Eventa CDO Executive Summit

1. Demonstrating Big Value in Big DataDemonstrating Big Value in Big Data
with New Analytics Approaches
Julie Severance
Global Leader, ACE Program
IBM Analytics, Customer Programs
@analyticalist
julieannseverance

2. 2
Data is the next natural
resource and it will
change how decisions
are made in the
marketplace. Analytics
of that data will form the
silver thread that weaves
through the future of
everything we do.
Ginni Rometty
Chairman and CEO
IBM Corporation
Early Analytics focus was on physical assets
Then Expanded to non physical processes
Now Used across the enterprise
$24B
Analytics
Acquisitions &
Growth
$6B
Annual Spend
in Research
500+
Ph.Ds
$1B
Watson Group
Formation
“
“
Building A Smarter Enterprise at IBM®

3. EngagementEngagement
requires a systematic
approach
DataData
is the new basis of
competitive advantage
CloudCloud
is the path to
new business models
The New Era
Defined by three key shifts

4. Manage Data
Host applications
Provide App Dev platform
DataData
Collect, Store
Create data
Use App
Analyze data
Provide Insights
Share data
Use platform
Analytic sAnalytic s
MobileMobile S oc ialS oc ial
C loudC loud
Systems of Insights
Making the Art of the Possible a reality
Announcement of the Pope

5. Leading organizations are seizing the opportunity
Deriving insights faster will be a differentiator.

6.  Relatively new business and technical challenges
 Still striving to reach potential
 Few organizations have made a deep commitment
 Successes are difficult to quantify
 Opportunities are missed
 Organizations are less competitive
6
How can we overcome these challenges and unlock
the potential of analytics?
The (ugly) truth
About conventional approaches to analytics

7. The Importance of Organizational Readiness
How effective are centers of excellence?
97%97%
56%56%
6%6%0%0%
n = 5748 organizations
5% 65% 9%21%
Manual, slow, error prone,
cumbersome, fragmented.
Data quality concerns
Automated, instant, accurate,
seamless, predictive, converged.
Data governance is in place
IBM Study
of AQ respondents, 2012
MasterLeaderBuilderNovice

8. 8
Lack of management bandwidth due to
competing priorities
Lack of skills internally in the line of business
Lack of understanding how to use analytics
to improve the business
Culture does not encourage sharing information
Ownership of the data is unclear or
governance is ineffective
Lack of executive sponsorship
Concerns with the data
Perceived costs outweigh the projected benefits
No case for change
Ability to get the data
38%
34%
28%
24%
23%
23%
22%
21%
21%
15%
Organizational
Data
Financial
Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology 2010.
Primarily Organizational Obstacles
Inhibit widespread adoption of analytics

9. The first step, is
admitting the
problems. Prior
to 2009 IBM®
faced the same
challenges that
most
organizations
face—on a very
large scale.
More than
spread across an enterprise comprising
and more than
Storing and processing big data into
was redundant, costly and not very effective.
1,000 TBs of data1,000 TBs of data
400,000 people400,000 people
200 locations200 locations
100+analytics silos100+analytics silos
around the world.
Challenges at IBM®
We faced our own problems on a very large scale
Analyze all our data
Empower all our employees.
Analytics everywhere.
We needed the cloud.

10. 10
Fulfillment
HR
Marketing
Sales Finance
Senior
Executives
Data admin
Report authors
Analytics admin
Analytics infrastructure and solutions Data warehouse data mart
Lacking a cohesive approach for analytics
Business units worked in silos

11. Be proactive
about privacy, security
and governance.
Build a culture
that infuses analytics
everywhere.
Empower all employees
to make data-based
decisions.
Deploy a unified platform
that can handle all types of analytics,
regardless of form or function.
Remove setup cost and time
as a barrier to informed
decision making.
IBM® Analytics strategy assessment
Journey to A Smarter Enterprise
We needed a cloud solution. We needed an ACE.

