1) The document discusses the results of an IBM study on the changing IT priorities and investment decisions of midsize businesses globally and in India. 2) It finds that midsize businesses are shifting their strategic focus from cost cutting to growth, innovation, and customers. They are increasingly looking to analytics, cloud computing, and mobile technologies to improve operations and customer service. 3) In India specifically, over 70% of midsize businesses surveyed said they are pursuing analytics to improve decision making and efficiency, and two-thirds plan to adopt cloud solutions to optimize costs while increasing reliability.

1. FORWARD VIEW
Private circulation
TECHNOLOGY INSIGHTS FOR MIDSIZE BUSINESS LEADERS April 2011
New focus areas for
midsize busiNesses
Growth,
innovation &
customer value
Data management: tapping your
most valuable asset
Making the smarter planet a
reality for midsize businesses
Start small, get big results with
business analytics
®

2. FORWARD VIEW
a shift in focus from
APrIl 2011
cost cutting to Growth,
innovation and customers IBM, the IBM logo, ibm.com, Express Advantage,
Smarter Planet and the planet icon are trademarks
of International Business Machines Corp., registered
in many jurisdictions worldwide. Other product and
service names might be trademarks of IBM or other
dear readers, companies.
recently, ibm studied midsize businesses to understand where If these and other IBM trademarked terms are
marked on their first occurrence in this information
they are investing and why. ibm surveyed 2,112 business with a trademark symbol (® or ™), these symbols
and technology leaders across more than 22 nations to understand indicate U.S. registered or common law trademarks
owned by IBM at the time this information was
the purchasing patterns, business issues and technology published. Such trademarks may also be registered
challenges that affect the investment and innovation strategies of or common law trademarks in other countries.
A current list of IBM trademarks is available on the
midsize organizations.
Web at “Copyright and trademark information” at
ibm.com/legal/copytrade.shtml. Other company,
as you’ll read in our cover story, the study’s findings reveal that product and service names may be trademarks or
service marks of others. The information contained
the strategic mindset for midsize businesses has dramatically in this documentation is provided for informational
shifted during 2010 from operational efficiency and cost reduction purposes only. While efforts were made to verify the
completeness and accuracy of the information
to a greater emphasis on growth, customers and innovation. contained in this documentation, it is provided
Today, 70 percent of these companies are looking to analytics “as is” without warranty of any kind, express or
implied. In addition, this information is based on
solutions to improve operational efficiency and gain insights about their customers. IBM’s current product plans and strategy, which
another 66 percent are adopting or planning to adopt cloud solutions to optimize costs are subject to change by IBM without notice. IBM
shall not be responsible for any damages arising
and redundancy while increasing uptime and scalability. These and other iT priorities
out of the use of, or otherwise related to, this
are supported by a strong iT budget growth outlook, with more than half of midsize documentation or any other documentation. Nothing
businesses expecting a budget increase in 2011. To advance these priorities, more than contained in this documentation is intended to, nor
shall have the effect of, creating any warranties
70 percent are seeking a more consultative—versus purely transactional—relationship or representations from IBM (or its suppliers or
with their primary iT provider. licensors), or altering the terms and conditions of
the applicable license agreement governing the
use of IBM software. © 2011 IBM Corporation.
The study shows differences in iT barriers across different countries. in mature market All rights reserved.
countries, cost is cited more frequently as a key inhibitor (59 percent). countries in
growth markets are more likely to point to skills and resource challenges, as well as an
inability to demonstrate a return on their iT investments, as key inhibitors.
You are welcome to download the study results and complete an assessment of your own
company’s position using an online tool found here: http://www.ibm.com/in/mmittrends
This issue also includes inputs on how an organization, using business analytics,
can enhance opportunities for profitable growth, optimize resources and capital, and
proactively manage risk.
i hope you enjoy this issue of forwardView and i look forward to hearing from you.
regards,
Jyothi satyanathan
VP — mid-size businesses & inside sales
ibm india/sa
2 FORWARD VIEW

