Ibm cloud forum april - blue insight final


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Ibm cloud forum april - blue insight final

  1. 2. Breakthrough Cloud Environments for Business Analytics Paul Scorza VP, Business Analytics, Finance, Global Finance & Tech Support Transformation Exec.
  2. 3. Agenda: <ul><li>Business Analytics </li></ul><ul><li>Business Analytics at IBM: Then and Now… </li></ul><ul><li>Blue Insight: What is it, why it works and who uses it at IBM </li></ul><ul><li>IBM’s Business Analytics Center of Competence (BACC): Where it is going and how it has paid off </li></ul><ul><li>Keys to a successful BACC </li></ul>
  3. 4. Business Analytics represents the combination of skills, technologies and processes to deliver data-driven business performance <ul><li>Focuses on developing new insights and understanding of current business performance </li></ul><ul><li>Leverages extensive use of data, quantitative analysis, predictive modeling to drive decision making </li></ul><ul><li>Includes skills, technologies and processes for continuous analysis of past business performance to gain insight and data-driven planning </li></ul>What is Business Analytics? Intelligent profitable growth Efficiency and cost take - out Proactive risk managemen t Risk and Fraud Analytics Advanced Customer Insight Analytics and Data Optimization Intelligent profitable growth Efficiency and cost take - out Proactive risk managemen t Risk and Fraud Analytics Advanced Customer Insight Analytics and Data Optimization Analytics Environment Risk and Fraud Analytics Advanced Customer Insight Analytics and Data Optimization Data & Tools
  4. 5. Business insight and market differentiation are a by product of leveraging advanced analytics What exactly is the problem? What will happen next if? What if these trends continue? What could happen? What actions are needed? How many, how often, where? What happened? Standard Reporting Ad hoc reporting Query/drill down Alerts Simulation Forecasting Predictive modeling Optimization Stochastic Optimization Descriptive Prescriptive Analytics Predictive Analytics How can we achieve the best outcome? How can we achieve the best outcome including the effects of variability? low high Complexity low high Business Advantage Competitive Breakaway Differentiating Adapted from Competing on Analytics , 2007 Foundational
  5. 6. Business analytics trends are driving Business Analytics Competency Centers (BACC) and Cloud delivery models <ul><ul><li>BA remains top CIO priority </li></ul></ul><ul><li>BA investment set to grow despite economic climate </li></ul><ul><li>IT budgets will come under increased scrutiny, especially if the economic down turn continues </li></ul><ul><li>But expect leaner and meaner BI practices </li></ul><ul><li>Move from a piece meal departmental deployment to across the wider enterprise </li></ul><ul><li>Do more sophisticated types of BI with less money and IT staff </li></ul><ul><li>BA goes mainstream </li></ul><ul><li>Mission Critical </li></ul><ul><li>Continued transition towards operational BA </li></ul><ul><li>Enabling more users, increases deployment </li></ul><ul><li>Self-sufficiency - shifting power to the users </li></ul>Competency center deployments will rise Attaining level of BA maturity is key to success BA standardization A way of reducing costs and maximizing the potential of existing skill sets and technologies Shift towards pervasive BI Competency center * Ovum – BI –PM user trends to look for in 2009 by Madan Sheina & Helena Schwenk
  6. 7. Business analytics at IBM: Then and Now…
  7. 8. Historically, our “functionally fragmented’ Business Analytics (BA) environment created a number of challenges for business and technical leadership ….. Data Mart/ Warehouse Sales & Marketing HR Segmented investments in BA tooling and infrastructure Silo’d metric development Lack of tooling standardization Limited visibility Organizational reluctance to a centralized service Senior Executives Product Development Fulfillment Finance
