Ba & nexus of info


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Ba & nexus of info

  1. 1. Business Analytics and the Nexus of Information Introduction2The Impact of the Nexus of Forces4 Every day, the world creates 2.5 quintillion • Cloud computing has become a practicalFrom the Gartner Files: bytes of data and the pace at which it is being alternative for providing IT services andInformation and the Nexus of created has escalated to the point that 90 storing data.Forces: Delivering and Analyzing percent of the data in the world today didData not exist three years ago. This data comes Although the size and velocity of today’s data from everywhere: sensors used to gather is daunting, it also provides an opportunity to6 climate information, posts to social media find insights, to make businesses more agileAbout IBM Business Analytics sites, digital pictures and videos, purchase and to answer questions that were previously transaction records and mobile phone GPS considered too difficult to address. signals to name a few. Several technology trends are key contributors to this explosion In Information and the Nexus of Forces: of data: Delivering and Analyzing Data, Gartner states that the confluence of information generated • The mobile revolution is instantly by new technologies and sources will create connecting businesses, consumers and a nexus of forces that could be even more governments. disruptive than the dot-com and e-business booms of the 1990s. To take advantage of • Social media has emerged as a this nexus, companies will need to innovate primary means for communication and through information. collaboration. • Hyper digitization is a fact of life. What were once mainly analog and paper artifacts (videos, education and forms, for example) are now increasingly being produced in digital formats. Featuring research from
  2. 2. The Impact of the Nexus of ForcesGartner posits that exploiting the nexus of forces for better business information and use data modeling to create scenarios. Theseresults will be a critical business and IT skill. In addition, companies solutions should also span the full spectrum of analysis to include:will need to prioritize the areas of greatest potential impact, adjustIT strategies and adopt emerging technologies and IT capabilities to • Analytical reporting. Analytical reporting helps enterprises find thecapitalize on opportunities. answers to business questions fast with guided report analysis, dashboards, navigable reports and mobile business intelligence.The research states that emerging technologies offer a chance toexploit these trends to meet the continual demand for better data • Trend analysis. Trend analysis is used to fully explore data andfor analysis and fact-based decisions. Gartner identifies business track business developments with capabilities for tracking patternsanalytics and information management as the two IT strategy and adding them to charts and graphs.areas for these technologies. In the area of business analytics,the research identifies content analytics and social analytics as • What-if analysis. What-if analysis enables enterprises to modeltechnologies that can provide better access to more varieties of scenarios with capabilities for reorganizing, reshaping andinformation at lower costs and support new business models that recalculating data so you can identify the optimal solutions toyield competitive advantages. business problems.Success, says Gartner, depends on how well organizations respond • Advanced analytics. With advanced analytics, enterprises canto their enterprise business intelligence (BI) and analytics needs. uncover patterns in the business and apply algorithms to BI data toGartner also adds that proper preparation for innovation through predict outcomes.information includes three main activities. Enterprises should analyzetheir business needs and the impact of better information on IBM® Cognos® Enterprise software includes analysis capabilities thatbusiness outcomes. They should help the business understand what span the spectrum of analysis. With analytical reporting that includesis possible with technologies that analyze new information types. dashboards, navigable reports and mobile BI, it is possible to haveThey should then adopt a strategy that includes these technologies. at-a-glance views of the business and to go into more detail. Users can sort from top to bottom and back, be guided through to additionalTo use business analytics as part of a strategy to exploit the nexus relevant reports and analyze data on demand. A common metadataof forces, IBM believes enterprises can combine expanded analysis layer helps users ask for more information about anything they see.capabilities (analytical reporting, predictive analytics and statistical For example, they can call up the lineage of a piece of informationanalytics) with analytics technologies (for example, customer to see where it was sourced from to increase their confidence in thatanalytics) to comprehensively analyze the information coming in and information. Or, if someone is reviewing a report or dashboard aboutmake the right decisions as a result. customers who are purchasing less merchandise than usual, they can link to a report of open support requests for a given customer toAnalytics for traditional and new forms of information see if the lack of purchasing is based on an open service issue. ThisInnovation through information includes using analysis capabilities is guided analysis; the system helps people find what they need toin new ways and exploiting customer analytics. know.The full spectrum of analysis For trending analysis, Cognos Enterprise includes features for fully exploring data, comparing and contrasting different business areas,To meet the growing demand for solutions that analyze traditional analyzing trends over time and rotating and nesting informationand new forms of data, organizations now want analysis solutionsthat promote self-discovery, provide the ability to manipulate Business Analytics and the Nexus of Information is published by IBM. Editorial supplied by IBM is independent of Gartner analysis. All Gartner research is © 2012 by Gartner, Inc. All rights reserved. All Gartner materials are used with Gartner’s permission. The use or publication of Gartner research does not indicate Gartner’s endorsement of IBM’s products and/or strategies. Reproduction or distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see “Guiding Principles on Independence and Objectivity” on its website, 2