3. FORWARD VIEW
contents
APrIl 2011
4
COVEr STOrY
Growth, innovation
and customer value
Where are midsize companies
investing—and why?
7 14
Data management: Tapping your most valuable asset
Data management:
tapping your most 7 Big Questions
valuable asset UC to become
Why information backbone of
management is critical businesses
for any company ForwardView’s Q&A
with Venkatraman V
A doctor's office takes an x-ray of a knee. On seeing the results, the physician decides to small, get big results
Start
with business analytics
9 11
send the image to a specialist. Rather than packing the film into an envelope and sending
it by courier, as was common practice only a few years ago, the office transmits theHow does your organization make
image digitally. In the process, both medical offices add a large image file to their stored decisions? Do you go with
business
data. a "gut feeling" because you lack
accurate and complete data? Or do
you have visibility into your
On today's smarter planet, similar scenarios involving connected companies occur every performance, offerings
processes,
day. It doesn't matter that an organization may have only a few dozen or a few hundred
and customers to support smart, fact-
based decisions?
employees. The data a midsize business generates can grow disproportionately to the
Making the And when a midsize business generates terabytes of data a year,With business data today growing at
organization's size. Start small,
smarter planetinformation, extract insights and put it to use becomes a exponentialtorates, theanalyze andisuse
finding a way to access a
increasing gather,
need also
get big results
challenge.
reality for mid- data wisely. In a highly
with business
size businesses "Data volume is doubling every two years for the average world, business analytics
instrumented, interconnected and
As IBM's Anita Chung notes, intelligent analytics
Find out what smarter data mustyour midsize organization achieve valuablewho servesbuild competitive strengths.
organization, and a lot of that can help be managed for years." Chung, insights and as
Enhancing growth
planet means for
Worldwide Market Segment Manager, Database Server Go-to-Market Strategy,
Using business analytics, a smart organization can enhance opportunities for profitable growth,
by using business
midsize organizations all optimize the allocation and their core of resources and capital, and proactively manage risk. A can
continues: "Organizations of sizes need to rely on deployment assets, which include
company using business analytics is not overwhelmed by today’s vast amounts of data and instead analytics
business data—and there is always the need for better performance and higher service
turn that data into a business advantage.
levels at lower costs." January 2011 3
But where does a company begin?
In today's highly instrumented, interconnected and intelligent world, organizations often
Know when you're ready
look to business analytics to gain the insights and performance they need from data. But

4. STORY
COVEr
New focus areas for midsize businesses
Growth, innovation
and customer value
A cross the globe, IT priorities and investment decisions for midsize
businesses are changing. According to the IBM study “Inside the
Midmarket: A 2011 Perspective,” IT is no longer a back-office
function, but a driver of growth and a way for businesses to add
value. This study canvassed the planning processes of busi-
nesses and their IT decision makers across several industries
such as banking, retail, consumer products, wholesale, transpor-
•
•
Increased flexibility/nimble enterprise
Collaboration
While juggling these priorities, firms that understand the deeper
potential of technology as an enabler of change will gain competi-
tive advantage, according to the study. The study closely exam-
ined how midsize businesses are planning, implementing and
tation, industrial products and insurance—and captured the most considering the costs of IT improvements, and how they intend to
current observations of IT decision makers in many countries use IT resources to help realize business goals. While investment
across the globe, including India. considerations are vital to decisions about adding or upgrading
IT infrastructure, the study found that companies that recognize
Among the 2,112 midmarket leaders who participated in this the benefits of business analytics and cloud computing would be
global survey, 100 were from India. Their responses reveal how in a better position to add value to their stakeholders by increas-
business priorities influence IT investment decisions. Many firms ing efficiency and lowering operational costs.
are trying to strike a balance between short-term cost contain-
ment and investing in solutions that grow revenue and create
Take an online assessment
strong customer relationships. Over 70 percent of firms in India Can you spare a few minutes to take an online assessment
are pursuing analytics solutions to improve decision making and of how your IT planning compares with other companies
operational efficiency. throughout the world? Visit www.ibm.com/in/mmittrends to
see how Indian and global midsize businesses approach IT.
Fifty-three percent of the respondents anticipate an IT budget
increase in 2011 versus only 20 percent in the 2009 survey. This Midsize businesses in India and elsewhere think differently from
planned increase is 10 percent or more higher than their 2009 IT large businesses and startups. Even with their great potential,
spend. Companies in growth market countries are planning more midsize businesses also have limitations that can present chal-
IT spending than their counterparts in mature market countries. lenges during periods of growth. However, careful strategic plan-
In China, Brazil, India, Korea and Singapore, 7 out of 10 midsize ning can help them make the best use of limited resources. For
businesses plan to increase IT spending. example, many Indian companies are now upgrading their exist-
ing IT setups. As the IBM study notes, an emphasis on imple-
The order of the list of most critical priorities for 2011, according menting infrastructure improvements tops the list of ongoing IT
to the study, is as follows: focus areas for Indian companies.
• Cost reduction/improved efficiencies
• Improved customer services As economic recovery takes hold in many countries, midsize
• Increased employee productivity companies are becoming the real drivers of growth, which has
• New ways to reach customers exposed them to new challenges. Their focus has shifted to
• Optimizing key business processes growth, innovation and customer value. Making better use of
• Increased insights for better decision making information and other resources to increase productivity, attract
4 FORWARD VIEW