  8. 9. Today our Business Analytics (BA) environment is centralized with a common infrastructure and standardized processes … providing numerous advantages for the business Cloud Administrators BA Administrators Report Authors Blue Insight Sales & Marketing HR Business Analytics Center of Competency (BACC) Blue Insight is the world's largest private cloud environment for business analytics which delivers a centralized hosting and support environment for Cognos 8 BI applications. Business Analytics Center of Competence (BACC)- manages the Blue Insight environments and provides guidance to adopters to efficiently deliver business analytics solutions enterprise wide. Senior Executives Product Development Fulfillment Finance Deliver common and centralized defined BA services Align solution pattern with adopter usage pattern Maintain solution autonomy
  9. 10. IBM created a BACC to provide Analytics Common Services to accelerate delivery and yield economies of scale Cognos (BA) SPSS (Prediction) DataStage (ETL) Marts / Cubes Business Domain IT Transformation Executive (TE) <ul><li>Analytics tool delivery in the Cloud </li></ul><ul><li>- ETL </li></ul><ul><li>- Business Intelligence </li></ul><ul><li>- Predictive analytics </li></ul><ul><li>- Warehousing </li></ul><ul><li>Standard boarding services </li></ul><ul><li>Architecture standards & governance </li></ul><ul><li>Solution consulting </li></ul><ul><li>Defined operation levels </li></ul><ul><li>Education consulting </li></ul>BACC <ul><li>Solution Architecture </li></ul><ul><li>Project Management </li></ul><ul><li>Data extract </li></ul><ul><li>Data modeling </li></ul><ul><li>Intelligent analytics </li></ul>Business Domain + = Requirements Solution Design Components Solutions
  10. 11. The BACC is comprised of centralized and decentralized components Centralized BACC Common Processes Shared Services Adopter BI Teams Project Management Resource Advise Unit or Functional Level Decentralized Centralized BACC Governance Infrastructure / Services Org BACC owns the definition of the consumable central service to end users Business Strategy Alignment Best Practices & Standards Management Communication & Evangelism Community Services Enterprise Technical Architecture Advise & Consult Support IT Governance Alignment Data Governance Alignment Education BACC
  11. 12. CIO Dashboard – Establish top to bottom management system ensuring alignment to the CIO priorities and performance objectives – Provide drill down capability to meet the needs of each direct line organization – Drive fundamental change towards a balanced dashboard between run and transform – Enable optimization, streamlining and automation of CIO operations – Ensure clear outcomes and targets for CIO organization – make visible baseline and target measurements – Provide reference point to drive Business Analytics maturity across IBM and showcase Cognos&quot; Supporting strategic and operational agenda of the CIO: through instrumentation, priority setting, communication , target definition, progress measurement/transparency and business analytics.
  12. 13. Blue Insight: What is it, why it works and who uses it at IBM
  13. 14. What exactly is Blue Insight? Transformational technology delivery matched with process and solution delivery model changes Common BA “appliance like” service for delivering Business Intelligence to IBM (Infrastructure) <ul><li>Common extensible infrastructure ( HW & SW) – zLinux for scale </li></ul><ul><li>Common operational support </li></ul><ul><li>Common management of Cognos 8 BI licensing and Level 3 support </li></ul><ul><li>Transformational technology delivery matched with process and solution delivery model changes </li></ul>Common service definition and boarding process (Common Processes) <ul><li>Defined BA tooling service scope (Reports, Adhoc, cubing, pervasive, etc.) </li></ul><ul><li>Defined standard security and LDAP management </li></ul><ul><li>Common operational processes </li></ul>Business analytics experts to assist adopters (People) <ul><li>Business Analytics Center of Competence (BACC) </li></ul><ul><li>Consultants available to assist in solution definition and consumption of service </li></ul>
