New Intelligence for Smarter Business
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1 New Intelligence for Smarter Business Phillip Beniac Director Analytics & Performance Management, APJ IBM Software Group 2009 IBM Corporation
2 Smarter Business Faster, better outcomes and results Today s focus Optimize Innovate Make your business smarter, more efficient, more effective
3 Transform Your Business with Information
4 Transform Your Business with Information Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT
5 Transform Your Business with Information Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT
6 By Exabytes
7 By Exabytes 200 billion s
8 By Exabytes 200 billion s 19+ hours per week
9 By Exabytes 200 billion s 19+ hours per week 1 in 3 Managers
10 By Exabytes 200 billion s 19+ hours per week 1 in 3 Managers
11 BI and Analytics is critical for driving Competitive Advantage Ten Most Important Visionary Plan Elements Interviewed CIOs could select as many as they wanted Business Intelligence and Analytics Virtualization Risk Management and Compliance 80% 77% 76% 73% 70% 86% Mobility Solutions Customer and Partner Collaboration Self-Service Portals 64% 63% 66% 71% 71% 73% Application Harmonization Business Process Management 62% 61% 67% 70% 68% SOA/Web Services 55% 63% Unified Communication 57% BI/Analytics #1 investment to improve competitiveness Low growth High growth Source: IBM Global CIO Study 2009; n = 2345 IBM Global CIO Study 2009
12 A Shift is Underway New investments are going into business optimization 2X faster Business Automation $566B 3% CGR Application-Led Transformation Major focus over last two to three decades Business Optimization $105B 8% CGR Information-Led Transformation Major focus now IT Spending Estimates, 2009* * Includes Hardware, Software and Services. Does not include Networking, Printer, or Standalone Printer or PC Markets. CGRs Opportunity estimates based on analysis done by the IBM Market Intelligence Department. IBM Market Intelligence data is provided for illustrative purposes and is not intended to be a guarantee of market opportunity. 12
13 Next Generation of efficiencies come from optimizing every decision, transaction or process at the point of impact Foundational Sense and respond Back office Skilled analytics experts Instinct and intuition Automated Breakaway Predict and act Point of impact Everyone Real-time, fact-driven Optimized
14 Imagine If You Could predict and treat infection in premature newborns 24 hours earlier? adjust credit lines as transactions are occurring to account for risk fluctuations? determine who to offer discounts at time of sale instead of offering to all? apply inferred social relationships of customers to prevent churn? Physician Loan Officer Retail Sales Associate Telco Call Center Rep optimize every transaction, process and decision at the point of impact, based on the current situation, without requiring that everyone be an analytical expert
15 Financial Risk Insight Customer & Product Profitability Workforce Optimization Business Optimization Dynamic Supply Chain Multi-channel Marketing Core & Other Operational Systems
16 SMART MERCHANDISING & SUPPLY CHAIN Dynamically manage and deliver Operates Wendy s NZ outlets assortments based on customer input 15+ stores and insights. Wendco Challenge To be more responsive to the customer service needs at the store level. By way of analyzing customer buying patterns near real time so being able to run more effective marketing promotions.
17 SMART MERCHANDISING & SUPPLY CHAIN Dynamically manage and deliver Operates Wendy s NZ outlets assortments based on customer input 15+ stores and insights. Wendco Challenge To be more responsive to the customer service needs at the store level. By way of analyzing customer buying patterns near real time so being able to run more effective marketing campaigns and promotions. Results Marketing: Can see within a day have a detailed analysis of the effectiveness of a promotion. Finance: Has an alert that highlights variances between store takings and the recorded sales. District Managers: Has an alert when the speed of services targets are not met. Quote: Wendy s could have carried on without the detailed business information it now enjoys. But it would have left it flying blind in an increasingly competitive market."
18 SMARTER OPERATIONS Improve management across labor, Operates Burger King NZ outlets assets and 69+ stores open 24 hours business. processes TPF Challenge Focus on three core areas for a fast-food company: 1) Sales. 2) inventory management and 3) speed of service.
