Enhancing Your "Analytics Quotient" with Enterprise BI & Integrated Predictive Analytics Solutions

Transcription

1 Enhancing Your "Analytics Quotient" with Enterprise BI & Integrated Predictive Analytics Solutions Rajesh Shewani Technical Solutions Leader Business Analytics IBM India South Asia

2 = Analytics Quotient = Realized Potential The more you infuse analytics into your business, the higher your AQ and the better you and your business will perform 2

3 ALIGNED Collaboration across business objectives AWARE Alert, observant, informed and perceptive High AGILE Highly responsive to changing priorities FOCUSED Clear understanding of what s important PREDICTIVE Able to anticipate, look forward and set expectations 3

4 The AQ Journey STEP 1: Novice You rely on spreadsheets with information gaps The rear view is your only view STEP 2: Builder You have a view into current results and a little of what s driving them Results are shared with other teams within your department STEP 3: Leader Your VP sets the strategy Your department s metrics map to other departments metrics You look forward as much as you review the past STEP 4: Master Top-down goal setting Insights flow freely across divisions and departments. You allocate resources, minimize risk and maximize outcomes with equal ease and speed 4 Manual, slow, error prone, cumbersome, fragmented Data quality concerns 4 Automated, instant, accurate, seamless, converged Data governance is in place

5 IBM Business Analytics empowers All People Empower all people across your organization and beyond, enabling individual to internet-scale solutions IBM Business Analytics All Decisions Support all decisions from highly collaborative to fully automated with the right analytic capability and insight to drive action from the decision at hand Analytic Freedom Equip everyone with fast, easy business analytics anytime, anywhere 5

6 Predict potential threats and opportunities Spot and analyze trends and anomalies Compare what-if scenarios Assemble and interact with relevant information Assess and manage risk Measure and monitor behavior Turn insight into action, optimizing results Understand customer sentiment and behavior Align strategic and operational decisions Plan, budget and forecast resources 6 6

7 Three Questions for Business Insight Key Business Questions Examples of Business Insight What happened? How many, how often? Rear View Balance sheet, profit and loss, and cash flow statements Revenue and cost variance analysis Source: 2010 IBM Global CFO study How are we doing? Where exactly is the problem? Why is this happening? What actions are needed? What should we be doing? Why? Current View Customer, product and market profitability Spend optimization Working capital analysis Market, customer and channel pricing Sales and supply chain effectiveness What will happen next? What if these trends continue? What are the risks or opportunities? Forward-Looking View Cash forecasting Scenario-based planning and forecasting Strategic investment decision support Volatility and risk-based predictive and behavioral modeling 7

8 8 Executive View

9 Analytics by function Common Decision-Making Model Database Agnostic Unified Platform Analytics Drill Through ERP Agnostic Packaged Reporting & Analysis What s Included? Embedded Data Warehouse Over 43,000 Objects including 250+ Dimensions 850+ Metrics 230+ Defined Calculations Financial Analytics Ledger Payables Receivables Cash Management Customer/Vendor Risk Business Areas Sales Analytics Sales Analytics Pipeline Performance Sales force Performance Sales Segmentation Customer Relations Pricing and Program Analytics Report Configurations Adaptive Framework Unlimited Extensions Delivered ERP extraction Unlimited Data Sources Workforce Analytics Talent Development Talent Management Talent Retention Workforce Strength Compensation Procurement Analytics Spend Analysis Vendor Analysis Contract Management Operational Efficiency 9

10 Planning ahead FUNCTIONAL SOLUTIONS Pre-configured solution building blocks that: Pool collective best-practice knowledge Accelerate time-to-value Increase project success rate OPERATIONS, MARKETING, ETC. CAPITAL EXPENDITURE PLANNING Cap Ex Depreciation Expenses Reports FINANCE Income Statements Balance Sheet Cash flow Financial Ratios STRATEGIC FINANCIAL PLANNING & FORECASTING Operating Expenses EXPENSE PLANNING & CONTROL Market Demand Revenue Plan SALES SALES PLANNING & FORECASTING HUMAN RESOURCES WORKFORCE PLANNING Headcount & Compensation Expenses Strategic Financial Planning & Forecasting Strategic Long Range Planning Risk Analysis Sales Planning & Forecasting Sales Compensation Planning Workforce Planning Expense Planning & Control Allocations Capital Project Planning Discretionary Capital Expenditure Initiative Planning

11 How Decision-Making is Changing We are in a historic moment of horse-versus-locomotive competition, where intuitive and experiential expertise is losing out time and time again to number crunching. Ian Ayres, author of Super Crunchers Quality and value of decisions Decisions from Intuition Instinct Hunches Based on experience Automated Decision-Making Knowledge, policies and practices embodied in business rules Decisions made efficiently and consistently Objective Predictive Decision-Making Accurate predictions based on historic patterns Leverage all available data Flexible, evidence-based decisions Robust in volatile environments models re-generated from latest data to reflects changing trends.

