The document discusses how new approaches are needed to make operational decisions due to trends in digital transformation and new sources of customer data. It describes externalizing decision logic outside of business processes to streamline processes and make them more consistent. Rules can be managed transparently with non-IT stakeholders able to change rules. A banking scenario is presented showing how rules can be used to recommend products, detect fraud using location and transaction history, and manage fraud in real-time. The value of contextual decisions based on continuous data flows and events is highlighted.

1. 3/15/2015
1
Trends in Digital Transformation Call For New Approaches to
Make Decisions
1
New customer
data is available
Unstructured
Geospatial
Analytical
Social
Internet of Things
Mobile
interactions
leave a short
window to learn
about your
customer and
act
Customers are
expecting offers
that are
dynamically
tailored
Shift from IT to
the Lines of
Business

2. 3/15/2015
2
Externalizing the Logic Behind Your Operational
Decisions Outside Business Processes
There are 4 major benefits
1. Streamlined business
processes
2. More generic business
processes
3. Business processes that do
not need to be changed that
often
4. Decisions are shared and
therefore more consistent
2
Determine 3
Products to
Recommend
Ask Client to
Select
Determine the
Price
Product
Recom-
mendation
Decision Service
Pricing
Decision Service

3. 3/15/2015
3
Managing the Logic Behind Your Operational Decisions
3
Transparency
Rule language
Changes auditable
Audit trail
Agility
Non IT stakeholders can change the rules
Integrated testing and simulation capabilities
Decision change cycles decorrelated from IT cycles
Governance
Access rights
Versioning
Rule change workflow

4. 3/15/2015
4
Banking scenario in 6 steps
1. Recommending the right product at the right
time
2. Preventing client churn
3. Detecting fraud by leveraging insight into past transaction
history
4. Detecting fraud by leveraging location awareness
5. Managing fraud in real-time
6. Tapping into an unlimited source of insight

5. 3/15/2015
5
Mr Friedlander, votre
solde est €3,225.25
Détail
Autres services
bancaires
Jeudi prochain – Visite
spéciale de notre distillerie
Yesterday I landed at
Dublin Airport, and
withdrew cash from an
ATM
I took a cab to my hotel
Right before arriving I
checked my account
Why was this message
in French?
Yesterday I landed at
Dublin Airport, and
withdrew cash from an
ATM
I took a cab to my hotel
Right before arriving I
checked my account
Why was this message
in French?
Une surprise réservée à
nos meilleurs clients

6. 3/15/2015
6
Mr Friedlander, your
balance is €3,225.25
Detail
Other banking
services
Next Thursday - Special tour
of our distillery
Why was this tour
recommended to me?
Why was this tour
recommended to me?
Tap for a top customer reward!

7. 3/15/2015
7
Recommend the Right Offer at the Right Time
Insights Rules Can Be Owned by Non-IT Stakeholders

8. 3/15/2015
8
Recommend the Right Offer at the Right Time
Insights Rules Can Be Owned by Non-IT Stakeholders
I am likely to buy Whiskey ...
... or I have purchased enough
Whiskey recently

9. 3/15/2015
9
Recommend the Right Offer at the Right Time
Insights Rules Can Be Owned by Non-IT Stakeholders
I am in a county near enough
the Distillery

10. 3/15/2015
10
Recommend the Right Offer at the Right Time
Insights Rules Can Be Owned by Non-IT Stakeholders
The visit is in less than 3 days

11. 3/15/2015
11
Recommend the Right Offer at the Right Time
Insights Rules Can Be Owned by Non-IT Stakeholders
That offer was not
recommended recently

12. 3/15/2015
12
Withdrawal
Dublin Airport
TUE NOV 25 2:45 PM
My bank knows a
bit more about
my journey
Online banking
Burlington Road
TUE NOV 25 3:35 PM

13. 3/15/2015
13
Banking scenario in 6 steps
1. Recommending the right product at the right time
2. Preventing client churn
3. Detecting fraud by leveraging insight into past transaction
history
4. Detecting fraud by leveraging location awareness
5. Managing fraud in real-time
6. Tapping into an unlimited source of insight

14. 3/15/2015
14
Mr Friedlander, your
balance is €3,225.25
Detail
Other banking
services
Next Thursday - Special tour
of our distillery
What was that reward?What was that reward?
Tap for a top customer reward!