  3. 3. to gain fresh insights. You can also add trends right in your charts • Improve sales forecasting and minimize sales cycles.and graphs. If you prefer comparing and contrasting informationin Microsoft Excel, you can do so with another Cognos Enterprise • Predict which customers are at risk of leaving and retain them.feature. In addition, anyone involved in analysis can benefit fromthe ability to add relevant pieces of reports to Microsoft Office • Maximize customer lifetime value through personalized up-sellapplications, such as PowerPoint, and watch them automatically and cross-sell.refresh each time they access them. This helps you pool yourpersonal sources with those of other interested users without Customer acquisition uses smarter analytics to attract more valuableaffecting enterprise data sources so that you can confirm what you customers. Customer lifetime value helps businesses use analyticsare seeing in the trends. and BI to design cross-sell and up-sell opportunities. Customer loyalty uses churn management and other analytics techniques to improveTo help finance and business users analyze their key performance loyalty and satisfaction. Social analytics (or social media analytics)drivers and use the results of this analysis to make faster and better uncover customer sentiment dispersed over numerous onlinedecisions, Cognos Enterprise includes an analytics server to power sources.what-if analysis solutions. Finance and business users can comparethe value and cost of alternative courses of action to the status quo Because of the impact social media has on consumer opinions andto help build strong business recommendations and make strategy buying behavior, IBM offers a robust social media analytics solutionchange grounded in facts. In addition, your company can respond called IBM Cognos Consumer Insight. Cognos Consumer Insight is anmore quickly to internal and external business drivers and optimize analytics application designed specifically for social media. It usesbusiness performance. sophisticated software to assess the volume, sentiment and trends in consumer conversations that span different social media. You canAnd, to provide advanced analysis features, Cognos Enterprise use this information to guide your organization’s marketing strategiesintegrates with IBM SPSS® predictive analytics and statistics solutions to be more precise, agile and responsive to consumer demands,that help uncover patterns in the business and can apply algorithms allowing you to target or calibrate marketing campaigns to growto BI data to predict outcomes. The foundational technology of these market share, enhance reputation and improve customer experience.IBM advanced analysis solutions uses sophisticated mathematicsto help researchers validate assumptions and test hypotheses. By In addition, marketers can evaluate dimensional relationshipstesting opinions about the latest product feature ideas, the efficacy between terms to look for trends, such as the affinity betweenof a new drug treatment or prospective supply chain allocation, your products and media channel – a feature currently unique to IBM. Theyorganization can look at what it believes and validate whether those can assess related and relevant topic associations above and beyondviews are based in fact. In addition, statistics will make you confident an initial search, such as clustering of purchasing preferences aroundin the results and the final outcomes of the decisions you make. a key word. Using the information and insights uncovered, businesses can design targeted marketing and promotional programs andTogether, the features and solutions of Cognos Enterprise provide the marketing segmentation that can lead to more sales and greaterexpanded, flexible data analysis businesses need to find the answers any business question from large, complex and structureddatasets. Conclusion Are you prepared to take advantage of the nexus of forces? How doCustomer analytics you plan to make the most of the terabytes of data your companyCustomer analytics uses customer behavior to determine better generates every day? IBM Business Analytics software can help youways to satisfy, acquire and retain customers. Customer analytics answer those questions. With a comprehensive, unified portfoliosolutions from IBM minimize the difficulty of understanding what of business intelligence that includes new and expanded analysiscustomers want by uncovering hidden insights in customer data. capabilities and business analytics solutions that include customerWith these insights, businesses can design personalized experiences analytics, deep, complex or unstructured data sources are nofor their customers to help them win more business and increase longer obstacles. People in your company can spot trends, patternscustomer loyalty. Predictive, smarter and social media analytics help and anomalies, compare “what if” scenarios and predict potentialbusinesses: opportunities to better understand, anticipate and shape business outcomes and innovate through information.• Identify and target the best customers for marketing. Source: IBM 3
  4. 4. From the Gartner Files: Information and the Nexus of Forces: Delivering and Analyzing DataAnalyze how to adjust your business and • The growing strategic nature of are all about gaining competitive advantageIT strategies to take advantage of the ways information and exploiting new markets to deliverthat new information driven by cloud, social growth. “Transformational” is not a word toand mobile will be critical to the successful Individually, each of these forces is disruptive; be used lightly, but there is no doubt thatexploitation of the Nexus of Forces. however, when taken together, they interact, the information revolution in which we are amplify and accelerate to form a Nexus enmeshed will be disruptive to incumbentsAnalysis of Forces that will rival the disruption and and transformational in its impact onA new era is emerging in which information magnitude of change caused by the dot-com organizations, processes and jobs acrosswill play an increasingly central and critical and e-business boom of the late 1990s. Of practically all industry sectors, governmentsrole in business success