Fred Balboni Global Leader, Business Analytics and Optimization IBM Corporation. Delivering Breakaway Performance Business Analytics and Optimization

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1 Fred Balboni Global Leader, Business and IBM Corporation Delivering Breakaway Performance Business and

2 Increasing the organization s level of analytical sophistication allows an organization to build breakaway capability Sophistication Use Structured Data & Unstructured Data Numeric Text Image Audio Video Captured Detected Inferred Made consumable and accessible to everyone, optimized for their specific purpose, at the point of impact, to deliver better decisions and actions through: happened? How many, how often, where? exactly is the problem? actions are needed? Descriptive could happen? Simulation if these trends continue? Forecasting will happen next if? Predictive Modelling Predictive How can we achieve the best outcome? How can achieve the best outcome and address variability? Stochastic Prescriptive

3 Organizations can breakaway from old methods to agile, informed approaches enabled through BAO, but most have yet to go the distance Business operations maturity How the business applies information to achieve its goals Policies Business Processes Organization Source: Breaking Away with Business and : New intelligence meets enterprise operations available in late 2009 at Process automation and workflow Task integration (e.g., ERP) Command and control Ad hoc Spreadsheets and extracts Business process integration (e.g., CRM) and collaboration Foundational Competitive Data warehouses, governance and production reporting Differentiating Master data management, dashboards and scorecards Breakaway Prescriptive, real-time, pattern-based strategies with situational context How the business manages information and learns from it Predictions, contextual business rules and patterns

4 Breakaway leaders use analytics simplification to deliver the funding for advanced analytics capabilities Customer Customer Clustering Segmentation and Profiling Customer Experience Measurement Channel and Cost to Serve Efficiency Cross Channel Real Time Offer Modeling and Next best Offer Human Capital Workforce Scheduling Attrition Forecasting and Succession Management Performance and Incentive management Role Value Modeling Simplification Reduce complexity and redundancy Mature Approach Eliminate multiple data silos Enhance trust level of data and broaden access Enable enhanced execution model Introduce new business capability Proven Techniques Emerging Techniques Financial Budget, Plan and Forecast Management Risk Cockpit for Management and Compliance Performance Measurement and Management CFO Dashboard Supply Chain / Operations Product Lifecycle Management Demand Management and Logistics Procurement and Vendor/Supplier Management Cost of Operations Models/ Sourcing

5 There are three entry points to get started with Business and Are you suffering from an overly complex information environment? Establish a flexible information platform Apply analytics to optimize business operations Do you have a BAO strategy but need a proof of value to get implementation funding? BAO Are there recognized opportunities with no plan of action? Create a BAO Strategy Is information consistent but devoid of business relevance?