IBM Watson & GSOM Consulting Project. The Strategy of enabling IBM Watson for public sector in Russia

1.

IBM Watson & GSOM Consulting Project
The Strategy of enabling IBM Watson for public sector in Russia
December 2014
ANTINORI Leonardo
DE GAVRE Guillaume
HONKAMAA Susanna
LEPEKHINA Kristina
REPP Sergej

2.

Agenda
Project Overview
Literature review
Potential of Cognitive Computing in the Public Sector
Stages of development of E-government in Russia
Market Analysis
Pestle Analysis for Russian Public Sector
Russian IT Market current situation and future trends
Competitors Analysis
Analysis
SWOT/TOWS
Resource-based View
Strategic Discussion
Recommendations
Fields of Implementation
Potential Partners
2

3.

Quick project overview
We were assigned to this project on September 19th, 11 weeks ago
Regular communication round with Mikhail Lobotskiy (2-week intervals)
Valuable insights provided by our Academic Advisor / Course Coordinator / Career Center etc.
Meanwhile, we led 11 interviews
With 7 IBMers and with 4 external IT program managers
Preparing customized questionnaires in English and in Russian
Literature review and market research
Around 100 academic papers, reports, IBM presentations or conference minutes, books
More than 50 companies analyzed as potential competitors or partners ...
A few difficulties faced
Resignation of 1 of our team members
Difficulties with access to our school resources
Academic deadlines not always in line with the course of our project
Limits of our research
Difficulties to find interviewees for a second round
Diversity of Watson portfolio; limited availability of use-cases due to breakthrough technologies
Difficulty to be coherent between unavailability of ”Ask Watson” in Russian and our recommendations
3

4.

Literature
review
4

5.

Cognitive computing market trend
Natural Processing Language market size and growth
Revenue ($)
US$bn
Year-on-year growth (%)
10
30%
9
25%
8
7
20%
6
CAGR = 21,1%
5
15%
4
10%
3
2
5%
1
Source : (MarketsandMarkets 2013)
2018
2017
2016
2015
2014
0%
2013
0
5

6.

Cognitive computing market trend
Natural Processing Language market size and growth by user
Healthcare
US$bn
Defense
Education
CAGR = 23,7% CAGR = 14,0% CAGR = 20,1%
3
2,5
2
1,5
1
0,5
0
2013
Source : (MarketsandMarkets 2013)
2014
2015
2016
2017
2018
6

7.

Technological and organizational complexity
Complex
Simple
Four stage model of development in E-government
Vertical
integration
Horizontal
integration
Transaction
Catalogue
Sparse
Source : (Layne & Lee 2001)
Integration
Complete
7

8.

Market analysis
8

9.

PESTL Analysis: the Russian Public Sector
Dimension
Issue
Impact on Business
Political
• Public sector is driving the innovation
• Lack of transparency in decision
making process.
• Increasing interest in E-government
processes.
• Network/Strong long-term partnerships
required.
Economic
• Dependence of economy on natural
resources.
• Lower government expenditure due to oil
price and exchange rate.
Social/Cultural
• Citizens awareness, changing
expectations.
• More efficient and clear decision-making
process, less bureaucracy.
Technological
• High demand in the Russian IT market
• Increasing of revenue, quality of service,
productivity and efficiency
Legal
• Changes to privacy law;
• Every corporation that has already
collected personal data about Russian
consumers, employees or third-party
partner, should move its IT
technology infrastructure to a data
center located on the territory of the
Federation.
• Data location requirement is going to
adversely affect the collection, provision,
exchange and efficient use of up-to-date
information;
• Corporations should immediately start facing
the issue and evaluating options in order to
meet new legal requirements and
restrictions.
9

10.

Russian IT market current situation
10

11.

Russian IT market expected evolution
Breakthrough
Market niches
technological trends
for IT products and services
Artifi cial intelligence and cognitive
technologies;
Human-machine interface;
Cloud computing;
Big data;
Big data and supercomputers;
The Internet of Things;
Computer vision;
Digital manufacturing;
Information security;
Mobility;
Bio-informatics.
Cyber security.
11

12.