5. STORY
COVEr
Inside the Midmarket: A 2011 Perspective – India Report
Shift in strategic mindset for Indian midsize businesses reveals greater through upgrades or by adding new
emphasis on customers and innovation technology solutions. This increased IT
spending is directly aimed at increas-
Strategic Mindset Percentage Change from 2009 ing customer service, which is recog-
Operational efficiency nized as a critical business priority by
-31 pts
and cost reduction many midsize companies. Compared
to other countries, about 9 out of 10
Revenue Growth - 10 pts respondents in China, Brazil and Mex-
ico put cost reduction and increased
employee productivity high on their
Customer Focus 7% 19 pts
agendas. Optimizing key business
processes was top priority for Italy,
Current Mindset
Innovation 7% 22pts BeNelux and New Zealand.
2009 Mindset
0% 20% 40% 60% Globally, 73 percent of respondents
prioritized enhancing customer ser-
Note: 2009Question in 2009 asked differently than2010. Percents pulled directly from 2009directly from
Note: questions were different from 2010. Percentages were pulled WW Comprehensive Report
the1 2009 WW Comprehensive report.
January 2011 © 2010 IBM Corporation
vice and 67 percent prioritized pros-
pecting for new customers. Among
and retain customers, and improve competitive positioning is all countries, Canada, UK, Germany and Poland focused more
becoming a central strategy for midsize businesses. They pur- on improving service and customer relations. About 66 percent
sue cost-effective business models to implement these strategies of Indian respondents adopted or plan to adopt cloud solu-
on a continuous basis. About 79 percent of survey respondents tions to optimize costs and redundancy while increasing uptime
listed customers, innovation and growth as their priorities, while and scalability.
21 percent gave highest priority to reducing costs and increasing
efficiency. For Indian businesses, 70 percent put cost reduction China is leading the world in finding new ways to reach out
and improved efficiencies at the top of the list of priorities. to customers. China is using social media aggressively to add
new customers.
Focusing on customers
Compared to 2009, IT decision makers today now focus more on According to the study, there is a strong correlation between
revenue growth, customer relationships and innovation. By shift- a company’s business priorities and focus areas. For exam-
ing from a cost-reduction emphasis, these companies can focus ple, retail, transportation, consumer product companies and
on forward-looking aspects of their businesses. This revised banking sectors are focusing on customer relationship man-
thinking is paving the way for breakthroughs at some companies. agement, Web 2.0/social media and business analytics to
better understand, reach and service their customers.
To develop strong customer relationships, midsize companies are
paying more attention to current and prospective customers. Many Many survey respondents agreed on the need for increased IT
affordable applications are available to help midsize companies spending in 2011. Indian firms are implementing a wide range
expand their customer outreach. Some of these applications include of projects for unified communications, cloud, software as a ser-
Web 2.0, social media and mobility solutions, which can be highly vice and knowledge management. Top IT projects in India under
cost-effective vehicles for reaching out and extending collaboration implementation or planned are:
capabilities. Tools such as business analytics are helping compa- • Mobility and unified communications
nies gain insights from customer data. • Cloud computing
• Software as a Service (SaaS)
Going forward, about 30 percent of respondents in the study • Knowledge management/human capital management
revealed their plans to increase market share and revenues by • Green IT
going to greener pastures globally. • IT infrastructure improvements
• Business performance management (BPM)
Increasing IT spending • Disaster recovery/business continuity
No matter what their growth strategy, most of the midsize com- • Supply chain management
panies surveyed planned to increase spending on IT operations • Virtualization
April 2011 5

6. STORY
COVEr
cloud computing, with 66 percent
Current Stage of IT Focus Areas Implementation in India of Indian companies adopting
or planning to adopt it. Busi-
nesses are taking advantage
of virtualized and shared archi-
tectures to ensure IT investments
are more efficient while simul-
taneously maximizing customer
relationships.
Partnering for growth
To implement new IT strategies,
over 70 percent of Indian midsize
businesses are seeking a consulta-
tive relationship with their primary
IT provider. In addition to cost con-
siderations, product reliability and
performance are the main factors in
primary IT vendor choice. Moreover,
• Web 2.0/social media Indian midsize businesses look for an IT provider that can help
• Regulatory compliance make the necessary changes needed to support innovative busi-
• Collaboration ness strategies.
• Customer relationship management (CRM)
• Information management Eliminating barriers to address top IT priorities
• Security management Despite understanding the need for improved and up-to-date IT
• Business analytics/intelligence solutions, businesses face some difficulties in implementing them.
• Financial management /finance operations Cost is a key inhibitor in mature market countries—but 51 per-
• ERP (Enterprise Resource Planning) cent of Indian respondents felt that cost was an adoption barrier,
compared with a global average of 58 percent. The inability of IT
While there are many common areas for all geographies, there vendors to demonstrate returns on investment is a major factor
are priorities specific to some countries. For example, ensuring in China, Korea, Singapore and the Czech republic. In Japan,
the future viability of currently operating core IT systems is criti- nearly 7 in 10 midsize businesses cited cost as a top barrier to
cal for companies in Canada, Brazil, Mexico, Italy, Spain, France, skills and resource challenges. respondents in China and Korea
South Africa, Poland and Germany. Disaster recovery and busi- mentioned cost and an inability to demonstrate short-term ben-
ness continuity are top priorities in russia, New Zealand, Singa- efits as their main IT challenges.
pore and Mexico. Financial claims automation, risk simulation and
compliance are key areas for businesses in Brazil, South Africa Conclusion
and New Zealand. Cost is still a top consideration for global respondents (58 percent)
and Indian respondents (51 percent). But Indians do not mind IT
Taking advantage of business analytics spending if it cuts business costs and improves efficiency. Busi-
To determine the right strategies and execute them, many com- nesses are either investing or planning to invest in cloud computing,
panies are turning to business analytics and information man- business analytics and unified communications among others. •
agement solutions. About 70 percent of the Indian companies
surveyed have already started implementing analytics strategies
or plan to do so in the current year, based on the huge volume of
ever-increasing data.
Implementing cloud computing
Cost efficiency, rapid provisioning, flexibility and efficiency
are the major drivers for midsize businesses to turn to
6 FORWARD VIEW

