BUSINESS ANALYTICS AND OPTIMIZATION ROBERT PULCINI BAO CEE LEADER

Transcription

1 BUSINESS ANALYTICS AND OPTIMIZATION ROBERT PULCINI BAO CEE LEADER

2 Why now for Business Analytics and Optimization (BAO)? What is an Intelligent Enterprise? How do I get started?

3 Volume of Digital Data Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all European libraries. By the end of 2010, the codified information base of the world is expected to double every 11 hours.

4 Variety of Information Today, 80% of new data growth is unstructured content, generated largely by , with increasing contribution by documents, images, and video and audio 38% of archiving decisions receive input from a C-level executive and 23% from legal/ compliance professional

5 Velocity of Decision Making 70% of executives believe that poor decision making has had a degrading impact on their companies performance Only 9% of CFOs believe they excel at interpreting data for senior management

6 What s happening? Business leaders regard their experience and intuition as inadequate tools for optimizing their enterprises Enterprises are making important decisions without access to the right information New analytics applied in businesses can close gaps and create new advantage IBM report surveyed of 225 business leaders worldwide Source: Business Analytics and Optimization for the Intelligent Enterprise, April w w -935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf

7 Organizations are operating with blind spots Factors supporting major decisions 1 in 3 To a little extent 79 % business leaders frequently make critical decisions without the information they need 62 % 52 % 53% don t have access to the information across their organization needed to do their jobs To a great extent Personal Experience Analytics Collective Experience Source: Business Analytics and Optimization for the Intelligent Enterprise, April w w -935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf

8 Organizations need to adopt new ways to improve speed to insight and speed to impact. Traditional Approach New Approach Instinct and intuition Fact-driven Corrective Directive Years, months, weeks Hours, minutes, seconds Human insight Applied semantics Decision support Action support Efficient Optimized

9 Business Analytics and Optimization Key enabler for competitive advantage Investments in Business Analytics and Optimization Projects are growing more than twice as fast as in Business Automation Business Intelligence Resource Planning Business Automation Business Analytics and Optimization

10 There is another way of saying this. The secret of business is to know something that nobody else knows. Aristotle Onassis translating business requirements to a data problem and the resulting insights to business actions and value remain largely a skill missing Evangelos Simoudis

11 What is an Intelligent Enterprise?

12 Intelligent Enterprises pursue value along multiple dimensions Operating Effectiveness Trusted Information Empowered Workforce Continuous Improvement Competitive differentiation Outperform Peers Deeper Insight Innovate to lead Accelerating Performance Lower Costs Profitable Growth Manage Risk

13 Analytics is the next bow wave of business change Major Eras in Modern Business Automation Enterprise integration Business Optimization Objectives Business Analytics and Optimization Business process management (CRM) & Business Intelligence Resource planning (e.g., ERP) CrossFunctional Integration Business Efficiency Task/Process Automation $105B* 7.8% CGR Transactional automation adoption (POS, accounting) Recording and Reporting Aggregation and data warehouse Performance measurement Detection, direction & prediction Analytics and Intelligence Objectives

14 Intelligent Enterprises integrate information into business decisions and BAO insight into operations Maturity Stage Business Optimization How the business applies information to achieve it s goals Policies Processes Task automation (eg, ERP) Workgroup Design SOPs Command and control Process Automation and Workflow Differentiating Competitive Foundational Heroics Customer and Partner Collaboration Business Process Integration Break-away Intelligent Enterprise Contextual Business rules Pattern recognition Master Data Management Metrics Dashboards/Scorecards Data Warehouses Data Governance Production reporting Spreadsheets Extracts Business Analytics How the business manages information and learns from it

15 Intelligent Enterprises integrate information into business decisions and insight into operations Process Business Optimization How the business applies information to achieve it s goals Policies Processes Task automation (eg, ERP) Workgroup Design SOPs Customer Customer loyalty and Partnerand event Break-away Collaboration Intelligent Enterprise management Business Process Integration Risk Management Contextual Single view of the Segment-specific Automation Business rules and Differentiating customer products and Workflow Pattern recognition pricing Marketing Master Data Management Dashboard Supply chain Competitive Metrics optimization Dashboards/Scorecards Quality management Customer Life Time Data Warehouses Command Foundational Brand Data and control and Governance Value Production reporting reputation analysis Data and Analytics simplification Heroics Spreadsheets Extracts Business Analytics

16 Where are you on the Wave? Business Operations Maturity How the business applies information to achieve its goals Policies Business Processes Organization Breakaway Business Process Management Prescriptive, real-time, pattern-based strategies with situational context Differentiating Process automation Resource Planning and workflow Competitive Transactional Automation Foundational Data warehouses, governance and Spreadsheets production reporting and extracts Predictions, contextual business rules and patterns Master data management, dashboards and scorecards HEROICS Information and analytics maturity

17 How to get started? The New Path to Value

18 How to get started Pick your spot Biggest and highest value opportunity Prove the value Start with questions Provide insights Roll it out over time Add capabilities Information agenda IBM can help Source: Analy tics: The New Path to Value, a joint MIT Sloan Management Rev iew and IBM Institute of Business Value study. Copy right Massachusetts Institute of Technology 2010.

