Transcript July 2011 IBM Business Analytics and Optimization © 2011 IBM Corporation Business Analytics and Optimization Watson answered a grand challenge Can we design a computing.

July 2011
IBM Business Analytics
and Optimization
© 2011 IBM Corporation
Business Analytics and Optimization
Watson answered a grand challenge
Can we design a computing system that rivals a human’s ability
to retrieve, analyze and interpret vast amounts of information in real time,
arriving at the highest probability correct answer in less than three seconds?
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© 2011 IBM Corporation
Business Analytics and Optimization
Imagine if you had all the answers you need to win
Which
customers are
thinking of
leaving?
Which
transactions are
fraudulent?
Which new
product has the
greatest
chance of
success?
How can I
extract insight
from all of my
information?
The ultimate differentiator today…
…is being able to make more informed choices with
confidence, to anticipate and shape business outcomes.
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© 2011 IBM Corporation
Business Analytics and Optimization
The time to act is now
A convergence of market forces and technology advances is widening the gap
between leaders and laggards
New Info Types and Sources
Traditional and Big Data,
Internal and External
Customer and Employee
Expectations
Expanded Time Horizons
Historical, Real-Time, Predictive
Customers – and employees –
are more empowered than ever
New Analytic Capabilities
Speed of Business
Combining BI, predictive and
advanced analytics allow for
new insights
Real-time decisions no
longer just an option
Governance
Increased regulatory
pressure and scrutiny
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© 2011 IBM Corporation
Business Analytics and Optimization
Business Analytics and Optimization capabilities connect
people with trusted, relevant information, enabling them to
confidently predict, plan and act
Business Analytics
and Optimization
Technology and
Market Drivers
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Optimized Outcomes
© 2011 IBM Corporation
Business Analytics and Optimization
Embracing Business Analytics and Optimization gives
organizations the answers they need to outperform
Business
Value
5.4x
Top performers are
more likely to use an
analytic approach over
intuition*
Rapid, informed, confident decisions
consistent across the organization
• Information Strategy
• Mastering Information
• Business Analytics
Use Over Time
*within business processes
7 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.
© 2011 IBM Corporation
Business Analytics and Optimization
Introducing new offerings
based on analytical insight from
an Enterprise Data Warehouse
 Real-Time Fraud Monitoring based on global view
of fraud and spending patterns.
 Transaction Alerts delivered directly via email or
SMS text message.
 Special offers from merchants delivered directly
to mobile phones.
Processing
10k
transactions/
second
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© 2011 IBM Corporation
Business Analytics and Optimization
Organizations that embrace Business Analytics and
Optimization have the answers they need to outperform
Customer
Understanding
The Market
Real-Time
Optimization
Collaborative
Decisions
Processes,
Employees
Enterprise
Visibility
The Organization
Information Management Foundation
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© 2011 IBM Corporation
Business Analytics and Optimization
Enhance Customer Understanding: Customer Churn
Why do people leave and how can you intervene
before it’s too late?
Key Capabilities
• Customer Analytics
• Predictive Analytics
• Data integration with
Common Metadata
• Master Data Mgmt
7x
Dropped Calls
Improvement in
XML
Processing
Time
• Big Data
• Warehouse Scalability
• Compression and
Archiving
20%
Reduction
in Churn
Customers Most
Likely To Leave
(and Why)
Calling Patterns
(Big Data)
Integrate/Cleanse/
Deduplicate
Data
Warehouse
Predictive
Modeling
Rate Plans
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Master Ongoing insight
Data
Management
© 2011 IBM Corporation
Business Analytics and Optimization
Enable Enterprise Visibility: Demand Visibility
How could supply chain visibility inform decisions
at the point of impact?
Key Capabilities
Cubing and
Mining
3 clicks
to build predictive
model
• Supply Chain
Analytics
• Scorecards /
Dashboards
• Master Data
Management
• Industry Models
• Information Agenda
Finance
Suppliers
465
industry
accelerators
Operations
Managers
Distribution
Warehouse
Master
Data
Management
Buyers
3,623% ROI
via supply
chain visibility
Store
Managers
Retail Outlets
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© 2011 IBM Corporation
Business Analytics and Optimization
Optimize Real-Time Decisions: Fraud Protection
How can you detect fraud before transactions are accepted?
