>> Narrator: From theCUBE studios in Palo Alto in Boston, it's theCUBE, covering IBM Think. Brought to you by IBM. >> Hi everybody, welcome back. This is Dave Vellante, and you're watching theCUBE's coverage of IBM Think 2020, the digital version of IBM Think and theCUBE is pleased to be providing the wall-to-wall coverage as we have physically for so many years at big IBM events. Jesus Mantas is here, he's the managing partner for Global Strategy for IBM and the Global Business Services. Jesus, great to see you, thanks for coming on. >> Great to be here, Dave. >> So, every guest that we've talked to this week, really, we've talked about COVID but just briefly. Here, we're going to do a bigger drill down and really try to get, Jesus your perspectives as an IBM's point of view on what's going on here. So let me start with, we've never seen anything like this before, obviously. I mean, there are some examples you got to go back to 1918, try to get some similarities, but 1918 is a long long time ago, so, what's different about this? What are the similarities? >> Yeah, it's, you know what Mark Twain used to say that history doesn't repeat, but it often rhymes. I think there are similarities of what we are experiencing right now in this pandemic with other pandemics like Spanish flu. I think the situation is unique in terms of the impact, and the synchronicity of that impact, right? So we can go back, whether if you want, economic crisis, or our society crisis, where you have either one country or one aspect being disrupted. But this is really society being interrupted, on a global scale. So its impact is unprecedented in that perspective in modern time, and I think all of us are adjusting to it. >> I want to ask you about digital transformation, because I've made the point that, while a lot of people talk digital transformation, there's been a lot of complacency, people say, not my lifetime, we're a bank, we're making a lot of money, we're doing okay. How do you think COVID-19 will sort of change that complacency and really accelerate digital transformation as a mindset and actually turn it into action? >> Yeah, I think the best way to put it is digital transformation five months ago was about obtaining competitive advantage and digital transformation today in many industries is about survival. That is how big of a change it is. The need for efficiency and cost savings, the need for resiliency that we have talked about, the need to be able to drive agility, to be able to switch and adapt, the need to make hyper local decisions, right, to use data, none of that can be done unless you have fully digitized processes, you are consuming local data and you have trained the people to really operate in those new, more intelligent processes. So, it has gone from optionality is okay, you can do okay but if you digitize you're going to do better to unless you digitize your business may not exist next year. I think that's the change, the change is, I think now is widely understood that the majority of our digitization processes have to be accelerated, and I would say there is a great statistic that when we go back in history, and there has been many, as I mentioned, of this crisis. You can look back at the two behaviors that businesses have, one is, to play defense and then what happens two years later, and the other one is, okay, you defense but you immediately switch to offense and then what happens two year later. Those companies that use this time to just defend and hunker down, history said in a couple of years later, 21% of them outperform. But those businesses that they shift from defense to offense and actually accelerate in these cases, programs like digitalization, 37% outperform. So, there is a premium for businesses that right now actually immediately switch to offense, focus on this set of digitalization and empowering cloud, managing data, ensuring the skills of the people, they're more likely not only to survive, but thrive in the next few years than those that just use this time to defend. >> To your point, it's about survival, it's not about, not getting disrupted, 'cause you're going to get disrupted, it's almost a certainty, and so in order to survive, you've got to digitally transform. Your final thoughts on digital transformation, then I want to ask you if there's a silver lining in all this. >> I think, what we do, we can't change the context. But we cannot let the context define who we are either as individuals or as company. What we can do, is to choose how do we act on that context. I would say, those organizations and those individuals that take advantage of the situation to understand that some of these behaviors are going to change, understand that the more that we shift technology to the cloud, the more that we shift work close to the cloud, the more that we use technologies like artificial intelligence and drive nonlinear decisions that massively optimize everything we do from the way that we deliver health care, to the way that we manage supply chains, to the way that we secure food, frankly, to the way that we protect the environment, there is a silver lining that technology it is one of those solutions that can help in all of these areas, and the silver lining of this is, hopefully, let's use this time to get better prepared for the next pandemia, to get better prepared for the next crisis, to implement technologies that drive efficiency faster, that create new jobs, that protect the environment, and while we cannot change the fact that we have COVID-19, we can change what happens after COVID-19, so what we return to is something better that what we enter before COVID-19. >> Very thoughtful commentary, Jesus. Thank you so much for coming on theCUBE, blessings to your family and yourself. >> Appreciated Dave, thank you, and thank you for everything you do to keep everybody informed. >> Really a pleasure. And thank you for watching everybody. This is Dave Vellante. You're watching theCUBE's coverage of IBM Think 2020 the digital event, to be right back right after the short break. (upbeat music)

>>Yeah, >>from The Cube Studios in Palo Alto and Boston. It's the Cube covering IBM. Think brought to you by IBM. >>Everybody welcome back. This is Dave Vellante, and you're watching the Cube's coverage of IBM. Think 2020 the digital version of IBM, thinking the Cube is pleased to be providing the wall to wall coverage, as we have physically. You know, so many years at big IBM events Spaces. Man test is here. He's the managing partner for global strategy for IBM and the Global Business Services. Jesus, great to see you. Thanks for coming on. >>Great to be here, Dave. >>So every guest that we've talked to this week really? We've talked about Cove it, but just briefly Ah, here. We're going to do a big drill down and really try to get Jesus, your perspectives and IBMs Point of view on what's going on here. So let me start with We've never seen anything like this before, Obviously. I mean, there are some examples going back to 1918. Try to get some similarities. But in 1918 was a long, long time ago. So So what's different about this? What are the similarities? >>Yeah, it's Ah, >>you know what Mark Point used to say? That history doesn't repeat, but it often rights, I think that are similar interests off what we're experiencing right now in this pandemic with Father from that makes like Spanish blue. I think the situation is unique in terms off the I'm