Keith MercierGlobal Retail LeaderCognitive Business Solutions@keithmercier

Bringing Watson to Life in Retail

2010 2020

Sensors & Devices

Text

Enterprise Data

Images/Multimedia

44 Zettabytes

Gap

Traditional

You are here

2017

of customer data stored by Walmart

every hour.

>2.5PBof mobile traffic by 2019, up from 30 exabytes in 2014

292 exabytes

of data produced by a cancer patient every

day.

1TB

We face an overwhelming amount of data in every industry

Humans excel at:

DILEMMAS

COMPASSION

DREAMING

ABSTRACTION

IMAGINATION

MORALS

GENERALIZATION

Cognitive Systemsexcel at:

COMMON SENSE

NATURAL LANGUAGE

LOCATING KNOWLEDGE

PATTERN IDENTIFICATION

MACHINE LEARNING

ELIMINATE BIAS

ENDLESS CAPACITY

Cognitive systems are creating a new partnership between humans and technology

How do Cognitive systems work?

REASON

They can reason, grasp underlying concepts, form hypotheses, and infer and extract ideas.

UNDERSTAND

Cognitive systems understand imagery, language and other unstructured data like humans do.

LEARN

With each data point, interaction and outcome, they develop and sharpen expertise, so they never stop learning.

INTERACT

With abilities to see, talk and hear, cognitive systems interact with humans in a natural way.

Watson is an evolving set of Cognitive capabilities

Personality Insights

Alchemy Language

Conversation DocumentConversion

Language Translator

Natural Language Classifier

Retrieve & Rank

Tone Analyzer

Language

Speech to Text

Text to Speech

Speech

Visual Recognition

Vision

Tradeoff Analytics

Alchemy Data News

Data Insights

Social Media

Values

Psycholinguistic Analytics

Big5

Attitude EmotionStyle

Needs

Personality Portrait

Personality Insights

Developer Cloud Partner EcosystemSolutions

What is Watson today?

Watson at Work in Retail

Contextual Interactions

Guided shopping

The North Face and Watson guides customers to find the perfect jacket by asking where and when you’re going to use the jacket, and whether you’re looking for men’s or women’s, and what sort of activities you plan to engage in.

In its conversational interface, GWYN, the 1800-Flowerscognitive concierge guides customers to finding the perfect Mother’s Day gift.

Partnering with another luxury retailer, Westfield helped create

the cognitive gifting app that helped shoppers buy gifts based on custom personality profiles.

Individualized experience• Profiles drive the visual offerings on the web

for a personalized experience• Shopping history and customer analytics

drive unique product recommendations• Each click and action informs further

personalization and recommendations• Known and Unknown - Engaging ALL

consumers throughout entire journey

Cognitive gamification

Cognitive merchandise attribution

• Apply Natural Language Processing to description and reviews to derive attributes

• Additive to understanding of existing attributes

• Visual search can also be applied

Interactive digital ads Continuously collect customer and product insights

Associate/Agent Assist

• Understand and speak in natural language• Have a humanlike personality• Understand intent• Include intuitive tooling • Run across multiple messaging platforms• Have domain knowledge• Hook into back-end systems• Constantly learn

We believe that all Bots should…

Store associate bot

Cognitive customer service: Conversational bot

Key Capabilities •  Understand and speak in natural language •  Have a humanlike personality •  Understand intent •  Be easy to use and develop •  Hook into existing systems

Where can it run?

»Reduce "inbound" call volume»Decrease average handle time»Decrease agent-to-agent transfers»Increase customer satisfaction and NPS

»SMS Text»Mobile app messaging»Web based chat»Facebook Messenger and Slack

»Order Status FAQs»Shipping and Delivery FAQs»Watson can execute simple changes including canceling an order, initiating a return, updating delivery options and editing shipping address.

Why is it so important?

What can it do?

@davidsbridal

KoziKaza@ikeausa

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Chat and Visual Recognition

Use CaseFind image and with Watson’s

Vision Bot framework, offer your customers the ability to get

immediate product recommendations in the same

channel.

Direct message

Tweet

@kozikaza

KoziKaza

#KoziKazabot

Cognitive customer service/ call center

• Active listening along side of the agent or associate

• Natural language understanding

• Real time location of supporting documents and data

Data Insights

Augmenting the design process

• Scaled past design images to identify color palatte and link to emotions

• Accelerated fabric research best suited for dress design

• Socially ”aware” dress that changed colors based on live social sentiment

23

Trend identificationDevelop persona related to overall product category

Function First (41,800)Fashion First (2770)Flare Enthusiast (1470)Style Me (3465)Denim Diva (13,150)

Identify trending styles based on social mentions and activity

Identify clusters with positive sentiment towards identified trend.

Audience insights

• Leverage social-sign for permission-based access to social data

• Understand images, text and personality

• Append CRM records with new attribution for better targeting and egagement

Cognitive contact center analytics

• Retroactively evaluates contact center call recordings

• Speech to text API

• NL classifier used to determine the intent

• Sentiment and intent can be used for intelligent routing and prediction of handle times by calls type

Getting Started

Understand

Discover Evaluate

Prototype

• A proven approach with core practices specific to IBM• “Co-creation with customers” and “testing and learning” is at the heart of our principles• This is a human centered framework for moving from design to operations

We propose to use IBM Design Thinking approach to identify the business priorities for initial cognitive use cases

What will you do with Watson?