Business Optimization Thru Information Analytics


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Accelerating Business Optimization: (1) Plan an Information Agenda, (2) Establish a flexible information platform, (3) Apply business analytics to optimize decisions.

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Business Optimization Thru Information Analytics

  1. 1. George Mattathil -5/12/2011Business OptimizationThrough Information & Analytics © 2010 IBM Corporation
  2. 2. Building a Smarter Planet The world is changing and becoming more… Instrumented Interconnected Intelligent The resulting explosion of information creates a need for a new kind of intelligence … to help build a Smarter Planet © 2010 IBM Corporation
  3. 3. Building a Smarter PlanetMany Organizations are Operating with Blind Spots;Those Applying Information & Analytics are Breaking Away 1 in 3 Business leaders frequently make Top Performers Demonstrate Expertise decisionsbased on information they don’t trust, or don’t have 15X 1 in 2 Business leaders say they don’t Predict and prepare for the future have access to the information by evaluating trade-offs proactively they needto do their jobs Industry Top performers Industry Under performers Source: IBM: Break Away with Business Analytics and Optimization Study © 2010 IBM Corporation
  4. 4. Building a Smarter PlanetThe Key is Leveraging Information and AnalyticsInformed, Real-time Decisions at the Point of Impact… Breakaway Approach Predict and act Sense and respond Velocity Lack of Insight Real-time, fact-driven Instinct and intuition Inefficient Volume Access Skilled analytics experts Everyone Variety Back office Point of impact Inability to Predict Automated Optimized © 2010 IBM Corporation
  5. 5. Building a Smarter PlanetThe Result: Organizations Have the Insight to Act with Confidence. Mobile County Public Schools: Real- University of Ontario Institute of time analytics more effectively measures Technology: Early detection of student performance and will potentially life-threatening conditions in immediately identify “at risk” students premature infants CenterPoint Energy: First-of-a-kind Mobile Service Provider: Analysis of outage detection and self-healing within social relationships prevents customer the grid of an intelligent utility network churn and identify new products © 2010 IBM Corporation
  6. 6. Building a Smarter PlanetTransforming Business Through Information and AnalyticsAs Significant as ERP & CRM… Business Optimization  Creating Value  Lowering Costs 2X Information Client Investment in Business Analytics & Optimization Projects is Growing over Twice as & Analytics Fast as Business Automation Automation © 2010 IBM Corporation
  7. 7. Building a Smarter PlanetTransforming Business Through Information and Analytics Reduction in Improvement in 50% storage space 50% supply chain performance Savings through modernization of $60M core business applications Reduction Reduction in loan 50% in recall60% processing cycle time probability Decrease in 30% unplanned outage time © 2010 IBM Corporation
  8. 8. Building a Smarter PlanetAcceleratingBusiness Optimization… An Industry Context & Technology Innovation to Accelerate the Journey © 2010 IBM Corporation
  9. 9. Building a Smarter PlanetInformation AgendaA proven, industry-specific approach for aligning information with business objectives Establish end-to-end vision & business-driven value Create Accelerate Value projects for short Align people, & long-term ROI process & information Lower Costs Architect an extensible information infrastructure © 2010 IBM Corporation
  10. 10. Building a Smarter PlanetInformation AgendaStrategy, Roadmaps, Information Agenda Guides Guides, Workshops, Accelerators, Roadmaps…Information AgendaGuide for Banking & Finance © 2010 IBM Corporation
  11. 11. Building a Smarter PlanetSmarter Business Outcomes With Information AgendaStrategy, Roadmaps - Information Intensive Projects Raise maturity of information usage over time Develop an adoption roadmap Connect the roadmap to a for the organization reference architecture © 2010 IBM Corporation
  12. 12. Building a Smarter PlanetBusinesses Planning Their Information Agenda Rooms To Go: Increased sales by Irish Life & Permanent: Improved helping staff optimize floor planning cross-sales, created new services, based on customer buying habits; save improved customer satisfaction and $120k/yr through self-service reporting. reduced costs via MDM initiative. Kaiser Permanente: Developed Portugal Telecom:Streamlined over 150 enterprise-wide strategy for clinical data business processes, savings millions of management, consolidating member data Euros in IT cost while improving productivity. while ensuring control and security. © 2010 IBM Corporation
  13. 13. Building a Smarter PlanetAccelerating Business Optimization Analyze and use information at the point of Create industry-specific business impact Value Optimize processes, manage business performance, and anticipate opportunities and threats Create a single, trusted view of information across the organization managed over a strategic period Lower Costs Meet new throughput, scalability, reliability and data protection requirements while controlling costs. © 2010 IBM Corporation