the synchronicity of that impact. Right? So we can go back while they're everyone economic crisis or our society crisis where you have either one country of one aspect being disrupted. But this is really a society being disrupted, you know, on a global scale. So it impact is unprecedented in that in that perspective, in more than time. And I think all of us are adjusting to it. We upgrade 170 countries, so we've been able to see if you want every element of the curve off this convenient right? So from from getting back to a new normal, that is happening already in China and some of the countries in Asia Pacific to being just kind of like coming over the peat in Europe, North America, to some of the emerging countries where they're coming up. So so it gives the thing, gives us up what business continuity means and the importance of being prepared for this. I think it gives us a perspective on the health aspect of it as well as the economic impact. And most importantly, we've been very focused on aside the end. I don't have a lot of clients is figuring out what are they going to return back to when we say we want to return to work? I think is, what are we returning to? What are going to be the permanent changes? Where's the adaptation that is gonna be systemic and permanent? >>I want to ask you about digital transformation because I've made the point that, you know, while a lot of people talk digital transformation, there's been a lot of complacency. >>Digital transformation five months ago was about obtaining our competitive advantage on digital transformation. Today, in many industries, it's about survival, That is, that is how big of a change it is, the the need for efficiency and cost savings. We need local resiliency that we have talked about. They need to be able to drive agility, to be able to switch and about. They need to make hyper local decisions right to use data none of that can be done unless you have fully digitize processes. You are consuming local data and you have to train the people to really, um, operate in those new, more intelligent processes. So it has gone from Optionality is okay. You can do okay, But if you digitize your going to do better to, unless you digitize >>your business may not access next year. >>I've been just change the changes. I think now is widely understood that the majority of our digital digitization processes have to be accelerated. And I would say that is ah, great statistic that when we go back in history, Andi has been many. As I mentioned off this crisis, you can look back. The two >>behaviors that businesses have one is to play defense funding. What happens two years later on the other one is okay, you defense. But you immediately switched to offense and then what happens? Uh, two years later, those companies that use this time to just defend and hunker down history said in a couple of years later, 21% of them out there, But those businesses that they shift from defense to offense and actually accelerate in this case is, um, uh, programs like digitalization. 37% outperform. So very sad screaming for businesses that right now actually immediately switched to offense. Focus on this set of digitalization and empowering cloud managing data, ensuring the skills of the people. They're more likely not only to survive but thrive in the next three years. That don't just use this time >>to your point. It's about survival. It's not about, you know, not getting disrupted because you're going to get disrupted. It's almost a certainty. And so, in order to survive, you've got to digitally transform your final thoughts on digital transformation that I want to ask you. If there's a silver lining and all this, >>I think what we do, we can't change the conference. Um, but we cannot let the conflicts define who we are. Either It's individuals for this company. Well, we can do is to choose How do we act on that? I would say, um, those organizations and those individuals that take advantage of inspiration to understand that some of these behaviors are going to change, understand that the more that we should technology to the cloud, the more that we should workloads to the cloud, the more that we use technologies like artificial intelligence on Dr Nonlinear decisions that massively optimize everything we do from the way that we deliver healthcare to the way that we have managed supply change to the way that we secure food, frankly, to the way that we protect the environment that is a silver lining, that technology. It is one of those solutions that help in all of these areas, and the silver lining of this is is hopefully, let's use this time to get better, prepare for the next academia to get better, prepare for the next crisis. To implement technologies that drive efficiency faster. They create new jobs, they protect the environment. And what we cannot change The fact that we have 19 we can change. What happens after the 19. So we return to is something better than what we enter before. >>Very thoughtful commentary. Jesus, Thank you so much for coming on the cube. A blessing steer to your family and yourself. >>Appreciate it, Dave. Thank you. And thank you for everything You do too Well. Kept everybody informed. >>Really? Our pleasure. And thank you for watching everybody. This is Dave Vellante. you're watching the Cube's coverage of IBM. Think 2020. The digital event Right back. Right after this. Short break. >>Yeah, yeah, yeah, yeah.

[Music] from the cube studios in Palo Alto in Boston it's the cube covering the IBM thing brought to you by IBM everybody welcome back this is Dave Volante and you're watching the cubes coverage of IBM think 2020 the digital version of IBM thinking the cube is pleased to be providing the wall-to-wall coverage as we have physically for you know so many years at big IBM events hey Zeus man Tess is here he's the managing partner and for global strategy for IBM and the global business services hey Zeus great to see you thanks for coming on great to be here Dave so every guest that we've talked to this week really we've talked about Co vid but just briefly here we're gonna do a bigger drill down and really try to get hay-zu's your perspectives and IBM's point of view on what's going on here so let me start with we've never seen anything like this before obviously I mean there are some examples you gotta go back to 1918 to try to get some similarities but the 1918 is a long long time ago so so what's different about this what are the similarities yeah it's you know what Mark point is to say that history doesn't repeat but it often rhymes I think there are similarities of what we are experiencing right now in this pandemic with other than that makes like Spanish blue I think the situation is unique in terms of the image and the synchronicity of that impact right so we can go back whether you want economic crisis or our society crisis where you have either one country or one aspect being disruptive but this is really a society being disrupted you know at a global scale so its impact is unprecedented in that in that perspective in in more than time and I think all of us are adjusting to it we operate the hundred seventy countries so we've been able to see if you want every element of the curve of this convenient right so from from getting back to a new normal that is happening already in China and some of the countries in Asia Pacific to being just kind of like coming over the peak in Europe North America to