>> Announcer: Live from Boston, Massachusetts, it's theCUBE, covering IBM Chief Data Officer Summit, brought to you by IBM. (upbeat electronic music) >> Welcome back to theCUBE's coverage of the IBM Chief Data Officer Strategy Summit here in Boston, Massachusetts. I'm your host, Rebecca Knight, along with my co-host Dave Vellante. We are joined by Jim Kavanaugh. He is the Senior Vice President transformation and operations at IBM. And Inderpal Bhandari he is the chief, the global chief data officer at IBM. Thanks so much for joining us. >> Thanks for having us. >> Happy to be here. >> So, you both spoke in the key note today and Jim, you were talking about how we're in a real seminal moment for businesses with this digital, this explosion in digital and data. CEOs get this obviously, but how do you think, do companies in general get it? What's the buy-in, in terms of understanding just how big a moment we're in? >> Well, as I said in the key note, to your point, I truly believe that all businesses in every industry are in a true, seminal moment. Why? Because this phenomenon, the digital disruption, is impacting everything, changing the nature of competition, altering industry structures, and forcing companies to really rethink to design a business at its core. And that's what we've been doin' here at IBM, trying to understand how we transition from an old world of going after pure efficiency just by gettin' after economies of scale, process standardization, to really know, how do you drive efficiency to enable you to get competitive advantage? And that has been the essence of what we've been trying to do at IBM to really reinvent our company from the core. >> So most people today have multiple jobs. You guys, of course, have multiple jobs. You've got an internal facing and an external facing so you come to events like this and you share knowledge. Inderpal, when we first met last year, you had a lot of knowledge up here, but you didn't have the cognitive blueprint, ya know, so you were sharing your experiences, but, year plus in now, you've developed this cognitive blueprint that you're sharing customers. So talk about that a little bit. >> Yeah so, we are internally transforming IBM to become a cognitive enterprise. And that just makes for a tremendous showcase for our enterprise customers like the large enterprises that are like IBM. They look at what we're doing internally and then they're able to understand what it means to create a cognitive enterprise. So we've now created a blueprint, a cognitive enterprise blueprint. Which really has four pillars, which we understand by now, given our own experience, that that's going to be relevant as you try to move forward and create a cognitive enterprise. They're around technology, organization considerations, and cultural considerations, data, and also business process. So we're not just documenting that. We're actually sharing not just those documents, but the architecture, the strategies, pretty much all our failures as we're learning going forward with this, in terms of, developing our own recipes as we eat our own cooking. We're sharing that with our clients and customers as a starting point. So you can imagine the acceleration that that's affording them to be able to get to process transformation which, as Jim mentioned, that's eventually where there's value to be created. >> And you talked about transparency being an important part of that. So Jim, you talked about three fundamentals shifts going on that are relevant, obviously, for IBM and your clients, data, cloud, and engagement, but you're really talking about consumerization. And then you shared with us the results of a 4,000 CXO survey where they said technology was the key to sustainable business over the next four or five years. What I want to ask you, square the circle for me, data warehouse used to be the king. I remember those days, (laughing) it was tough, and technology was very difficult, but now you're saying process is the king, but the technology is largely plentiful and not mysterious as it is anymore. The process is kind of the unknown. What do you take away from that survey? Is it the application of technology, the people and process? How does that fit into that transformation that you talked about? >> Well, the survey that you talked about came from our global businesses services organization that we went out and we interviewed 4,000 CXOs around the world and we asked one fundamental question which is, what is number one factor concerning your long term sustainability of your business? And for the first time ever, technology factors came out as the number one risk to identify. And it goes back to, what we see, as those three fundamental shifts all converging and occurring at the same time. Data, cloud, engagement. Each of those impacting how you have to rethink your design of business and drive competitive advantage going forward. So underneath that, the data architecture, we always start, as you stated, prior, this was around data warehouse technology, et cetera. You applied technology to drive efficiency and productivity back into your business. I think it's fundamentally