IBM Business Analytics Case Competition April 6 13, 2012

Transcription

1 IBM Business Analytics Case Competition April 6 13, 2012

2 Overview of Content What is analytics? (Slides 3-9) The Business Perspective (Slides 10-13) Smarter Commerce (Slides 14-20) Sample Business Scenarios (Slides 21-24) The Challenge: Case Questions and Guidelines (Slides 25-27) Backup 2

3 What is Analytics? Analytics is broadly defined as the use of data and computation to make smart decisions Data Decision point Possible outcomes Historical Simulated Data instances Reports and queries on data aggregates Predictive models Answers and confidence Feedback and learning Option 1 Option 2 Option 3 Text Video, Images Audio 3 3

4 Why Smarter Analytics matter for the business The intelligent enterprise thrives on operating effectiveness, competitive differentiation and accelerated performance Anticipating Predicts and prepares for the future and doesn t only react or correct actions, but also steers and evaluates trade-offs Aware Gathers, senses and uses structured and unstructured information from every node, person, and sensor within the environment Empowering Enables and extends employees' memory, insight and reach, as well as the authority to decide and act Questioning Reserves the right to get smarter by challenging its status quo while creating new opportunities Linked Connects internal and external functions front to back across geographies in a way that aligns to desired business outcomes Precise Uses only the most relevant information to support timely decisions/actions closer to the point of impact and consequence 4

5 Analytics as a business tool Analytics and optimization requires a new set of skills Business analytics and optimization strategy Identify and prioritize opportunities for improvement Change business processes and operations to exploit analytics Implement management systems to maintain control and achieve goals Predictive analytics and optimization Apply advanced statistical and regression analysis upon historical data for predictive decision-making Integrate optimization algorithms and technology into operations Business intelligence and performance management Report outcomes of business processes and programs Automate management dashboards and scorecards Create planning, budgeting and forecasting tools Enterprise information management Ensure robust, trusted data is available when needed and is easy to use Provide a consolidated and efficient information platform to support optimization initiatives 5

6 Why is Smarter Analytics so important? Enterprises are handling more information than ever before, but at the same time they know they are not keeping pace Organizations are operating with blind spots Lack of insight 1in3 Inefficient access 1in2 managers frequently make critical decisions without the information they need business leaders don t have access to the information across their organization needed to do their jobs Inability to predict 3in4 business leaders say more predictive information would drive better decisions Source: Business Analytics and Optimization for the Intelligent Enterprise, IBM Institute for Business Value, April

7 IBM Smarter Analytics for Retailers is a holistic approach that turns information into insight and insight into business outcomes. Transform through analytics for breakaway results Align Anticipate Act your organization around information see, predict and shape business outcomes with confidence at the point of impact to optimize outcomes Learn 7 from solutions that get smarter with every outcome

8 Smarter Analytics helps Retailers get critical insight and answers across all functions. What if Human resources... could, with greater accuracy, forecast staffing skills and needs based on market signals and trends? Supply Chain.. through expanded demand signal repository, have a more accurate safety stock and replenishment plan? Procurement & Vendor Management...could embed customer insight into business processes from manufacturer to consumer? Store managers could create macro and micro allocation plans and presentation decisions for increased same-store sales? Merchandising... could dynamically tailor localized assortment plans based on customer demand and location insights and mitigate 8 transfers? Marketing... could dynamically offer personalized promotions and optimize marketing spend? Finance...could lower inventory thereby increasing cash flow?

9 The Business Perspective 9

10 Many of the key priorities for businesses today are dependent on the ability of IT to deliver timely, trusted information Business priorities Attract and retain new customers Expand current customer relationships Be fast to market with products customers want Target markets more effectively Speed decision making across employees, partners and suppliers Anticipate and manage opportunities, threats and risks Optimize supply chains and marketing investments 10

11 CIOs and IT teams face a range of obstacles to delivering value from business information IT challenges Redundant data, applications and infrastructure Information locked in business silos and applications No single view of the customer Lack of trusted information for decision making Can't deliver information users need in real time High cost of managing growing volumes of data 11

12 The technology and capability exists; the business and IT teams need to work together to drive maximum impact Advanced analytics Precisely predict risks and opportunities Optimize inventory before its needed Find information quickly Cloud computing Increase server and storage utilization by 70-90% Provision capacity in minutes, not weeks Provide massive scalability to make new workloads possible Collaboration tools Increase workforce efficiency Accelerate business outcomes Drive innovative ideas Security and resiliency Prevent breaches before they happen Automate data protection and compliance Build a resilient infrastructure Dynamic application infrastructure Automate business processes Increase business agility and operational visibility Facilitate the flow of information across the enterprise 12

13 Smarter Commerce 13

14 We have entered the age of the empowered customer Customers now have unlimited access to information and can instantlyshare it with the world Social networking and mobile commerce have dramatically changed the dynamic between buyer and seller Customer expectationsof service, price and delivery are soaring This is changing the entire way products are sourced, manufactured and distributed and making business more complex than ever million Number of tweets sent via Twitter each day 75% Percentage of people who believe companies don t tell the truth in advertisements Sources:, TechcrunchOct 2011, Yankelovich, Evolution of Advertising and Media, 5 th Annual Store Systems Study, IHL Group and RIS News, 2008 $93 billion Amount in sales missed due to out of stock inventory