Russian and international IT companies with Russian origins based on promising technological and
market trends
Company
name
Breakthrough R&D + a systemic
approach to developing new markets
Innovative
developments +
the strategy of
building a very
profitable
billion-dollar
business
Game as a Business
+ Business
as a Game with
Constantly
Changing Rules
Industry
competencies +
innovative
developments
A “convenient” product +
technological innovations
• Software for Optical Character
Recognition (FineReader) and the
software development kits (SDK)
• Solutions for automated
document capture
• Products and services within the
sphere of translation and
linguistics (Lingvo, ABBYY,
Language Services)
• Solutions based on a technology
for the comprehension, analysis
and translation of texts in natural
languages (ABBYY Compreno –
technological platform for
solutions in intellectual search,
documents classification,
translation, and eDiscovery etc.)
• Developing
solutions for
data backup,
emergency
recovery and
protection
• Developing
solutions for
data
management
for mobile
devices
• Developing and
publishing
games for the
mass audience
of users (casual
and mid-core
games) for
mobile
platforms, game
consoles and
PCs
• Game
distribution
through its own
and partner
sites
• Creation and
development of
new brands
within the game
industry
• Custom
software
development
• Software
product
integration
• Software testing
and audit
• Software
support and
technical
maintenance
• Dedicated
software
development
centers
• Technological
and business
consulting
• IT personnel
recruiting and
outstaffing
• Engineering software development:
computer aided design system (CAD
system), geometric kernel of 3Dmodeling, systems for engineering
data and product life-cycle
management (PLM), project design
work management systems, and
production planning and
management systems
• Complex automation for preproduction and production
management in the engineering
industry
• Complex automation for design
operations in industrial and civil
construction
Strategy
Key
business
direction:
12

13.

Russian and international IT companies with Russian origins based on promising technological and
market trends
Company
name
Strategy
Key
business
direction:
Outsourcing + industry
markets
with high growth potential
Forming the new technological
niche + global partnership
Venture
investments +
(physical +
digital)
New markets + a systemic
approach
to their development
Consumer
segmentation +
international
markets
expansion
• Software development
• Software support
• IT solutions re-engineering,
migration and porting
• Software integration
• Independent software
testing
• Technological research and
software consulting
• Instruments for developing an
interactive 3D/2D catalog of parts,
repairs and maintenance guides,
and training courses —
RapidAuthor
• Integrating instruments for
creating 3D/2D documents with
Teamcenter, a product life cycle
management system
• Professional editor of 2D images
in the CGM format — the
Cortona2D Editor Pro
• Interactive browsers for viewing
2D/3D data in different platforms
— the Cortona3D Viewers
• Venture
investments
in the field of
personal
robotics,
including:
wearable and
connected
devices, and
IoT (Internet
of things), etc.
• Developing and implementing
ERP systems for restaurant
business automation
(iikoRMS, and iikoChain)
• Complex services for
restaurant automation and
restaurant networks
(installing and tuning up
equipment; educating and
certifying users)
• Solutions for delivery
automation (iikoDelivery)
• Creating and implementing a
platform for organizing
mobile social loyalty
programs (iiko.net)
• Special solutions (controlling
current orders, and analyzing
operational indicators, etc.)
• Software
development
for client
service
optimization
13

14.