and competitive particular importance for taking advantage and even society itself.advantage. Advances in technology are of the Nexus is the enterprise’s ability tocreating new types of information from innovate through information (see Figure 2). These forces serve as primary feeders forexternal sources. Data volume, variety and the new types of information, exploited byvelocity are growing exponentially, lending New ideas and opportunities represented business and resulting in new use cases.prominence to the populist term “big data.” by these forces are widespread, but they Current information infrastructures are poorlyFinally, emerging technology is giving CIOs are often confined to specific industries or positioned to deal with use cases inspiredand other IT leaders the chance to deliver on business domains. Understanding and by the flood of data from these externalthe longstanding demand from the business communicating the “art of the possible” sources. Understanding the new use casesfor better data with which to support fact- will spawn creativity that can support new and how to respond to them will be criticalbased decisions that lead to better business business outcomes. The opportunities that to the effective use of these new types ofoutcomes. new approaches toward information offer information. organizations are many and varied, but theyHowever, there is more to the successfulexploitation of information by today’sorganizations than just better analytics andtechnology. Understanding the sources and FIGURE 1nature of these new types of information The Nexus of Forcesand how they can lead to better businessoutcomes will be a critical business andIT skill. Equally important is the ability toprioritize the areas of greatest potential Moimpact, adjust IT strategies, and adopt ial bi c So leemerging technologies and IT capabilities tocapitalize on opportunities.The Nexus of Forces Puts Information inthe SpotlightGartner sees the confluence of severalhigh-level forces (see Figure 1) combiningto reshape the business and technologicallandscape during the next five years: on• Cloud-based business Cl ud ati o or m I nf• The rise of mobile usage and commerce• Growth in the use of social media and casual computing by consumers Source: Gartner (June 2012) 4
  5. 5. 5 FIGURE 2 Success requires IT organizations to • Revise information disciplines to keep Information Innovation understand the business requirements up with the new pace and scope of for new information and how it can affect information demands measurable business outcomes and help drive innovation. IT should also understand • Create an information strategy to guide that information demand can quickly outstrip continuous improvement the IT organization’s ability to deliver. Strategic Planning Assumptions The increasing volume, variety and • Through 2015, 85% of Fortune 500 velocity of information will overwhelm organizations will be unable to exploit big familiar disciplines for accessing, storing, data for competitive advantage. managing, analyzing, governing, presenting, collaborating on and sharing information. As • By 2015, the 20% of enterprises employing a result, the IT organization must develop an social media beyond marketing will lead information strategy to guide its response to their industries in revenue growth. business requirements for information. The first step in building an information strategy • At year-end 2016, more than 50% of is understanding how to be an information Global 1000 companies will have stored leader. customer-sensitive data in the public cloud. Two areas that will have a significant impact on IT strategy are business intelligence (BI)/ • By 2015, mobile application development analytics and information management. In projects targeting smartphones and the case of analytics, success depends on tablets will outnumber native PC projectsSource: Gartner (June 2012) the organization’s ability to adopt consistently by a 4:1 ratio. and to respond to the enterprise’s BI and analytics needs. Management of the Source: Gartner Research G00234835, Y. Genovese Emerging technologies offer a chance to information will also require a consistent 26 June 2012exploit these trends to meet the business’s model to frame information and informationlong-standing demand for better data with capabilities.which to make fact-based decisions. Contentanalytics, social analytics, in-memory Consider These Factors to Determine Yourdatabases, Hadoop and other technologies Readinesscan deliver better access to more varieties Innovation through information can giveof information at lower costs, and they can the enterprise an enduring competitivesupport new business models that yield advantage if enterprises properly prepare.competitive advantages.”Hadoop and Enterprises should:MapReduce: Big Data Analytics” describeshow these new techniques and technologies • Analyze business needs and the impact ofcan rapidly process data (including better information on business outcomessemistructured information) in parallel onlarge clusters of computer nodes. “Innovation • Help the business understand what isInsight: Invest in In-Memory Computing possible with less-expensive technologies,for Breakthrough Competitive Advantage” and technologies that manage andexplores how falling costs associated with analyze new information types (such asmemory are enabling radical improvements text and video)in performance that are relevant to manyanalytical challenges. 5
  6. 6. About IBM Business AnalyticsIBM Business Analytics software delivers actionable insightsdecision-makers need to achieve better business performance. IBMoffers a comprehensive, unified portfolio of business intelligence,predictive and advanced analytics, financial performance andstrategy management, governance, risk and compliance andanalytic applications. For more informationWith IBM software, companies can spot trends, patterns and For further information please visit, compare “what if” scenarios, predict potential threatsand opportunities, identify and manage key business risks and plan, Request a callbudget and forecast resources. With these deep analytic capabilities To request a call or to ask a question, go to customers around the world can better understand, anticipate analytics/contactus. An IBM representative will respond to yourand shape business outcomes. inquiry within two business days. 6