Presentation Headline Subhead

Barry Mason Vice President, Global Healthcare Payers

Putting IBM Watson to Work In Healthcare

© 2012 International Business Machines Corporation On February 14, 2011, IBM Watson changed history introducing a system that rivaled a human’s ability to answer questions posed in natural language with speed, accuracy and confidence.

. Watson Wins! . Largest Jeopardy! in 5 years . 34.5M Jeopardy! Viewers . 1.3B+ Impressions . Over 10,000 Media Stories . 11,000 attend watch events . 2.5M+ Videos Views (top 10 only) . 12,582 Twitter . 25,763 Facebook Fans

System Specifications IBM Technology Depth

2880 Processing Cores Content Analytics

90 IBM P750 Servers Business Analytics 16 Terabytes Memory (RAM) – 20TB Disk Big Data 80 Teraflops (80 trillion operations per second) Databases / Workload Optimized Data Systems Warehouses

In the past 5 years IBM has spent over $14B in analytical acquisitions and $6B in R&D annually

What isis IBMIBM Watson andand why isis itit important?

How is IBM putting Watson toto work?work?

What can we expect in the future?

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Instrumented Interconnected Intelligent

An opportunity to think and act in new ways— economically, socially and technically.

Data is getting more social. . . …20M articles on Wikipedia …30B pieces of Facebook content are shared monthly …There are 156M public blogs

There are over 2.3B people on the Web today ... … and a trillion connected objects – cars, appliances, cameras, roadways, pipelines

90% 80% 20% of the world’s of the world’s is the amount of data was created data today is available data in the last two unstructured traditional systems years leverages

1 in 2 83% 54% business leaders don’t of CIO’s cited BI and of companies use have access to data analytics as part of their analytics for competitive they need visionary plan advantage

7 Source: GigaOM, Software Group, IBM Institute for Business Value" © 2012 International Business Machines Corporation Healthcare Industry is beset with some of the most complex information challenges we collectively face

Medical information is doubling every 5 years, much of which is unstructured

81% of physicians report spending 5 hours or less per month reading medical journals

“Medicine has become too complex (and only) about 20% of the knowledge clinicians use today is evidence-based” -- StevenSteven ShapiroShapiro ChiefChief MedicalMedical andand ScientificScientific Officer,Officer, UPMCUPMC

8 © 2012 International Business Machines Corporation Source: International Journal of Circumpolar Health, DoctorDirectory.com, Institute for Medicine" Today’s business challenges are causing organizations to rethink what it will take to get ahead tomorrow

Emerging IT • Structured & unstructured (global) • Probabilistic Applications Traditional IT • Discovery Oriented • Structured data (local) • Small and Big Data • Deterministic Applications • Natural Language • Search Oriented • Small Data • Machine Language

IBM Jeopardy! Watson Watson Watson Research Grand for for Financial Industry Project Challenge Healthcare Services Solutions (2006 – ) (Feb 2011) (Aug 2011 –) (Mar 2012 – ) (2012 – )

Cross-industry Expansion Applications Commercialization Demonstration From inspiration and invention, through innovation and R&D industrialization, ending with industry transformation.

2 Generates and evaluates hypothesis for 1 Understands better outcomes natural 99% 60% language and 10% human speech

3 Adapts and Learns from user selections …built on a massively parallel probabilistic and responses evidence-based architecture optimized for POWER7

Structured Data Unstructured Data

Physicist Birth Place “One day, from among his city Where was A. Einstein Ulm views of Ulm, Otto chose a water color to send to Albert Einstein Einstein N. Bohr Copenhagen as a remembrance of Einstein´s born? M. Curie Warsaw birthplace”

Source: Excel File, Database, etc. Source: http://www.schaeffenacker-ulm.de/en/otto.html

Person Organization L. Gerstner IBM “If leadership is an art then surely Jack Welch has proved Welch ran J. Welch GE himself a master painter during this? W. Gates Microsoft his tenure at GE”

Source: Excel File, Database, etc. Source: Jack Welch and the GE Way, Robert Slater

Source: IBM Research

Decision Maker Has Question Search Engine Distills to 2-3 Keywords Finds Documents containing Keywords Reads Documents, Finds Delivers Documents based on Popularity Answers Finds & Analyzes Evidence Watson Decision Maker Understands Question Asks NL Question Produces Possible Answers & Evidence

Considers Answer & Evidence Analyzes Evidence, Computes Confidence

Delivers Response, Evidence & Confidence

Putting the proper pieces together at the point of impact can be

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Cancer is an insidious disease and the second highest cause of death

11 inin 44 3X3X individuals will die from cancer rate cancer cost climbs vs. std. health costs or 15-18% / yr. X

20%20% 263.8B263.8B+ of cancer cases receive the overall costs of cancer in IBM wrong diagnosis initially with the US in 2010 some as high as 44% $$$$$$$$$$ $$$$$$$$$$ $$$$$$$$$$ + + IBM

Source: American Cancer Society, National Health Institute Working Together to Beat Cancer

What if … healthcare could leverage the latest insights improving the quality of patient care while lowering costs?

WellPoint is doing it! • First commercial applications of the IBM Watson technology • Processing treatment requests faster and more efficiently • Extended data assessment based on research, clinical, medical, market and patient data • Applied learning based on action taken and outcome derived

Watson Capabilities Best Fit for Watson

1 Natural language . Problems that require the understanding analysis of unstructured data

2 Broad domain of . Critical questions that require unstructured data decision support with prioritized recommendations 3 Hypothesis generation and and evidence confidence scoring . High value in decision support 4 Iterative . Question/Answering Leverage scale to maximize machine learning and improve outcomes over time 5 Machine learning

Healthcare Financial Services Diagnostic/treatment assistance, Investment and retirement evidenced-based insights, planning, institutional trading collaborative medicine and decision support

Contact Center Government Call center and tech support Public safety, improved services, enterprise knowledge information sharing, security, management, consumer insight fraud and abuse prevention

IBM Watson and Smarter Analytics have the capabilities to address grand business and societal challenges