some of the emerging countries where there coming up so to give back but I think gives us a good business continuity means and the importance of being prepared for this I think it gives us a perspective on the the health aspect of it as well as the economic impact and most importantly what we've been very focused as as IBM and on behalf of our clients is figuring out what are they going to return back to when we say we want to return to work I think there's what are we returning to what are gonna be the permanent changes where is the adaptation that is gonna be systemic and permanent I want to ask you about digital transformation because I've made the point that you know while a lot of people talk digital transformation there's been a lot of complacency digital transformation five months ago was about obtaining a competitive advantage and digital transformation today in many industries it's about survival that is that is how big of a change it is the the need for efficiency and cost savings they need for resiliency that we have talked about they need to be able to to drive agility to be able to switch Anna back they need to make hyperlocal decisions right to use data none of that can be done unless you have fully digitized processes you are consuming local data and you have trained the people to really operate in those new more intelligent processes so it has gone from optionality is ok you can do ok but if you digitize you're gonna do better too unless you digitize your business may not exist next year I think that's the change the changes I think now is widely understood that the majority of our digitized digitization processes have to be accelerated and I would say there is a great statistic that when we go back in history and there has been many as I mentioned of these crisis you can look back at the two behaviors that businesses have one is to play defense and then what happens two years later and the other one is okay you defense but you immediately switch to office and then what happens two year later those companies that use this time to just defend and hunker down history said in a couple of years later 21% of them out there but those businesses that they shift from defense to offense and actually accelerate in these cases are programs like digitalization 37% outperform so very supreme IAM for businesses that right now actually immediately switch to offense focus on this set of digitalization and empowering cloud managing data ensuring the skills of the people they're more likely not only to survive but thrive in the next few years that those that just used this tactic to your point it's about survival it's not about you know not getting disrupted because you're going to get disrupted it's almost a certainty and so in order to survive you've got a digitally transform your your final thoughts on digital transformation then I want to ask if there's a silver lining in all this I think what we do we can't change the context um but we cannot let the context define who we are either as individuals or as company what we can do is to choose how do we act on that content I would say those organizations and those individuals that take advantage of the situation to understand that some of these behaviors are going to check on this form that the more that we should technology to the cloud the more that we should work close to the cloud the more that we use technologies like artificial intelligence and drive nonlinear decisions that massively optimize everything we do from the way that we deliver health care to the way that we manage supply chains to the way that we secure food frankly to the way that we protect the environment there is a silver lining that technology it is one of those solutions that can't help in all of these areas and the silver lining of this is is hopefully let's use this time to get better prepare for the next bulimia to get better prepare for the next crisis to implement technologies the drive efficiency faster they create new jobs they protect the environment and while we cannot change the fact that we have only 19 we can change what happens after our puppy 19 so what we return to is something better that what we enter the very thoughtful commentary hey Zeus thank you so much for for coming on the cube a blessing steer to your family and yourself I appreciate it babe thank you and thank you for everything you do to keep everybody informed really our pleasure and thank you for watching everybody this is Dave a lotta you're watching the cubes coverage of IBM sync 20/20 the digital event we'll be right back right after short break [Music] you

>>Yeah, >>from The Cube Studios in Palo Alto and Boston. It's the Cube covering IBM. Think brought to you by IBM. >>Everybody welcome back. This is Dave Vellante, and you're watching the Cube's coverage of IBM. Think 2020 the digital version of IBM, thinking the Cube is pleased to be providing the wall to wall coverage, as we have physically. You know, so many years at big IBM events Spaces. Man test is here. He's the managing partner for global strategy for IBM and the Global Business Services. Jesus, great to see you. Thanks for coming on. >>Great to be here, Dave. >>So every guest that we've talked to this week really? We've talked about Cove it, but just briefly Ah, here. We're going to do a big drill down and really try to get Jesus, your perspectives and IBMs Point of view on what's going on here. So let me start with We've never seen anything like this before, Obviously. I mean, there are some examples going back to 1918. Try to get some similarities. But in 1918 was a long, long time ago. So So what's different about this? What are the similarities? >>Yeah, it's Ah, >>you know what Mark Point used to say? That history doesn't repeat, but it often rights, I think that are similar interests off what we're experiencing right now >>in this pandemic with father from that makes like Spanish blue. I think the situation is unique in terms off the I'm the synchronicity of that impact. Right? So we can go back while they're everyone economic crisis or our society crisis >>where you have either one country of one aspect being disrupted. But this is really a society being disrupted, you know, on a global scale. So it impact is unprecedented in that in that perspective, in more than time. And I think all of us are adjusting to it. Um, one of the points of view. Um, we've been able to if you want curate this. IBM is we upgrade 170 countries, so we've been able to see if you want every element of the curve off these convenient, right? So from from getting back to a new normal, that is happening already in China and some of the countries in Asia Pacific to being just kind of like coming over the peat in Europe, North America to some of the emerging countries where they're coming up. So so it gives thing gives us up what business continuity means and the importance of being prepared for this. I think it gives us a perspective on the health aspect of it as well as the economic impact. And most importantly, we've been very focused. Nous ous IBM. I don't have a lot of clients is figuring out What are they going to return back to when we say we want to return to work? I think is, what are we returning to? What are going to be the permanent changes? Where's the adaptation that is gonna be systemic and permanent? I'm not going to be just like, you know, we're going to get through this way. >>Whenever we had a CIO