Slide #2: Smarter Planet and the Role of AnalyticsFour years ago, IBM started a new conversation about building a smarter planet – an initiative that reflects our efforts to instrument and interconnect the flow of data, information and devices between our physical and virtual worlds. When we first launched smarter planet, we knew advanced analytics would have a fundamental role to play, however, it has quickly become the silver thread woven throughout our portfolio. MENSAJES:Nuevaconvesación – construir un planeta mas inteligente – el mundo esta instrumentado y interconectado a traves de miles de millones de dispositivos que permiten integrar el mundo físico y el virtual.Sabiamos que SmartAnalyticstendria un rol fundamental en la iniciativa Smartplanet pero tal vez lo que nos sorprendio fue la velocidad con que esto ocurrio
Slide #3: Evolution of AnalyticsHemos aprendido de nuestros cliente: se aplican en nuevas modalidades para identificar nuevos patrones para alcanzar nuevo conocimiento nunca antes imaginado Mas alla del caos creado por la sociedad hiper conectado, vemos nuevos patrones de automatización. Estos patrones estan instrumentando el mundo fisicoalreadedor nuestro conforme las empresas cada vez mas se interconectan y crean grandes data warehouses para lograr el mejor conocimiento posible. Estos patrones se repiten en cada una de las industrias Si se usa adecuadamente, este cononcimientopermitira a las organizaciones reinventarse x completo ya sea en la creación de nuevos productos, nuevos servicios y optimizar las fuerzas de trabajo y procesos. Requisitosquerequierenfundamentalmente de innovacionparacompetirexitosamente en el mercado global de HOYWhat we’ve learned from these engagements is that analytics continues to evolve, continues to be applied in new ways to identify new patterns and unlock new insights in ways previously unimaginable. Amidst the chaos created by a hyper-connected society of empowered consumers, we are seeing a pattern of automation emerging. This pattern is driving the instrumentation of the physical world around us as organizations interconnect and aggregate information in massive data warehouses in order to apply analytics to gain greater insight. This pattern repeats across every industry, extending throughout both the virtual and physical worlds. If done correctly, the insight gained can enable an organization to completely re-invent their products, deliver new service capabilities and optimize their workforce and processes . . . all part of the relentless pursuit of innovation required to compete successfully in today’s global marketplace. But to do so requires us to move from enterprise data to big data . . . business initiatives to business imperatives . . . and from advancing a single organization to transforming entire industries.
Slide #4: IBV-MIT DATAYou see the data on this chart… from study conducted by our Institute of Business Value and MIT Sloan Management ReviewNumber of enterprises using analytics to create a competitive advantage jumped almost 60 percent in just one year… Nearly 6 out of 10 organizations now differentiating through analytics. We found that the overall increase in advantage went almost exclusively to organizations who were already experienced users of analytics… so the early adopters are extending their leadership. Those organizations are more than twice as likely to substantially outperform their peers So we’re seeing early bifurcation of the market – leaders and followers. Reinforced by a separate MIT Study that found analytics led to 5-6 percent productivity increases… which is big enough in most industries to separate the winners from the losers. That’s all change that’s happening within enterprises….
Slide #5: Analytics Moving from Enterprise Data to Big DataThe implications of this pattern are clear – a major transformation is underway. This transformation is fundamentally changing how organizations are structured, how daily operations are managed and where new investments are made to create value. It is being powered by the onset of big data, which in turn is being instrumented and analyzed by new computing systems with deep analytic capabilities. Analytics has grown beyond enterprise data to big, largely unstructured data from billions and billions of diverse sources: . . . there are 200 million tweets sent each day, or roughly 12 TB data. . . every second of high-definition video creates 2,000 times as many bytes as a single page of printed text. . . . . . all told, there are 1.8 trillion gigabytes of information available in today’s digital world . . . a truly remarkable figure that continues to grow at an alarming rate. Yet, it is through the complexities caused by big data that we can start to recognize new patterns that we simply couldn’t before: . . . insurance companies are identifying fraud patterns by combing different data sources in real time to analyze massive transactional databases . . . financial institutions that are trading based on trending social content . . . energy companies that are analyzing 350 billion meter readings each year to predict power consumption . . . With every new challenge created by big data comes an equal opportunity . . . for those who are truly prepared to leverage it . . . to significantly improve organizational decision making.