7. feaTuRe
STOrY
data management:
tapping your most
valuable asset
A doctor’s office takes an X-ray of a knee. On seeing the results, the
physician decides to send the image to a specialist. rather than
packing the film into an envelope and sending it by courier, as
was common practice only a few years ago, the office transmits
the image digitally. In the process, both medical offices add a
large image file to their stored data.
Marketing at IBM, “and if you do a great job on the foundation, it
makes everything that you would want to put on top of it that much
easier to erect. And so it all begins by choosing a database that is
powerful enough and yet simple enough that it can support your
business requirements.”
Other data systems also may be in place, typically including an
On today’s smarter planet, similar scenarios involving connected accounting system, customer service and support, enterprise
companies occur every day. It doesn’t matter that an organization resource planning, customer relationship management and, if
may have only a few dozen or a few hundred employees. The data you’re doing business on the web, online sales systems. Chung
a midsize business generates can grow disproportionately to the cautions, however, that midsize business should pursue solutions
organization’s size. And when a midsize business generates tera- that are both within their current capabilities and scalable enough
bytes of data a year, finding a way to access information, extract to allow for growth. “Most midsize organizations don’t have their
insights and put it to use becomes a challenge. own onsite database administrator or a fully staffed application
development team. They buy solutions. And they need to deploy
As IBM’s Anita Chung notes, “Data volume is doubling every two an information management solution set they can manage with
years for the average organization, and a lot of that data must limited resources.”
be managed for years.” Chung, who serves as Worldwide Market
Segment Manager, Database Server Go-to-Market Strategy, con- Matching management to capabilities and needs
tinues: “Organizations of all sizes need to rely on their core assets, A key step, therefore, is to assess what you have, what you
which include business data—and there is always the need for need, what you can do and what you want to do. But don’t hold
better performance and higher service levels at lower costs.” yourself back.
In today’s highly instrumented, interconnected and intelligent “There’s variety in midsize business,” says Wozniak. “Some are
world, organizations often look to business analytics to gain the a little bit more stable in terms of their business focus and some
insights and performance they need from data. But business ana- really have jewel-like, perfect IT. And there are others at the point
lytics isn’t a starting point—you can’t just jump in without laying where they need to make a list—they don’t even know what they
the right groundwork. You need a foundation of information man- don’t have.”
agement applications and processes in place first.
An error common to midsize companies, however, is that they sel-
Beginning with a database—and growing from there dom realize how much their company might grow—or how much
Your midsize business may have some of the necessary founda- their data will grow even if the company remains the same size.
tion already established—a database, for example. “The data- Explains Wozniak: “Companies often think that their IT require-
base is the foundation of all information management,” notes ments are only going to expand as the business does, and that
Richard Wozniak, Program Director, Information Management the business isn’t going to be four times bigger any time soon.
7 FORWARD VIEW April 2011 7

8. STORY
FEATUrE
But what a lot of companies are seeing is that they need to A holistic view, however, also can yield specific benefits—cost
drive increased profitability, increasing automation and reduc- savings, for example. “The cost savings in the database realm are
ing the amount of time that vital employees spend on non- amplified,” says Wozniak, “because it goes through that whole
productive tasks.” data life cycle from design and deployment all the way through
archiving and eventual retirement of data.”
In other words, they’re seeing the need to drive both the internal
processes and the externally facing customer experience of busi- Using information to drive business success
ness by managing business information. In the end, it’s the usability of information that is important.
“There is really no time to be working with unreliable data,” says
Achieving the benefits of holistic data management IBM’s Chung. “No matter what the economic conditions are, it is
Business analytics can indeed provide valuable insight that important for businesses and organizations to be smart. There is
helps organizations achieve the goals Wozniak cites. But other just no margin for error if an organization wants to survive, much
key steps should take place first. To set the stage for business less compete.”
analytics, the organization should establish a firm foundation of
databases, information management processes for effective and A solid foundation for information management therefore becomes
secure data storage, data warehousing for categorizing and seg- critical for any company, whether it is planning to move to business
menting data so it’s usable in its different pieces, and enterprise analytics or not. Information and its management, says Chung,
content management for determining whether data should be “is going to drive your business performance, your service level
archived or readily available at various stages of its life cycle. improvements, and ultimately competitive differentiation.” •
Taking advantage of all of these capabilities can give an organi-
zation a holistic perspective on its data that will make information
more available and more useful in all its various forms. Ultimately,
the company can achieve the ability to truly analyze its data
and to gain insights across the different types of data and the
different areas of the business—discovering what the data is
revealing, where gaps occur and how the organization can use it
more effectively for making business decisions.
Where does India stand regarding IT trends?
Test your understanding from the cover story
1. What area of IT focus is most important for midsize Indian 4. Which businesses are investing more in customer relationship
companies? management?
A: IT infrastructure improvements A: IT companies
B: Cloud computing B: retail, transportation, consumer products and banking
C: Security management C: Manufacturing sector
2. What is the most critical business priority for India’s midsize 5. What is the main challenge in implementing improved IT
companies? solutions in mature market countries?
A: Improved customer service A: Cost
B: Cost reduction/improved efficiencies B: Inability of the IT vendor to demonstrate short-term benefits
C: Collaboration C: lack of skills to work with improved IT solutions
3. What technology tops the list of IT focus area implementation in
India today?
A: Mobility/unified communications
B: Web 2.0/social media
C: Security management Answers on page 15
8 FORWARD VIEW