Russian and international IT companies with Russian origins based on promising technological and
market trends
Company
name
Strategy
Key
business
direction:
Corporate
venture
investment +
competence
synergy
Industry
segmentation +
expansion
into international
markets
In-house
innovations + success
replication
Industry expertise +
turnkey integration
Universal
proposal +
network scaling
New markets + doing
business
at industry junctions
• Venture
investment
s in the
high tech
sector.
Target
market
segments
— IT and
telecommu
nications
• Customized
software
development
• The Company’s
own product
solutions
• IT solutions and
engineering
• Built-in systems
development
• Independent
testing
• Technological
consulting
• IT personnel
recruiting and IT
training
• Management
consulting, IT
consulting
• Business processes
automation systems
• IT systems
infrastructure
• Information security
systems
• Technical safety
systems
• IT outsourcing and
technical maintenance
• IT personnel and
business processes
outsourcing Corporate
software for lease
• Smart city solutions
• IT and management
education programs
• Software development
and adaptation
• CAD systems, GIS systems
and PLM systems
development and
implementation
• IT standards and
concepts development,
consulting
• Creation of information
models and spherical
panoramas of industrial
objects
• IT engineering of design
works
• Engineering services —
equipment design,
development,
production, installation,
commissioning and start
up
• Payment
receipt via
terminals
and kiosks
• Services
based on
the virtual
prepaid card
• Advertising
• Payment
processing
via kiosks,
points of
payment
receipt and
electronic
wallets
Retail sales of software
through the Company’s own
online supermarket
Software distribution via the
Internet
Affiliate program (Softkey
catalog placement on
partner websites)
Order processing (service
for developers —sales on
the Softkey trade site)
Software distribution in
household appliances and
electronics networks via
terminals
Online software
supermarket for mobile
device users (Softkey, and
Mobi)
A communications site and
online expertise center for
consumers, developers,
experts and sellers
(IT4all.ru)
Specialized resource for
SaaS promotion
(Point4all.ru)
14

15.

Russian and international IT companies with Russian origins based on promising technological and
market trends
Company
name
Strategy
Key business
direction:
Universal Solutions + Entering
the Global Market
Strong position in Russia’s
IT industry + creating
instruments for
the global market
Russian innovation + market
niche in competitive environment
• Development and licensing
of software (engines) for
voice and video transmission
via IP networks
• Creation of software for HD
multi-point Internet video
conferences
• A provider of cloud services
for exchanging electronic
documents with contractors,
governmental and regulatory
organizations. One of Russia’s
largest certification
authorities
Development and manufacturing of
high-tech telecommunications LTEequipment:
YotaPhone — the first in the world
smartphone with two screens, one of
which is always on
YotaRuby — portable WiFi router
YotaAmber — portable WiFi LTE
access point
YotaPhone Idea Camp –international
project for applications’
development for the second “alwayson” display, bringing together endusers, designers and developers
15

16.

Overview of competitors
Properties
Deal with
complexity
Function
Probabilistics
decision
making
Active
learning
Passive
learning
Autonomy
Understanding
unconventional
data
Well-scoped
framework
Search and
Q&A tools
Watson
Interacting
& Assisting
tools
Interpreting
technologies
Siri
Amelia
Project
Adam
Aging
Analytics
Natural
language
generator
Database
constituion
Google Brain
Ashamov and partners
16

17.

Overview of competitors
Properties
Deal with
complexity
Function
Probabilistics
decision
making
Active
learning
Passive
learning
Autonomy
Understanding
unconventional
data
Well-scoped
framework
Watson
Salesforce
Madbits (Twitter)
Scaled Inference
Artificial Intelligence
Machine Learning
Infer.Net
Azur ML
Kensho
17

18.

Potential challenges to IBM Watson from IT giants
1
Google Brain: recognizes language of expression even if not specified
Google
Quantum Artificial Intelligence Lab and other Artificial Intelligence / Machine Learning projects
Natural language processing and human-computer visualization / interaction
Investments in healthcare startups through Google Ventures
2
Project Adam
Microsoft
Infer.Net as a writing software
Azur Machine Learning in the field of Artificial Intelligence
3
Development of one umbrella platform : HAVEn
HP
Supporting Hadoop distributions
Increasing the number of sources to feed Autonomy
Enabling real-time analytics through Vertica or secure real-time data collection through Enterprise Security
18

19.

Analysis
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Methodology
Research Barriers
Research Approach
Limited availability of quantifiable data bases
and sources
Qualitative in-depth analysis
Direct method semi-structured expert interviews
Quantitative research suggest large sample size
of experts & clients
Targeted standardized questionnaires
Large amount of relevant information
Hard to reach
Transcripts allow extensive data analysis
Limited project time-frame
Risk of insignificant n/respondents
Three expert groups / Two target questionnaires
Risk of ‘fuzzy’ results
Data analysis concepts
Strategic recommendations require wide understanding of market & technology
Questionnaire Version
English
Russian
Limitations
IBM Experts
7
SWOT/TOWS
RBV
Pot. Clients
Business Partners
1
1
2
n=11
Validity restrictions (n for 2 groups too small)
Risk of interviewers` bias & subjectivity
20

21.