Key Capabilities
Batch
Attempted
Collection
Real-Time
11.4M
Messages
per second
•
•
•
•
•
•
Finance Analytics
Real-Time Analytics
Identity Insight
Stream Processing
Pattern Detection
Self-Learning
Batch Fraud
Identification
Transaction
Accepted
Transaction
Accepted
Transaction
Rejected
Transaction
Processed
Transaction
Processed
Real-Time Fraud
Identification
$1.2B
savings
Incoming
Transaction
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Incoming
Transaction
© 2011 IBM Corporation
Business Analytics and Optimization
Foster Collaborative Decisions: Loan Origination
How can you maximize customer service while minimizing risk?
Key Capabilities
• Content Analytics
• Advanced Case
Management
• Master Data Mgmt
• Business Rules
• Integrated
Collaboration
External
Policies
Fast Track
Approval
Real-Time Data
Gathering
Automated
Scoring/Pricing
Credit
Monitoring
6 Days
to
5 seconds
new loan
processing
Existing
Customer
Details
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Master
Data
Management
Credit
Monitoring
Collaboration
Denial
© 2011 IBM Corporation
Business Analytics and Optimization
Foundation for Business Analytics and Optimization
Trusted  Relevant  Governed
Transactional
& Collaborative
Applications
Analyze
Integrate
Business Analytics
Applications
Content
Big Data
Manage
Master
Data
Cubes
Streams
Data
External
Information
Sources
Data
Warehouses
Content
Information
Governance
Streaming
Information
Govern
Security &
Privacy
Quality
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Standards
Lifecycle
© 2011 IBM Corporation
Business Analytics and Optimization
Business Analytics and Optimization capabilities
allow you to gain insight and optimize results
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© 2011 IBM Corporation
Business Analytics and Optimization
Smarter Computing
Capabilities
 Integrated Optimized Systems
optimized for specific analytic and
transactional workloads
 Appliances offering purpose-built
analytics engine, integrated database,
server and storage for scalability,
simplicity, and speed
 Big data platform that complements a
traditional approach with iterative and
exploratory analysis, unlocking new
insights
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© 2011 IBM Corporation
Business Analytics and Optimization
Information Management and Governance
Capabilities
 Data Management capabilities provide an
integrated, modular environment to
manage and optimize data-driven
applications across heterogeneous
environments
 Content Management capabilities turn
enterprise content into business insight using
industry-specific solutions that capture,
manage, analyze and share content
throughout its entire lifecycle.
 Information Integration capabilities
integrate and transform data and content to
deliver authoritative, consistent, timely and
complete information
 Data Warehousing capabilities allow you to
work with TB and PB of analytical and
transactional data in real time
 Information Governance capabilities deliver
complete, consistent and accurate
information that decision-makers trust to
improve business performance
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© 2011 IBM Corporation
Business Analytics and Optimization
Business Analytics
Capabilities
 Spot and analyze trends, patterns and
anomalies;
 Plan, budget and forecast resources
 Compare ``what-if” scenarios
 Predict potential threats and
opportunities
 Link risks to our overall business
objectives, improving performance
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© 2011 IBM Corporation
Business Analytics and Optimization
Business Analytics and Optimization Solutions
Capabilities
 Industry-specific and cross-industry
solutions built on thousands of client
engagements and leveraging more
than 7,700 industry practitioners with
deep technical and industry expertise
 Access and partnership with IBM
Research deliver innovation and
solutions
 IBM BAO Services can help you:
– Take out cost and improve
efficiency
– Improve control, bottom line and
stop losses
– Plan for intelligent profitable
growth
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© 2011 IBM Corporation
Business Analytics and Optimization
Imagine the possibilities
…in a world with no limits
Information
from Everywhere
•
•
•
•
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Data & content
Apps, web & sensors
At rest & in motion
Integrated & federated
Radical
Flexibility
• Virtualization at
every level
• Automated administration
• Easy-to-use analytics
Extreme
Scalability
• “Big data” analytics
• Real-time stream
processing
• Efficient parallelism
• Workload-optimized
© 2011 IBM Corporation
Business Analytics and Optimization
A big data platform addresses big data use cases …