9. feaTuRe
STOrY
making the smarter planet a
reality for midsize businesses
Ed Abrams is currently the Vice President of Marketing, IBM Midmarket. In this role,
Ed is responsible for leading a diverse team that supports IBM’s business objectives
with small and midsize businesses by developing, planning and executing offerings and
go-to-market strategies designed to help midsize business grow. In this role Ed works closely
and collaboratively with our sales and channels teams and our agency partners to deliver
high-quality and effective marketing strategies, offerings and campaigns. Ed joined IBM 16
W
years ago and has held a number of roles within the IBM marketing organization in that time.
e hear a lot these days about how our planet is becoming smarter. demanding today than they have been in the past. They have
But what exactly is a smarter planet, and what does it mean more choice than they had in the past.
for midsize organizations? To try to answer these questions,
ForwardView spoke with Ed Abrams, Vice President of Market- Now, because midsize businesses tend to be more nimble and
ing for Midmarket at IBM. In his role, Ed works closely with IBM tend to be able to react to customer needs more effectively, they
initiatives that help midsize clients benefit from the growing can grow their businesses faster and in different areas than they
strengths of a smarter planet. may have ever thought before.
ForwardView: ForwardView:
To begin, can you explain what the smarter planet is and why this Are we talking about fine tuning the way they’re doing
is relevant for midsize companies? business or about something that’s fundamentally changing the
Ed Abrams: business model?
A smarter planet is what is happening to the world that we all live Ed Abrams:
in today. There is technology in everything that is out there. We We can actually be talking about both. There are things on a
are seeing that, with instrumentation and interconnectivity, much smarter planet that companies in the midmarket can do from a
more intelligence is coming out of the world. very tactical and practical perspective in terms of basic CrM and
ErP-like solutions, but we are also talking about bringing together
That’s not something that’s gated by customer size or by business technology and business strategy to find new and different ways
size. The smallest businesses in the world and the largest busi- to exploit a business.
nesses in the world can use information as a competitive weapon.
And that’s what we’re seeing many, many times in companies like It can be as simple as changing the way they think about
Moosejaw Mountaineering, a small retailer out of the West Coast point-of-sale solutions to provide a more rich customer experi-
who has created a new business model and expanded their cus- ence. But it can also be changing the whole supply chain and
tomer set globally by using customer information to better provide strategic delivery mechanisms to grow their business and to
their customers with the products and services they’re looking for. leap-frog competition.
ForwardView: ForwardView:
It sounds like one of the advantages of the smarter planet is that It sounds like the impact is both internal and external.
it levels the playing field. Ed Abrams:
Ed Abrams: One of the things that a smarter planet is doing is that it’s allow-
It does level the playing field. But the challenge that it presents ing companies to build much more customer loyalty. By having
to midsize businesses is that they’ve got to find new and different access to better information on customer wants and needs, and
ways to serve their customers. Their customers are much more on customer opportunities and areas for growth, companies are
April 2011 9

