2016 IBMAnnualReport You, with IBM. 2016 IBM Annual Report You who run our financial and energy systems; who design, build and fly our planes, run our trains, manage our cities; who cure us, feed us, clothe us, entertain us and keep us safe; who teach our children. As a professional, you are driven always to advance, and to make a difference through your work. Which is why this moment is so extraordinary for you. Every profession in every industry in every part of the world is changing, simultaneously. You are drawing on a wealth of new data, knowledge, insights and tools. You are being equipped to rethink your job, and freed to do your life’s work. We have reinvented IBM for this moment—to fuel your dreams with Watson, with IBM Cloud, with deep expertise, with trust. We believe in your ambition to be the best in your profession. And we believe that you can make our world healthier, safer, more productive, more creative, fairer. That is a world we all want to live in. The world you’re building, with IBM. 1. with IBM: Oncologists can find more targeted cancer treatment options. No doctor can keep up with the onrush of oncology studies published every week, Doctors much less determine which apply to each patient. But Watson can. Trained for 15,000 hours by specialists at Memorial Sloan anywhere can Kettering Cancer Center in New York, Watson has ingested nearly 15 million pages from relevant journals and textbooks and know the latest continues to expand its knowledge. This expertise is now flowing around the world and informs evidence-based treat- advances ment options for clinicians serving patients globally. Sites include six Manipal Hospitals in India, Bumrungrad International everywhere. Hospital in Bangkok, Jupiter Medical Center in Florida and Svet zdravia’s net- work of 16 hospitals in Slovakia and Central and Eastern Europe–and soon across China. Healthcare data is growing 48 percent per year—and Elsewhere, in trials at the University will likely exceed 2,300 exabytes by 2020. It pours in of North Carolina’s Lineberger Comprehensive Cancer Center, Watson from new research, electronic medical records, imaging, suggested potential treatment options that wearables and epidemiological monitoring, along with the tumor board hadn’t considered in one all the environmental factors that affect our health. third of cases. In addition, doctors are better able to It can be overwhelming for doctors, but in all that data understand their patients’ unique needs, lie vital clues to the next medical breakthroughs, cures right down to the genetic level. Watson for and efficiencies. And now best practices and advanced Genomics absorbs 10,000 new medical articles and details from 100 clinical trials expertise can go global quickly, changing the very every month. It applies what it learns to nature of wellness and healthcare. suggest highly targeted therapies for each patient’s individual cancer based on its understanding of a tumor’s molecular profile, allowing doctors to provide more Watson Health personalized treatment for their patients. This powerful new tool is helping even Electronic those patients who cannot travel to a health specialized medical center. Through Quest 100M records Diagnostics, it is available to any oncolo- gist in the United States, as an end-to-end solution. Illumina plans to integrate it with 200M Claims a tumor-sequencing workflow to provide oncologists cognitive information on-site. Medical 30B images 02 2. 4. 6. Medical Researchers Hospital Administrators Veterinarians can speed discovery of can improve the health of can now be expert genes that cause diseases. the health system. on every breed. Amyotrophic lateral sclerosis, or ALS (also The Central New York Care Collaborative Medical doctors treat one species: known as Lou Gehrig’s disease), has no (CNYCC) is working with Watson Health to humans. Veterinarians may treat dozens effective treatment and typically kills within create one of the first regional cognitive of species and an even greater number five years. Barrow Neurological Institute population health platforms in the United of cat and dog breeds. And their patients researchers employed Watson for Drug States. It will connect 2,000 care providers can’t describe their symptoms. That’s Discovery to study nearly 1,500 genes in in Upstate New York, integrating clinical, why IBM has worked with vets to build an the human genome, and found five that social and behavioral data to produce online tool that uses Watson. It can scan had never before been associated with ALS. holistic views of patients—helping doctors hundreds of thousands of pages of med- Researchers say that such a discovery, and clinicians make more-informed ical resources, helping vets customize which took months with Watson, would decisions and promote healthier behavior. treatment options, stay current with best have previously taken years and gives them CNYCC’s goal is value-based care that practices and identify medical differences a much clearer idea of what to target for reduces emergency room visits and among even very similar breeds. therapy when developing new drugs. avoidable hospital stays by 25 percent over five years—improving health while lowering Medicaid costs. 