analyzes heart rate

and determines color changes

based on movement.

@sandy_carter

2424

Cognitive insights will engage, track progress, and

drive positive change for kids and parents

Create One-of-a-Kind Customer Experiences

@sandy_carter

25

How will you

win in the

connected

Cognitive IoT

economy?

We can help.

Cognitive IoT Solutions from IBM

Acquire

new

customers

Grow

ecosystems

Create

one-of-a-kind

customer

experiences

Company

Partner/s and

Alliances

Vendors

Communities

Distributors

@sandy_carter

26

Three Ways you can explore cognitive

Find a meetup

ibm.biz/findmycity

Try the cognitive

services

ibm.biz/trywatson

Join IBM Global

Entrepreneur

developer.ibm.com/startups

1 2 3

@sandy_carter