19 Three areas to get started with Business Analytics and Optimization IT and Software Business Solutions Plan an Information Agenda Master Your Company Information Grow Revenue/Profit thru Data Analytics to align with your business strategy to ensure it is accurate, relevant and governed to anticipate and shape business outcomes Infrastructure Business Productivity Growth

20 Your Information Agenda is made up of four parts Better information processing capabilities CREATE a Vision for the value of information to the whole business, and the capability needed to unlock it. Untapped business oppty. in information Siloized, unreliable and unexamined data ESTABLISH the Governance Project centric IT investment Organization, policies and tools to ensure quality, risk mitigation and lifecycle BUILD a Roadmap of IT and Business initiatives, demonstrating incremental Business Value BUILD the Technology Infrastructure to create and manage information as an enterprise asset

21 Three Steps to Accelerate your Information Agenda 1 Briefing See the Value 2 Development Phase Develop your Information Agenda 3 Execution Phase Solution your first project Objectives Duration* Understand and agree the value of an Information Agenda 1 Day Build IA Vision And High Level Roadmap For BAO Journey 2 weeks Onsite and offsite Identify And Architect An Initial IOD Project 4 Weeks (elapsed time) workshop Activities Deliverables Review IA client objective and value with senior sponsor Industry POV Presentation Customer Case Studies White Papers IA Client Assessment IA Client Business Benefits IA Client Roadmap Development Define Project Evaluate And Select Software Size And Scope Project Readiness Assessment Business Benefits Reference Architecture Roadmap Solution Architecture POC demo Business Value Assessment Project plan *Duration times can be adjusted The Information Agenda engages IT and line-of-business representatives to develop recommendations that can have an impact on the business and are aligned with your organization s strategic objectives

22 Three types of analytics programs deliver productivity or growth benefits Areas of Benefits Infrastructure Productivity Take-out cost and improve efficiency Business Productivity Improve control, bottom line and stop losses Focus on growth Intelligent profitable growth Analytic Solutions Analytics Simplification / BAO Foundation Sales/Product Finance / Risk Operational Analytics Advanced Customer Analytics Benefits Reduced repository footprints and data model objects Rationalized too many reporting tools Eliminate multiple data silos Increased data quality and accuracy Lower Finance costs as a % of revenue Transactional activity cost reduction Sales/Product Performance and Forecasting Improve channel management Improve demand visibility and management Improve profitability Increased sales (cross sell/up sell) Increased customer lifetime value Eliminated unproductive marketing spend Reduced non-productive customer contacts Reduce customer attrition

23 Three types of analytics programs deliver productivity or growth benefits Areas of Benefits Infrastructure Productivity Take-out cost and improve efficiency Business Productivity Improve control, bottom line and stop losses Focus on growth Intelligent profitable growth Analytic Solutions Analytics Simplification / BAO Foundation Sales/Product Finance / Risk Operational Analytics Advanced Customer Analytics IBM BAO Solutions Information Agenda Master data management Data and analytics governance Data integration Industry data models Score Cards Enterprise Budgeting, Planning and Forecasting Industry data model templates Fraud Identification and Management Supply Chain Optimization Crime Information Warehouse Customer Segmentation and Profiling Loyalty Management Cross Channel Real Time Offer Modeling and Next Best Offer Customer Service Agent Matching Social Networking Analysis

24 Our clients are using customer analytics to answer to tough questions. Social Network Insights Cell phone provider: How do social networks effect churn and what are the best intervention strategies with opinion leaders? Brand Management Consumer Products Company: How do we revive a failing brand by better understanding consumer appetite and sentiment toward the product? Customer Acquisition Retail Bank: How do we increase product ownership and deposit levels by differentiating our branch strategy and localizing our branches? Salesforce optimization Large pharmaceutical company: How do we focus sales reps time and promotional budgets on the physicians most likely to prescribe our branded medications? Customer Retention Large US Automotive Company: How do we prevent customer attrition arising from discontinued models, divested brands and dealership closings? Marketing Optimization Large Electronics Retailer: How do we reduce $1 billion advertising budget by 40% without adversely effecting revenue?

25 Coremetrics, Unica, NETEZZA $12 Billion Invested in BAO Research and Development, and Acquisitions Business Analytics & Optimization Solutions + + Trusted Information Platform Business Analytics & Optimization Platform

26 Business Analytics and Optimization has grown rapidly GBS Services SWG Products IBM Research BAO Strategy Information Agenda FOAK (First of a Kind) Business Intelligence & Performance Management Cognos, TM1 Advanced Analytics and Optimization ilog, SPSS, Unica Enterprise Information Management Infosphere, MDM and Information Server, Unica Analytics Patents Analytic Assets Enterprise Content Management Filenet Over 7,500 BAO practitioners growing to 8,000 in 2010 Over $12B in software investments and acquisitions Total Solutions for BAO Industry points of view Research Advisors FAMS, LIFT, COBRA, CRIME INFORMATION WAREHOUSE, TACS 10 years of services research Largest math department in private industry Industry delivered solutions Supported by eight Analytic Solution Centers worldwide, each focused on specific business challenges

27 Gartner Puts Distance Between IBM And Nearest Competitors IBM is a good fit for clients both looking for a complete solution stack in information analysis and IM [information management] initiatives that can be complex and requiring business and technology skills in their industry Source:

28 Bob Pulcini Phone: