This document discusses IBM's business analytics development strategy as part of its "Smarter Planet" initiative. It provides examples of how IBM analytics solutions have helped organizations gain insights from large amounts of data, improve business performance, and optimize processes like marketing campaigns. The solutions discussed use IBM analytics software like SPSS Modeler to perform tasks like customer segmentation, predictive modeling, and data mining. Overall the document promotes IBM's full suite of business intelligence and predictive analytics capabilities.

1. Ēriks Miķelsons, IBM Latvija, eriksm@lv.ibm.com
13 maijs 2011
“IBM Smarter Planet” biznesa analītikas
attīstības stratēģija
Datu analīzes nozares attīstības tendences
SIA DPA Konference
Business Analytics software
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2. Business Analytics software
Information is Exploding…
44x as much Data and Content
Over Coming Decade 80% Of world’s data
is unstructured
2020
35 zettabytes
2009
800,000 petabytes Source: The Guardian, May 2010
2 © 2011 IBM Corporation

3. Business Analytics software
Organizations Need Deeper Insights From Their Data
1 in 3 83%
Business leaders frequently make of CIOs cited “Business intelligence and
decisions based on information they don’t analytics” as part of their visionary plans
trust, or don’t have to enhance competitiveness
1 in 2 35%
Business leaders say they don’t have access of Customers will look to replace their
to the information they need to do their jobs current warehouse with a pre-integrated
Warehouse solution in the next 3 years,
only 14% have today
Sources:
• IBM Institute for Business Value, 2009
3 • IBM CIO Study 2010 © 2011 IBM Corporation
• TDWI: Next Generation Data Warehouse Platforms Q4 2009

4. Business Analytics software
IBM “Watson” and Jeopardy
Powerful data analytics solution
90 clustered IBM Power 750 servers (32 POWER7 cores) with Linux® operating system.
The servers are housed in 10 racks along with associated I/O nodes and communications hubs.
The system has a combined total of 16 Terabytes of memory and can operate at over 80 Teraflops.
IBM Watson on Youtube:
http://www.youtube.com/watch?v=FC3IryWr4c8
4 © 2011 IBM Corporation

5. Business Analytics software
Analytics correlates to performance
3x 5.4x
Organizations that lead in Top Performers are more
analytics outperform those likely to use an analytic
who are just beginning to approach over intuition*
adopt analytics
*within business processes
5 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. © 2011 IBM Corporation

6. Business Analytics software
Business challenge:
•Analyse many customer leads
•Predict the "next best product"
•Update offers in short periods of time
Solution:
•New project with analytical tasks an oprational CRM capabilities.
Online process with daily evaluations and updates.
•IBM SPSS Modeler used for:
•Income estimation
•Customer segmentation
•"Best basket" modeling to analyze existing data
•"Next best product" selection for each customer
Benefits:
•Identify the “next best products” for more than 1.7 million customers
•Offer the product with the highest probability of acceptance by a
specific customer
•Save on the sales effort and achieve high acceptance rate
F ortis B a nk
6 © 2011 IBM Corporation

7. Business Analytics software
Business challenge:
•optimize direct customer marketing campaigns
•reduce call handling costs
•increase customer retention
Solution:
•Customer analytics solution based on IBM SPSS Modeler and
IBM data mining capabilities
Benefits:
•Reduced churn
•Reduced external call handling costs
•Reduced IT costs for data mining, scoring and reporting
•Fewer complaints during campaign periods
•Reduced internal manual processes.
V e rs a te l AG
7 © 2011 IBM Corporation

8. Business Analytics software
Business challenge:
•Government project to improve unemployment benefits and
social welfare situation
•Meet strict federal requirements and produce specific reports
documenting the use of funding resource
•Cooperation with other government institutions in areas of
health care, transportation, education
Solution:
•Federal and EU funded IBM SPSS Statistics predictive
analytics system to consolidate and analyse data from different
government organisations.
Benefits:
•Greatly improved social services
•Report on poverty, finding insights into different social areas
•Improved local government’s accountability with detailed
reports
•Enabled analyses to be run at the level of individual agents,
improving their performance
C ity of Wie s ba de n
8 © 2011 IBM Corporation

9. Business Analytics software
Business challenge:
•Need to respond faster
•Promptly predicting and tracking crimes
•Cost effectively upgrade resources
Solution:
•Create predictive analytics system called “Blue CRUSH”
(Criminal Reduction Utilizing Statistical History)
•Integrate IBM SPSS with a geographic information system to
both analyze and visualize data.
Benefits:
•Increased overall visibility into crime
•Improved communication
•Increased overall productivity
9 © 2011 IBM Corporation

10. Business Analytics software
10 © 2011 IBM Corporation

11. Business Analytics software
11 © 2011 IBM Corporation

12. Business Analytics software
• Full breadth of BI for every decision-maker
• Query, reporting, analysis, scorecards and dashboards
• Delivered where, when and how needed
• Revolutionary way to work with BI
• Unified workspace with built-in collaboration
• View of all time horizons: past, present & future
• Easy progression from viewing to exploration to more
advanced analysis
• Free to answer critical business questions
• Answer “how am I doing”, “why”, and “what should I be
doing?”
12
• Ensure organization-wide insight and alignment IBM Corporation
© 2011

13. Business Analytics software
• Full breadth of predictive analytics
• Data collection, statistics, data mining, predictive
modeling, deployment services…
• Putting prediction in hands of the business
• Decision Management
• Driving better business outcomes
• Attract and retain more profitable customers
• Detect and prevent fraud
• Improve resource allocation
13 © 2011 IBM Corporation

14. Business Analytics software
 Simplify, structure, and automate dynamic
and sustainable FP&SM practices
 Monitor and analyze business performance
against targets
 Plan, forecast and control enterprise
resources aligned with corporate
objectives
 Close the books, consolidate results
and report financial performance with
confidence.
14 © 2011 IBM Corporation

15. Business Analytics software
 Enterprise requirements
 CIO has to manage multiple datamarts and point
solutions for risk and compliance data
 CRO cannot get aggregate risk exposure position
 CCO cannot ensure regulatory compliance, adapt to
change or manage regulator interaction
 Unifies enterprise-wide risk and
compliance initiatives into a single
management system
 provide visibility into risk exposure and to facilitate
compliance management
 Provides synergy with Information and IT
Governance, Risk Management, and
Security
15 © 2011 IBM Corporation

16. Business Analytics software
 Ready-made packaged reporting and analyses
based on the best practices
 Encompasses a comprehensive portfolio
 Workforce, customer, finance & supply chain
 Adaptable & extensible
 Adaptive Application Framework
 Source data from multiple transaction systems
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17. Business Analytics software
IBM Business Analytics Client Advantage
All
Capabilities Rich
Proven Expertise
Platform
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18. Business Analytics software
Rich expertise based solutions
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19. Business Analytics software
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