Analysis
Strategic Lead Questions
What capabilities do we have/need?
What is the organisational environment in Russia?
Is this potentially worth it for future investments?
SWOT
Lists internal + external strategic capabilities
Based on project‘s research and review
Simple to understand / easy to communicate
TOWS
1 Foster strengths to maximize opportunities
2 Overcome weaknesses by taking advantage of opportunities
3 Avoid threats by the use of strengths
4 Reduce weaknesses; avoid threats
In adoption to framework of Homburg & Krohmer (2008,
p. 480) and Johnson et al. (2008, p. 384)
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22.

Analysis: Watson Portfolio - SWOT
STRENGHTS
WEAKNESSES
Core Solutions multiple use-cases abroad
Early stage developing technology
Patents + intense technological knowledge in semantic analytics
No Russian language anthology (Watson Cognitive)
Mature level of cognitive computing knowledge in China
Lack of use-cases in Russia/Public sector worldwide
Business partnerships & high perceived reputation in Russia
On-premise solutions require vast amount of energy + cost
First mover advantage
Lack of clear agenda for support from Watson NY
Innovative company culture
Focus too strong on technical solutions; not practical value
World leader corporation in terms of technology, sales,
profitability
Conversion Strategies
Matching Strategies
OPPORTUNITIES
THREATS
Focus on efficiency in respect of orders and targets (economic
plans issued by the government; i.e. health system & education)
US-based company; current geopolitical situation (sanctions
etc.)
Centralized administration & social system
Legal limits for foreign corporations in the public sector
Demand for tools to organize unstructured big data as Russia is
moving from paper administration to electronic records
Lack of transparency in decision-making
Partnerships w/ research institutes
Structured market with limitations and own standards with
regards to import regulations
Few local direct competitors
Restrictions for foreign cloud solutions
Plan for Russian national cloud (Rostelecom)
Difference in typologies/treatments/processes (e.g. healthcare
Educated specialist workforce
Local competitors copying services
Neutralization Strategies
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23.

Analysis: Watson Portfolio - TOWS
THREATS
OPPORTUNITIES
STRENGHTS
WEAKNESSES
High Technological Entry Barriers
Watson Cognitive Solution Localisation in Russia
Centralised Administration and Paper-based Systems
Watson Value Preposition in Russia
Language Localization in Russia (Core Solutions)
Lack of Russian Knowledge Base in Health Care
Cognitive Semantic Systems New-to-the-Market
Lack of Pilots/Use-Cases in Russian Public Sector
Best Practices in Healthcare Sector
Russian Partnerships
IBM’s Recognition & Reputation
Smarter City Projects in Russia
Authorities’ Understanding of IT vs Russia’s expertise
in Cognitive Computing
Foster
Cloud Restrictions vs Watson Cloud Solution Platform
for Developers (Non-Personal Information)
Avoid
Overcome
High On-Premise Costs & Requirements
Regulatory and Legal Restrictions
Cultural Mentality: Innovation and Knowledge-Sharing
Restrictions to Foreign Cloud Solutions
Long-term Planning Horizon on State Level
Reduce
Considered into recommendations
23

24.

Analysis: Resource-Based View (RBV)
RBV suggests:
Resources & capabilities are drivers and foundation of a firm’s strategy
Analyses the significance of resources and capabilities of a firm to create a
sustainable competitive advantage
Three conditions to identify a sustainable competitive advantage in a resource
Valuable for
Strategy ?
1) Valuable Capability
Rare
amongst
Competition
?
2) Resource Heterogeneity
Difficult to
copy/substitue?
Sustainable Competitive Advantage
3) Resource (Im-)mobility
Competitive Strategy
RBV used to justify/turn down future investment decisions into Watson
24

25.