10. STORY
FEATUrE
able to better support them and better provide them with what empower their teams to make better decisions? What are they
they need. doing to provide and identify the key insights that will drive growth
and success? It’s not all about big, giant organizational change.
A good example of that is a company like Performance
Bicycle where IBM and our Business Partners have worked ForwardView:
together to give them a much better CrM capability and What are some of the steps a company should take to position
solution to allow them to ensure that they can anticipate what it is themselves to participate in the smarter planet?
that the bicycling enthusiast is really looking for during different Ed Abrams:
times of the year—and ensure that they’re delivering that through One of the first things is to talk to their IBM Business Partner or
their catalog and e-catalog business in a way that preempts com- talk to IBM directly—and not just about what their technology
petition and allows them to more effectively provide value. goals are. Those are conversations we all have all the time. But
what they should really be doing is thinking about what their busi-
Then from the internal perspective, I think what you’re seeing is ness goals are. What are they aspiring for their organization to
that there is the opportunity for companies to be far more effi- become? Are they using information and analytics effectively in
cient and effective with their own operations and really be able to their organization?
reduce their IT infrastructure costs and their IT infrastructure labor
and burden and to reinvest it to grow their businesses. ForwardView:
Of course, these will vary from company to company, but have
A good example of that is a company out on the West Coast, you found some common areas?
Sun World, where because they were able to streamline their IT Ed Abrams:
environment and get better data out of the system at the same What we see is that business analytics is a starting point. Are
time, they were able to better manage their inventory, reduce companies able to unlock the information that they already have
inefficiency and waste, and get a much greater yield out of their inside their organization and pull the key insights out?
perishable product line. This is actually allowing them to sell more
of the produce that they harvest, lower their operating costs and Another is, as they look at their IT environment, have they been as
grow their business. cost-effective as they can? Are they leveraging things like virtual-
ization and other technologies to ensure that they are getting the
ForwardView: most out of their existing IT environment before investing more?
What do you see in the future then for these internal and
external processes? And then finally, are they doing things in cloud computing that
Ed Abrams: really are allowing them to branch into new and different applica-
Specific to the midsize business, we really are seeing cloud tion areas and get better insights into how to grow their business?
computing become a reality. There was a period of time where
most midsize companies were a little hesitant to think about put- ForwardView:
ting different aspects of their business into the cloud. And what How has IBM helped make the smarter planet a reality for
we’re seeing now is that a lot of these businesses have recog- midsize companies?
nized that cloud computing and the capabilities that exist around Ed Abrams:
cloud really free them up to be much more real-time reactive to One of the things that we can absolutely point to is the relation-
marketplace needs. ships that we have with our Business Partners. We’ve got some
phenomenal Business Partners with tremendous amounts of
ForwardView: industry and IT skill that can help our customers approach their
We’re talking about something big—a planet. What can an indi- business and their business problems and apply IT to solve them.
vidual do to make the planet smarter? We’ve enabled those partners with some very strong solutions
Ed Abrams: and product offerings such as our Cognos offerings which provide
The reality is, while we do talk about a smarter planet, it really outstanding business analytics and business insight capabilities.
starts with smarter individuals. And what an individual in a mid- Continued on page 12
size business can do to start to take advantage of a smarter
planet and drive change inside their organization is to just think
about and challenge themselves on how they are using informa-
tion differently inside their organization. What are they doing to
10 FORWARD VIEW

11. feaTuRe
STOrY
start small, get big results
with business analytics
H
ow does your organization make business decisions? Do you
go with a “gut feeling” because you lack accurate and complete
data? Or do you have visibility into your processes, performance,
offerings and customers to support smart, fact-based decisions?
With business data today growing at exponential rates, the need
Start small, get b
with business an
How does your orga
business decisions?
a "gut feeling" becau
accurate and comple
you have visibility in
also is increasing to gather, analyze and use data wisely. In a processes, performan
highly instrumented, interconnected and intelligent world, busi- and customers to sup
based decisions?
ness analytics can help your midsize organization achieve valu-
able insights and build competitive strengths. With business data t
exponential rates, th
Using business analytics, a smart organization can enhance increasing to gather,
data wisely. In a high
opportunities for profitable growth, optimize the allocation and instrumented, interco
deployment of resources and capital, and proactively manage intelligent world, bu
risk. A company using business analytics is not overwhelmed by most impact. midsize organization achieve valuable insights and build competitive stre
can help your Many companies find the greatest return on invest-
today’s vast amounts of data and instead can turn that data into ment in business productivity and processes, with additional ben-
Using business analytics, a smart organization can enhance opportunities for profitable
a business advantage. efits in technology operations.
optimize the allocation and deployment of resources and capital, and proactively manag
company using business analytics is not overwhelmed by today’s vast amounts of data
But where does a company begin? A recent data into a Aberdeen Group found that among top-per-
turn that study by business advantage.
forming consumer products and retail companies who use busi-
But where does a company begin?
Know when you’re ready ness analytics, 57 percent employed it to improve operational
In business planning and operations, a common question relationships you're ready distributors, and 50 percent used it in
Know when with their retail
In business planning and operations, a common question is: "What should we be doing
is: “What should we be doing?” The same is true for business working with partner companies. Forty-three percent used busi-
true for business analytics. A company considering a business analytics implementation
analytics. A company considering a business analytics ness analytics in working it should be doing with its data. provid-
early in the process what with logistics and transportation
implementation should ask early in the process what it should be ers, and 35 percent used it in working with materials and parts
doing with its data. suppliers. keep an eye onlythesmall number of analyzing data
"Always Significantly, on a business goal: top performing to achieve usefu
information."
companies—21 percent—used it only for internal purposes.
Usually, the answer is threefold: create an information-driven Usually, the answer is three-fold: create an information-driven business culture that col
business culture that collects and analyzes data, present infor- The same study found that the greatest number of U.S. insight, and empower actions
analyzes data, present information in a way that enhances compa-
mation in a way that enhances insight and empower actions that nies deploy business analytics81 percent of the most accountingcompanies—20 to 25
resources with decisions. Some in their finance and successful
than average or underperforming companies—say they have a plan that makes these th
align resources with decisions. Some 81 percent of the most departments. Other areas of significant use include: 49 percent in
possible.*
successful companies—20 to 25 percent more than average or customer service and in the sales process; 41 percent in informa-
underperforming companies—say they have a plan that makes tionif your answer includes any or all of these goals, you're ready to get started with bus
So technology; and 35 percent in product marketing.
these three goals possible.*
Implement your solution appropriately
Follow key steps for success with analytics your company, you'll need t
Once you've determined that business analytics can benefit
So if your answer includes any or all of these goals, you’re ready Wherever you deploy business analytics, however, there are key greatest return on in
area where it will have the most impact.. Many companies find the
to get started with business analytics. steps to productivity first processes, withexamine your analytical
business follow. The and is to carefully additional benefits in technology operations.
needs—from data sources to data users, including how people
Implement your solution appropriately use data, why they use it and how quickly they need analysis.
Once you’ve determined that business analytics can benefit your This will lay the foundation for an analytics strategy that supports
company, you’ll need to identify the area where it will have the a data-driven company.
April 2011 11