19 SMARTER OPERATIONS Improve management across labor, Operates Burger King NZ outlets assets and 69+ stores open 24 hours business. processes TPF Challenge Focus on three core areas for a fast-food company: 1) Sales. 2) inventory management and 3) speed of service. Results Now able to serve up its meals three to five seconds faster than last year. Cut 15 hours off the time staff used to spend reconciling and dispatching reports Cut food wastage costs. System paid for itself in three months Quote: Over the past six months the group has seen a 0.25 per cent reduction in costs as a proportion of total revenue. That, for a company our size, is a huge amount of additional revenue."
20 Predictive Analytics Mid Market Office of Finance Solutions Performance Management System Analytic Applications Industry Focus & Blueprints
21 Predictive Analytics Mid Market Office of Finance Solutions Performance Management System Analytic Applications Industry Focus & Blueprints
22 Moves beyond Sense & Respond to Predict & Act At the time and point of impact!
23 To Optimize Business Performance, Decision Makers Must Answer Key Questions How are we doing? Why are we on/off track? What should we do next? 23
24 IBM Cognos BI and Performance Management Capabilities Helps Decision Makers Find the Answers How are we doing? Why are we on/off track? What should we do next? 24
25 SPSS Enables New Solution Value for IBM Cognos Customers How are we doing? Why are we on/off track? What should we do next? Addition of of KPPs KPPs (Key (Key Performance Predictors) New New customer insight insight through Data Data Collection Broad Broad distribution of of Time Time series series statistical results results forecasting Predictive analytics for for deeper deeper understanding of of the the data data 25
26 Mid Market Predictive Analytics Office of Finance Solutions Performance Management System Industry Focus & Blueprints Analytic Applications
27 Driving Smarter Decisions for the Office of Finance Enterprise Planning and Analysis Financial Mgmt & Control Financial Analytics Strategy Management and Scorecarding
28 Advancing Critical Capabilities and Solutions Collaboration and Stronger Analytics IBM Cognos TM1 Personal Scenarios Contribution and Workflow IBM Cognos 8 Controller Global Consolidation Enhanced Reporting Performance Blueprints Expense Planning Capital Project Planning Product Profitability & more
29 Predictive Analytics Mid Market Office of Finance Solutions Performance Management System Industry Focus & Blueprints Analytic Applications
30
31 Faster insight drives faster time-to- value and action Consistent measurement of business strategy More effective management of risks and controls Anticipate and explore new opportunities
32 Predictive Analytics Mid Market Office of Finance Solutions Performance Management System Analytic Applications Industry Focus & Blueprints
33
34 Predictive Analytics Mid Market Office of Finance Solutions Performance Management System Industry Focus & Blueprints Analytic Applications
35
36 OLAP SOURCES RELATIONAL SOURCES APPLICATION SOURCES MESSAGE SOURCES MODERN & LEGACY SOURCES
37
38 Predictive Analytics Mid Market Office of Finance Solutions Performance Management System Analytic Applications Industry Focus & Blueprints
39 Easy to Install Pre-configured solution includes everything required for simple deployment and management Easy to Use Self-service access empowers business users and removes the burden from IT Easy to Buy Packaged and priced right Start small, start anywhere, deliver immediate value, and grow
40 Predictive Analytics Mid Market Office of Finance Solutions Performance Management System Analytic Applications Industry Focus & Blueprints
41 Invested in Innovation Over $10B in software investments in the past 5 years Over $6B invested in Systems R&D Over 4,000 Dedicated Consultants 10 Years Research in Services Largest Math Department in Private Industry 41
42 Investing in Innovation User Experience Cloud Advanced Analytics Business/ IT Partnership Collaboration & Visualization
43 Investing in Innovation
44 Smarter Business Single viewpoint Solutions and vision
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