  14. 15. Why Blue Insight? <ul><li>Stops the proliferation of siloed analytics installations </li></ul><ul><ul><li>- Without centralization and oversight an estimated 35-50 independent installations would occur across IBM within 36 months @ a cost of ~$30M </li></ul></ul><ul><li>Commoditize tools and the operations service levels </li></ul><ul><li>Delivers operational excellence for a well defined service </li></ul><ul><li>Provides central “Always on” analytics platform on a scalable zLinux environment </li></ul><ul><li>BACC drives the BA strategy for IBM internally </li></ul><ul><li>Maximizes leveraging scarce Cognos skills by centralizing some into the BACC </li></ul><ul><li>Promote sharing and education to grow teams with common analytics skills </li></ul>Proliferation of Cognos installations Standardized operations Analytics skills are scarce Platform and organizational structure
  15. 16. IBM’s Blue Insight Analytics Cloud leverages standardization and centralization for process and IT delivery efficiencies In the spotlight Our commitment to informed decision making led us to consider private cloud delivery of Cognos via System z, which is the enabling foundation that makes possible +$25M savings over 5 years . - IBM CIO Office Blue Insight enables IBM to deliver business analytics with greater efficiency across the enterprise <ul><li>Establishes a corporate strategy for service delivery of BA </li></ul><ul><li>Reduces the time and cost to deliver BI to new divisions and departments </li></ul><ul><li>Maintains current departmental business processes, corporate security and compliance </li></ul><ul><li>Maximizes departmental budgets by subscribing to standard services </li></ul><ul><li>Private cloud solution implementation offers economies of scale and flexibility </li></ul>Customer results: <ul><li>Consolidating +40 multi-product, departmental BI deployments to Cognos 8 BI on System z </li></ul><ul><li>Deploying a private cloud to support +200,000 named users across our global workforce </li></ul><ul><li>Realizing value from +100 data sources across IBM </li></ul>Learn More
  16. 17. IBM WW Blue Insight Deployment Scope and Penetration S ervice delivery scope is business domain agnostic… <ul><li>Adopters cover all Geographies and business process areas </li></ul><ul><li>User groups range from 50 K to < 50 users </li></ul><ul><ul><ul><li>Sales Commissions </li></ul></ul></ul><ul><ul><ul><li>Sales Management </li></ul></ul></ul><ul><ul><ul><li>Sales Operations </li></ul></ul></ul><ul><ul><ul><li>Supply chain – Fulfillment, Procurement </li></ul></ul></ul><ul><ul><ul><li>Finance – Expense, Revenue </li></ul></ul></ul><ul><ul><ul><li>Brand/Unit reporting </li></ul></ul></ul><ul><ul><ul><li>Channel reporting – Direct, Business Partner, Web </li></ul></ul></ul><ul><li>Blue Insight user support </li></ul><ul><ul><ul><li>2009: 72K users (exceeded 2009 objective of 55k) </li></ul></ul></ul><ul><ul><ul><li>2010 objective: 120K users (currently 160K users have boarded) </li></ul></ul></ul><ul><ul><ul><li>2011 projection: 200K users (expected to hit steady state) </li></ul></ul></ul>
  17. 18. Smart Analytics Cloud Defined as … To create… That delivers … A hosted analytics platform offering exists called the Smart Analytics Cloud (A private cloud optimized for analytic services in large enterprises) IBM Smart Business - services with industry leading hardware & software A services solution for delivering business analytics to the entire organization A private cloud computing solution for business analytics Open, enterprise-class BI platform Web Office Search Mobile Cognos 8 BA A broad range of BI capabilities IBM System z Centralize, Virtualize & Simplify the BI infrastructure IBM software IBM hardware <ul><li>Create awareness of BA and understand the needs for a BA strategy across the organization </li></ul><ul><li>Complete a readiness assessment to define the </li></ul>IBM Services <ul><li>Deploy Cognos 8 BA for Linux on System z as a private cloud </li></ul><ul><li>Provide the skills for the on going management & expansion of their BA private cloud deployment </li></ul>scope and priorities for the solution
  18. 19. IBM’s Business Analytics Center of Competence (BACC): Where it is going and how it has paid off..