Complementing the traditional approach with iterative and exploratory analysis
Data Warehouse
Big Data Platform
Multi-channel customer
sentiment and experience a
analysis
Detect life-threatening
conditions at hospitals in
time to intervene
Predict weather patterns to plan
optimal wind turbine usage, and
optimize capital expenditure on
asset placement
Enterprise
Integration
Make risk decisions based on
real-time transactional data
Traditional Sources
New Sources
Identify criminals and threats
from disparate video, audio,
and data feeds
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© 2011 IBM Corporation
Business Analytics and Optimization
Getting Started – The IBM Information Agenda Approach
Establish end-to-end
vision & business-driven
value
Align people,
process, &
information
Accelerate
projects for short
& long-term ROI
Architect an extensible
information infrastructure
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© 2011 IBM Corporation
Business Analytics and Optimization
This analytics-driven approach is empowering
our smarter planet… industry by industry
Fighting Chronic
Disease
Reducing Energy
Dependence
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Reducing
Customer Churn
Averting Fraudulent
Transactions
Reducing Traffic
& Pollution
Preventing
Contamination
Streamlining
Supply Chains
© 2011 IBM Corporation
Business Analytics and Optimization
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 7,700 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
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© 2011 IBM Corporation
Business Analytics and Optimization
You can take the lead
C-Suite Executives
Clarify business
objectives and
priority outcomes
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Business Analysts
Demand the
information you
need to make
better decisions
IT Managers
Identify and address
barriers to delivering
information that
business users need
© 2011 IBM Corporation
Business Analytics and Optimization
For more information, please visit ibm.com/bao
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© 2011 IBM Corporation
Business Analytics and Optimization
Backup
 Additional detailed slides on specific topics
 Slides frequently used in previous iterations of the BAO client presentation
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© 2011 IBM Corporation
Business Analytics and Optimization
Imagine if you had all the answers you need to
win
IBM Business Analytics and Optimization solutions can ensure that
Used by Watson
Related Innovations
you do
InfoSphere Warehouse
DB2, Informix, Netezza
IBM Content Analytics
Natural Language Processing
and content analysis
leveraging UIMA
Aggregating and storing
data and content
InfoSphere Streams
Massively parallel analysis
InfoSphere BigInsights
Business Analytics
“Big Data” analysis (Hadoop)
BI, Predictive Analytics
and more
ECM Solutions
IBM Power Systems
IBM eDiscovery Analyzer
IBM Classification Module
IBM OmniFind Enterprise Search
Thousands of parallel
processes
Workload Optimized Systems
Integrated, Optimized by Workload
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IBM Global
Business Services
Research, expertise and
analytical assets
© 2011 IBM Corporation
Business Analytics and Optimization
Offering a comprehensive portfolio of BAO capabilities
Business Analytics and Optimization
Software
Systems
Business Analytics
Business intelligence
Predictive analytics
Analytic applications
Fin. Performance and Strategy Mgmt
Governance, risk and compliance
PureScale Application System
Enterprise Content Mgmt
Advanced Case Mgmt
Content analytics
Document imaging and capture
Info lifecycle governance
Social content mgmt
Enterprise Marketing Mgmt
Research
BAO Strategy
Workload Optimized Systems
and Appliances
Information Management
Data management
Info integration & federation
Data warehousing
Info governance
Big data platform
Services
Smart Analytics System
Netezza Appliances
First of a Kind Projects
Customer, Marketing and
Sales Analytics
Risk, Finance and Fraud
Analytics
Research Advisors
Human Capital Analytics
Supply Chain Analytics
Analytics Patents
Information Management
Foundation
Enterprise Information Management
Enterprise Content Management
Storage and Data Services
Big Data Services
Analytic Research Assets
(COBRA, DIOS, TACS, etc)
Web Analytics
Decision Optimization
Optimization and analytical decision support
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© 2011 IBM Corporation
Business Analytics and Optimization
IBM Global Business Services
Business Analytics and Optimization Services
Analytic Solution
Areas of Benefits
IBM BAO Services
 Over 7,700 industry practitioners with deep technical and
industry expertise can help implement a strategy to gain
insight and optimize results.
