Editor’s note: Stephen Belanger is a research analyst with Technology Business Research.

HAMPTON, N.H. – On Wednesday, IBM (NYSE: IBM) took a major step to commercialize its Watson cognitive computing technologies by teaming with USAA, a financial services provider for members of the U.S. military and their families. TBR believes USAA’s adoption of IBM Watson will support the unit’s brand reputation and recognition among consumers. Additionally, TBR believes the deal will help to solidify the value proposition of Watson by providing the platform’s first large-scale use case.

USAA will offer IBM’s Watson Engagement Advisor to customers leaving the military to provide advice about transitioning back to civilian life. IBM Watson analyzed more than 3,000 documents regarding military transitions for the “Ask Watson” feature, which is capable of answering more than 2,000 customer questions and providing advice in conversational English.


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IBM’s deal with USAA is the debut of Watson as a commercialized, consumer-centric application, and it is a significant step, as approximately 155,000 members of the U.S. military transition to civilian life each year. Additionally, the deal will bolster the Watson brand among end-users as USAA customers help to spread the word about Watson software’s capabilities.

Previously, IBM employed Watson in limited consumer use cases to test the platform’s viability. For example, IBM invested in the social health management application developer Welltok for the development of Welltok’s CaféWell health optimization platform.

IBM and Welltok jointly developed CaféWell Concierge, a Watson-powered app that enables users to consult health experts and coaches as well as receive personalized health itineraries to guide users on a path to wellness.

While IBM’s deal with USAA is a key step to commercialize the Watson portfolio, TBR believes the firm must use effective messaging to persuade customers to use technology rather than trained employees for assistance in major life decisions. As enterprise marketing, sales and customer service increasingly shifts toward online, mobile and social media solutions, IBM will leverage Watson to take advantage of these trends. Additionally, working with companies such as USAA and Apple, which have leading customer penetration and awareness, will help IBM reinvent its image into an outcome-based solutions provider.

Ultimately, TBR believes IBM’s deal with USAA will go a long way to solidify the value proposition of Watson by providing the portfolio’s first major consumer-centric use case. Going forward, TBR expects IBM will seek similar engagements to further commercialize Watson, which will help to augment its ailing hardware portfolio and justify the firm’s $1 billion investment to create the Watson business unit in January.

(C) TBR