You, with IBM.

1 You, with IBM annual Report2016 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 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 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 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.

2 And we believe that you can make our world healthier, safer, more productive, more creative, is a world we all want to live in. The world you re building, with Oncologistscan find more targeted cancer treatment doctor can keep up with the onrush of oncology studies published every week, much less determine which apply to each patient. But Watson can. Trained for 15,000 hours by specialists at Memorial Sloan Kettering Cancer Center in New York, Watson has ingested nearly 15 million pages from relevant journals and textbooksand continues to expand its knowledge. This expertise is now flowing around the world and informs evidence-based treat-ment options for clinicians serving patients globally. Sites include six Manipal Hospitals in India, Bumrungrad International 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.

3 Elsewhere, in trials at the University of North Carolina s Lineberger Comprehensive Cancer Center, Watson suggested potential treatment options that the tumor board hadn t considered in one third of addition, doctors are better able to understand their patients unique needs, right down to the genetic level. Watson for Genomics absorbs 10,000 new medical articles and details from 100 clinical trials every month. It applies what it learns to 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 personalized treatment for their powerful new tool is helping even those patients who cannot travel to a specialized medical center. Through Quest Diagnostics, it is available to any oncolo-gist in the United States, as an end-to-end solution.

4 Illumina plans to integrate it with a tumor-sequencing workflow to provide oncologists cognitive information on-site. Doctors anywhere can know the latestadvances IBM: Healthcare data is growing 48 percent per year and will likely exceed 2,300 exabytes by 2020. It pours in from new research, electronic medical records, imaging, wearables and epidemiological monitoring, along with all the environmental factors that affect our health. It can be overwhelming for doctors, but in all that data lie vital clues to the next medical breakthroughs, cures and efficiencies. And now best practices and advanced expertise can go global quickly, changing the very nature of wellness and Health100 MElectronichealthrecords200 MClaims30 BMedicalimages032016 annual Report2. Medical Researchers can speed discovery of genes that cause can find secrets hidden in every help people manage their diabetes between visits.

5 4. Hospital Administrators can improve the health of the health now be experton every Central New York Care Collaborative (CNYCC) is working with Watson Health to create one of the first regional cognitive population health platforms in the United States. It will connect 2,000 care providers in Upstate New York, integrating clinical, social and behavioral data to produce holistic views of patients helping doctors and clinicians make more-informed decisions and promote healthier behavior. CNYCC s goal is value-based care that reduces emergency room visits and avoidable hospital stays by 25 percent over five years improving health while lowering Medicaid doctors treat one species: humans. Veterinarians may treat dozens of species and an even greater number of cat and dog breeds. And their patients can t describe their symptoms.

6 That s why IBM has worked with vets to build an online tool that uses Watson. It can scan hundreds of thousands of pages of med-ical resources, helping vets customize treatment options, stay current with best practices and identify medical differences among even very similar breeds. Watson can help veterinarians treat hundreds of dog and cat breeds with more lateral sclerosis, or ALS (also known as Lou Gehrig s disease), has no effective treatment and typically kills within five years. Barrow Neurological Instituteresearchers employed Watson for Drug Discovery to study nearly 1,500 genes in the human genome, and found five that had never before been associated with ALS. Researchers say that such a discovery, which took months with Watson, would have previously taken years and gives them a much clearer idea of what to target for therapy when developing new review dozens of medical images for every patient they see often hundreds in a day.

7 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 can then focus on the ones that matter and apply their expertise more quickly. Watson can also retrieve similar images from other cases for comparison to help doctors confirm or refine their with diabetes will benefit from an app called that draws data from physician-prescribed Medtronic devices. The app connects to cognitive analysis in the IBM Cloud to reveal patterns and personalized insights, helping users better understand in real time how their behaviors affect glucose levels. With Watson, a future version is expected to incorporate features that in tests have predicted hypoglycemic incidents within a 2- to 3-hour window with nearly 90 percent predicting hypoglycemic incidents90% Engineers turn social media activity into a test Stadium Architects can create winning experiences for every IBM, the NFL s Atlanta Falcons and MLS Atlanta United are building the most technologically advanced stadium in the world.

8 Set to open this summer, the new Mercedes-Benz Stadium will deliver personalized experiences for each attendee, while giving the stadium an entirely new 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 rebuildingthe world. The new Mercedes-Benz Stadium will be the world s most at The Dow Chemical Companyare listening to social media to quickly identify and speed to market new solutions that use the company s advanced polymers. With analytics from IBM, these engineers can anticipate consumer demand for new products. These insights allow them to improve everything from running shoes to seals for car IBM: Engineers can anticipate failuresbefore they Watson s cognitive abilities, specialists for oil and gas companies can now predict and prevent pipeline failures almost a week in advance.

9 IBM business partner SparkCognition is using Watson to analyze thousands of pipeline sensors, and monitor cracks, vibrations, overheating and other factors. Engineers are now able to predict and address pipeline failuresas early as six days in advance, 24x better than before. Cognitive technologies help maintain oil and gas annual Engineers are going the extra 19,000 miles for Geoscientists know where and when to Shipbuilders can hit the water more day, million passengers travelwithSNCF, France s major railway improve efficiency and customersatisfaction, railway engineers are equip-ping 30,000 kilometers of track, 15,000trains and 3,000 stations with sensors, allconnected to the Watson IoT Platform. Bymonitoring data in real time, engineers andoperators can improve quality, security andavailability of uses the IBM Cloud to runsophisticated oil reservoir simulations thathelp it better understand how complex oiland gas fields might behave under differentdevelopment scenarios.

10 With insights fromhundreds of models, petroleum engineersand geoscientists can optimize drillingdecisions to reduce costs and increaseproduction shaping how billions of dollarsmay be spent on large oil sFincantieri is speeding the creationof new cruise ships and naval vessels witha hybrid cloud solution from IBM. By con-necting 13 private distributed data centerswith IBM s Cloud Data Center in Milan,Fincantieri now has an IT infrastructure thatsupports a compute-intensive design andmanufacturing system, allowing designersand engineers to more fluidly manage theprocess from design to Engineers are building cars that converse with drivers, passengers and each 2020, an estimated 83 million cars will connect to the Internet each with hundreds of sensors on board. With this future in mind, General Motors, BMW and Local Motors are now using Watson to build the world s first generation of cognitive driving machines.