 Live from Boston, Massachusetts, it's theCUBE. Covering IBM Chief Data Officer Summit, brought to you by IBM. 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 Cavanaugh. He is the Senior Vice President of Transformation and Operations at IBM, and Inderpal Bandari. He is 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 keynote today, and Jim, you were talking about how we're at a real seminal moment for businesses, with this digital explosion in digital and data. CDOs 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 keynote to your point, I truly believe that all businesses in every industry are at a true seminal moment. Why? Because this phenomenon of digital disruption is impacting everything, changing the nature of competition, altering industry structures, and forcing companies to really rethink their design of business at its core. And that's what we've been doing here at IBM. Trying to understand how we transition from an old world of going after pure efficiency, just by getting after economies of scale, process standardization, to really now, 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 your knowledge. Inderba, when we first met last year, you had a lot of knowledge up here, but you didn't have the cognitive blueprint. So you were sharing your experiences, but a year plus in now, you've developed this cognitive blueprint that you're sharing with 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, right? 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, organizational considerations and cultural considerations, data, and also business process. So we're not just documenting that, but we're actually sharing not just those documents, but the architectures, 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 fundamental shifts going on that are relevant obviously for IBM and your client's 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 wanted to ask you, square the circle for me, data warehouse used to be the king. It was like, I remember those days. It was tough. And technology was very difficult. 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 in process? How does that fit in to that transformation that you talked about? Well, the survey that you talked about came from our global business 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 the 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 identified. 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 Interpol has talked about, which everything starts with the foundation of your data architecture, strategy governance, and then business process optimization, and then determining your systems 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 getting after with Interpol 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 overall. And part of that is responsibility for data ownership and 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. But I want to press on that a little bit because data scientists, you guys got a lot of them, especially after acquiring the weather company, they will use data to train models. Those models, the IP data seeps into those models. How do you protect your clients from that IP seepage? Maybe you could talk about that. Talk about trust as a service and what it means. You know, and I mentioned that in my talk at the keynote, that 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 its clients and customers. So in our mind, we're very clear that the client's data is their data. But not only that, if there's insights drawn from that data, that insight too belongs to them. And so we're 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. It's 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 Rometti has just published around data responsibility at IBM. Great. Well, thank you so much, Inderpaul, Jim. We really appreciate you coming on theCUBE. Great. Thank you. We will have more from the IBM Chief Data Officer Strategy Summit just after this.