It’s increasingly clear that we, as humans, continuously upload our identities every day. Those needs and propensities become quantified and contextualized. For companies like IBM Watson, understanding the human condition is important so technology can increasingly define patterns, learn, and potentially predict outcomes that benefit both business and industry.
We were pleased to host Rob High, IBM Fellow, vice president and chief technology officer, Watson Solutions, IBM Software Group. In this episode, Rob talks about:
The definition of cognitive computing
How Watson is aiding the advancement of health care
Chef Watson and recommendation on recipes
Advanced cognitive systems and how they’re applied across different mediums
The future of AI – Should humans be fearful?
You can listen to the podcast here or catch the episode here on Libsyn.
What is cognitive computing?
Ultimately, cognitive computing has the greatest benefit for people. By definition, it is the interpretation of the human condition that includes all those things that we take in every day: the information, our communication. It deciphers the intent we derive from them that is meaningful and used in the way we make decisions in our everyday lives.
Cognitive computing augments our own human cognition and gives us the insight and inspiration to those specific things we need to know to do our job better.
Classical computing methods have been unable to understand the underlying intent in how we, as humans, have communicated with each other, through voice and text, audible or written.
Cognitive computing does not replace human thinking. It does the research for you so you can do your thinking better.
How is Watson making strides in healthcare?
Watson can operate only in digital form, aggregating the information and looking at discreet elements to explicitly understand the various treatment options to better inform decision making. Massive amounts of data will uncover trends across the population and yield certain correlations that may help interpret and predict patient response to various treatments.
By pulling together and analyzing vast amounts of information from patient and research databases, the OEA is expected to help our care teams identify and fine-tune the best possible cancer treatments for our patients, while also alerting them to problems that arise during a patient’s care.
In accessing millions of patient records, Watson can aid in identifying a micro-segmentation of the population that have common traits; i.e., exposure to environmental impacts, genetics, heritage, and symptoms. These will aid in surfacing the opportunities to apply the knowledge and understanding to determine how well someone with the same exposure will respond to certain treatments.
While health information across the world has been fragmented, Watson can aid in processing massive quantities of information (not humanly possible) to create implications in a meaningful way, and in a short period of time. Now doctors and patient caregivers who have documented success can share that information with other medical practitioners across the globe to accelerate diagnosis and treatment.
Chef Watson: “Ready to do some cognitive cooking?”
This was for me the most fascinating part of the segment: Chef Watson enables people to make decisions about menus, identifying and helping us discover new recipes based on our unique preferences.
At IBMchefwatson.com,Watson partnered with Bon Appetit, which provided 9000 recipes for Watson to ingest and learn about the different types and styles of recipes. For a computer which innately has no sense of palette or smell, Watson learned about the taste makeup and flavors and the feeling that results when you consume a particular dish. It also learns about the science of taste chemistry and the chemical compounds that give the recipes their specific tastes. From this perspective, it has the ability to begin to imitate the human senses. As per Rob:
Watson starts from scratch, dealing with many – potentially up to a quintillion– combinations of ingredients when it comes up with its unique recommendation every time.
It’s getting at the root of what makes people who they are – the things we experience are interpretable.
As an example, if you wanted a Belgian flavor for a given recipe, Watson will evaluate the different combinations of ingredients that pair well and produce a Belgian flavor, and may come up with different variations.
Starting out as a fun and interesting project, this has occurred as a result of the cognitive ability and has allowed Watson to venture into the art of the possible.
Patterns and the evolution of interpretations
Similar to the learnings with MD Anderson, there are trends or patterns within the data where we can derive the greatest understanding or intention. Overlay contextual history which informs more of the human understanding. Collectively these allow us to extract meaning. Cognitive systems draw meaning that can bring the right set of information to humans and attention to just the right thing(s) to shape the decision-making process.