15. 3/15/2015
15
Mr Friedlander, your
balance is €3,225.25
Detail
Other banking
services
Next Thursday - Special tour
of our distillery
Why is my bank so nice
with ME?
Why is my bank so nice
with ME?
Tap for a top customer reward!
Visit the distillery and
My Smart Mobile
Bank will offer you
3 bottles of our best
old whiskeys!

16. 3/15/2015
16
Global Aggregates
• Global Aggregates are statistics across an entire population of entities, clients,
"things"
• They enable you to identify outliers requiring special attention and allocate
scarce resources to these

17. 3/15/2015
17
Banking scenario in 6 steps
1. Recommending the right product at the right time
2. Preventing client churn
3. Detecting fraud by leveraging insight into
past transaction history
4. Detecting fraud by leveraging location awareness
5. Managing fraud in real-time
6. Tapping into an unlimited source of insight

18. 3/15/2015
18
8 PM! It was time to go
for a nice diner with a
few friends
I purpously left my
mobile in my hotel as I
wanted to enjoy!
Once in Temple Bar I
withdrew € 200 Euros
I usually withdraw no
more than € 40
Did this transaction get
accepted?
8 PM! It was time to go
for a nice diner with a
few friends
I purpously left my
mobile in my hotel as I
wanted to enjoy!
Once in Temple Bar I
withdrew € 200 Euros
I usually withdraw no
more than € 40
Did this transaction get
accepted?
Welcome to the
€20€20
€40€40
€60€60
€80€80
€100€100
€120€120
€200€200
OtherOther
€200€200
SubmitSubmit
How much do you want to withdraw?
Automated Teller Network

19. 3/15/2015
19
Welcome to the
€20€20
€40€40
€60€60
€80€80
€100€100
€120€120
€200€200
OtherOther
€200€200
SubmitSubmit
How much do you want to withdraw?
Automated Teller Network
WaitingWaiting

20. 3/15/2015
20
Suddenly, my mobile
started ringing!
Suddenly, my mobile
started ringing!
My Smart Mobile BankMy Smart Mobile Bank

21. 3/15/2015
21
OK, so I'll authorize the
transaction.
Asking because €200 is not usual
for you
Francis Friedlander
Bank agent
Hello?
Yes it is
Yes I do
Hello, is this Mr
Francis
Friedlander
Do you confirm you are
attempting to withdraw
€200 from Dublin?

22. 3/15/2015
22
Here is the rule that triggered the call!

23. 3/15/2015
23
Withdrawal
Dublin Airport
TUE NOV 25 2:45 PM
Again, my bank
knows a bit more
about my journey
Online banking
Burlington Road
TUE NOV 25 3:35 PM
Withdrawal
Temple Bar
TUE NOV 25 8:15 PM

24. 3/15/2015
24
Banking scenario in 6 steps
1. Recommending the right product at the right time
2. Preventing client churn
3. Detecting fraud by leveraging insight into past transaction
history
4. Detecting fraud by leveraging location
awareness
5. Managing fraud in real-time
6. Tapping into an unlimited source of insight

25. 3/15/2015
25
Can't verify a transaction
Please call 1-800-432-BANK
within the next 60 minutes
Please call us back in the
next 30 minutes else we will
disable your credit card
We have temporarily
disabled your credit card
We had a great diner in
the evening
But when I came back to
my room I saw strange
messages on my mobile
... and saw strange text
messages!
What did happen?
We had a great diner in
the evening
But when I came back to
my room I saw strange
messages on my mobile
... and saw strange text
messages!
What did happen?
My Smart Mobile BankMy Smart Mobile Bank

26. 3/15/2015
26
Here is what happened ...
In Galway, 223 kilometers away,
... an identity thief attempted to withdraw
€40 using a copy of my card
As I was enjoying the evening with my few
good friends in Dublin...

