This document discusses how organizations can optimize their business through the use of information and analytics. It describes how the world is becoming more instrumented, interconnected and intelligent, creating both opportunities and challenges for organizations regarding data volume, variety and velocity. The document advocates that organizations can gain insights, make better decisions and outperform competitors by leveraging analytics at the point of impact across their business. It also outlines IBM's capabilities and solutions for business optimization, including industry-specific approaches, predictive analytics, information governance and workload-optimized systems and services.

1. George Mattathil -
5/12/2011
Business Optimization
Through Information & Analytics
© 2010 IBM Corporation

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. Building a Smarter Planet
Many 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. Building a Smarter Planet
The Key is Leveraging Information and Analytics
Informed, 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. Building a Smarter Planet
The 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. Building a Smarter Planet
Transforming Business Through Information and Analytics
As 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. Building a Smarter Planet
Transforming 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 recall
60% processing cycle
time
probability
Decrease in
30% unplanned outage
time
© 2010 IBM Corporation

8. Building a Smarter Planet
AcceleratingBusiness Optimization…
An Industry Context &
Technology Innovation to
Accelerate the Journey
© 2010 IBM Corporation

9. Building a Smarter Planet
Information Agenda
A 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. Building a Smarter Planet
Information Agenda
Strategy, Roadmaps, Information Agenda Guides
Guides, Workshops,
Accelerators,
Roadmaps…
Information Agenda
Guide for Banking & Finance
© 2010 IBM Corporation

11. Building a Smarter Planet
Smarter Business Outcomes With Information Agenda
Strategy, 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. Building a Smarter Planet
Businesses 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. Building a Smarter Planet
Accelerating 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. Building a Smarter Planet
Accelerating 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. Building a Smarter Planet
Accelerating 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. Building a Smarter Planet
Accelerating Business Optimization (continued)
Analyze and use information at the point of
Create industry-specific business impact
Value
Lower
Costs
© 2010 IBM Corporation

17. Building a Smarter Planet
Accelerating Business Optimization (continued)
Create
Value
Lower
Costs
© 2010 IBM Corporation

18. Building a Smarter Planet
A 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. Building a Smarter Planet
Building 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. Building a Smarter Planet
Workload Optimized Systems and Services
Designed, 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. Building a Smarter Planet
Taking it to the Next Level with Business Analytics
Create
Value
Lower
Costs
© 2010 IBM Corporation

22. Building a Smarter Planet
Delivering 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. Building a Smarter Planet
Taking 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. Building a Smarter Planet
Taking 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. Building a Smarter Planet
Taking 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. Building a Smarter Planet
Information Governance
Optimizing 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. Building a Smarter Planet
Taking it to the Next Level: Industry by Industry
© 2010 IBM Corporation

28. Building a Smarter Planet
Taking 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. Building a Smarter Planet
Putting 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. Building a Smarter Planet
We’ve Only Just Begun to Uncover What is Possible on a Smarter
Planet.
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
Positions
How can you use information and analytics to transform
your organization?
© 2010 IBM Corporation

31. Building a Smarter Planet
IBM 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… it's difficult to see how any
competitors will be able to compete anytime soon…”
© 2010 IBM Corporation

32. Building a Smarter Planet
Smarter planet: Thinking and acting in new ways to make our
systems 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. Building a Smarter Planet
Innovation 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 Productivity
Autonomic Operations
2006
© 2010 IBM Corporation

34. Building a Smarter Planet
Faster 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. Building a Smarter Planet
We are Producing an Explosion of Information…
Volume Variety Velocity
988 exabytes: The 80% of new data growth 77% of executives say
amount of digital information is generated largely by they do not have real-time
that will exist in 2010, equal to email, with increasing information to make key
a stack of books from the sun contribution by documents, business decisions.
to Pluto and back… images, and video and
Source: Various IBM and Public Studies
audio.
© 2010 IBM Corporation

36. Building a Smarter Planet
…While Forward-Thinking Organizations Distance Themselves
From 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 www.ibm.com/gbs/intelligent-enterprise.
Relative difference of top performers to lower performers
© 2010 IBM Corporation

37. Building a Smarter Planet
Imagine 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. Building a Smarter Planet
Trademarks and notes
IBM Corporation 2009
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 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