Pervasive technology has been able to to process 20% of the world’s information until now. The other 80% of that data is the human condition: the spoken word, written word, music, visual representations – all interpretations of our interests and needs. This is the heart of understanding. As Rob points out:
Multi-modal is how we communicate with each other: Not only what you’re hearing, but the intonation in the voice reflects the substance of that expression that’s being conveyed. Add the cadence that punctuates these points and now we know how humans understand each other. The computer needs to understand that as well.
Cognitive systems are not based on the same mathematical models as traditional computers. Attempting to interpret the human condition is doing so in the presence of idiosyncrasies and nuances carried through conversations and other communications.
Our words, our expressions are ambiguous…
Are these models reliable?
There is “no absolute level of correctness necessary;” these results are being applied in the eyes of the beholder. The computer will need to be exposed to enough examples that it will begin to surface patterns of meaning that will allow it to work well in that context. Be prepared for the outcomes to vary by environment or time period or when new variables are introduced.
What is the future of AI? Should we, as humans, be fearful?
The potential of cognitive is vast and in the near future, the amazing strides that are introduced are evidence of the inherent benefit to our human strength and potential.
Technology will continue to progress and there will always be a risk that people and organizations will use it in nefarious ways.
Technology should not be feared. With increased understanding comes progress. It also means humans should be responsible and use it for the purposes for which it was intended.
As this information becomes for common, technology companies need to ensure safeguards are put in place to mitigate abuse to our privacy.
Rob High is an IBM Fellow, vice president and chief technology officer, Watson Solutions, IBM Software Group. He has overall responsibility to drive Watson Solutions technical strategy and thought leadership. As a key member of the Watson Solutions Leadership team, Rob works collaboratively with the Watson engineering, research, and development teams across IBM.
The new frontier of digitization is in your mouth. Taste is no longer an elusive metric; it’s a quantifiable piece of data that can inform business decisions.
There’s even an emerging niche for software that can make these data points actionable. Vivanda, for one, has introduced unique “FlavorPrint” technology, which uses machine learning algorithms that analyze aroma, taste, and texture variables to match a consumer’s preferences with any recipe, beverage, or food product. Using this technology, Vivanda provides data-driven, context-sensitive insights to the food and beverage industries, enabling them to reach an unprecedented level of personalization for their customers.
And while there hasn’t been much talk yet about how software like Vivanda’s can revolutionize the wine industry, it’s arguably the industry that can benefit most, because wine is all about aroma, taste, and texture.
Tasting notes are ubiquitous—and at this point parodic—in wine. Marketers love them, customers depend on them, and bloggers lampoon them. But what they really boil down to is a list of words describing an individual’s perception of a particular wine. And because perception, especially in wine, is subjective, this list can get a bit out of hand.
You wouldn’t say that a piece of chicken tastes or smells like anything other than chicken. But you might say that a glass of Zinfandel tastes or smells like any or all of the following: raspberry, blackberry, boysenberry, cranberry, black cherry, briar, anise, black licorice, nettle, cinnamon, and black pepper. The level of detail in wine description is extremely fine, and a descriptor like raspberry can be further sliced into clarifications like fresh raspberry, dried raspberry, or raspberry jam. Wine descriptors go beyond the realm of the edible, too, with words and phrases like tar, wet cement, garden hose, and petroleum.
The database of words describing food may be immense, but wine’s is bigger. Accordingly, it demands powerful algorithmic technology to make it usable.
One company that’s taking a taste-targeted approach to wine is Bright Cellars. Started by two MIT graduates with a passion for wine and technology, Bright Cellars is a monthly wine subscription service that matches wine drinkers of any experience level with wines they’ll love. Subscribers take a quiz to determine their taste palate, the results of which are put through a propriety algorithm that uses 18 attributes to determine a suitable bottle of wine. After tasting the wine, subscribers give it a rating, which Bright Cellars uses to further narrow the list of bottles the subscriber might like.
It’s relatively rudimentary—essentially Pandora for wine—but it points to an emerging niche in wine. By digitizing taste, the wine industry can perhaps shed its pretentious label and empower the less informed of its consumer base to make better and more confident wine buying decisions.