  14. 14. Building a Smarter PlanetAccelerating Business Optimization (continued) Analyze and use information at the point of Create industry-specific business impact Value Optimize processes, manage business performance, and anticipate opportunities and threats Create a single, trusted view of information across the organization managed over a strategic period Lower Costs © 2010 IBM Corporation
  15. 15. Building a Smarter PlanetAccelerating Business Optimization (continued) Analyze and use information at the point of Create industry-specific business impact Value Optimize processes, manage business performance, and anticipate opportunities and threats Lower Costs © 2010 IBM Corporation
  16. 16. Building a Smarter PlanetAccelerating Business Optimization (continued) Analyze and use information at the point of Create industry-specific business impact Value Lower Costs © 2010 IBM Corporation
  17. 17. Building a Smarter PlanetAccelerating Business Optimization (continued) Create Value Lower Costs © 2010 IBM Corporation
  18. 18. Building a Smarter PlanetA Flexible Information Platform Create Value Lower Costs Expanding Technology $11B in Acquisitions Since 2006 Over 10,000 Technical Professionals Over 15,000 New Clients Over 2,300 New Partners © 2010 IBM Corporation
  19. 19. Building a Smarter PlanetBuilding a Flexible Information Platform Bharti Airtel: Transformed infra- Coca-Cola Bottling: Replaced structure, reducing new account time Oracle with IBM DB2, lowering costs for by 90% while enabling addition of and storage by 40% and 2.5-3M new subscribers a month. manufacturing run duration by 65%. JB Hunt: New business process Geisinger Health System: Integrating management system returns $1M real-time clinical data with medical annually through real-time visibility history to create a massive storehouse into business. of intelligence. © 2010 IBM Corporation
  20. 20. Building a Smarter PlanetWorkload Optimized Systems and ServicesDesigned, integrated systems provide a foundation Integrated hardware and software solutions,Smart Business optimized for specific workloads Systems CloudBurst Scale Information Smart Analytics OutNAS Archive Systems System technology enhancements that hone System capabilities for specific workloads Optimizers IBM Smart Analytics Power7 Optimizer for DB2 for z/OS Accelerators General A choice of architectures – servers and Purpose storage – each fit for purpose Storage Platforms System z DS8000 XIV Virtualization Power7 System x © 2010 IBM Corporation
  21. 21. Building a Smarter PlanetTaking it to the Next Level with Business Analytics Create Value Lower Costs © 2010 IBM Corporation
  22. 22. Building a Smarter PlanetDelivering Insight and ROI Through Business Analytics US Lumber: 3,623% ROI through Blue Mountain: 1,822% ROI by improved productivity, reduced eliminating excess inventory, inventory, accelerated accounts improved reporting, more strategic receivable turnover. pricing decisions. Martin’s Point Health Care: 1,185% Swedbank: Reduced loan processing ROI through BI competency center time from 6 days to 20 minutes by that reduced reporting demands and automating decisions using predictive improved user productivity. analytics. © 2010 IBM Corporation
  23. 23. Building a Smarter PlanetTaking it to the Next Level: Predictive Analytics Richmond County Police pinpoints hotspots & leads to 20-30% decease in violent crimes Center for Disease Control Characterizes disease & quickly assess medical needs in real-time Cablecom GmbH Doubled ability to predict churn & reduced actual churn 10 fold Infinity Property & Casualty Corporation Real-time claims scoring starts fraud investigations within 24hrs. vs. 2 weeks © 2010 IBM Corporation
  24. 24. Building a Smarter PlanetTaking it to the Next Level: Content Analytics Large Claims 3rd Party Administrator Content Analytics over claims detects fraud faster, reducing costs by millions University of Ontario Institute of Technology detects life-threatening conditions in infants up to 24 hrs earlier NTT DoCoMo Content Analytics over “Voice of Customer” data creates insight driving customer-oriented decisions Kraft Content Analytics over online customer postings helps target & deliver new campaigns, increasing sales & loyalty © 2010 IBM Corporation
  25. 25. Building a Smarter PlanetTaking it to the Next Level – Packaged Analytics Packaged Business Intelligence for Line of Business … Create Value Lower Costs Ready-made reporting and analysis that consistently measure performance departmentally and across the enterprise © 2010 IBM Corporation
  26. 26. Building a Smarter PlanetInformation GovernanceOptimizing the Information Supply Chain Information Quality Single View BICC  InfoSphere QualityStage  InfoSphere MDM Server  Cognos 8 BI  InfoSphere Information Analyzer  InfoSphere Warehouse  Cognos TM1  InfoSphere Business Glossary  SPSS Information Protection  Guardium Compliance  Optim Data Privacy Information Lifecycle Mgmt  InfoSphere eDiscovery  Optim Data Growth  Optim Data Redaction  FileNet Advanced Case Mgmt  IMS & System z Tools  InfoSphere Enterprise Records  Optim Data Growth  InfoSphere Discovery  Guardium  FileNet © 2010 IBM Corporation
  27. 27. Building a Smarter PlanetTaking it to the Next Level: Industry by Industry © 2010 IBM Corporation
