Business Analytics and Optimization An IBM Growth Priority Paul Fitzpatrick Director, WW Industry ISV Partners IBM ISV & Developer Relations Best Student Recognition Event July 6-8, 2011 EMEA IBM Innovation Center La Gaude, France
Agenda 1. BAO A 2015 IBM Growth Priority 2. The BAO Market Opportunity 3. IBM BAO Leadership Strategy
IBM s strategy and growth initiatives for 2015 New IBM s Growth Landscape Focus on open technologies and high- value solutions Deliver integration and innovation to clients Become the premier Globally Integrated Enterprise Markets/Buyers Traditional Traditional Growth Markets Industry Frameworks, Smarter Computing Cloud Computing Offerings Smarter Planet Business Analytics New 3
Business Analytics and Optimization represents the next major evolution of business change and client investment 2X Client Investment in Business Analytics and Optimization Projects is growing over twice as fast as Business Automation Business Analytics and Optimization Business Automation $566B 3% CGR $125B 6% CGR Business Analytics and Optimization GBS BAO Business Intelligence GTS Outsourcing Support Business Analytics STG ISAS POWER7 System x Storage Resource Planning Business Automation SWG / IM Base Info Mgmt ILOG SWG / BA Cognos SPSS
Information is at the center of a new wave of opportunity 1.3 Billion RFID tags in 2005 30 Billion RFID tags by 2010 2 Billion Internet users by 2011 4.6 Billon Mobile Phones World Wide Capital market data volumes grew 1,750%, 2003-06 Twitter process 7 terabytes of content every day World Data Centre for Climate 220 Terabytes of Web data 9 Petabytes of additional data Facebook process 10 terabytes of content every day
We are not optimizing our use of data to solve key Smarter Planet challenges. 40-70% percent of energy around the world is lost due to grid inefficiencies. In our healthcare systems, electronic health records could save 100,000 lives a year. One in five people living today lacks access to safe drinking water. Congested roadways in the US cause 11 billion litres of wasted gas.
44x And Organizations Need Deeper Insights as much Data and Content Over Coming Decade 1in3 Business leaders frequently make decisions based on information they don t trust, or don t have 1in2 Business leaders say they don t have access to the information they need to do their jobs 2009 800,000 petabytes 2020 35 zettabytes Sources: The Guardian, May 2010 IBM Institute for Business Value, 2009 IBM CIO Study 2010 TDWI: Next Generation Data Warehouse Platforms Q4 2009
CIOs Top Priority Business Analytics 83% Virtualization 76% Risk Management & Compliance 71% Mobility Solutions 68% Customer & Partner Collaboration 68% Self-service Portals 66% Application Harmonization 64% Business Process Management 64% SOA / Web Services 61% Unified Communications 60% 8
3x 5.4x Organizations who are leading in analytics outperform those just beginning by 3X Top Performers are 5.4X more likely to use an analytic approach over intuition Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright Massachusetts Institute of Technology 2010.
Imagine If Decision Makers Could predict and treat infection in premature newborns 24 hours earlier? detect and prevent fraudulent activity to reduce risk? determine factors most likely to drive customers to choose my product vs. the competitor s? reduce churn and retain the most loyal customers to maximise profitability? Physician Loan Officer Retail Sales Associate Telco Call Center Rep optimise every transaction, process and decision at the point of impact, based on the current situation, without requiring that everyone be an analytical expert
Business Analytics and Optimization Solutions Bridge the Gap Between Information and Outcomes Drive Efficiency Gained 30% performance improvement Support Innovation Enhancing Information Services Delivery Cut DBA workload by 25% 2/3rd reduction in time to process valuations Reduced storage by 40% 30% increase in coupon redemption rates
Providing the software, hardware and expertise to deliver the outcomes you need More than $14B in Acquisitions Since 2005 More than 10,000 Technical Professionals More than 7,500 Dedicated Consultants Largest Math Department in Private Industry More than 27,000 Business Partner Certifications Enhance Customer Understanding Optimize Real-Time Decisions Foster Collaborative Decisions Enable Enterprise Visibility Build an Information Management Foundation
BAO Leadership Strategy 1. Build Best-of-breed solutions 2. Develop domain & industry expertise 3. Fund unparalleled research 4. Invest substantial capital ($20B) for inorganic growth
Prescriptive Predictive Descriptive