12 Imagine If Your Decision Makers 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 is most likely to buy if offered discounts at time of sale? apply inferred social relationships of customers to prevent churn? Physician Loan Officer Retail Sales Associate optimize every transaction, process and decision at the point of impact, based on the current situation, without requiring that everyone be an analytical expert Telco Call Center Rep

13 New ways of working to optimize decisions and actions Predict and act Volume Lack of Insight Velocity Inefficient Access Sense and respond Instinct and intuition Skilled analytics experts Real-time, fact-driven Everyone Inability to Predict Variety Back office Automated Point of impact Optimized

14 New ways of working to optimize decisions and actions Predict and act Volume Lack of Insight Velocity Inefficient Access Sense and respond Instinct and intuition Skilled analytics experts Real-time, fact-driven Everyone Inability to Predict Variety Back office Automated Point of impact Optimized

15 Predictive Analytics offers Unique Insights to Answer those Tough Business Questions Predictive Analytics is a transformational technology that enables more proactive decision making, driving new forms of competitive advantage Analyzes patterns found in historical and current transaction data as well as attitudinal survey data to predict potential future outcomes

16 IBM BI and Performance Management Capabilities Help Decision Makers Find the Answers How are we doing? Why are we on/off track? What should we do next?

17 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) Broad Broad distribution of of statistical results results Time Time series series forecasting New New customer insight insight through Data Data Collection Predictive analytics for for deeper deeper understanding of of the the data data

18 Enabling the Predictive Analytics Process Capture Predict Act Data Collection delivers an accurate view of customer attitudes and opinions Predictive capabilities bring repeatability to ongoing decision making, and drive confidence in your results and decisions Unique deployment technologies and methodologies maximize the impact of analytics in your operation Data Collection Text Mining Data Mining Platform Statistics Deployment Technologies Pre-built Content Attract Up-sell Retain

19 Breadth of Applications Campaign Response Prediction Customer Churn Modelling Profiling and Segmentation Fraud and Anomaly Detection Credit Scoring Demand Prediction/Forecasting Basket Analysis Text Analysis Predictive Maintenance Warranty Claims forecasting

20 Applying SPSS to Accelerate Your Success Example: Customer Intimacy Reduces customer defection, increases uplift from cross-sell/up-sell targeting, and improves acquisition of the right customers, by enabling decision makers to: Understand unstructured data that is found in everything from s, call center notes, blogs, and open ended survey questions Identify drivers of customer behavior via survey analysis Identify key performance predictors (KPPs) including customer defection and outcome of particular customer interactions Prioritize customer programs as part of real-time decision processes View customer insights alongside key performance information through standard IBM reports, analyses and dashboards

21 Core Areas in a consumer centric business attract grow retain fraud risk

22 Predictive Maintenance What if you could accurately predict which characteristics tend to lead to a greater amount or frequency of failures? What if you could identify the characteristics that tend to increase ownership cost and downtime over the life of a system? What if, when an asset is scheduled for maintenance, you could predict what parts are likely to fail in the near future? 22 What if you could replace those parts that have not yet failed and avoid further unscheduled downtime? What if you could quickly mine the thousands of logs that describe the maintenance performed on a system and determine what important observations are being logged by the maintenance team?

23 Warranty Claims Cost Reduction Benefits Motor Cycle Company Proactively identified warranty issues Prepared issue resolution for service channel before customers are faced with problems Feed back issue findings into product design process for improvements German Car Manufacturer Reduce warranty cases from 1.1 to 0.85 per vehicle 5% reduction in warranty cases Annual savings of 30m Consumer Electronics Manufacturer Deliver insights for action Market & Sales positioning Immediate Product changes Future product revisions Improved customer experience Improved mind share at key decision points Consideration Acquisition Acceptance & renewal Reduce services costs. Reduction in operational expenses by handling issues closer to the customer. Avoid/reduce expensive warranty repairs by addressing expected weak spots earlier. Better arrangement with any distribution channel. Reduce call center expenses (less calls coming in to the call center to report failures). Avoid bad press/image. Increase customer satisfaction, loyalty and retention with fewer incidents. Earliest possible communication about malfunctions. Competitive advantage (brand image, offer higher service levels, lower TCO). Increase auditability/accountability.

24 Summary Our customer are outperforming and have a high AQ They are advancing their journey by upping their: Decision-making savvy Readiness and capacity to leverage analytics across critical roles and processes Mastery of information We are delivering a comprehensive, unified business analytics system that meets both the growing demands of the business user, while enabling Finance and IT to deliver the appropriate level of enterprise governance and control IBM Business Analytics empowers: All People for All Decisions with Analytic Freedom Only IBM can enable total solutions now and in the future IBM Business Analytics 24

25 25 CHECK YOUR AQ & GET A PRINT OUT OF RESULTS

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