So what do clients tell us in our studies? From a study conducted early this year: More than one-third of business leaders frequently make major decisions with information they don’t trust. And one-half of business leaders say they don’t have access to sufficient information to do their jobs. Another more recent study highlights strong differences between the top-performing organizations and those who aren’t keeping up with their peers. Top performers were 15 times more likely to excel at predicting the future… evaluating the consequences and trade-offs of their actions
Key point can be talked about on this chart:Oil which is the fuel for modern economy for centuries. However, Oil in its raw form has little value. It needs to be refined and separated into a large number of consumer products, from petrol and kerosene to asphalt and chemical reagents used to make plastics and pharmaceuticals. It is also used in manufacturing a wide variety of materials.Big Data is just like oil, in it’s raw form it provide no value to enterprise, until it is processed and valuable and actionable business insights are “distilled”. Just like the technology that made available 100 years ago to discover oil and process it to consumable products. Big Data technology is going to transform and revolutionize the way enterprise get and use
Answers to these questions are delivered through the power of Business Analytics.All organization are striving to achieve better outcomes. Businesses are looking to drive revenue growth and ensure expenses stay in line to ensure strong margins. Public sector organizations are also trying control expenses while offering important services that benefit their constituencies.Informed, smarter decisions is a key foundation to better outcomes. Organizations need to ensure consistency across the broad spectrum of decision making from operational through to strategic decisions. Everyone in the organizations needs to be able to answer: how are we doing, why and what should we be doing?The key to decision making is driving new actionable insights. These insights are sweet spots of information that enable smarter decision making at all levels of the organization.The foundation to uncovering insights which improve decision making and deliver better outcomes is trust in the data. The organization must have confidence that the information is accurate and it must be organized in a way that is easy to uncover these insights.Let‘s have a look at some IBM clients who are using Business Analytics drive better outcomes for their organizations..
WHY do Analytics-driven outperform? WHAT do they do different?BA processes and solutions enable everyone, top-to-bottom and all functions, to make better decisions. WHY?Easy-to-use technologyReal-time info / analysisImpact of decisions across organization (NO silos)Improved colloborationCan measure outcomesCite EXAMPLES from slide...Let‘s examine organizations who‘ve embraced Analytics...
Slide #8 : FOUR INITIATIVES What we’ve found working with our clients is that enterprises that are going to drive change around business analytics tend to start in one of the four areas. Customer Analytics In a moderate-growth market, with profit pools stagnating… the mandate for customer relationship management is about taking that share from competitors. Best way to do that... insight on behaviors, as well as understanding the return or impact of promotional spending, loyalty programs, And of course, make existing customers loyal customers. Operational Efficiency And across industries, the opportunities in: Predictive maintenance… preparing, not repairing Optimizing supply chains… and the claims process. Financial Operations and Processes To do more with less, all enterprises must understand their sources of profit, and sources of cost. Roll that insight into the planning processes Accelerate the time and integrity in the closing process. Regulatory, Risk and Fraud In the post-2008 era of increasing regulation and oversight… reporting analytics is the response to governmental controls in every industry, not just financial services. Including insight into traditional and emerging categories of risk… predicting and getting ahead of future regulation. As well as fraud detection.
Slide #20 : ConclusionTo close off this section, one additional point... and it's not trivial. We've talked about the mandate we see in our clients. They do not consider the embrace of analytics optional. It's foundational to competitive position. All industries. All size of enterprise. We've looked at examples of how that's playing out in industries, and the solutions we're delivering for industry impact... which means outcomes and time to value. Very real. And I hope we've conveyed that its takes a fairly sophisticated set of capabilities to address this market in a meaningful way... which is the intentional engineering of our business model, development model, and go to market model across IBM Software and Services... along with the massive -- and exclusive -- capability of IBM Research. We think this constitutes a credible approach to this market, and it’s also why understand that the barriers to entry here are extreme. The point I'll end on is this: Last year as we marked our Centennial anniversary... one of the things that came clear... is that over that time there really have been just a few constants… and one of them is that at our core... is this enduring passion for discovery. We value thinking. We believe the core of our brand promise to our clients is access to experts and expertise. We enjoy grand challenges, and we have the will to stay with them. So from our inception… right through to today… the opportunity to unlock new value... to think in terms of complex systems… to apply this great technology portfolio and tens of thousands of people who cherish the search for the possibility... that's the DNA of our company and the deep intellectual capital of IBM.It's the kind of work we seek. And it’s the essence of what we mean when we talk about a Smarter Planet. With that… I’ld wish you all a very wonderful day ahead and thanks for all the confidence you have extended towards us over the years.
"Transformando el Conocimiento Empresarial en Resultados" - Ibm smarter analytics