12. STORY
FEATUrE
Early and sustained attention to data, quality and governance operational and transactional. It should provide both man-
are important. So are regular and ongoing internal and external aged and ad hoc reports—and export information in stan-
reviews of processes and metrics. dardized formats that are useful in the context of business,
even when they draw on information generated by heteroge-
But always keep an eye on the business goal: analyzing data neous technologies.
to achieve useful, actionable information. Your implementation • The solution should be modular, enabling the organization to
should empower non-technical users with information delivery, start with the functions it needs, whether reporting, querying,
reporting and visualization capabilities they can employ on a analysis, visualization, planning, budgeting or forecasting.
self-service basis. • It should be easy to use, reducing the time required for train-
ing and enabling non-technical staff to perform complex
Also keep an eye on your implementation rate. You don’t need an tasks such as drill-downs and dashboard creation. Ease
extensive data warehouse to reap benefits. In fact, starting small of use will support rapid adoption—and the creation of an
is the best approach for the midsize business. While you should information-driven business culture.
plan future ways to use your analyses and ways to expand into • Functionality should be preconfigured not only to reduce
different areas of your business, you can, as the Aberdeen Group deployment time for IT but to support self-service among
study found, achieve considerable success on the departmental users. Simplified implementation and management can
or functional level. reduce the burden on IT staff. Ongoing administration by
non-IT staff can increase your return on investment.
An incremental strategy that builds on small successes lets
you start with the types of reports, analysis or planning func- Ultimately, the analytics that these capabilities make possible can
tions you need first. In finance, for example, business analyt- drive an information agenda that fuels business optimization and
ics can address cash flow, balance sheets, or profit and loss. drives growth. A modular approach can give you the functionality
For your workforce, it can address salary planning, project you need when you need it, and let you grow your analytics capa-
management or resource planning. In customer relations, it bilities with the business. •
can address profitability, marketing effectiveness and
customer churn. *IBM Institute for Business Value, Business analytics and
optimization for the intelligent enterprise (PDF 393KB),
Choose a solution with broad, easy-to-use capabilities December 2009.
t’s obvious that business analytics can produce a lot of results. To
get those results, you’ll need a solution with a comparable range
of capabilities. You’ll want a solution that takes you far beyond the
limited capabilities of the spreadsheets that many companies use
to analyze metrics.
Consider the following when choosing a solution:
• A business analytics solution should have broad capabili-
ties for a wide range of uses—from financial to production,
Continued from page 10 different cloud-based solutions as well as a set of purpose-built
solutions for midsize businesses as part of our Smarter
ForwardView: Business Solution Portfolio. These solutions are going to
What’s coming in 2011 that will be especially helpful and be designed specifically to help midsize businesses with
appealing to midsize companies? everything from desktop virtualization to collaboration to docu-
Ed Abrams: ment management. And we’re committed to making sure that
This year we’re going to be very focused on ensuring that we these are effective solutions delivered through our Business
are delivering against the needs that I spoke of earlier from Partners that solve the problems or challenges of our midsize
a cloud perspective. We’re working very hard on a series of business customers. •
12 FORWARD VIEW