Analysis: RBV Watson Assessment
Watson IT-Resources RBV
Group
Asset
Tangible
IS-infrastructure/IBM network
Platform Content Analytics
Semantic/Cognitive Analytics
Watson cloud solution platform
Advantage Creation
Valuable
Rarity
Appropriability
1
2
1
1
2
2
2
1
2
2
3
2
Advantage Sustainability
Imitability Substitutability
Mobility
2
1
3
2
2
3
1
1
2
2
3
1
Intangible
Patents
IT-business partnerships (B2G)
Top-Mgmt.-sponsorship/Planning
1
2
2
1
3
3
2
1
1
3
1
1
2
3
2
2
2
2
Human Assets
Technical skills
IS development
Market responsivness
1
2
1
2
2
3
1
1
1
2
2
1
2
2
2
1
3
2
1
2
1
3
2
2
Overall Assessment
RBV Assessment :
Future investment recommended
to sustain and foster competitive
capabilities!
Short-Term Competitive
Advantages
Sustainable Competitive
Advantages
IS-infrastructure/IBM network
Platform Content Analytics
Semantic/Cognitive Analytics
Patents
Technical skills
IS development
Platform Content Analytics
Semantic/Cognitive Analytics
Patents
IS development
In accordance to framework by Wade, M. & Hulland, J., 2004. The Resource-Based View and Information System Research. MIS Quarterly, 28(1),
pp. 119
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26.

Discussion: Current Watson Position in Product-Life Cycle For Technologies in Government
Industry Trends
Plateau will be
reached in:
Citizen developers
Application
Portfolio
Management
Less than 2 years
2 to 5 years
Bring your own device
Cloud Computing in Government
Citizen Data
Vaults
5 to 10 years
Tablets in government
WATSON Cognitive*
Business Intelligence for Performance Management
Government
Shared Services
Peak of
Inflated
Expectations
Strategic Goal
Advanced Analytics for Government
Systems for Open Government
Data
Government
Surveillance
Innovation
trigger
More than 10 years
Use of Social
Media in
Government
Through of
Disillusionment
Slope of
Enlightenment
Plateau of
Productivity
*Research Assessment of Current Status; Goal is to Reach Enlightenment Slope in 2 Years
Source: Di Maio, Andrea. 2014. Top Ten Strategic Technology Trends for Smart Government. Gartner
26

27.

Discussion: Recommended Competitive Strategy
The Strategy Clock
Differentiation
4
High
3
Perceived
product
value
5
2
6
Low
Price
Risky,
high margins
1
7
8
Loss of market share
Low
Low
Based on Research
Price
High
Differentiation Strategy
High perceived value of IBM solutions
Aim low/mid-price to seek greater initial market share
Customer loyalty & public sector partnership
Identification of strategic customers; knowing what
they value
Sustainable Competitive Advantages in Watson
portfolio & Research capabilities
Create ‘Center of Excellence’ in Russian Public Sector
Recommendation: Apply mid-price/high-value Differentiation Strategy to gain market share in B2G
In adoption to framework: Kaulkner, F. & Bowman, C., 1995. The Essence of Competitive Strategy, Prentice Hall, 1995
27

28.

Recommendations
28

29.

Recommended Schedule
Core
No personal data
Instant
Short
Mid
Long
Jan. – Jun. 2014
Jun. 14 – Jun. 15
Jun. 15 – Jun. 18
Jun. 18 ->
Training +
Sales Material
Launch Pilot
Projects
Portfolio
Starting to Reap Core
Core
Personal data
Cognitive
Establishing Russian Cloud
(Partnership/Technological)
Monitor the Market in English,
Training
Launch Pilot
projects
English
Cognitive
Launch
Solution in
Russian
Build partnerships; localize Russian language function
Russian
29

30.

Core: Straight to the market
Preparations
~ 2,5 HC
Ready to launch in
Russia
Pilots
Practical benefits
demonstrated
Russian cloud
establishment
Possibility to deal with
personal data
Practical pilot team training
International cooperation
Business-oriented marketing material
Dealing with non-personal data
Low cost for the customer
Needs of other solution categories
Only Core needed first
Partners
Potential topics:
• Explorer: Health info
• Research/teaching support
• Law content analysis (SpBU)
Potential topics:
• Corruption investigating
• Diagnosis support
Yandex, Rostelecom
30

31.