tell us that they weren't ready from a business resiliency business continuity standpoint, they said, we're we were all d are focused, very narrow. Uh, and wow, we really need to rethink that kind of another myth. Your thoughts on that? >>Correct. I think you go back the last three years. Business continuity in most of the decisions that binds would do, I would say I check on the box, right? So he was assumed that you needed to have a business. Continuity was heavily focused on disaster recovery that it was. He must evaluate it under the expectation that it decides there really happens that has now changed permanently, or at least for the foreseeable future, where business continuity is not a check on the box is actually a differentiating feature. And the differentiating feature comes from the fund that on now every one of our fines were prepared. Now every one of our competitors was prepared to the changes, the agility, the efficiency on if you want. The cloud ification of your business is the ability to provide the services in the face of a crisis that forces people to be socially distant, forces people to have to deliver from home. So that has actually become a much >>more important criterion buying decision. So So we, uh, fortunately, we have support very well in that we have 95% of IBM employees. I work from home in 99% of our global delivery centres on network is work from home. And we made that shit even before some of the country's declare that it was a stay at home or so. So that has Bean a feature that now our clients are appreciated. We've been able to to deliver those services so our clients could continue to deliver their services and going forward. I think that's gonna be a much more important if you want. A feature is how cloud ified is your delivery. How prepare are you? Not for just one crisis, but to make, probably subsequent crisis something normal, that one disrupt your operation? You just adapt. >>It's interesting. I had a conversation earlier with Ed Walsh, was one of your GM, said one of your hardware divisions. And and And he was explaining to me that, you know, across your 170 plus countries, you know, it was really the local supply chain. And he actually made the point detection really good quarter in Italy, which surprised me and he said, but they were sort of micro managing at the local level to your to your point. I want I want to ask you about digital transformation because I've made the point that, you know, while a lot of people talk digital transformation, there's been a lot of complacency because they're not in my lifetime where we're a bank. We're making a lot of money. We're doing okay. How do you think over 19 will sort of change that complacency and really accelerate digital transformation is a mindset and actually turn it into action? >>Yeah, I think the best way to put it is, um, digital transformation. Five months ago, it was about obtaining a competitive advantage on digital transformation. Today, in many industries, it's about survival. That is, that is how big of a change car it is. The the need for efficiency and cost savings, the need for resiliency that we have talked about. They need to be able to, um, to drive agility, to be able to switch and about. They need to make hyper local decisions right to use data that none of that can be done unless you have fully digitize processes. You are consuming local data and you have to train the people to really, um, operate in those new, more intelligent processes. So it has gone from Optionality is okay. You can do okay, but if you digitize, you're gonna do better to. Unless you digitize your business may not access next year. I think just change the changes. I think now is widely understood that the majority of our digital digitization processes have to be accelerated. And I would say that is, ah, great statistic that when we go back in history, Andi has been many. As I mentioned off this crisis, you can look back. The two behaviors >>that businesses have one is to play defense funding. What happens two years later on the other one is you defense. But you immediately switched to offense. And then what happens two years later? Those companies that use this time to just defend and hunker down history said in a couple of years later, 21% of them out there for But those businesses that they shift from defense to offense and actually accelerate in this case is, um uh, programs like digitalization. 37% of perform so very sad premium for businesses that right now actually immediately switched to offense. Focus on this set of digitalization and empowering cloud managing data, ensuring the skills of the people. They're more likely not only to survive but thrive in the next three years that don't just use this thanks >>to your point. It's about survival. It's not about, you know, not getting disrupted because you're going to get disrupted. It's almost a certainty. And so, in order to survive, you've got to digitally transform your final thoughts on digital transformation that I want to ask you if there's a silver lining and all this. >>No, I think I mean, um, I'd say the final thoughts is this a sigh said is, I don't think anybody anybody would say that government in and the Christ World crisis that that comes, is is anything that anybody would wish for or would help for. But we can change. I mean, that is the reality it is here. It's impact. It's devastation. Um, I think the human toll that comes from that many families that are being impacted for that, um, you know, I think my my my heart goes to roll those families, my own family. It's in the Spain, one of the worst countries in the world that is being impacted for this. Um so it's ah, it's clearly a tragedy. I think what we do we can't change the company. Um, but we cannot let the conflicts define who we are. Either it's individuals for this company. Well, we can do is to choose How do we act on that pump it? I would say, um, those organizations and those individuals that take advantage of inspiration to understand that some of these behaviors are going to change on this time, that the more that we should technology to the cloud, the more that we should Workloads to the cloud the more that we use technologies like artificial intelligence on Dr Nonlinear decisions that massively optimize everything we do from the way that we deliver healthcare. So the way that we manage supply change to the way that we secure food, frankly, to the way that we protect the environment that is a silver lining, that technology. It is one of those solutions that help in all of these areas, and the silver lining of this is is hopefully, let's use this time to get better, prepare for the next academia to get better, prepare for the next crisis, to implement technologies that drive efficiency faster, they create new jobs, they protect the environment and what we cannot change the fund that we have 19. We can change what happens after the 19 So we return to there's something better than what we enter before. >>Very thoughtful commentary. Jesus. Thank you so much for coming on the cube. A blessing Steer to your family and yourself. >>Appreciate it, Dave. Thank you. And thank you for everything. You do too well, Keep everybody informed. >>Really? Our pleasure. And thank you for watching everybody. This is Dave Volante. You're watching the Cube's coverage of IBM. Think 2020. The digital event. Right back. Right after this. Short break. >>Yeah, yeah, yeah.