The runup to the 2016 U.S. election is being covered in interesting new ways by the political media, with analysis of Big Data and real-time opinion polling offering journalists much deeper insight than ever before. The trend of “data journalism” is peaking as the media embraces advanced technologies that allow them to deliver a new breed of numbers-driven, fact-based journalism.
The tools being used for data journalism open up possibilities for fresh perspectives, more in-depth reporting, and new stories behind the numbers that have never been seen before. Traditional journalists are beginning to see how data journalism can complement their reporting, and the U.S. election is serving as an ideal testing ground. Political reporters are lapping up the improved data literacy and access to objective analysis, which is helping to make their reports more thorough and informative.
Consequently, American voters are becoming digital voters. They have access to real-time, data-driven information and public sentiment, which is empowering them with broader insight. They’re relying on this to help them make up their minds before they cast their vote, and it’s given many voters a renewed interest in becoming informed citizens able to make an educated choice.
However, the rise of data-driven journalism brings with it a potential pitfall for media organizations and readers alike. Digital information overload will bring about a fatigue around numbers if reporting quantity becomes more highly valued than quality. Having access to mountains of data is a huge benefit, but a reporter still has to be a journalist first to ensure they’re not getting buried under the numbers and missing the stories.
In other words, a political journalist still needs to be a politico, not just a statistician. They could fall into the trap of placing too much importance on meaningless correlations as indicators of voter sentiment, losing their grasp on what made them a great political reporter in the first place. As data gets bigger, this will become harder to resist. So they need to become experts in making Big Data small—rather than obsessing over the numbers, obsessing over figuring out what they really mean. In doing that, they have an unprecedented opportunity to make people more informed rather than simply overwhelming with them a series of conflicting data sets.
Some media organizations are already tackling the challenge of remaining relevant in a world of information overload. Using big data and visualizations, they are making great strides in making data journalism more accessible to reporters, politicos, and voters, which is proving its worth in giving political reporting a new lease of life.
Reuters’ Polling Explorer tool is an example of how this is being done, offering up customizable data visualizations focusing on the biggest talking points in the U.S. leading up to the election. It’s an entirely new scale of public opinion measurement, presented in a way anyone can understand and use, while enabling Reuters to usher in its own improved brand of accurate, fact-based, and timely journalism.
We can see the true potential of using real-time data analysis to measure up-to-the-minute public opinion in one poll on the most important problem facing the US today. Immediately after the Paris attacks in November, terrorism skyrocketed way above the economy as the number-one issue, rising sharply again straight after the December San Bernardino attack. For Reuters, this is just one of many examples of their greatly increased ability to find outliers in the data.
Reuters Polling Explorer runs on SAP HANA, an in-memory data platform that allows Reuters to access and analyze 100 million survey responses for quicker and more efficient reporting of public opinion.
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The lines between the digital and physical customer experience today are largely artificial. Customers shop in retail stores with their devices at the ready. They expect online-like personalization and recommendations in the aisles. They’re looking for instant gratification and better sensory experiences from digital channels. It’s an omnichannel world and companies must figure out how to live in it: delivering a superior customer experience regardless of the entry point.
Luxury fashion brand Rebecca Minkoff, for example, opened its first three retail stores with the intent of taking customers’ best online experiences and bringing them to life. “In the past, you had this brick-and-mortar experience, and you had the online experience,” says company president Uri Minkoff. “There were such great advantages and efficiencies that emerged with shopping online. You could get recommendations, see how something should be styled, create wish lists, access user-generated content. In the store, it was still just you and the product, and maybe a sales associate. But [unlike online] you had all five of your senses.”
Rebecca Minkoff’s new stores still stimulate those senses while incorporating some of the intelligence that online channels typically bring to bear. Each store features a large interactive screen at the entrance, where customers can browse products or order a beverage. Shoppers can interact with salespeople or they can make purchases on a mobile app without ever talking to a soul. Inside a fitting room, RFID-tagged merchandise is displayed on an interactive mirror, where customers can request new sizes or the designer’s recommended coordinates (a real-life recommendation engine).
