Louis Bodine IBM STG WW BAO Tiger Team Leader

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1 Louis Bodine IBM STG WW BAO Tiger Team Leader

2 Presentation Objectives Discuss the value of Business Analytics Discuss BAO Ecosystem Discuss Transformational Solutions

3 What is the true value of information? How much would you pay for a newspaper from last week? How much for a newspaper printed this morning? How much for a newspaper from NEXT WEEK?

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5 The Personal View of Analytics User expectations have never been higher. Analytics is too hard for non-technical people Simpler and more intuitive analytics that anyone can use If I had all of the data I need, what would I do with it? Analytics with instant insight & answers to critical business problems Getting insight into my business takes too long The growing volume, variety and velocity of data and diverse range of analytics drives demand for a scalable and resilient infrastructure 2012 IBM Corporation

6 ANALYTIC-DRIVEN ORGANIZATIONS are distinguished by their ability to leverage All information All information Transaction data Application data Machine data Social data Enterprise content At the point of impact All perspectives Past (historical, aggregated) Present (real-time) Future (predictive) All people All departments Experts and non-experts Executives and employees Partners and customers All decisions Major and minor Strategic and tactical Routine and exceptions Manual and automated

7 Do you know where your company fits? Business Optimization How the business applies information to optimize outcomes! "! " Ad hoc & $ % Foundational Competitive ' # $ Differentiating " " " Break away ( & ( $ 7 Information and analytics maturity How the business manages information and learns from it

8 In Order to Realize New Opportunities, You Need to Think Beyond Traditional Sources of Data Characteristics of data is evolving

9 Explosion in Data and Real World Events 1.3 Billion RFID tags in billion RFID tags today 1 trillion devices are connected to the Internet 76 million smart meters in M by 2014 The information base of the world doubles every 11 hours 4.6 billion camera phones world wide Twitter processes 12+ terabytes of data every day 80% of world s information is unstructured content 25+ terabytes of log data every day The Volume, Variety, and Velocity of data is growing at an unprecedented rate.

10 What can companies do with the additional data? Financial Services Fraud detection Risk management 360 View of the Customer Utilities Weather impact analysis on power generation Transmission monitoring Smart grid management Transportation Weather and traffic impact on logistics and fuel consumption Traffic congestion IT System log analysis Cybersecurity Health & Life Sciences Epidemic early warning ICU monitoring Remote healthcare monitoring Retail 360 View of the Customer Click-stream analysis Real-time promotions Telecommunications CDR processing Churn prediction Geomapping / marketing Network monitoring Law Enforcement Real-time multimodal surveillance Situational awareness Cyber security detection

11 Typical BAO Ecosystem Structured & Unstructured data InfoSphere BigInsights CRM ERP Hadoop & Stream Processing InfoSphere Entity Resolution InfoSphere Global Name Recognition InfoSphere Industry Models Banking * Insurance * Telco * Retail * Healthcare * Financial Markets Data Marts HR Data Integration Billing ETL Federation Data Warehouse Cubes External Sources Source Systems CDC Replication Master Data InfoSphere MDM Server InfoSphere Information Server Business Glossary DataStage Information Analyzer Quality Stage FastTrack Meta Data Workbench

12 Leveraging Different Data Requires Multiple Platform Capabilities Understand and navigate federated big data sources Federated Discovery and Navigation Manage & store huge volume of any data Hadoop File System MapReduce Structure and control data Data Warehousing Manage streaming data Stream Computing Analyze unstructured data Text Analytics Engine Integrate and govern all data sources Integration, Data Quality, Security, Lifecycle Management, MDM

13 IBM recommends using a holistic approach that turns information into insight and insight into business outcomes. through analytics for breakaway results your organization around information see, predict and shape business outcomes with confidence at the point of impact to optimize outcomes from solutions that get smarter with every outcome

14 Deploy an information strategy that flows from your business strategy. Build an enterprise-class Infrastructure as part of a comprehensive information management foundation. Create a trusted information foundation that improves IT economics and optimizes analytic workload performance. Scale for cost effective management and storage of large, structured and unstructured data. Instrument the lifecycle governance of content to ensure the right information is captured, activated and accessible while unnecessary data is promptly disposed Increase agility to handle complex and mixed workloads. Fully exploit all sources of data and content for insight

15 Leveraging business analytics to deliver actionable insights Create analytic capabilities that are dually specialized to the task and interconnected to facilitate shared insights Hardware architected for analytics Spot and analyze trends and anomalies Predict potential threats and opportunities Plan, budget, and forecast resources Assess and manage risk Compare what-if scenarios Measure and monitor business performance Automate decisions Align strategic and operational decisions Business Intelligence Content Analytics Financial Performance Management Leveraging all information, all people, all perspectives and enabling all decisions Predictive Analytics Risk Analytics

16 Embed analytics into your processes and empower a culture of data-driven decision making Enable your organization to take the best action based on predictive analytics, process models, and optimization technologies to achieve better outcomes Embed analytics into organizational processes to guide and optimize day-to-day operations and future strategies Leverage proven solutions and models designed and tuned for the task Empower people with historic, real-time, and predictive insights Establish a culture that believes in and fosters analytics-based decision making Embedding past, present and future insights into your operations and processes

17 Accelerate the time to value and deliver game-changing results Design your BAO eco-system for the future Develop a clear analytics strategy aligned to business priorities and desired outcomes Challenge current thinking, explore new ideas, and follow the facts to innovate Enhance current approach with analytics advancements and innovation Utilize proven industry solutions, use cases, and accelerators to deliver rapid value Go beyond solving problems to identifying new opportunities and sources of value Enabling you to go beyond solving the problem to capturing new opportunities

18 Smart enough to reason and return confidence-based responses for the next best action Solutions that can learn from evidence and outcomes to get smarter with each iteration Capable of navigating the complexities of human speech through natural language processing Dynamically generating and evaluating possible hypotheses to the most complex questions Applying advanced analytics to weight and evaluate responses that are optimized based on only relevant information Continuously ingesting and analyzing Big Data and discovering new patterns and insights in a matter of seconds Move your organization from search to discovery, from possibilities to probabilities, and from simple outputs to intelligent options. Natural language Hypothesis testing Evidence-based learning

19 IBM recommends focusing on high-value initiatives in core BUSINESS AREAS Examples: 1 Customers Advanced client segmentation Leveraging customer sentiment analysis Reducing customer churn 2 Finance Enabling rolling plan, forecasting and budgeting Automating the financial close process Delivering real-time dashboards 3 4 Risk Operations Making risk-aware decisions Managing financial and operational risks Reducing the cost of compliance Optimizing the supply chain Network optimization Sales & Operations Planning Deploying predictive maintenance capabilities Transform thread & fraud identification processes 19

20 %& %& %& %& You could increase customer value with every interaction? You could operate more efficiently throughout your organization? You could anticipate and shape the impact of financial decisions? You could prevent and minimize losses stemming from fraud?! " # $"!' (! " " Reduced churn rate by 35% in the first year Improved billed revenue retention rate by 60% Achieved 376% ROI in 5 months Transformed their supply chain Reduced working capital by more than US$100 million Accelerated monthly financial reporting cycles by 50 percent Provided new insight into the profitability of marketing promotions Proactively managed emerging problem areas to mitigate losses. Consolidated risk analytics and reporting to lower costs Imbedded risk analytics to drive profitable growth.

21 Where do you start? Start with questions, not with data Focus on the biggest and highest value opportunities Use an Information Agenda to align with business strategy Keep existing capabilities while adding new ones Embed insights to drive actions and deliver value

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