5. Endocrinologists will help people manage their diabetes between visits. People with diabetes will benefit from an app called Sugar.IQ that draws data from physician-prescribed Medtronic devices. The app connects to cognitive analysis 3. in the IBM Cloud to reveal patterns and Radiologists personalized insights, helping users better understand in real time how their behaviors can find secrets hidden affect glucose levels. With Watson, a future in every image. version is expected to incorporate features that in tests have predicted hypoglycemic Radiologists review dozens of medical incidents within a 2- to 3-hour window with images for every patient they see —often nearly 90 percent accuracy. hundreds in a day. Watson never gets eyestrain or momentarily distracted, and has been trained by researchers to rapidly analyze huge numbers of images and rank ↑ them for potential anomalies. Radiologists 90% Watson can help can then focus on the ones that matter veterinarians treat hundreds of dog and apply their expertise more quickly. Accuracy and cat breeds with Watson can also retrieve similar images predicting more confidence. hypoglycemic from other cases for comparison to help incidents doctors confirm or refine their diagnoses. 2016 Annual Report 03 8. with IBM: Stadium Architects can create winning experiences for every fan. With IBM, the NFL’s Atlanta Falcons and Engineers MLS’ Atlanta United are building the most technologically advanced stadium in the world. Set to open this summer, the new are rebuilding Mercedes-Benz Stadium will deliver personalized experiences for each attendee, while giving the stadium an entirely new the world. feel depending on who’s on the field or on stage. And fans will be able to find the refreshment stands and bathrooms with the shortest lines. ↑ The new Mercedes-Benz Stadium will be the world’s most advanced. 7. ↑ 9. Pipeline Engineers Cognitive Chemical Engineers technologies help can anticipate failures maintain oil and turn social media activity gas pipelines. before they happen. into a test lab. With Watson’s cognitive abilities, Scientists at The Dow Chemical Company specialists for oil and gas companies are listening to social media to quickly can now predict and prevent pipeline identify and speed to market new solutions failures almost a week in advance. IBM that use the company’s advanced polymers. business partner SparkCognition is With analytics from IBM, these engineers using Watson to analyze thousands of can anticipate consumer demand for new pipeline sensors, and monitor cracks, products. These insights allow them to vibrations, overheating and other improve everything from running shoes to factors. Engineers are now able to seals for car windows. predict and address pipeline failures as early as six days in advance, 24x better than before. 04 10. 11. 12. Automotive Engineers Geoscientists Shipbuilders are building cars know where and can hit the water that converse with when to drill. more quickly. drivers, passengers Halliburton uses the IBM Cloud to run Italy’s Fincantieri is speeding the creation and each other. sophisticated oil reservoir simulations that of new cruise ships and naval vessels with help it better understand how complex oil a hybrid cloud solution from IBM. By con- By 2020, an estimated 83 million cars and gas fields might behave under different necting 13 private distributed data centers will connect to the Internet—each with development scenarios. With insights from with IBM’s Cloud Data Center in Milan, hundreds of sensors on board. With this hundreds of models, petroleum engineers Fincantieri now has an IT infrastructure that future in mind, General Motors, BMW and geoscientists can optimize drilling supports a compute-intensive design and and Local Motors are now using Watson decisions to reduce costs and increase manufacturing system, allowing designers to build the world’s first generation of production—shaping how billions of dollars and engineers to more fluidly manage the cognitive driving machines. may be spent on large oil fields. process from design to deployment. GM is expanding its OnStar AtYour- Service offers and deals platform by launching new capabilities supported by OnStar Go with IBM Watson. With customers’ consent, Watson will learn drivers’ preferences, apply machine learning and sift through data to Watson IoT recognize patterns in their decisions and habits to deliver individualized 6,000+ location-based interactions. These ca- Clients pabilities are expected to be available in ↑ millions of vehicles in the United States Hybrid cloud is by the end of 2017. speeding up the 50,000+ design, building and Olli, a self-driving electric shuttle Developers deployment of new from Local Motors, holds natural language vessels.