To deliver breakaway performance, increasing the organization s level of analytical sophistication is needed Analytics Sophistication Use Structured Data & Unstructured Content Captured Detected Inferred Made consumable and accessible to everyone, optimised for their specific purpose, at the point of impact, to deliver better decisions and actions through: What happened? How many, how often, where? What exactly is the problem? What actions are needed? Descriptive Analytics What could happen? Simulation What if these trends continue? Forecasting What will happen next if? Predictive Modelling Predictive Analytics How can we achieve the best outcome? Optimisation How can we achieve the best outcome and address variability? Stochastic Optimisation Prescriptive Analytics
BAO Leadership Strategy 1. Build Best-of-breed solutions 2. Develop domain & industry expertise 3. Fund unparalleled research 4. Invest substantial capital ($20B) for inorganic growth
Retail Store Operations (P&L) Performance Merchandise Performance Management Promotions Planning Healthcare& Life Sciences Provider Performance Clinical Analytics Sales Quota Allocation Banking Manufacturing Risk Insight and Optimization Supply Chain Performance Branch Insight and Performance Sales and Operations Planning Customer Care and Insight Demand Planning
IBM Industry Frameworks package best practices with IBM software
IBM is forming deep relationships with complementary partners through solution validation Government Industry Framework: Government Industry & Network Centric Operations Telecommunication Industry Framework: Service Provider Delivery Environment Banking Industry Framework: Banking Industry & Financial Markets Healthcare Industry Framework: Health Integration Energy & Utilities Industry Framework: Solution Architecture for Energy & Utilities Chemical & Petroleum Industry Framework: Integrated Information Retail Industry Framework: Retail Industry Framework Travel & Transportation Industry Framework: Travel and Transportation Electronics Industry Framework: Product and Service
BAO Leadership Strategy 1. Build Best-of-breed solutions 2. Develop domain & industry expertise 3. Fund unparalleled research 4. Invest substantial capital ($20B) for inorganic growth
Technology Trends Influencing Innovation Real-time, Predictive Scenario Modeling Internet Scale Data Social Media Analytics Pervasive Analytics
Better Business Outcomes Cognos 10 Massive scale analytics Many Eyes System z support Cognos TM1 Cognos Express Cognos 8 Mashup Service Content Analytics Smart Analytics New System Analytic Applications 22 Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.
Watson A computing system that rivals a human s ability to answer questions posed in natural language, interpreting meaning and context and retrieving, analyzing and understanding vast amounts of information in real-time.
BAO Leadership Strategy 1. Build Best-of-breed solutions 2. Develop domain & industry expertise 3. Fund unparalleled research 4. Invest substantial capital ($20B) for inorganic growth
Services Customer Analytics 2009 Federal Govt Security 2010 BAO Software Predictive Analytics 2009 Web Analytics 2010 Governance, Risk & Compliance 2010 Financial Reporting 2010 Foundation Data Discovery 2009 Data Capture & Content Management 2009 Database Monitoring & Protection 2009 Data Integrity & MDM 2010 Cloud Data Integration 2010 Data Warehouse Appliances 2010
Enterprise Content Management Business Analytics Analytic Applications Business Intelligence Predictive Analytics Financial Performance Management Governance, Risk & Compliance Web Analytics Advanced Case Management Content Analytics Document Imaging and Capture Information Lifecycle Governance Social Content Management Information Integration & Federation Information Integration Master Data Management Data Warehousing Big Data and Streams Data Management Database Software Database Management Tools Information Governance Data Lifecycle Management Data Security and Privacy
Imagine the Possibilities in a World with No Limits Information from Everywhere Radical Flexibility Extreme Scalability Data & content Apps, web & sensors At rest & in motion Integrated & federated Virtualization at every level Automated administration Easy-to-use analytics Big data analytics Real-time stream processing Efficient parallelism Workload-optimized
3 Takeaways BAO is one of four key growth areas for IBM BAO solutions address many of the most critical business and government challenges IBM is a BAO leader and is innovating through targeted investments The Opportunity of a Lifetime!
Links to additional Information Academic Initiative http://www.ibm.com/ibm/developerworks/academicinitiative Smarter Planet http://www.ibm.com/ibm/ideasfromibm/us/smartplanet/in dex.shtml Business Analytics & Optimization http://www- 935.ibm.com/services/us/gbs/bus/html/bcs_centeroptimization. html Information Management Software http://www-01.ibm.com/software/data/ Research Services http://domino.research.ibm.com/odis/odis.nsf/pages/index. html