IBM Watson agrees to help Lotte Group to transform business

IBM Corporation

IBM has signed an agreement with the Lotte Group to provide cloud-based Watson solutions to help the Group deliver innovation across the business.

Lotte Group represents the country’s largest retailer and is one of Korea’s top five companies, providing products and services to its customers through online channels, mobile services and offline department stores, marts, convenience stores and duty-free shops.

Lotte Group will use Watson technologies to maximize insights from the huge amount of structured and unstructured customer data collected through its various channels.

With Watson in action, Lotte will be able to offer more personalized services to customers, consistent product information and expert advice tailored to individual customer needs.

Lotte Group CEO Hwang Gak-gyu said, “With cognitive technology, Lotte will deliver new value and innovation for the future. Over the years, IBM has consistently made long-term investments in cognitive computing which is backed by a broad portfolio of industry solutions and services from consulting to enterprise-class computing, system integration and IT operations.”

This agreement prioritizes two “Artificial Intelligence Innovation Themes” for which to apply Watson. Lotte and IBM will team to create an ‘Intelligent Shopping Advisor’ for customers and an internal employee ‘Cognitive Business Decision Advisor’ for the Group’s retail affiliates.

The ‘Intelligent Shopping Adviser’ will be first introduced to Lotte’s department stores. Customers will have their own virtual personal assistant offering help from product recommendations, shop location guidance, to support for online pickup service.

Customers will benefit from greater convenience and an enhanced customer experience as they interact, in natural language, with a service that understands the questions asked, in the context of the individual shopper’s needs.

In combination with the ‘Intelligent Shopping Advisor’, Lotte will adopt a ‘Cognitive Business Decision Advisor’ that employees can leverage for new product development across the organization.

Within the next five years, Lotte plans to build and upgrade its artificial intelligence-based application for business innovation to support personalized services throughout the customer life cycle.