Cognitive: See and go
Following the
situation
Timely decisions
Technology under development, use cases coming
Competitors not an immediate threat
Recommended partnerships
Skolkovo, RAEC
Experience and insight to
evaluate the market
Gaining publicity
Demand in Russian
Projects in English
Experience
In Russia, outside Russia
Translating
Full service in Russia
Potential topics:
• International research (WDA)
• Studyadviser SPbU (WEA)
International situation
Language priorities, financial resources
Partners
ABBYY et al., SPbU
31

32.

Short- to Mid-Term Recommendations
Recommendation
Building expert pilot team for Core
Marketing
Pilot projects with Core
Russian cloud
Specification
practical, business orientation in training
light structure: 2,5 head counts: Business, technical, ½ manager
international cooperation - f2f when needed
focus on benefits
practical examples in materials, Russian pilots when available
round tables with experts and possible clients to establish contacts
and publicity
establishing phase: 2-3 months
clear criteria project: 6 months
low price, but large enough to commit the customer
possible topics: law content search (with SPbU), health info search
to support self-motivated healthy living habits
when the sales require (Core can also be provided on-premise)
potential partners: Rostelecom, Yandex
32

33.

Long-Term Recommendations
Recommendation
Watson Unit
Specification
when sales require
including sales, technical, research
worldwide cooperation
possible partners in research: Russian Association of Electronic
Communications (RAEC), Skolkovo Innovation Centre
Implementing Cognitive in English
to gain experience and revenue from Cognitive
possible topic: StudyAdvisor to SPbU (WEA)
possible topic: Helping to enhance international academic research
(WDA)
Translating Cognitive into Russia
in timing consider demand on Russian market and customers from
other markets needing Russian sources
in timing consider status of other translating projects and financial
resources of Watson Group
SPbU possible partner e.g. in area of medical or law research
Possible partners: ABBYY, Arria, NLG, Yseop, Ashamov and
partners (also competitors)
Selling Russian Cognitive
in launching phase: idea about show to medical doctors
possibility to “update” Core customers to Cognitive
33

34.

For both
presentations
Attractiveness of fields for IBM Watson in Russia
HIGH
Foster
Build
Technology maturity
Healthcare
Avoid
Citizen
Contacts
Public
Security
Policy-Decision
Making
Converse
Education
LOW
HIGH
LOW
Barriers to entry
34

35.

Healthcare
Use cases
Opportunity
Solution
Existing cases
Preventive Health – citizen
advisor
WEA
Preventive Health – citizen
info bank
WEX
Chronical diseases care
application
WEA
Diagnosis support with
information search
WEX
Diagnosis support with
cognitive information search
W?A
Modernizing
Medicine
Diagnose suggestion to MD
WPA
WellPoint Care
Guide & Reviewer
YES
YES
Diagnose suggestion to MD
in oncology
WDA
Memorial Sloan-Kettering
Bumrungrad International
YES
YES
Procurement management
NA
YES
YES
Weltok’s CaféWell
Personal data
Probably
Use in Russian
YES
YES
@Point of Care
MD Buyline
YES
YES
YES
YES
YES
35

36.

Public
security
Education & Research
Use cases
Opportunity
Solution
Individual study advising &
plans “StudyAdvisor”
W?A
Information finding
WEX
Information finding for
students or teachers
WDA
Research support
WDA
Individual study advising &
plans “StudyAdvisor”
W?A
WEx
Brazil
Ministry
of Justice
WDA
Existing cases
Personal data
Use in Russian
Probably
Probably
National Library
of Medicine
Probably
Probably
Bayor College of Medicine
Johnson & Johnson
Probably
Probably
Probably
YES
Wex
Probably
YES
WDA
36

37.