13. April 2011 13

14. VenkaTRaman V
Q&A
7 big Questions
from workflow to conference calls
uc to become backbone
of businesses
UNIFIED COMMUNICATIONS (UC) IS GOING TO CHANGE THE WAy THE MOBIlE WORKFORCE IS
OPERATING TODAy. MOBIlE WORKERS WIll BE ABlE TO CARRy THEIR UC-ENABlED VIRTUAl
OFFICES WHEREVER THEy GO. UC WIll FIND A PlACE BEyOND THE COMMUNICATIONS AND
BECOME PArT OF THE BUSINESS PrOCESS ITSElF. IBM GlOBAl TECHNOlOGY SErVICES IS
ASSISTING ClIENTS AROUND THE GlOBE TO ExPlOIT THE CONVERGENCE OF VOICE, VIDEO AND
DATA, SAyS VENKATRAMAN V, COUNTRy MANAGER—ENTERPRISE SERVICES OFFERINGS AS PART OF
GlOBAl TECHNOlOGy SERVICES AT IBM INDIA.
ForwardView: What are the key necessity, a new generation of workers Corporate demand for interoperability and
trends that you foresee in the has a new expectation for IM as the the maturing of industry standards will
workplace enabled by Unified preferred method of business interaction. force unified communications providers
Communication (UC)? This will fuel more rapid adoption of to embrace interoperability. Converged,
Venkatraman V: The virtual workplace unified communications as traditional aggregated and rich presence will allow
will become the rule. No need to leave the IM becomes the core extension point businesses and individuals to better find
office. Just bring it along. Desk phones for multi-modal communications. and reach the appropriate resources,
and desktop computers will gradually removing inefficiencies from business
disappear, replaced by mobile devices, ForwardView: What level of UC processes and daily lives.
including laptops that take on traditional integration do you foresee with
office capabilities. Social networking tools line-of-business applications? ForwardView: What new
and virtual-world meeting experiences Venkatraman V: Beyond phone calls collaboration models are likely
will simulate the feeling of being there in to collaborative business processes, to emerge?
person. Work models will be changed companies will go beyond the initial Venkatraman V: New meeting
by expanded globalization and green capabilities of IM—like click-to-call and models will emerge. Hang up on routine,
business initiatives that reduce travel and online presence—to deep integration with calendared conference calls. The
encourage work at home. business processes and line-of-business definition of “meetings” will radically
applications, where they can realize the transform and become increasingly
ForwardView: Which new greatest benefit. ad hoc and instantaneous based on
generation of collaboration context and need. HD video and audio
tools is now becoming adopted ForwardView: How much of technologies will significantly influence
in the workplace? interoperability we can expect online corporate meeting experiences
Venkatraman V: Instant messaging from various UC vendors? to deliver more life-like experiences
(IM) and other real-time collaboration Venkatraman V: Interoperability and demanded by the next-generation
tools will become the norm, bypassing open standards will tear down proprietary workers who will operate more efficiently
e-mail. Just as e-mail became a business walls across business and public domains. in this familiar environment.
14 FORWARD VIEW

15. ForwardView: How is in training engineers, consultants business strategy. Think through the
IBM assisting its clients and services professionals in IBM UC capabilities that best support your
in adopting UC? industry-leading Global Services business objectives. Catalog the UC
Venkatraman V: large-scale Method and reference Architectures, capabilities your organization already
adoption of IBM’s unified communications which have been applied to thousands has in place. Avoid the temptation to
and collaboration platform and services is of engagements. incorporate all the available bells and
growing. IBM Global Technology Services whistles if they are unnecessary.
is assisting clients around the globe to ForwardView: What are your
exploit the convergence of voice, video key recommendations for Third, lay out a roadmap. Make
and data. IBM is providing the services, organizations looking to sure you are leveraging your current
assets and skills to deliver consulting, adopt UC? investments as appropriate, even as
design and architecture implementation; Venkatraman V: First, focus on the you take advantage of new technologies.
thereby, seamlessly integrating the business view. What aspect of human Develop an implementation plan
solution into the existing environment. latency are you trying to address? Outline driven by your business priorities.
The IBM investments will address clients’ your business priorities, operational Stage your rollout to get the highest
requirements for integration of multi- constraints, regulatory requirements and rOI first.
platform environments and multiple budget considerations. These will be very
network equipment providers, while key in prioritizing the what, where and Finally, establish an ongoing approach
masking the complexity of delivering how of implementing UC solutions. to re-evaluating new technologies
the solution with a proven reference and capabilities as they evolve to
architecture to address mission-critical Second, develop your UC strategy continue to add to the benefits you
business needs. IBM is heavily investing and architecture based on your can get from UC.
About Venkatraman V
Venkatraman V is Country Manager—Enterprise Services Offerings as part of Global Technology Services at IBM India. An engineer/
MBA, Venkatraman has over 27 years experience in the industry across sales and marketing channels and product management
In his current role, Venkatraman is responsible for Offerings Management & Development for Enterprise Services Offerings, Global
Technology Services for the ISA region. Enterprise Services covers the areas of networking, communications and security services.
It includes attaining the financial targets, understanding the marketplace, and maintaining or exceeding IBM’s current market share
position versus key competitors in the technology services market, as well as managing product life cycles.
His focus in this role is to leverage assets and show differentiated value of IBM assets to its customers. Previously, Venkatraman was
the Service Product line leader for Integrated Communication Services, which focused on networking and communication services.
QUIZ ANSWErS
1: (A) IT infrastructure improvements
2: (B) Cost reduction/improved efficiencies
3: (A) Mobility/unified communications
4: (B) retail, transportation, consumer products and banking
5: (A) Cost
April 2011 15

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