12. 1 Acknowledge the need, urgency, willingness for
change with an Executive Sponsorship.
Measure success and recognize value of
improvement to ensure Business Effectiveness.
Where to start?
Critical to building the foundation
Charter
Roadmap
Think strategically, but act tactically in
incremental steps that add immediate value.
Develop a strategic plan through organizational
readiness.
Interlocking Business and IT to Build a guiding
team was critical to the success.
2
3
4
5

13. 13
Naming variations but common theme:
 Analytics Center of Excellence (ACE)
 Analytics Capabilities Enablement (ACE)
 Analytics Community Enablement (ACE)
 Business Intelligence CoC (BICC)
 BI Center of Excellence (BI COE)
 Performance Management CC (PMCC)
 Business Analytics CC (BACC)
 Business Analytics Community of Practice
Business S trategy
Alignment
Communication
& Evangelism
Community
S ervices
Enterprise Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data
Governance
Alignment
Education
Business
S trategy
Alignment
Best
Practices
& Standards
Management
Communication
& Evangelism
Community
S ervices
Enterprise
Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data
Governance
Alignment
Education
Keys to Business Analytics Success
What is an ACE?
A virtual and structured team of people within an organization who work
cross-functionally to enable and apply the keys to analytics excellence
Is the analytics strategy linked to the business strategy?
What analytics resources, skills and process are needed?
What analytics capabilities or product solutions are needed?
Organizational
Structure
Operational
Framework

14. Business S trategy
Alignment
Communication
& Evangelism
Community
S ervices
Enterprise Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data
Governance
Alignment
Education
Business
S trategy
Alignment
Best Practices
& Standards
Management
Communication
& Evangelism
Community
S ervices
Enterprise
Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data Governance
Alignment
Education
Phase 1: Focus on bringing quick value
Enable a cloud based prototype to build a foundation.
Provide a technologyProvide a technology
architecture that supports thearchitecture that supports the
enterprise that is scalable &enterprise that is scalable &
extensibleextensible
Gain broader support andGain broader support and
interest in the value ofinterest in the value of
information.information.
Provide a user community withProvide a user community with
value-added shared servicesvalue-added shared services
of analytics information assetsof analytics information assets

15. Sales
IT
BACC Transform Decentralized
Centralized
CIO Shared
Service
C ommon Proc es s es
S hared S ervic es BACC Run
Adopter BI
Teams (TE)
Projec t Management
Res ourc eAdvis e
Business Analytics Competency Center(BACC)
People, Process and Technology
HR
MarketingFullfillment
Finance
Business
S trategy
Alignment
Best Practices
& S tandards
Management
Communication
& Evangelism
Community
S ervices
Enterprise
Technical
Architecture
Advise
& Consult
S upport
IT
Governance
Alignment
Data
Governance
Alignment
Education
ACE

16. Data admin
Report authors
Analytics admin
Analytics infrastructure
and solutions
Data warehouse
data mart
FulfillmentFulfillment
MarketingMarketing
SalesSales FinanceFinance
HRHR
ITIT
Blue Insight
Blue Insight is born

17. Provide the userProvide the user
community, advise &community, advise &
consult guidance withconsult guidance with
knowledge transfer forknowledge transfer for
greater self-servicegreater self-service
ContinuouslyContinuously
improving theimproving the
skill set of theskill set of the
community forcommunity for
greater self-greater self-
sufficiencysufficiency
Provide readilyProvide readily
available expertise toavailable expertise to
answer questions &answer questions &
resolve problemsresolve problems
ShareShare
experience andexperience and
standardizingstandardizing
operation foroperation for
greater efficiencygreater efficiency
and lower riskand lower risk
Phase 2: Expand and Scale
Enable LOB analytics groups, expand and scale offerings.
Business S trategy
Alignment
Communication
& Evangelism
Community
S ervices
Enterprise Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data
Governance
Alignment
Education
Business
S trategy
Alignment
Best
Practices
& Standards
Management
Communication
& Evangelism
Community
S ervices
Enterprise
Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data
Governance
Alignment
Education
17

18. Business
Domain
Analytics
Groups
BACC
• Cloud Delivery
- BI, Predictive
- ETL
•Boarding services
•Standards/Goverance
- Architecture
- Solutions
•Education consulting
•Support structure
• Cognos BI
• Cognos TM1
• SPSS®
• Social Analytics
Business
Domain
Knowledge
Requirements Solution design Components Solutions
Strategy | Value |Strategy | Value | PeoplePeople || ProcessProcess || TechnologyTechnology
Solution Delivery process at IBM®
Business requirements to analytics insights
Transformation
Executive (TE)
•Project management
•Data extract
•Data modeling
•Intelligent analytics

