What CIOs can look forward in cognitive computing? 

cognitive computing IBM and IntelCognitive computing is one of the tools for enterprise CIOs and CXOs to improve business processes and functions.

According to a recent study by IBM, 73 percent of surveyed CEOs said cognitive computing will play a key role in their organizations’ future. All executives in the study anticipated a 15 percent return on investment from their cognitive initiatives.

IBM, which is expecting huge business potential in cognitive computing areas, said investment in cognitive is expected to yield significant competitive advantages. Executives are prioritizing its application in specific business functions including information technology, sales, information security, and innovation.

Indian software industry association NASSCOM says the current fiscal year will see growth in ITeS business driven by the modernization of operations for client firms and the adoption of new technologies such as SaaS applications, cloud platforms, BI, cognitive and embedded analytics as  enterprise customers scale digital projects.

Analyst firm ABI Research forecasts that almost one million Businesses worldwide will adopt AI (artificial intelligence) technologies by 2022.

“Even though nearly one million businesses will adopt AI by 2022, it will not be a great fit for every company,” says Jeff Orr, research director at ABI Research.

Many businesses will have to adapt their corporate governance policies to deal with the lack of a guaranteed outcome when implementing machine learning.

While most enterprises start using machine learning to analyze their business for insights, the technologies have far-reaching application in specific industries, ranging from reduction of false positives in fraud detection to powering conversational interfaces for chatbots and virtual assistants.

Cognitive computing is gaining momentum in the IT merger and acquisition space. Cisco said that it will acquire MindMeld for $125 million in cash and equity to power new conversational interfaces for Cisco’s collaboration products, revolutionizing how users will interact with technology, increasing ease of use, and enabling new cognitive capabilities.

While traditional analytics can provide data-based insights, cognitive more easily turns these insights into actionable recommendations.

IDC said global spending on cognitive platforms will climb from around $3 billion in 2016 to more than $31 billion by 20191. Concurrently, the IBV report found half of surveyed global CEOs plan to adopt cognitive computing by 2019.

Companies are leaping to infuse their digital experiences with artificial intelligence (AI) technology, such as chatbots, but the zeal to embrace it can lead businesses to build experiences that customers find useless, according to Forrester.

CX pros should seek to create cognitive moments that will help differentiate customer experiences, using Forrester’s conceptual framework for thinking through what is necessary for an outstanding AI-powered experience.

CEOs will apply cognitive computing in the following areas:

Information technology: to support faster, more efficient planning, development, and testing of enterprise software to enable greater agility and accelerated solution design.

Sales: to improve the efficiency of customer-facing services, expand customer account management capabilities, increase cross-sell and up-sell opportunities, and improve efficiency of lead management — all with richer contextual understanding.

Information security: enable faster, more reliable fraud detection or other activities within volumes of structured and unstructured data. By accelerating threat detection and reducing resolution time, this can save up to thousands of staff-time hours, freeing personnel to focus on more business-critical initiatives.

Recommendations

Envision the future: outline a 18-to-24-month digital strategy for adopting cognitive with a limited set of initiatives that paves the way for smaller, more exploratory investments with finite objectives and time frames. Define enterprise or business unit reinvention case, KPIs, and targets. Apply a targeted operating model and governance that support this strategy.

Ideate: focus on periodic assessments in the market and with target users. Experiment and educate the rest of the enterprise on how cognitive capabilities are being used— such as the use of natural language processing or machine learning for large data analysis and insights.

Create common use cases and applications, and design the basic standards for the organization. As the strategy progresses, assess market and user needs, define future experiences, end-to-end processes, and capabilities that cognitive can facilitate accordingly.

Incubate and scale: during the shift from planning and design to execution, apply cognitive to specific use cases, rapidly explore and prototype solutions to solve specific and measurable business challenges.

CIOs can design and execute pilots with agility and limited risk to existing customers and operations. When these concepts are incubated, commercialized, and scaled, use a lean governance model to periodically review progress and value. Monitor the business case value realization and make adjustments, as necessary.

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