The company has found that 30% of women ask for additional items based on the recommendations. It has also sold three times more of its new ready-to-wear line than it anticipated. “We were an accessories-dominant brand,” says Minkoff. “But we’ve been able to build this direct relationship with our customers, helping them with outfit completers and also getting a better sense of what they want based on what’s actually happening in our fitting rooms.”
Each piece of technology adds to the experience while capturing the details. Rebecca Minkoff’s integrated systems can remember a customer’s previous visits and preferred colors and sizes, and can enable associates to set up a fitting room with appropriate garments. On the back end, the company gets the kind of visibility into in-store conversions once possible only in digital transactions. “The technology gives us the ability to create the kind of experience each customer wants. She can shop anonymously or be treated like a VIP,” says Minkoff.
Build Around a Big Idea
Rebecca Minkoff’s approach is a bellwether. It’s not enough simply to provide continuity or consistency from one channel to another. Customers don’t think in terms of channels, and neither should companies. Rather, it’s about defining the overarching experience you want to deliver to customers and then building the appropriate offline and online elements to achieve that intended outcome.
As more goods and even services are commoditized, companies must compete on the experiences they create (see The ROI of Customer Experience). That means coming up with a big idea that drives the design of the customer experience. “Every great experience needs to have a theme,” says Joe Pine, consultant and coauthor of The Experience Economy and Infinite Possibility: Creating Customer Value on the Digital Frontier. “That’s the organizing principle of the experience. It’s how you decide what’s in and what’s out.”
For example, Rebecca Minkoff serves as an image consultant to its Millennial customers, who expect personalization, recognition, and tech innovation, using a mix of online and offline techniques. To stand apart, companies must come up with their own unifying idea and then integrate data and systems, rework organizational models, and rethink key strategic metrics and employee incentives in order to integrate the physical and digital worlds around that idea.
Here are some examples of companies that have created a theme-driven experience using online and offline elements.
Nespresso: Imparting a Sense of Luxury
At the most basic level, Nespresso is a manufacturer of coffee and coffee machines. But the company has successfully turned what it sells and how it sells it into a very specific type of experience. Nespresso strives to impart a feeling of quality, exclusivity, even luxury in a host of ways.
The company has created the Nespresso Club, which maintains direct relationships with thousands of customers. Its customer service centers are staffed by 1,000 highly trained coffee experts who don’t just push products but offer advice and guidance as a sommelier might do with wine. Its 450 retail stores (up from just one Parisian in 2000) are called boutiques; the largely inventory-free showrooms are built around tasting and learning.
Online, the focus is on efficiency and service. Customers who prefer digital interactions can order through the web site or mobile app, which offers the option of courier delivery within a two-hour window. The company also recently introduced a Bluetooth-enabled coffee machine, which when paired with a smartphone app, can track a customer’s usage, simplify machine maintenance, and as Wired pointed out, enable remote brewing.
Success didn’t happen overnight, but today Nespresso is one of Nestlé’s fastest growing and most profitable brands, according to Bloomberg.
QVC: Using Online to Complement the Experience
The theme that has driven television-shopping giant QVC’s customer experience for decades has been “inspiration and entertainment.” Traditionally that was delivered through the joy of spontaneous discovery while watching the channel.
Matching that experience online has been difficult, however. At a digital retail conference in 2015, QVC’s CEO explained that in the past the company had failed to deliver the same rich interactions online that it had developed with its TV audiences, according to Total Retail. So the company decided to rethink its use of digital tools to focus on complementing the experience it delivers through TV screens, according to RetailWire.