changed now. When we look at IBM internally, I always build the blueprint that Inderpal has talked about, which everything starts with a foundation of your data architecture, strategy governance, and then business process optimization, and then determining your system's architecture. So as we're looking inside of IBM and redesigning IBM around enabling end-to-end process optimization, quote-to-cash, source to pay, hire to exit. Many different horizontal process orientation. We are first gettin' after, with Inderpal, with the cognitive enterprise data platform what is that standard data architecture, so then we can transform the business process. And just to tie this all together to your question earlier, we have not only the responsibility of transforming IBM, to improve our competitiveness and deliver value, we actually are becoming the showcase for our commercialized entities of software solutions, hardware, and services. To go sell that value back to clients over all. >> And part of that is responsibility for data ownership. Who owns the data. You talked about the West Coast, the unnamed West Coast companies which I of course tweeted out to talk about Google and Amazon. And, but I want to press on that a little bit because data scientists, you guys know a lot of them especially acquiring The Weather Company They will use data to train models. Those models, IP data seeps into those models. How do you protect your clients from that IP, ya know, seepage? Maybe you could talk about that. >> Talk about trust as a service and what it means. >> Yeah, ya know, I mentioned that in my talk at the key note, this is a critical, critical point with regard to these intelligent systems, AI systems, cognitive systems, in that, they end up capturing a lot of the intellectual capital that the company has that goes to the core of the value that the company brings to it's clients and customers. So, in our mind, we're very clear, that the client's data is their data. But not only that, but if there's insights drawn from that data, that insight too belongs to them. And so, we are very clear about that. It's architected into our setup, you know, our cloud is architected from the ground up to be able to support that. And we've thought that through very deeply. To some extent, you know, one would argue that that's taken us some time to do that, but these are very deep and fundamental issues and we had to get them right. And now, of course, we feel very confident that that's something that we are able to actually protect on the behalf of our clients, and to move forward and enable them to truly become cognitive enterprises, taking that concern off the table. >> And that is what it's all about, is helping other companies move to become cognitive enterprises as you say. >> Based on trust, at the end of the day, at the heart of our data responsibility at IBM, it's around a trusted partner, right, to protect their data, to protect their insights. And we firmly believe, companies like IBM that capture data, store data, process data, have an obligation to responsibly handle that data, and that's what Jenny Rometty has just published around data responsibility at IBM. >> Great, well thank you so much Inderpal, Jim. We really appreciate you coming on theCUBE. >> [Jim and Inderpal] Thank you. >> We will have more from the IBM Chief Data Officer Strategy Summit, just after this. (upbeat music)

>> Live from Boston, Massachusetts, it's the CUBE, covering IBM Chief Data Officer Summit, brought to you by IBM. (soft electronic music) >> Welcome to theCUBE's coverage of IBM Chief Data Strategy Officer Summit here in Boston, Massachusetts. I'm your host, Rebecca Knight, co-hosting here today with Dave Vellante. >> Hey, Rebecca. >> Great to be working with you again. >> Good to see you again. It's been a while. >> It has. >> Last summer, in the heat of New York. >> That's right, and now here we are in the dreariness of Boston. Dave, we just finished up the keynote. As you said, it's a meaty keynote. It's a seminal time for Chief Data Officers at companies. What did you hear? What most interested you about what Joe Kavanaugh said? >> Well, a couple things. I think it's worthwhile going back a few years. The ascendancy of the Chief Data Officer as a role and a title kind of emerged from the back-office records management side of the house. It really started in regulated industries. Financial services, healthcare, and government. For obvious reasons. These are data-oriented companies. They're highly regulated. There's a lot of risk. So, there's really sort of a risk-first approach. Then, that sort of coincided with the big data meme exploding. Then, this whole discussion of is data an asset or a liability? Increasingly, organizations are looking at it, as we know, as an asset. So, the Chief Data Officer has emerged as the individual who is responsible for the data architecture of the company, trying to figure out how to monetize data. Not necessarily monetize explicitly the data, but how data contributes to the monetization of the organization. That has a lot of ripple effects, Rebecca, in terms of technology implications, skillsets, obviously