Transforming Business with Smarter Analytics


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Transforming Business with Smarter Analytics by Deb Mukherji @ BPT IBM Innovative Indonesia with Smarter Analytics, 12 June 2013, Shangri-La Hotel Jakarta

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Transforming Business with Smarter Analytics

  1. 1. Transforming Business withSmarter AnalyticsDeb MukherjiIBM Smarter Planet SolutionsAsia Pacific12 June 2013© 2013 IBM Corporation
  2. 2. Four years ago, we startedworking with organizations tobuild a Smarter Planet.© 2013 IBM Corporation2Through thousands of clientengagements, we learned thatanalytics is fundamental to success.
  3. 3. AnalyticCapabilitiesBusinessApplicationsApplication-Centered Today Business Analytics- CenteredTomorrowMoving to a New Paradigm© 2013 IBM Corporation33BusinessApplicationsAnalyticCapabilitiesAnalyticCapabilitiesAnalyticCapabilitiesBusinessApplicationsBusinessApplicationsTransformationSource: Gartner, 2012
  4. 4. Analytics has evolved from business initiativeto business imperative63%5820123.6Likelihood of organizations competingon analytics to outperform their peers2Percentage of respondents who citeda competitive advantage from the useof information and analytics1,2© 2013 IBM Corporation458%37%20112010 70%increaseSource: 1 2010 and 2011 datasets © Massachusetts Institute of Technology. 2 Analytics: The real-world use of big data. 2012Study conducted by IBM Institute for Business Value, in collaboration with Säid Business School at the University of Oxford.3.6x
  5. 5. Analytics is expanding from enterprise datato big dataVolume Velocity Variety100’sterabytesvideofeeds© 2013 IBM Corporation5from surveillance camerastrade events per secondmeter readings per annumAnalyze product sentimentPredict power consumptionMonitor events of interestIdentify potential fraudPrevent customer churncall detail records per day are images, video, documents…Improve customer satisfaction100’sof Tweets create dailyterabytes feedsmillion350 billion 500million 80%datagrowth
  6. 6. The emergenceof big dataanalytics1 Increasingconsumerexpectations2 Acceleratingpressure to domore with less3And key trends fuel the need and urgency for analytics© 2013 IBM Corporation665%65% of business are notusing big data forbusiness advantage84%84% of consumers relyon social networks forpurchase decisions32%Organizations usingadvanced analytics enjoy32% higher return oninvested capital
  7. 7. Analytics is progressing from the possibleto the provenWhat if…You could pinpoint optimallocation for wind turbines tomaximize power generation andreduce energy costs by analyzing2.8 petabytes of climate data?What if…You could optimize inventory andfree up capital using a highlyaccurate view cost-to-serve byproduct line, transportation andcarbon footprint?What if…You could identify your clientswho are in danger of churningbefore they would even knowthemselves?© 2013 IBM Corporation7Vestas did!• Reduced response time forwind forecasting fromweeks to hours• Shortened time to developa wind turbine site bynearly a month2.8 petabytes of climate data?McKesson did!• Transformed their supply chain• Reduced working capital bymore than US$100 million.carbon footprint?XO Communications did!• Reduced churn rate by35% in the first year• Improved billed revenueretention rate by 60%• Achieved 376% ROI in 5months
  8. 8. • Advanced client segmentation• Leveraging customer sentiment analysis• Reducing customer churn• Enabling rolling plan, forecasting and budgeting• Automating the financial close process• Delivering real-time dashboardsFinanceExamples:Focusing on high-value initiatives in core business areasCustomers© 2013 IBM Corporation8• Optimizing the supply chain• Deploying predictive maintenance capabilities• Transform threat & fraud identification processesOperations• Delivering real-time dashboards• Making risk-aware decisions• Managing financial and operational risks• Reducing the cost of complianceRisk
  9. 9. through analytics forbreakaway resultsTransformIBM Smarter Analytics is a holistic approach thatturns information into insight and insight into outcomes© 2013 IBM Corporation9from solutions that getsmarter with every outcomewith confidence at the point ofimpact to optimize outcomessee, predict and shapebusiness outcomesyour organizationaround informationAlign Anticipate ActLearn
  10. 10. • Create a trusted information foundation.Deploy an information strategy thatflows from your business strategyAlign your organization around informationAlign© 2013 IBM Corporation10• Integrate and govern informationto ensure business confidence.• Control the capture, management,governance and sharing of enterprise content• Leverage the volume, velocity andvariety of internal and external information.Big Data PlatformData WarehousingInformation Integration andGovernanceEnterprise Content ManagementData Management
  11. 11. • Spot trends, anomalies and opportunities.Anticipate to see, predict, and shape business outcomesAnticipateLeverage business analytics todeliver actionable insights© 2013 IBM Corporation11• Spot trends, anomalies and opportunities.• Plan, budget and forecast resources.• Measure and monitor business performance.• Automate and align strategic and operationaldecisionsPerformanceManagementPredictiveAnalyticsRiskAnalyticsBusinessIntelligenceContentAnalytics
  12. 12. • Embed analytics into processes thatoptimize operations and future strategies.Act with confidence at the point of impactActEmbed analytics into processesand create a data-driven,decision-making culture© 2013 IBM Corporation12optimize operations and future strategies.• Leverage proven solutions and modelsdesigned and tuned for the task.• Empower people with historic, real-time,and predictive insights.• Establish an analytics-based decisionmaking culture.Decision ManagementAdvanced Case ManagementDigital Marketing OptimizationCross-channel Selling and MarketingPricing, Promotion and Assortment OptimizationOrganization and Workforce TransformationMarketing Performance OptimizationSupply Chain Optimization