For example, after enticing TV viewers with products, QVC introduces the next step in the buying journey—“impulse to buy”—in which viewers are spurred on with televised countdown clocks or limited merchandise availability. Online, the company has been experimenting with second-screen content (for instance, recipes that compliment a cooking product being sold on TV) to further propel purchases. The QVC app features the same item that is on-air along with a prompt that reveals all the items featured on TV in recent hours. On Apple devices equipped with Touch ID, customers can check out in less than 10 seconds with the fingerprint-enabled “speed buy” button. The third phase—“purchase and receive”—is complemented by a simple and reliable online browsing and purchasing platform. The last stage—“own and enjoy”—is accompanied by follow-on e-mail communication with tips on how to use products.
Last year, the company reported that 44% of total QVC sales came from online channels (up from 40% in 2014), and nearly half of those were completed on a mobile device. In fact, QVC is currently the tenth largest mobile commerce retailer in the United States, according to Internet Retailer.
Domino’s: Focusing on Speed and Convenience
Domino’s Pizza built a fast-food empire not necessarily on the quality of its pies but instead on the experience of getting hot food delivered quickly. What started out as a promise to deliver a pizza within 30 minutes to customers who phoned in their order is now a themed experience of efficient food delivery that can be fulfilled a number of ways. Domino’s AnyWare project enables customers to order pizzas from their TV, their Twitter account, their smartwatch, or their connected car, for starters. The Domino’s app features zero-click ordering functionality: Domino’s will start fulfilling the usual order for customers who opt in 10 seconds after opening the app.
Domino’s Australian stores are piloting GPS tracking whereby employees begin working on an order only when the customer enters the “cook zone”—a dynamically updated area around a given store that results in the customer arriving to a just-prepared order. The tool builds upon previously developed GPS-based technology for tracking delivery drivers, according to ZDNet. And the company that came up with the corrugated pizza box and the Heatwave Bag to keep pies warm is now building the DXP—a delivery car with a built-in warming oven. All in the name of the fast- and hot-food delivery experience.
Mohawk Industries: Using Social to Streamline Customer Interactions
Mohawk Industries grew to become a US$8 billion flooring manufacturer by relying on customers to visit its dealers’ retail locations to see, touch, and feel the carpet, hardwood, laminate, or tile they planned to purchase.
Today, instead of waiting for customers to find Mohawk, it has redesigned its experience to find them. It has adopted new technology and reworked its sales processes to reflect that new focus. The company’s 1,200 sales representatives have access to a 360-degree view of each customer, complete with analytics and sales tools on their tablets, enabling them to capture and follow through on leads generated through social media engagement.
By analyzing online discussions in real time, representatives can jump into the conversation and help customers find the product they may be searching for and direct the consumer to a retailer to finish the sale. In one episode, a woman was posting about her interest in a particular leopard rug on Twitter. Mohawk’s team surfaced the tweet, passed it on to a channel partner who contacted the woman and closed the sale within two minutes. Today, the company boasts an 80% close rate on sales started and guided in social media and has made $8 million on 14,000 such social leads. Mohawk Industries expects an increase of $25 million in sales year-over-year, thanks to its new customer-centric approach.
Customer Experience Design: Where to Begin
Developing a unique, valuable, and relevant customer experience that combines the best of offline and online capabilities is a huge undertaking. All corporate functions, including marketing, customer service, sales, operations, finance, and HR as well as product or business lines—all of which typically have competing metrics and agendas—must buy into the experience and collaborate to make it happen. And the ideal mix of digital and physical components will vary by company. But there are some best practices to get companies started on their own journeys.
Start at the Top
Without leadership buy-in, changes will not happen. “Customer experience is not a feature, it’s not a shiny button. It’s a concept that sometimes is tough to grasp. But we believe that if done right, it will keep customers loyal. And so we put a lot of effort into it,” says Kevin Scanlon, director of total customer experience at tech company EMC. “That’s why having that top-down support is paramount. If you don’t have it, you’re spinning your wheels. It’s going to give you the resources, the focus, and the attention that you need to design that consistent experience.”
To demonstrate its commitment, every VP and above at EMC has a customer experience metric as part of their quarterly goal.