  19. 20. Our Transformation and Deployment Plans for Blue Insight are multi-year and multi-faceted, focused on expanding the IT Service and maturing business processes # of Analytics Consumers 66K 300K Simplified Shared Consolidate (2009) Virtualize (2010) Automate (2011) Established executive stewardship of BA Globally Formed a dedicated cross-functional BACC Converged / centralized BA infrastructure Leveraged existing trusted data sources Defined & Standardized boarding processes & services Extended Common Boarding Processes Completed Analytics Maturity Assessment Extend shared SaaS model for defined services - Predictive Analytics (SPSS) Integrate boarding automation Complete boarding adopters & sunsets Automate Boarding and Planning Process Adopter Self Definition Automated Evaluation of Infrastructure & Service Impacts Automated evaluation of infrastructure impacts Automated communications of status, audit reporting & billing Blue Insight Growth (2011+) Identify growth areas for standardization of services Data Tools – ILOG Jrules ™ Notes integration Portals / Dashboards Harvest IP from solutions Dynamic 160K
  20. 21. Business case : $25M over 5 years <ul><li>Cloud enablers of business case </li></ul>VIRTUALIZATION + STANDARDIZATION AUTOMATION + Increased Flexibility = Increased Flexibility - Future focus <ul><li>Achieved 2010 hard savings of over $5M and booked $5M of hard savings in 2011 </li></ul><ul><li>IBM is delivering BI centrally for <20% of the cost of decentralized solution installation </li></ul><ul><li>True value is in a BI strategy that provisions standard tooling freeing the business to innovate. </li></ul>Cloud attributes Reduced Cost <ul><li>5% Savings </li></ul><ul><li>Adopter administration </li></ul><ul><li>35% Savings </li></ul><ul><li>Operations efficiency </li></ul><ul><li>Development efficiency </li></ul><ul><li>Improved time to value </li></ul><ul><li>60% Savings </li></ul><ul><li>HW Consolidations </li></ul><ul><li>SW Costs </li></ul><ul><li>3 rd Party vendor savings </li></ul>Fully automated provisioning Common operations process Shared Cognos V8 Predictive infrastructure planning Common promotion process Shared middleware Automated choreography & administration Common security Shared peripheral infrastructure Web 2.0 Boarding application Common service definition Z10 Infrastructure
  21. 22. BACC Business analytics success and maturity breed growth… Common Compute Platform – System Z (Compute/ Network/ Storage) BACC will extend standard services for Data preparation, predictive analytics and portal integration services… Information Management Lifecycle Future Current W3 Portal Services BACC Blue Insight Extension Predictive Analytics BACC SPSS Business Intelligence BACC Cognos Information preparation and Warehousing Business Analytics Center of Competence (BACC) IBM Information Server and Warehouse
  22. 23. Keys to a successful BACC
  23. 24. What’s needed for a successful centralized business analytics center of competency ? <ul><li>Executive sponsorship of the CIO: </li></ul><ul><ul><li>Extensive socialization of the notion of centralized services as being self service and necessary for enterprise efficiency without sacrificing business agility </li></ul></ul><ul><ul><li>Governance of licensing and infrastructure delivery of BI solutions </li></ul></ul><ul><li>Know where BI investments are being made throughout the enterprise: “Follow the money” </li></ul><ul><ul><li>Control points in procurement and infrastructure delivery for new BI solutions </li></ul></ul><ul><ul><li>Inventory and review planned investments in BI enterprise wide </li></ul></ul><ul><li>Not all services for a particular business segment need to be controlled by the organization </li></ul><ul><ul><li>Cloud approach provides the tenant with central tools NOT central solutions </li></ul></ul><ul><ul><li>Perception by adopters needs to be a ‘” self service” model, with extended services available </li></ul></ul><ul><li>Positive business case: </li></ul><ul><ul><li>Centralized service needs to produce real savings </li></ul></ul><ul><ul><li>Conservative projection of 20-30% savings (IBM achieved > 50%) </li></ul></ul>