>> Live from San Francisco, it's theCUBE. Covering IBM Think 2019. Brought to you by IBM. >> Welcome back to Moscone North, this is IBM Think 2019. You're watching theCUBE, I'm Stu Miniman, and we're going to dig into a segment talking about the cognitive enterprise. And helping me through that, I have one returning guest and one new guest to theCUBE, so furthest away from me, the returning guest is Jesus Mantas, who is the managing partner strategy for the digital platforms and innovation in the IBM Global business services. Jesus, welcome back. >> Thank you >> A little bit of a mouthful on the title. And Mani Dasgupta, CMO of the same group, the IBM Global business services. Thanks so much both for joining us. Alright, so cognitive enterprise. We're going to play a little game here first. Buzzword Bingo here, you know, can we talk about, what cognitive is, where you can't say AI, ML, platform, or enterprise in there. So do we start with the CMO first? >> Sure, I can go. Cognitive enterprise, those are two bing bing right there. What's your core competitive advantage, is what I would say. As a company, do you know why you exist? And once you get to that, how do you then take it to your clients, in a way that would help you grow, and sustain growth in the future. That truly is the future of a smart business, what we call the cognitive enterprise. >> So, Jesus, data is something we talk about a lot, at all the shows, we hear all the tropes about it's the new oil, the rocket fuel that are going to drive companies. You've got strategy and innovation in your title, I'd love you to build off as to where this cognitive enterprise fits in to those big trends of AI that we were talking about. Jinny was just on the keynote stage, talking about Watson, talking about all those pieces, so where does that fit with some of these megawaves that we're talking about. >> I think it's the way that we define this new, smarter organizations that use data to the fullest extent. And I think the way that we define it is, one is this reuse of data, your own data, the external data, and the way you aggregate it, the way that you apply AI or other things to use that. But the technology itself is a means to an end, it's not the end, so these organizations change the way the work flows, and they also train people to make sure that they understand how to operate in a world where they have more information and they can make better decisions with that data that they could before. All of that is what we are labeling. It's more than digital, it's more than AI. It is this concept of a cognitive enterprise. It's a smarter way to do what a company does. >> Okay, I'd love if you could give us a little bit of a compare, contrast. You know, the wave of big data was, there's massive amounts of data, we're going to allow the business practitioner, to be able to leverage that data. Was a great goal, unfortunately when we did research, at least half the time it wasn't really panning out there. Doesn't mean we didn't learn good things, and there weren't lots of great tools and business value generated out there. So, give us, you know, what's the same and what's different, as to this new wave. >> This is how do you make that data work for you, really. It is about, when you talk of data, you think of data that's out there, but 80% of the data today, is owned by you. And by you, I mean a business, right, you own your customers' data, you know your customer better than anybody else. So what do you really do with it? And we are at an inflection point right now, where these technologies that you just talked about, be it blockchain, be it internet of things, be it AI. You can truly bring the power of these technologies, to start making sense of that data that you own, and use it to create, what we call, your competitive advantage, your business platform. So, think about it, I can break it down. Would you just be a retailer of clothes? Or, would you be a fashion expert? And which one would have long-term success for you? Or if you think of a completely different industry, would you be an insurance provider, you sell insurance products, or would you be a risk management expert? That decision to be who you want to be, is really at the heart of the cognitive enterprise, and what we are proposing to the clients here. >> Alright, help frame for us your group, where that fits in. IBM sells hardware, software, has a huge services organization. What are the deliverables and the services and products involved in your group? >> Sure, we are the services organization of IBM, and one of the core reasons why we exist is to help our clients solve their toughest business problems. And so, if you think about it, you think about it as different puzzle pieces, but they don't quite always fit together. We exist to sharpen the edges, to sometimes round the edges, make it customized, make it right for you, so that at the end of the day, you're able to deliver results for your customers and be closer to them than ever before. >> The balance we look at in this multi-cloud world, it'd be nice if you have a little bit more standardization, but of course we know when we talk with businesses, every company is different and is challenging. So, where are the architectural engagements? What are the design criteria? Where is some of the hard work your group gets involved in? >> Yeah, I think we've been spending a lot of work and a lot of time on understanding how to get clients, most clients have done a lot of experimentation. But they rarely figured out how to get that experimentation into real production, at scale, with impact. So that's where we've spent a lot of the time. Fundamentally it has to do with, not only understanding Agile as a method, but being able to combine that with taking that journey all the way through to production, actually integrating with compliance requirements that, if you're in a regulated industry, you have to do, and do that in a way that doesn't become a digital island. I think what we have learned is, when companies see this big divide between, that's the legacy world and that's the new world you can never put those two together. So we came up with this concept of IBM Garage, which is the way in which our team, the services side, can actually bring it all together, and it gets massively enhanced and improved, with technology like containers, like Kubernetes, because now you can actually open up architectures, without reinventing them, and connect them with new technology, and do that synchronously. So you can basically be modernizing your legacy, you can be creating new innovation, in the form of new platforms, but you can do it at the same time, and as you do that through cycles, you also change the skillsets that you have in your company, because if you don't change that skillset, you're always going to have a problem scaling. That's what we do, that's what we help the clients do. >> Yeah, skillsets are so critical. Something we've been hearing over and over is, that whole digital transformation, this isn't some 18 to 24 month going to deploy some software, bring in a lot of consultants, they go and do it, hopefully it works and then they walk away. We're talking about much faster time frames, usually agile methodology, talk about skillset-changing. How do we help customers move fast and accelerate, because that's really the faster, faster, faster, it's just one of those driving things we hear. >> I was talking to one of the clients this morning, and what she said is, it's so helpful to have a framework, just to know where to start, and also to know, sometimes it's there in their mind, but they want to see it in front of them, how to break a problem down into smaller components, so that you can get to value faster, so we have actually a seven-step process, of the cognitive enterprise. So we start with, what is your core platform? In fact, Jesus coined this term, he calls it the digital Darwinism. Do you want to talk about the digital Darwinism, Jesus? >> Yeah, I think it reflects very well this urgency. In the analog world when most businesses are based on how clients choose you based on proximity, based on convenience, based on brand, based on trust, based on price. Even if you're not great at it, you have enough friction in an analog world, that the clients will keep coming. All of us and more of our things that we do every day, are in our phone, and they are digitally accessible, all of that friction disappears, and what happens then is, the people that are very good at something becomes, everybody goes to them, and the people that are not the best. I call it, they either thrive or they die very quickly. So