  13. 13. • Learn from evidence and outcomes to getsmarter with each iteration.Learn from solutions that get smarter with every outcomeNaturallanguage 1LearnEmploy reasoning and returnconfidence-based responses todeliver answers© 2013 IBM Corporation13smarter with each iteration.• Navigate the complexities of humanspeech through natural language processing• Generate and evaluate possiblehypotheses dynamically to the most complex• Ingest and analyze big data continuouslyand discover new patterns and insightsWatsonWatson for HealthcareWatson for FinancialServicesReady for WatsonHypothesistestingEvidence-based learning32
  14. 14. • Develop a clear analytics strategy alignedto business priorities and desired outcomesTransform through analytics for breakaway resultsTransformAccelerate the time to value anddeliver game-changing results© 2013 IBM Corporation14to business priorities and desired outcomes• Challenge current thinking, explore newideas, and follow the facts to innovate• Enhance current approach with analyticsadvancements and innovation• Use proven industry solutions, use cases,and accelerators to deliver rapid valueBAO StrategyIBM Research First-of-a-kind ProjectsApplication Management ServicesIBM Industry Solutions
  15. 15. IBM delivers the core capabilities for successAlign Anticipate Act Big Data PlatformBusiness Analytics and Optimization Consulting ServicesBAO Strategy | Customer Analytics | Regulatory and Risk | Fraud Analytics | Financial Performance ManagementInformation Management Foundation | IBM Research First-of-a-kind Projects | Application Management ServicesIBM Smarter Analytics Signature SolutionsCustomer | Finance | Anti-Fraud, Waste & AbuseIBM Solution AcceleratorsPortfolio aligned to Industry Imperatives Business Intelligence  Decision ManagementTransform© 2013 IBM Corporation15 Big Data Platform Data Warehousing Information Integration andGovernance Data Management Enterprise Content Management Defensible Disposal Business Intelligence Performance Management Predictive and Advanced Analytics Risk Analytics Sentiment Analytics Big Data Analytics Content Analytics Web and Digital Analytics Online Benchmark Spend Analytics Decision Management Advanced Case Management Digital Marketing Optimization Cross-channel Selling and Marketing Pricing, Promotion, and AssortmentOptimization Marketing Performance Optimization Supply Chain Optimization Organization and WorkforceTransformationSystems that learn and reasonWatson l Watson for Healthcare l Watson for Financial Services l Ready for WatsonLearn
  16. 16. Resulting in solutions that deliver big impactInsuranceGovernment Retail TelecommBankingCreate a customerfocused enterpriseCustomer ProfitabilityCreate a customerfocused enterpriseCustomer Retention &Deliver smarter servicesto generate new revenueChurn PredictionDeliver a smartershopping experienceMarket Basket AnalysisImprove citizenservicesCitizen Services© 2013 IBM Corporation16Customer ProfitabilityMarketing OptimizationEnterprise riskoptimizationComplianceFinancial & OperationalRisk AnalyticsIncrease flexibility &streamline operationsPayments analyticsCustomer Retention &GrowthEnterprise riskoptimizationComplianceFinancial & OperationalRisk AnalyticsIncrease flexibility &streamline operationsClaims OptimizationTransformoperationsNext best actionBuild smarternetworksOPEX and CAPEXplanningChurn PredictionNetwork AnalyticsBuild smarteroperationsStore operationsSmarter merchandising& supply chainsStore assortmentMarket Basket AnalysisSentiment AnalysisCitizen ServicesAnalyticsManage resourceseffectivelyOperationalAnalyticsBudget & FinancialManagementImprove public safetyCrime Prediction
  17. 17. Grow, retain and satisfycustomersIncrease operationalefficiencyMoving clients from the possible to the provenImproved campaignresponse rate100%Accuracy predicting97%© 2013 IBM Corporation17efficiencyManage risk, fraud andregulatory complianceTransform financialprocessesOptimizingprofitability for over30KSKUsAccuracy predictingdemand 4 months inadvanceSuspicious Medicaidclaims identified$200M
  18. 18. Organizations vary on where they startwith Smarter AnalyticsMany start by focusing on a specific high value business problem to:• Grow, retain and satisfy customers• Increase operational efficiency• Transform financial processes• Manage risk, fraud & regulatory compliance© 2013 IBM Corporation18• Manage risk, fraud & regulatory complianceSome build out foundational capabilities such as informationgovernance or decision management.And, others start strategically at the top to create an analytics-drivenenterprise.
  19. 19. Drive Innovation and GrowthIBM changed its business mix toward high-value, more profitable technologies andmarket opportunities…• Exited commoditized businesses:– PCs/ hard disk drives/ printing systems• Strengthened position in:– business consulting/ analytics/ cloud computing• Mergers & acquisitions:– 60 companies over the last 5 years/ $18B invested2011 a record year…© 2013 IBM Corporation19– 60 companies over the last 5 years/ $18B invested• Global shared services:– business process excellence/ IT simplification &integration• Growth market leadership:– 22% of revenue (30% by 2015)
  20. 20. Unparalleled in the industryBroad and integrated portfolio of information andanalytics capabilitiesProven experience accelerating time-to-value andEnterprise-classBig Data PlatformComprehensive analyticcapabilitiesDecision ManagementsolutionsIBM Smarter Analytics© 2013 IBM Corporation20Proven experience accelerating time-to-value anddelivering breakaway resultsAdvanced technology and expertise applyinginnovation to real world problems30K+ analytics-focusedclient engagements9,000+ consultants 9 Analytic SolutionsCentersIBM WatsonWorld’s largest mathdepartment in private industry600+ analytics patentsper year
  21. 21. © 2013 IBM Corporation21