Begin with the End in Mind
Companies can take a page from the design-thinking approach to product development, starting with the experience they want customers to have with their company and then putting in place the people, processes, and systems to make that happen across various touchpoints. Uber didn’t start by buying 1,000 cars. It started with a completely new customer experience it wanted to deliver—straddling the digital and physical—and then built the organization around that. Uber ultimately leveraged people, process, and technology to bring that to life, but it started with a unique customer journey.
Design for the Customer, Not the Company
To date, most corporate processes have been designed for internal efficiency or cost savings with little consideration for the impact on the customer. Companies that want to design for consistent experiences have to reexamine those business processes from the customer perspective. In order to deliver a standout and consistent experience, enterprises must bring together an assortment of data from a variety of systems—including POS transactions, mobile purchases, call center activity, notes from sales calls, and social media.
The average retailer has customer data in more than a dozen different systems. But it’s not just the front-end customer-facing systems that need orchestrating; back office systems and processes, from your supply chain to fulfillment to customer service, must be designed to deliver the intended experience. For example, Nespresso has to orchestrate a number of back-end and front-end systems to offer customers premium courier delivery within two-hour windows.
Put Someone in Charge
Companies that are truly invested in creating integrated, standout customer experiences often create a centralized function that can bring together the people, processes, and technology to bring them to life. Sometimes there is a chief customer officer or head of customer experience. But unless these people are really empowered, they’re toothless.
EMC’s Scanlon is empowered. He heads up a function that has been transformed from focusing on product quality into a centralized customer experience center of excellence staffed with 60 full-time professionals. The center has translated into “more focus, more energy, more insight to our customers,” says Scanlon. “And we can deliver that insight to our internal stakeholders, which trickles down to our account teams and lets them have more meaningful conversations that benefit our customers—and benefit the company over time.”
Centralize Customer Data
Even if there is no central customer experience function, there needs to be a central data repository and analytics system: a digital foundation that everyone can use to improve their piece of that experience. EMC’s customer experience group has a data governance function that maintains a single source of customer truth. “They’re able to pull all relevant data sources into one location and get past the typical customer data challenges,” says Scanlon.
Invest in People
Companies that care about the customer experience invest in the people who deliver it. Human beings are the clearest signposts on the customer journey. Companies must hire the best, train for desired outcomes, and reward based on experience metrics: for being brand ambassadors and for going above and beyond on behalf of the customer.
Rethink Metrics and Incentives
One major bank was having trouble driving adoption of its online banking tools. The customers that used the tools loved them, but the tools weren’t getting traction. The problem? The branch managers had no interest in promoting digital banking. They wanted to drive as much traffic as possible to their physical branches because this was one of their key performance metrics.
The solution was to change the compensation approach in order to reward employees for the entire customer experience, including online banking adoption. Branch managers were measured on online and offline customer behavior in their regions. That became a single and critical KPI, and it boosted the desired behaviors and improved overall customer satisfaction.
Create a Single View of the Company
For years, companies have talked about the importance of understanding the customer. And that remains true, particularly when it comes to delivering a valuable customer experience online and off. But successful customer experience design is just as much about giving customers a clear understanding of the company through coordinated experiences that deliver on the brand’s theme and bring it to life in various ways in bricks and mortar, through devices, in online interactions, and everywhere in between. D!
Millennials have been entering the workforce in droves over the past decade. They have been gaining experience, learning to succeed, and rising steadily through the corporate ranks. Every day for the next 19 years, 10,000 baby boomers will reach retirement age, leaving opportunities for new leaders to take the reins of the global economy. Many of those new leaders will be millennials.
It’s an exciting time for the business community as millennials bring new perspectives and changing priorities to leadership roles. New methodologies, innovative practices, and cultural change are poised to remake the landscape of modern business.
Are you ready?
What skills do millennial leaders value and what experience do they need? Review the infographic below to determine what characteristics the new leader will need as industries shift and new talent rises to the top.