in the digital world, being really good at something is a lot more important than in the analog world. You can survive being average in the analog world. Once you get to the digital world, it's transparent. Everyone will know, you're the best, you're not the best, and nobody would pick you if you're not the best, so it's really important to reconfigure yourself, and understand the trust and your brand, understand how digitally you translate what you are, and then make sure that your clients will keep choosing you in a digital world as much as they were choosing you in an analog world. >> I tell you, that resonates really well with me. The old line you used to hear is, if you want to get something done, give it to someone who's really busy, because they will usually figure out a way to do it. I spent a handful of years in my career doing operations, and what I did when I was in operations, when I talked to people in IT, is tell me next quarter and next year, do you think you're going to have more or less work more data to deal with, more thing thing, and of course the answer is, we all know that pace of change is the only thing that's constant in this industry. So, if I don't figure out how I automate, change, or get rid of the stuff that I'm not good at, we're just going to continue to be buried. Are there commonalities that you see, as success factors or how do you help measure, what are some key KPIs that customers walk out of, when they go through an engagement like this? >> Yeah, just carrying on from where Jesus left off, the second step is very close to what you were just saying. It's about the data and how you're using that data. So some of the key success factors would be, what is the output of it, and it's not in the proof of concept phase anymore. It is real-time, it is big, people are doing it at a grand scale. I think, Jesus, maybe we take it through the seven steps, and then the key success criteria comes right at you, right after that. So after you do the workflow, after you do the data for internal competitive advantage, we go to the next step, which is all about workflows. You want to talk a bit about that? >> Yeah, I think one of the advantages that artificial intelligence brings to companies is, the fact that you can now, I mean as a human, there is only so much data that you can ingest. There is a limit, and most businesses try to optimize what that is and how you make decisions. But, artificial intelligence becomes this aid that will read and summarize things for you. So now you can take into account, into workflows, massive amounts of information, to optimize, or even not having to do things you had to do before, at a scale that, as a human you cannot do. This idea of inserting AI into workflows is the real idea. I think we talk a lot about AI as a technology, but that's just a means to an end. The end is a workflow that is embedded with blockchain, with AI, with IOT, and then people that are trained to engage with those workflows, so you actually change the output. And I think that's the big idea, that step of, it is workflow that is embedded with AI, it's not just about the technology, it's the combination of the main industry, and the technology that actually creates that >> And where does it sit, right? Where does it sit? Your tech choices, the architecture choices are also important. And we joked about this, like if you really like Netflix, and you're watching something and something is coming up after three seconds, how does it know what you really like? But it does, but think about this. This wouldn't be possible on a 1950s television set. So you've got to think about what's your tech platform of choice, how do you upgrade that, and what's the architecture look like? >> I want to give you both the final word. Lots of users here at the show. What are you most excited about? Give us an insight on some of the conversations you've been having already. >> Amazing conversations so far. The really aha-moment was, people really like to share within their peer set, so this morning I was at the business exchange, and people were having conversations, but just to bounce it off someone, who is facing the same issues that you do, across different industries, was a really aha-moment, and we have the IBM Garage actually right behind us on the other side of Moscone. We set it up so that clients can come in, and unpack their problems, and we helped them think it through, used design thinking, help them think it through. We are hoping in the next couple of days, we get lots of brilliant ideas, come from the sessions like that, and really putting the customer at the core of what you want to do. >> It's a recurring theme of all the client conversations, this idea of, they all want the speed and agility of a startup at the strength and scale of an enterprise. That's what they're asking us, as the services organization of IBM, to do is, help us not just experiment, that was good before, not good enough now. Help us do that with agility, with new technologies, but we want it to mean something at scale, globally implement it, create an impact. And I think again, the way in which hybrid multi-cloud can play into that, the way in which IBM Garage can combine the legacy world with the new world and moving people into new platforms is a really exciting method and approach that is resonating a lot with clients. >> Really appreciate you both sharing updates and absolutely as you painted a picture, just as in 1950 we didn't have the tools to run Netflix, now in 2019, we have the tools for customers to be able to help build the cognitive enterprise and not only test but get into real-world deployment at a speed that was really unheralded before today. Thanks so much for joining. We'll be back with more coverage here from IBM Think 2019. I'm Stu Miniman, and thanks for watching theCUBE. (upbeat techno music)

(inspiring piano and string music) >> Announcer: Live from Fisherman's Wharf in San Francisco, it's theCUBE, covering IBM Chief Data Officer Strategy Summit Spring 2017. Brought to you by IBM. >> Hey, welcome back, everybody. Jeff Frick here with theCUBE. We're in downtown San Francisco at the IBM Chief Data Officer Strategy Summit Spring 2017. That's a mouthful, but it's important because there's a series of these strategy summits that are happening not only in the United States, but they're expanding it all over the world, and it's really a chance for practitioners to come together, the chief data officers, to share best practices, really learn from the best, and as we love to do on theCUBE, we get the smartest people we can find, and we have them here. So first off, let me introduce Peter Burris, Chief Research Officer from Wikibon, but from IBM coming right off the keynote-- >> The smart people. >> The smart people, Inderpal Bhandari, he is the IBM Global Chief Data Officer, which is a short title and a big job, and Jesus Mantas, he's the General Manager, Cognitive Transformation, IBM Global Business Services. First off, gentlemen, welcome. >> Thank you. >> Thank you. >> It's really interesting how this chief data officer space has evolved. We've been watching it for years, back to some of the MIT CDOIQ, I think like three or four years ago nobody knew who they were, who were they going to report to, what are they going to do, what's the scope of the job. That's changed dramatically, and it really says something to IBM's credit that they just went out and got one to help really to refine and define for your customers where this is going. So first off, welcome, and let's get into it. How is the role starting to solidify as to what do chief data officers do? >> So, I'll take that. In terms of chief data officers, if you think in terms of the advent of the position, when it started out, I was one of the earliest in 2006, and I've done the job four times, and it has been continuously evolving ever since. When the job was first, in my very first job, I actually had to create the job because there was a company very interested in recruiting me, and they said they sensed that data was critical. It was a company in pharmaceutical insurance, so really very data based, right, everything is driven through data. And so, they had a sense that data was going to be extremely important, extremely relevant, but they didn't really have the position, or they didn't coin the phrase. And I suggested that there were three other chief data officers at that time in the U.S., and so, I became the fourth. At that time, it had to do with, essentially aligning data with strategy, with the strategy of the company, which means how is the company actually planning to monetize itself? Not