15 Power has shifted compressing margins and changing paradigms In this new era, retailers need to: Understand and predict customer behavior and needs based on customer insights across all channels Adaptsourcing and procurement based on customer demand and optimize supplier interactions across extended value chains Market, sell and fulfill the right product and service at the right price, time and place Servicecustomers flawlessly, predict and drive customer loyalty Commoditization of products as lifecycles grow shorter and product is replicated across new outlets Mobilized shopping based on the connected consumer s access to information anywhere any time Channel expansion through ecommerce, social, and mobile to reduce cost of entry 15 15

16 Smarter Commerce focuses on three dimensions centered around the customer Customer Insight In today s world of instant business, you need deep insights, in real-time that you can turn into immediate action Customer Value Strategy In turn, you must re-think how your customers define value, and the changes you must make to your value chain so you can deliver exactly what your customers want - profitably Customer & Partner Engagement You need an approach that allows you to more effectively connect, collaborate, conduct commerce and create a differentiated customer experience increasing the value companies generate for their customers and partners in a rapidly changing digital world

17 At IBM we call the approach forward: Smarter Commerce Smarter Commerce can help transform every phase of the commerce cycle Buy Sourcing, controlling and procurement of goods and services Insight Strategy Market Targeted and personalized marketing across all customer interactions Service Servicing customer needs across all interaction channels Sell Enables selling and fulfillment of products and services across all channels Engagement

18 IBM s integrated portfolio for Smarter Commerce Innovation and business value Innovating and aligning business models to drive value to the customer VALUE CHAIN STRATEGY AND SERVICES Market and customer mgmt Aligning sales, marketing and operations to engage with customers CORE BUSINESS SOLUTIONS Core Business Processes Operating and Organization Models Designing operations, supply chain and the organization model to deliver customer value Buy Market Sell Service Trading Partner Mgmt Supplier Management Supply Chain Visibility Logistics Management Inventory Optimization Predictive Analytics/Modeling Behavioral Segmentation Cross-channel Campaign Mgmt Search Optimization, Ad Targeting Marketing Resource Mgmt B2B & B2C Cross-channel commerce Distributed Order Orchestration Fulfillment and Supply Chain Optimization Mobile Commerce Retail Store Delivery & Service Scheduling Customer Self Service Enablement Reverse Logistics Case Management Advanced Analytics Store analytics Purchase analytics Consumer loyalty Predictive and prescriptive Social analytics Web analytics Master data mgt Workload Optimized Systems Systems, Storage and Software focused on agility, integration and automation to drive relevant business outcomes 18 18

19 Seamless Customer Experience across multiple Interaction Channels Web -WebSphereCommerce & Portal Mobile - WebSphere Commerce Mobile Store In Store POS & Kiosks -Retail Store Solutions Call center - Sterling Order Management Call Center Social Media - Cognos Consumer Insights Customer surveys - SPSS Data Collection Solution Scenario Delivering Unparallel Customer Experience via Human, Digital, Mobile & Social Interactions Web Social Networks WebSphere Commerce & Portal Mobile Customer Call Center Store POS & Kiosks Sterling Order Management Call Center Retail Store Solutions 19 19

20 Sample Business Scenarios 20

21 Integrated marketing allows you to manage marketing across multiple interaction channels Manage marketing across multiple interaction channels Leverage social media data using Cognos Determine marketing response likelihoods with SPSS Predictive Analytics Cross-channel marketing strategy is defined and planned using Unica Coremetrics is used to track consumer actions, and make relevant recommendations The e-commerce web site and order capture is provided by WebSphere Commerce Customer experience with responsive interaction is guaranteed by workload optimized systems Insights from social media, websites, and other sources from Cognos Consumer Insights drive relevant messages Predict likelihood of marketing responses with SPSS Modeler Solution Scenario Marketing messages and campaigns are defined and planned using Unica Campaign Optimize display and search results with Coremetrics AdTarget and Coremetrics Search Generate demand with Unica emessage ( creation, delivery, tracking) Capture responses and refine Deliver custom landing pages, mobile and retail store programs with targeted messages and promotions via WebSphere Commerce Precision Marketing

22 Solution Scenario Leveraging supply chain intelligence to shift inventory and execute regional promotions Offer regional product promotions and optimize inventory distribution SPSS Modeler predicts inventory levels based on weather, customer demands, and much more Sterling Supply Chain Visibility monitors flow of inventory vs. annual norms ILOGis used to optimize the logistics network Network details are deployed into the Sterling Transportation Management System WebSphereCommerce leverages this intelligence to issue custom regional promotions Warm winter in Denver results in excess snow blower inventory Predict inventory levels throughout supply chain with SPSS Modeler Regional promotion to sell Denver inventory faster WebSphere Commerce Precision Marketing Meanwhile, a cold spell in Boston is causing back orders due to lack of inventory Sterling Supply Chain Visibility Trigger an inventory movement of snow blowers from Denver to Boston llog Logistics Network Optimization Sterling Transportation Management Capture results for future supply and inventory