Citizen contacts, policy and decision making
Use cases
Opportunity
Solution
Existing cases
Personal data
Law search for individuals,
businesses or courts
WEx
YES
Law discovery for individuals,
businesses or courts
WDA
WPA
YES
Public documents search
WEx
YES
Monitoring citizen atmosphere to
support decision-making “listening
citizens”
WEx
Information finding from
public databases
WDA
Automatized citizen advising
WEA
Help to call centers
WEA
Applications review
WPA
Probably
Use in Russian
YES
YES
IBM Call Center
Probably
YES
Probably
YES
YES
YES
37

38.

Finding Partners
Key Factors
1
Yandex
2
Rostelecom
3
Russian Association of
Electronic Communications
(RAEC)
Strong expertise regarding personal data law
Yandex is facing an increasing volume of data and could be interested by Watson …
… whereas Yandex databases could « feed » Watson
Could provide support in terms of Big Data infrastructures, softwares and services
Has a large volume of data at its disposal
Appointed by Russian government to develop the national cloud platform
Gathers main market players, key corporate and administration executives
Creates norms for Russian IT sectors, represents the interests of the industry (lobby)
Could provide valuable update about legal issues to IBM
Different start-ups can take an advantage of Watson « intelligence »
Skolkovo hosts different promising projects for IBM
ABBY has experience with Russian government agencies
Arria NLG developed databases with specific fields ‘s corporate languages
Ashamov and Partners claim an expertise on Russian semantic
4
Skolkovo Innovation Center
5
Natural Language Generators
38

39.

Thank you for your attention!
We appreciate your feedback & thank you for this project opportunity!
39

40.

Q&A

41.

Back-up slides
41

42.

IT Market Dynamics Versus Oil Price
Russian IT Market (US$ Billion)
US$/Barrel Brent Crude
30
120
25
100
30% growth
20
80
38% growth
15
60
30% decline
10
IT Market
Oil Price
40
35% decline
20
0
0
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
5
Source : (IDC Black Book, Energy Information Administration)
42

43.

Watson value assessment for public sector in Russian Federation
HIGH
MEDIUM
LOW
Sustainability management platform
Defense Platform
HIGH
Social policy
Public safety platform
Cyber security
Emergency operations platform
Education / talent management
Unified identity
Social and tax fraud
Fare management
MEDIUM
Effort needed
Transportation management
Government cloud
Transportation
management
platform
LOW
Cancer treatment
Wave 1
Wave 2
Wave 3
Expected value for Russian federation
Personal opinion by Mr. Pavel Shkljudov, IBM CEE Industry Leader for Government
43

44.

Six stages of data processing growth
Growth process
Stage I
Initiation
Applications
portfolio
Functional
cost
reduction
applications
Proliferation
Data Processing
organization
Specialization
for
technological
learning
Useroriented
programmers
Middle
Management
Establish
computer
utility and
user account
teams
More lax
Formalized
planning and
control
Tailored
planning and
control
systems
Data processing and
control
User awareness
Source : (Nolan, 1979)
Lax
« Hands off »
Stage V
Stage II
Contagion
Stage III
Control
Stage IV
Integration
Upgrade
documentation
and
restructuring of
existing
applications
Retrofitting
existing
applications
using database
technology
Organization
Integration
of
application
Application
integration
« mirroring »
information
flows
Data
administration
Data
resource
management
Functional
cost
reduction
applications
Data
resource
strategic
planning
Effectively
accountable
Acceptance of
joint user and
data
processing
accountability
Superficially
enthusiastic
Arbitrarily
held
accountable
Accountabilit
y learning
Data
administration
Stage VI
Maturity
44

45.

Proposed schedule for Watson in Russia during next years
Term
Applications
portfolio
Instant
Jan. 2014 –
Jun. 2014
Short
Jun. 2014 –
Jun. 2015
A: Preparing for
the launch
B: First projects
Mid
Jun. 2015 –
Jun. 2018
Long
Further
Market
D: Starting to reap Core
Data Processing
organization
C: Establishing Russian cloud
Data processing and
control
E: Mapping the possibilities for
Cognitive in English
User awareness
F: First experience
from Cognitive
H: starting
Cognitive sales
Russian
G: Bringing Russian speaking Cognitive
45