  28. 28. Building a Smarter PlanetTaking it to the Next Level: With Experts from IBM… BAO Strategy BI & Performance Management Advanced Analytics & Optimization Enterprise Information Management Business Know-How Enterprise Strategy & Change, Content Management 5,000 Dedicated Consultants © 2010 IBM Corporation
  29. 29. Building a Smarter PlanetPutting it All Together…IBM Smart Analytics System Analytics Software Options  Business Intelligence Capabilities  Cubing Services  Text and Data Analytics Powerful Data Warehouse  Warehousing Platform  Advanced Workload Management  System Automation Hardware & Services  Server Platform Pre-optimized  Storage Capacity Business Intelligence Software triples out of the box performance*  Build, Deploy, Health Check & Premium Support Services* Based on IBM Laboratory Tests. Actual results may vary depending on specific environment and configuration. © 2010 IBM Corporation
  30. 30. Building a Smarter PlanetWe’ve Only Just Begun to Uncover What is Possible on a SmarterPlanet. With the information organizations already have and new analytical tools, there are no limits to what is possible M&A Agility… Withholding Tax Optimization Real-time Risk Analysis Real-time Trading PositionsHow can you use information and analytics to transformyour organization? © 2010 IBM Corporation
  31. 31. Building a Smarter PlanetIBM is Investing to Accelerate Business Optimization Over $11B in acquisitions since 2006 Over 10,000 technical professionals Over 5,000 Dedicated Consultants Largest Math Department in Private Industry Over 2,300 new Business Partners since 2006 “Since 2006, IBM has deliberately & doggedly constructed an unparalleled portfolio… its difficult to see how any competitors will be able to compete anytime soon…” © 2010 IBM Corporation
  32. 32. Building a Smarter PlanetSmarter planet: Thinking and acting in new ways to make oursystems more efficient, productive and responsive. People and Process Information & Transformation Analytics Product and Service Next-generation Innovation Datacenter Sustainability Security and Resiliency Smart Industries & Cities © 2010 IBM Corporation
  33. 33. Building a Smarter PlanetInnovation That Matters$11B USD in Acquisitions Over 10,000 Technical Professionals 2010 Social Analytics/Consumer Insight Smart Analytics Systems Advanced Case Management Content Analytics Stream Computing Pervasive Content pureScale pureXML Deep Compression Developer ProductivityAutonomic Operations2006 © 2010 IBM Corporation
  34. 34. Building a Smarter PlanetFaster Insight: Smarter Decisions with Packaged Analytics Chicago-based insurance firm provided managers with consistent reporting and analysis to assess employees’ performance Large agri-business companyconsolidated transactional financial data into standard, reliable management reporting Oil & Gas international company projected $2-$5M in savings with consolidated analysis of spend Manufacturerpinpointed sales territory that was discounting too heavily and impacting revenue © 2010 IBM Corporation
  35. 35. Building a Smarter PlanetWe are Producing an Explosion of Information…Volume Variety Velocity988 exabytes: The 80% of new data growth 77% of executives sayamount of digital information is generated largely by they do not have real-timethat will exist in 2010, equal to email, with increasing information to make keya stack of books from the sun contribution by documents, business Pluto and back… images, and video andSource: Various IBM and Public Studies audio. © 2010 IBM Corporation
  36. 36. Building a Smarter Planet…While Forward-Thinking Organizations Distance ThemselvesFrom Their Competitors Key Advantages Winning Characteristics High quality 32.5% information 25% 22.7% 21.9X 5.6X 15X Strong decision support 4.4% 1.5% 1.5% Challenging Anticipating Empowered Disrupt the status quo to Predict and prepare Enable and empower Keen focus on improve the business and for the future by employees to analyze, create new opportunities evaluating trade-offs decide and act driving business proactively change Chart shows differences at the highest achievement levels Key: Top performers (i.e., 1st quintile relative to industry peers) Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise Lower performers (i.e., 4th and 5th quintile relative to industry peers) operations at Relative difference of top performers to lower performers © 2010 IBM Corporation
  37. 37. Building a Smarter PlanetImagine if you could… …predict …apply social …adjust credit …determine who infection in relationships of lines as to offer discounts premature customers to transactions are at time of sale newborns 24 prevent churn? occurring to instead of hours earlier? account for risk offering to all? fluctuations? Physician Telco Call Loan Officer Retail Sales Center Rep Associate © 2010 IBM Corporation
  38. 38. Building a Smarter PlanetTrademarks and notes IBM Corporation 2009  IBM, the IBM logo and are registered trademarks, and other company, product or service names may be trademarks or service marks of International Business Machines Corporation in the United States, other countries, or both. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at  Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under “Special attributions” at:  Other company, product and service names may be trademarks or service marks of others.  References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. © 2010 IBM Corporation