its data, but itself. And then, essentially make sure that the data is now fit for purpose, to help them with that monetization. And so, that's all about aligning with the corporate strategy, and you have to have an officer who's capable of doing that and has that focus and is able to push that because then, once you start with that strategy, and then, there are plenty of different branches that shoot off, like governance, centralization of data, analytics, data science, and so on and so forth, and then, you have to manage that process. >> And data used to be kind of a liability, hard to think today looking back, 'cause you had to buy servers and storage, and it was expensive, and what do you do with it all? You can't analyze it. Boy, how the world has flipped. Now, data is probably one of your most important assets, but then, the big question, right, what do you do with it to really make it an asset? >> It is, it is, and it's actually fascinating to see here in the summit how even the role that was created in a few years, chief data officer, is coupled with this change in the nature of the value of that role has changed. To your point, I remember meeting some CIO friends 10 years ago that they were telling me how they were deleting data because it was too costly to have it. Now, those same CIOs would give whatever they could have to get that data back and have that history and be able to monetize the data. Because of the evolution of computing, and because now, not only the portion of the physical world that we've been able to represent with data for the last 50 years with information technology, but we're adding to that space all of this 80% of the data that even if digitized we were unable to use in processes, in decision making, in manufacturing. Now we have cognitive technology that can actually use that data, the role of the chief data officer is actually expanding significantly from what used to be the element of data science, of data governance, of data sovereignty, of data security, to now this idea of value creation with basically five times more categories of data, and it actually is a dialogue that we're having here at the summit that is the fascinating from the people who are doing this job every day. >> If you think about the challenges associated with the chief data officer, it's a job that's evolving, but partly one of the reasons why the chief data officer job is evolving is the very concept of the role that data plays in business is evolving, and that's forcing every job in business to evolve. So, the CMO's job's evolving, the CEO's job's evolving, and the CIO's job is evolving. How are you navigating this interesting combination of forces on the role of the CDO as you stake out, this is the value I'm going to bring to the business, even as other jobs start to themselves change and respond to this concept of the value of data? >> People ask me to describe my job, and there are just two words that I use to describe it. It's change agent, and that's exactly how a CDO needs to be, needs to look at their job, and also, actually act on that. Because to your point, it's not just the CDO job is evolving, it's all these other jobs are all evolving simultaneously, and there are times when I'm sitting at the table, it appears that, well, you don't really own anything because everybody else owns all the processes in the business. On the other hand, sometimes you're sitting there, and you're thinking, no, you actually own everything because the data that feeds those processes or comes out of those process is not coming back to you. I think the best way to think about the CDO job is that of a change agent. You are essentially entrusted with creating value from the data, as Jesus said, and then, enabling all the other jobs to change, to take advantage of this. >> 'Cause it's the enablement that that's where you bring the multiplier effect, it's the democratization of the data across the organization, across business roles, across departments is where you're going to get this huge multiplier. >> Yeah, and I think the role of one of the things that we're seeing and the partnership that Inderpal and I have in the way that we do this within IBM, but also, we do it for the rest of our clients is that change agency element of it is the constant infusion of design. Chief data officers were very well-known for the data science elements of it, but part of the constraint is actually no longer the computing capability or the algorithms themselves or the access to the data, which solved those constraints, is now actually preparing the business leaders to consume that and to actually create value, which changes the nature of their job as well, and that's the resistance point where embedding these technologies in the workflows, in a way that they create value in the natural flow of what these jobs actually do is extremely important. Otherwise, I mean, we were having a fascinating discussion before this, even if the data is correct, many business leaders will say, "Well, I don't believe it." And then, if you don't adopt it, you don't get the value. >> You guys are putting together this wonderful community of CDOs, chief data officers, trying to diffuse what the job is, how you go about doing the job. If you're giving advice and counsel to a CEO or board of directors who are interested in trying to apply this role in their business, what should they be looking for? What type of person, what type of background, what type of skills? >> I'll take it, and then, you can. I think it's almost what I would call a new Da Vinci. >> Peter: A new Da Vinci? >> A new Da Vinci is the Renaissance of someone that is, he's got a technology background, because you need to actually understand the mathematical and the data and the technology co-engineering aspect. >> So, if not an IT background, at least a STEM background. >> Exactly, it's a STEM background, but combined with enough knowledge of business architecture. So I call it Da Vinci because if you see the most remarkable paintings and products of Da Vinci was the fusion of mathematics and arts in a way that hadn't been done before. I think the new role of a data science is someone that can be in the boardroom elegantly describing a very sophisticated problem in a very easy to understand manner, but still having the depth of really understanding what's behind it and drawing the line versus what's possible and what's likely to happen. >> I think that's right on. I think the biggest hurdle for a chief data officer is the culture change, and to do that, you actually have to be a Da Vinci, otherwise, you really can't pull that off. >> Peter: You have to be a Da Vinci? >> You have to be a Da Vinci to pull that off. It's not just, you have to appreciate not just the technology, but also the business architecture as well as the fact that people are used to working in certain ways which are now changing on them, and then, there is an aspect of anxiety that goes with it, so you have to be able to understand that, and actually, perhaps even harness that to your advantage as you move forward as opposed to letting that become some kind of a threat or counterproductive mechanism as you move forward. >> I've done a fair amount of research over the years on the relationship between business model, business model design profitability, and this is, there's a lot of different ways of attacking this problem, I'm not going to tell you I have the right answer yet, but one of the things that I discovered when talking to businesses about this is that often it fails when the business fails to, I'm going to use the word secure, but it may not be the right word, secure the ongoing rents or value streams from the intellectual property that they create as part of the strategy. Companies with great business model design also find ways to appropriate that value from what they're doing over an extended period of time, and in digital business, increasingly that's data. That raises this interesting question, what is the relationship between data, value streams over time, ownership, intellectual property? Do you have any insight into that? It's a big question. >> Yeah, no no, I mean, I think we touched on it also in the discussion, both Jesus and I touched on that. We've staked out a very clear ground on that, and when I say we, I mean IBM, the way we are defining that is we are pretty clear that for all the reasons you just outlined, the client's data has to be their data. >> Peter: Has to be? >> Has to be their data. It has to be their insight because otherwise, you run into this notion of, well, whose intellectual property is it, whose expertise is it? Because