security, relationships with line of business, and fundamentally the organization and the mission of the company. So, IBM has been pretty leading and aggressive about going after the Chief Data Officer role, and has events like this, the Chief Data Officer Summit. They do them, kind of signature moments, and these little its and bit events. I don't know how many people you think are here. >> 150, I think. >> 150? Okay. And they're the data-rowdy of the Boston community. They're chartered with figuring out what the data strategy is. How to value data and how to put data front and center. Everybody talks about being a data-driven organization, but most organizations-- Everybody talks about becoming a digital business, but a digital business means that you are data driven. The data is first. You understand how to monetize data. You know how to value data. Your decisions are data-driven. I would say that less than 10% of the organizations that we work with are of that ilk. So, it's early days still. What was interesting about what Jim Kavanaugh says, they put forth this cognitive blueprint that Inderpal Bhandari, who'll be on theCUBE later, envisioned and has brought to life in his two years as the Chief Data Officer here at IBM. Now, what I like about what IBM is doing is they're sharing their dog food experience with their clients. He talked about that enterprise blueprint architecture but he also talked about what IBM is doing to transform. So, James Kavanaugh is the Senior Vice President of Transformation at IBM, and works directly for Jenny Remetti. He fundamentally talked about IBM as an organization that is data-first, cloud, and consumerization was the other big trend. Now, I don't know if IBM's hit on all three of those yet but they're certainly working to get there. The other thing that was interesting is they talked about the data warehouse as the former king, and now process is king. What I think is interesting about that, I want to explore this with those guys, is that technology largely is well known today. People have access to technology. You can get security from-- You can log in with Twitter linked in our Facebook. You can-- Look at Uber and Waze. They're really software companies but they're built on other platforms, like the cloud, for example. These horizontal platforms. It's the processes that are new and unknown. You know, when you look at these emerging companies like Air BnB and Uber and Waze, and so forth, the processes by which consumers interact with businesses are totally changed. >> Exactly. That is what Jim and James and Inderpal were saying is that this explosion in data is really forcing companies to rethink their business models. And it's-- Their reporting structures, how they innovate, the kinds of things that they're working on, the kinds of risks that are keeping them up at night. >> Yeah, Kavanaugh cited a study for 4,000 CXOs and they said the number one factor impacting business sustainability in the next five years are technology-related. Which again, I want to poke at that a little bit, because to me technology is not the problem. It's process and skill sets and people are the really big challenges. But, I think really what I interpret from that data, what the CXOs are saying, the challenge is applying technology to create a business capability that involves all the process changes, the organizational changes, the people and skills set issues. Of course, they threw in a little fear, uncertainty, and doubt with GDPR, the recent breaches. The other big thing that you hear from IBM at these events is that IBM is a steward of your data. That it's your data, we're not going to-- They have this notion of data responsibility. He didn't mention-- He said the unnamed west coast companies. Of course, he's talking about Google and Amazon, who are sucking in our data and then advertising to us and telling us, hey there's a special and what to buy and what movie to watch, and so forth. That's not IBM's business. But, there's a nuance there that again, I want to explore with these guys if we have time is, while IBM is not taking your data and then turning it into business through advertising, IBM is training models. I'm interested in hearing IBM's response about where's the dividing line between the model-- sorry, the data, and the model. If the data is informing the model, the model then becomes IP. What happens to that IP? Does it get shared across the client base within an industry? So, I really want to understand that better. >> Right, and that is one thing that Jim Kavanaugh will talk about, definitely, is the responsibility that IBM has in terms of our data and protecting it and keeping it private. >> Yeah, so what I like about these events is they're intimate. We get into it with the CDOs. We got CDOs at banks, we have the influencer panel coming on, a lot are data practitioners. And, so much has changed over the last three or four years that we're happy to be here with the CUBE. >> It is. It's going to be a great day. So, we will have much more here at the IBM Chief Data Officer Strategy Summit. I'm Rebecca Knight for Dave Vallante. Stay tuned. (soft electronic music)