27. 3/15/2015
27
... and my mobile started
ringing again!
WHY?
... and my mobile started
ringing again!
WHY?
My Smart Mobile BankMy Smart Mobile Bank

28. 3/15/2015
28
Withdrawal
Temple Bar
TUE NOV 25 8:15 PM
Withdrawal
Galway
TUE NOV 25 9:15 PM

29. 3/15/2015
29
The call results from that rule

30. 3/15/2015
30
Banking scenario in 6 steps
1. Recommending the right product at the right time
2. Preventing client churn
3. Detecting fraud by leveraging insight into past transaction
history
4. Detecting fraud by leveraging location awareness
5. Managing fraud in real-time
6. Tapping into an unlimited source of insight

31. 3/15/2015
31
Back to the Story
As I did not take the call, my
bank asked to call them
We cannot verify this
transaction
Please call 1-800-432-
BANK
within the next 60
minutes
And a similar message was
sent to my mobile

32. 3/15/2015
32
32
Finally, my card was
deactivated
And after 30 minutes a
reminder was sent to me

33. 3/15/2015
33
Here Is What Triggered the Text Messages on my
Mobile

34. 3/15/2015
34
Banking scenario in 6 steps
1. Recommending the right product at the right time
2. Preventing client churn
3. Detecting fraud by leveraging insight into past transaction
history
4. Detecting fraud by leveraging location awareness
5. Managing fraud in real-time
6. Tapping into an unlimited source of insight

35. 3/15/2015
35
Mr Friedlander, your
balance is €3,025.25
Detail
Other banking
services
Francis, going to San
Francisco? Join the Napa
wine tour on December 3rd
Tap for a top customer reward!
This morning I checked
my account again
Impressive because on
December3rd I will be in
San Francisco and
available!
How does my bank
know?
This morning I checked
my account again
Impressive because on
December3rd I will be in
San Francisco and
available!
How does my bank
know?

36. 3/15/2015
36
SAN FRANCISCO and ARMONK, NY - 29 Oct
2014: Twitter and IBM (NYSE: IBM) today
announced a landmark partnership that will help
transform how businesses and institutions
understand their customers, markets and trends
– and inform every business decision. The
alliance brings together Twitter data that
distinctively represents the public pulse of the
planet with IBM’s industry-leading cloud-based
analytics, customer engagement platforms, and
consulting services.

37. 3/15/2015
37
What Does This Story Tell Us?
37
Make sense and take advantage of a continuous flow of
client data and events through different channels
Detect risks and opportunities as soon as they occur
Perform the right action at the right time
New
Business
Capabilities
Rule language accessible to the lines of business
Correlation of timestamped and geo-localized events
Detection of missing events
Predictive and global analytics integrated in the decision
New
Software
Capabilities

38. 3/15/2015
38
Next Generation Customer-Centric Decisions
38
At the time of interaction
When the risk / opportunity is occuring
Proactive
Real-time
Block a transaction
Recommend a productAction
Takes into account the past – Past events
The present – The current state
The future – What is likely to happen
Insight
(contextual)

39. 3/15/2015
39
And Context Matters!
http://www.adexchanger.com/comic-strip/adexchanger-context-matters/

40. 3/15/2015
40
Business EventsBusiness Events
Situation Detection &
Action
Situation Detection &
Action
The IBM Vision
The Real-time Actionable Insight Loop

41. 3/15/2015
41
IBM Decision Server Insights Core Building Blocks
Event
Message representing
something that
happened
Event
Message representing
something that
happened
Agent
Business logic that is
applied to an incoming
event on a given entity
Agent
Business logic that is
applied to an incoming
event on a given entity
Entity
Some business
relevant thing and
related information
Entity
Some business
relevant thing and
related information

42. 3/15/2015
42
Outside
World
Agents
Entity
+ Event
Data Model
Aggregate
Models
SPSS
Scoring
Models
Event,
time based,
situational
rules
Liberty
eXtreme
Scale
ODM
Decision
Engine
Connecti-
vity
Business Entity Lifecycle
Business Events
Generated Events
Changed Business Entities
Rule based
SPSS
or Java
Business
Entities
Business
Events
Deployed
on the
elastic
grid
Kept as
needed
Runtime Solution
Design time Runtime components
Gateway
Binding
Overview architecture