 Access and partnership with IBM Research to deliver
innovation and solutions that address our clients' most
difficult challenges
 IBM BAO Services can help you:
– Take out cost and improve efficiency
– Improve control, bottom line and stop losses
– Plan for intelligent profitable growth
Get started on your path to value with our
Watson Assessment or BAO Jumpstart BVA!
Infrastructure
Productivity
Take-out cost and
improve efficiency
Information
Management
Foundation
(IMF)
Business
Productivity
Risk, Fraud and
Finance
Improve control,
bottom line and stop
losses
Supply Chain
Focus on
growth
Intelligent profitable
growth
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Domains
Customer, Marketing
and Sales
Human Capital
© 2011 IBM Corporation
Business Analytics and Optimization
Building the Most Comprehensive
Business Analytics and Optimization Portfolio
2011
• More than $14B in Acquisitions
Since 2005
• More than 10,000 Technical
Professionals
Social Analytics/Consumer Insight
Workload Optimized Systems
• More than 7,500 Dedicated
Consultants
Advanced Case Management
Content Analytics
Decision Management
• Largest Math Department
in Private Industry
• More than 27,000 Business
Partner Certifications
Stream Computing
Pervasive Content
pureScale
pureXML
Deep Compression
Developer Productivity
Autonomic Operations
2005
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© 2011 IBM Corporation
Business Analytics and Optimization
Information is at the Center
Of a New Wave of Opportunity…
44x
as much Data and Content
Over Coming Decade
2020
35 zettabytes
2009
800,000 petabytes
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Sources:
• The Guardian, May 2010
• IBM Institute for Business Value, 2009
• IBM CIO Study 2010
• TDWI: Next Generation Data Warehouse Platforms Q4 2009
… And Organizations Need
Deeper Insights
1 in 3
Business leaders frequently
make decisions based on
information they don’t trust, or
don’t have
1 in 2
Business leaders say they don’t
have access to the information
they need to do their jobs
83%
of CIOs cited “Business
intelligence and analytics” as
part of their visionary plans
to enhance competitiveness
5.4x
Top performers are 5.4X more
likely to use an analytic
approach over intuition
© 2011 IBM Corporation
Business Analytics and Optimization
Organizations embracing Business Analytics and
Optimization have the answers they need to outperform
Analytics correlates to performance
3x
Organizations that lead in
analytics outperform those
who are just beginning to
adopt analytics
5.4x
Top Performers are more
likely to use an analytic
approach over intuition*
*within business processes
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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. © 2011 IBM Corporation
Business Analytics and Optimization
Informed, real-time decisions at the point of impact…
Breakaway Approach
Predict and act
Velocity
Lack of
Insight
Inefficient
Access
Volume
Sense and respond
Instinct and intuition
Skilled analytics experts
Variety
Inability
to Predict
Back office
Real-time, fact-driven
Everyone
Point of impact
Automated
Optimized
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© 2011 IBM Corporation
Business Analytics and Optimization
Business Analytics and Optimization solutions
will enable you to consistently outperform your peers
Plan an
Information Agenda…
…to align with your
business strategy
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Master Your
Information…
Apply
Business Analytics…
…to ensure it is accurate, …to anticipate and shape
relevant and governed
business outcomes
© 2011 IBM Corporation
Business Analytics and Optimization
Where organizations are focusing
Business Analytics and Optimization
Enhance
Customer Understanding
• Customer Churn
• Marketing Spend
• Sales Productivity
Optimize
Real-Time Decisions
• Fraud Protection
• Health Monitoring
• Trading Advantage
Foster
Collaborative Decisions
Enable
Enterprise Visibility
• Customer Service
• Claims Processing
• Channel Management
• Risk Management
• Demand Visibility
• Strategy Alignment
Build an Efficient
Information Management Foundation
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• Reduced costs
• Simplified integration
• Actionable insight
© 2011 IBM Corporation