these systems learn as they go. And so, we're architecting towards offerings that are very clear on that, that we're going to make it possible for a client that, for instance, just wants to keep their data and derive whatever insight they can from that data and not let anybody else derive that insight, and it'll be possible for them to do that. As well as clients where they're actually comfortable setting up a community, and perhaps within an industry-specific setup, they will allow insights that are then shared across that. We think that's extremely important to be really clear about that up front and to be able to architect to support that, in a way that that is going to be welcomed by the business. >> Is that part of the CDO's remit within business to work with legal and work with others to ensure that the rules and mechanisms to sustain management of intellectual property and retain rents out of intellectual property, some call it the monetization process, are in place, are enforced, are sustained? >> That's always been part of the CDO remit, right. I mean, in the sense that even before cognition that was always part of it, that if we were bringing in data or if data was leaving the company that we wanted to make sure that it was being done in the right way. And so, that partnership not just with legal but also with IT, also with the business areas, that we had to put in place, and that's the essence of governance. In the broadest sense, you could think of governance as doing that, as protecting the data asset that the company has. >> They have the derivatives now, though. You're getting stacked derivatives. >> Inderpal: It's much more complicated. >> Of data, and then insight combined, so it's not just that core baseline data anymore. >> And I like to make it an element. You've heard us say for the last five years we believe that data has become the new natural resource for the business. And when you go back to other natural resources, and you see what happened with people that were in charge of them, you can kind of predict a little bit that evolution on the chief data officer role. If you were a landowner in Texas when there was no ability to basically either extract or decline petroleum, you were not preoccupied with how would you protect land rights under the line that you can see. So, as a landowner you have a job, but you were basically focused on what's over the surface. Once actually was known that below the surface there was massive amount of value that could be obtained, suddenly that land ownership expanded in responsibility. You then have to be preoccupied, "Okay, wait a minute, who owns those land rights "to actually get that oil, and who's going to do that?" I think you can project that to the role of the chief data officer. If you don't have a business model that monetizes data, you are not preoccupied to actually figure out how to govern it or how to monetize it or how to put royalties on it, you are just preoccupied with just making sure that the data you have, it was well-maintained and it could be usable. The role's massively expanding to this whole below the line where not only the data is being used for internal purposes, but it's becoming a potential element of a strategy that is new. >> The value proposition, simply stated. >> Jesus: Value proposition, exactly. >> But you're right, so I agree with that, but data as an asset has different characteristics than oil as an asset, or people as an asset. People can effectively be applied to one thing at a time. I mean, we can multitask, but right now, you're having a conversation with us, and so, IBM is not seeing you talk to customers here at the show, for example. Data does not follow the economics of scarcity. >> Jesus: Right. >> It follows a new economics, it's easy to copy, it's easy to share. If it's done right, it's easy to integrate. You can do an enormous number of things with data that you've never been able to do with any other asset ever, and that's one of the reasons why this digital transformation is so interesting and challenging, and fraught with risk, but also potentially rewarding. So, as you think about the CDO role and being the executive in the business that is looking at taking care of an asset, but a special type of asset, how that does change the idea of taking care of the energy or the oil to now doing it a little bit differently because it can be shared, because it can be combined. >> I mean, I think in the way as technology has moved from being a mechanism to provide efficiency to the business to actually being core to defining what the business is, I think every role related to technology is following that theme, so I would say, for example, Inderpal and I, when we're working with clients or on our models, he's not just focused on the data, he's actually forming what is possible for the business to do. What should be the components of the new business architecture? It's this homogenized role, and that's why I kept saying it's like, you could have been one of those Da Vincis. I mean, you get to do it every day, but I don't know if you want to comment on that. >> I think that's exactly right. You are right in the sense that it is a different kind of asset, it has certain characteristics which are different from what you'd find in, say, land or oil or something like a natural resource, but in terms of, and you can create a lot of value at times by holding onto it, or you could create a lot of value by sharing it, and we've seen examples of both metaphors. I think as part of being the CDO, it's being cognizant that there is going to be a lot of change in this role as data is changing, not just in its nature in the sense that now you have a lot more unstructured data, many different forms of data, but also in terms of that's application within the business, and this expansion to changing processes and transforming processes, which was never the case when I first did the job in 2006. It was not about process transformation. It was about a much more classic view of an asset where it's, we create this data warehouse, that becomes the corporate asset, and now, you generate some insights from it, disseminate the insights. Now it's all about actually transforming the business by changing the processes, reimagining what they could be, because the nature of data has changed. >> I have one quick question. >> Last one. >> Very quickly, well, maybe it's not a quick question, so if you could just give me a quick answer. A couple times you both have mentioned the relationship between the CDO and business architecture. Currently, there's a relationship between the CIO and IT architecture, even the CIO and data architecture at a technical level. At IBM, do you actually have staff that does business architecture work? Is there someone, is that a formal, defined set of resources that you have, or should CDOs have access to a group of people who do business architecture? What do you think? >> We've traditionally had business architects at IBM, I think for a long time, that predates me. But again, as Jesus said, their role is also evolving. As it becomes much more about process transformation, it's different than it was before. I mean, this is much more now about a collaborative effort where you essentially sit down in a squad in an agile setting, and you're working together to redesign and reinvent the process that's there. And then, there's business value. It's less about creating large monolithic architectures that span an entire enterprise. It's all about being agile, data-driven, and reacting to the changes that are happening. >> So, turning strategy into action. >> Yes. >> And I think, again, in IBM, one of the things that we have done, our CIO, that is the organization that actually is the custodian of this cognitive enterprise architecture of which Inderpal actually is part of. So, we are actually putting it all together. It used to be an organization. Most COOs have evolved from running operations to defining shared services to now have to figure out what is the digital services version of the enterprise they need to implement, and they can't do that without a CDO in place, they just can't. >> Alright, gentlemen. Unfortunately, we'll have to leave it there. For viewers at home, tune into season two with Inderpal and Jesus. Really a great topic. Congratulations on the event, and we look to forward to the next time. >> Thank you. >> Thank you very much. >> Absolutely. With Peter Burris, I'm Jeff Frick. You're watching theCUBE from the IBM Chief Data Officer Strategy Summit Spring 2017. Be right back with more after this short break. Thanks for watching. (electronic keyboard music)