19. Blue Insight
High performance,
low cost acceleration
Structured and
unstructured data sources
Marquee suite of integrated
IBM Analytics capabilities
Accessible on the road
or in the office
PureData
100-100,000x100-100,000x
faster and reduced latency by days
10x10xsavings in data preparation
20%20%projected efficiency gain in administration
2
1
3
4
Source: IBM internal project benchmark results
Analytics Accelerators
Speeding up processing time for all types of data

20. Quality Early Warning System - IBM® detects quality
problems up to six weeks earlier using cumulative sum
technology
Preventive Maintenance and Quality 2.0
- Quality Early Warning System (QEWS) is
now part of PMQ 2.0
$50 M
Cost savings, approximately
$10M / year
Proactive Quality Management
QE WS
Improved Brand Value
Challenge
Improve detection of emerging defects on
manufacturing lines
Solution
Quality Early Warning System provided
earlier warning with fewer false alarms20

21. Customer Optimization for Profitability boosts sales
effectiveness with advanced analytics to align sales
resources to true market opportunity
Challenge
Increase Sales
Solution
Recommendation Engine
$300Mestimated additional revenue
during 2013 due to sales force
productivity increase
3000% ROI
for 2013, based on a yearly
ongoing investment
Solution components:Solution components:
- IBM® SPSS Modeler, Statistics
- IBM® Cognos BI
- IBM® Netezza
C OP
=Increase Decrease Maintain

22. WW S pend
IBM simplifies and standardizes spending analysis
processes by leveraging a single multi-dimensional cube on
a worldwide basis
18+ Spending
Cubes Consolidated
2700+ Users
Solution components:
- IBM®
Cognos TM1
- IBM®
SPSS Modeler
All previous cubes used Essbase
All Spending and Resource data
for all IBM units and geographies
Challenge
Get a holistic view of worldwide spending
Solution
Create single cube for all of spending to
enable management
22

23. We reclaimed
7,000 m2
of floor space
We deliver over
30,000
megawatts
of energy
$5 million
99%
for business units
We conserved
We reduced
analytics costs by
efficiency savings
Blue InsightBlue Insight
movedmoved
enterprise-wideenterprise-wide
analyticsanalytics
operations ontooperations onto
the cloud,the cloud,
consolidatingconsolidating
100+ silos to a100+ silos to a
single analyticssingle analytics
environment.environment.
Blue Insight
Enterprise-wide analytics operations in the cloud
Gaining increased insights, savings and adoption rates
Blue Insight changed everything at IBM.Blue Insight changed everything at IBM.
And, best of all, we transformed big data into big dollars, adding
hundreds of millions in business value.hundreds of millions in business value.

24. Determining strategiesDetermining strategies
based on businessbased on business
priorities for maximum ROIpriorities for maximum ROI
and added valueand added value
Aligning with data governanceAligning with data governance
processes to provide trustedprocesses to provide trusted
information for effectiveinformation for effective
decision makingdecision making
Plan for growth, aligning withPlan for growth, aligning with
IT management andIT management and
operational processes foroperational processes for
greater efficiency & lower riskgreater efficiency & lower risk
Phase 3: Alignment on strategic initiatives
Collaborate and innovate across the enterprise
Business S trategy
Alignment
Communication
& Evangelism
Community
S ervices
Enterprise Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data
Governance
Alignment
Education
Business
S trategy
Alignment
Best Practices
& Standards
Management
Communication
& Evangelism
Community
S ervices
Enterprise
Technical
Architecture
Advise
& Consult
S upport
IT Governance
Alignment
Data Governance
Alignment
Education

25. Benefits of the Blue Insight transformation
25
HundredsHundreds
of millionsof millions
In added business value annually
Business intelligence
IBM® Cognos® Business Intelligence
IBM Cognos Insight
IBM Cognos Mobile
Predictive analytics
IBM SPSS® Statistics
IBM SPSS Modeler
IBM SPSS Collaboration &
Deployment Services
IBM Social Media Analytics
Information management
and big data
IBM InfoSphere® Information Server
for Data Integration
IBM InfoSphere Information Server
for Data Quality
IBM InfoSphere BigInsights™
IBM InfoSphere Streams
Analytics accelerators
IBM DB2 Analytics
Accelerator
IBM PureData™
for Analytics
Blue Insight Offerings today
Analytics as a service, fulfill the promise of Smarter