23 Solution Scenario A unified, cross-channel shopping experience Take action based on a consistent view of a consumer s order across multiple channels Coremetrics is used to track consumer actions, and make relevant recommendations The e-commerce web site and order capture is provided by WebSphere Commerce Sterling Order Management maintains a consistent view of the consumer s order The POS from Retail Store Solutions integrates with the entire system to maximize POS sales SPSSprovides sentiment and customer behavior analyses. Ad content selected by Coremetrics Consumer completes the purchase using WebSphere Commerce Consumer decides to extend the order from a mobile device Consumer visits the store to pickup the TV, views the order via the IBM RSS POS Consumer phones the call center or engages online to change the order from delivery to pickup Sterling Order Management Unicaprompts the POS to recommend an offer on new speakers and local installation services sold! Capture responses and refine

24 The Challenge: The IBM Business Analytics Case Competition 24

25 How can retailers benefit from using analytics to drive results for their business? How can retailers narrow the gap between the business and the customer in order to drive informed decision making and business impact? Place the customer at the center Maximize insight Capitalize on social and mobile Drive growth Synchronize your entire value chain Increase margins Improve collaboration and visibility 25 25

26 Through your analysis of market trends, technology trends and retailer data.. 1) From the perspective of an IBMer, submit a 3 page memo to the IBM Executive Team, outlining your analysis and insights regarding how retailers can benefit from Smarter Analytics, including your recommendations on the following: A business-oriented point-of-view for a retail executive on how analytics can help them drive profitable growth for their organization Tangible ways retailers can understand consumers and improve shopping experience through the combined use of IBMs Smarter Analytics and Smarter Commerce solutions Innovations or new market opportunities for IBM, such as targeting industry sub-segments, geographies or new technologies (Cloud, Mobile, and Social Business, etc.) that can help retailers grow sales, protect profits and increase customer satisfaction * You may also include appendices and tables which will not be included in the 3 page maximum 2) Include 4-5 PowerPoint slides, which will serve as your presentation to IBM *You may also include backup slides which will not be included in the 5 slide maximum 3) In addition, please prepare a 15 minute PowerPoint presentation to present to the judges, the Top 3 teams will be chosen to present on April 13th 26

27 Backup 27

28 IBM CoremetricsBenchmark: industry performance reporting versus peers and competitors as part of IBM Coremetrics Web Analytics Performance analytics. Peer-level benchmarking metrics that deliver competitive data for industry-specific key performance indicators (KPIs) Aggregated and anonymous. The only solution to provide complete comparative metrics with no modeling or extrapolation. Flexible and timely reporting. Measure site performance competitively and historically with visibility into daily, weekly, monthly, quarterly or even annual data Performance metrics for uncovering areas of opportunity, improvement or discovering trends in your industry

29 Benchmark availability worldwide is continually growing to provide the most relevant and accurate metrics possible Over 1300 Online Brands Participate Aggregate Index Compare against industry Compare against peers Geographic Coverage US UK AU Europe Universal 4 Verticals Retail Content Financial Services Travel 15 Sub-Verticals in US Retail Apparel Department Stores Health and Beauty And 12 others

30 The metrics available in Benchmark cover a wide range of KPIsfrom conversion funnels and channel performance to social and mobile traffic Conversion Funnels Sessions Browsing Sessions Percent Buying Sessions Percent Channel Performance Marketing Referral Direct Load Paid Search Natural Search Visitor Sessions Average Session Length Page Views Per Session Product Views Per Session Mobile and Social Percent of Traffic from Mobile/Social Percent of Sales from Mobile/Social And many more...

31 The 2011 Tech Trends Survey gathers insight from the developerworks community of IT professionals, faculty, and students Survey Objective: To identify and validate technology trends. Reveal adoption motivators and challenges. Promote engaging discussions, and deliver actionable insights to IBM stakeholders. Survey crafted with IBM stakeholders across business units and geographies. Survey promoted via developerworks, IDR communication vehicles, globally and locally. Survey released in five languages: English, Chinese, Portuguese, Spanish, and Russian. ibm.com/developerworks/techtrendsreport 31

32 2011 IBM Global Tech Trends Survey forecasts the future Over 4000 respondents from 25 industries and 93 countries tell developers where to build skills: Demand in Cloud skills: 75%+ of organizations will engage in cloud computing in the next 2 years Android skills needed more than ever: 70% of organizations will be developing on it in the next 2 years Skills to maximize business analytics ROI: Automation (49%) and streamlining processes (46%) are the two top BA focus areas in the next 2 years Social business application skills: 43% of organizations plan to deploy social business software Security and privacy skills: Addressing the common top concern for mobile, cloud, and social business Cloud and mobile the ultimate combo: 51% will be using cloud to power their mobile strategy Download IBM Cognos Mobile ipad app with Tech Trends Report data at Apple App Store 32

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