26. IBM® Analytics Ecosystem
What's Next?
Blue Insight
DATA
ANALYTICS

27. • SUPPLY CHAIN
analytics first
introduced
•BACC (ACE)
established
•BLUE INSIGHT
born
• Marketing
• Social Insights
• HR
• DATA
• CDO Office
• FINANCE
analytics group
established
•Appoint CDO
•DATA Council
•Analytics Council
•Watson Analytics
IBM® Analytics Transformation Timeline
Journey to A Smarter Enterprise
20052005 20092009 20102010 20112011 20122012 20132013 20142014 20152015
• SALES
analytics
group
established
• BAT (4 E's)
analytics
transformation
team
established
• SUPPLY CHAIN
analytics group
established
•Business Analytic
Transformation (BAT)
•Supply Chain (formal)
•HR
•Finance
•Sales•BACC
• DATA data
transformation
council established
• ANALYTICS @IBM
council established
66K66KBLUE INSIGHT CONSUMERS 160K160K 450K450K
BACC STAFF 1515 4040 6363 200200
800800%%
Growth in
c ons umers 1
• DATA data
transformation
group established

28. 28
2
3 4
1
Executive sponsorship Services not controlled by solution
organization
Consolidate analytics investment across the
enterprise
Extensible architecture
 Communication and support of analytics
strategy
 Governance of licensing and infrastructure
delivery of analytics solutions
 Cloud approach provides the tenant with central
tools, not central solutions (2 tier approach)
 Needs to be “self-service” model with extended
services available (education, services, support)
 Control points in procurement/infrastructure
delivery for new analytics solutions
 Inventory and review planned investments in
analytics enterprise-wide
 Ability to grow your architecture vertically
without change
 Ability to grow your architecture horizontally
to fit non-functional and functional needs as
an instance of your service
Lessons Learned
Journey to A Smarter Enterprise

29. 29
Step 1
Affirm Vision
Step 2
Assess Strategy
Step 3
Grow & optimize adoption
Program OptimizationProgram Optimization
Measure value and success
Alignment and Governance
Skills and talent development
Implementation methods (PMO)
Proven Practices & Standards
Communication program
Executive SponsorshipExecutive Sponsorship
Organization & process assessment
Skills assessment (business)
Business alignment assessment
Stakeholder awarenessStakeholder awareness
Understand maturity,
challenges, needs
Catalysts for change
Charter & guiding team
"Art of the possible"
ACE Proven Practices
Technology OptimizationTechnology Optimization
Performance tuning
Application Design optimization
Data design optimization
Security optimization
Maintenance & Admin optimization
Technology ReadinessTechnology Readiness
Skills assessment (IT)
Performance assessment
Application design assessment
Security assessment
Maintenance & Admin assessment
Technology
Strategy&Value
People&Process
Technology ScopeTechnology Scope
Current Architecture
Application inventory
Projects (active & pipeline)
Current IT Organization
Technical issues
Step 1
Inventory the enterprise
Step 3
Grow & optimize operation
Step 2
Assess technology foundation
Goals:Goals:
Goals:Goals:
ACE Proven Approach
Practical steps to improve analytics delivery programs.

30. Analyticszone.com ACE Community
This community offers various resources (e.g. whitepapers, reports, books, etc) on
ACE that can help build a business analytics strategy, demonstrate the value of
analytics, organize it's people and process and architect a technology solution that
fits the needs of the business.
5 Keys to Business Analytics Program Success
This is a great starting point and offers a lot of valuable information. You can
download the book for free on Analyticzone.
Analytics Across the Enterprise
How IBM® Realizes Business Value from Big Data and Analytics
Showcases Analytics use cases across IBM. Pick up your free copy here today.
Where to find more information

31. 3131
“
“
The most competitive
organizations are
going to make sense
of what they are
observing fast enough
to do something about
it while they are still
observing it.
Jeff Jonas
IBM Fellow and Chief Scientist,
Entity Analytics
Big Data in Motion
THINK

32. THANK YOU
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