Breakthrough analytics for your business. Ontonix model-free and patented technology is used for advanced BI, Risk and Business Governance Management. Discover the big picture from all structured business process and discover the hidden fragility an what your options are to fix it. Do not measure the wrong KPI - we automatically discover the native and intrinsic key performance indicators for you.

1. WHITE PAPER
CREATING BREAKTHROUGH ANALYTICAL APPLICATIONS
©ONTONIX Srl. October 31, 2013
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2. Creating Breakthrough Analytical Applications for Strategic Governance
A breakthrough analytical application changes with
success the way that users perform their work.
It is not just about automating processes and using
data intelligently: it must provide innovation and
change user behavior, often radically.
Such breakthrough technology can have a profound
and dramatic impact on how to change the way
enterprise governance is performed especially in
uncertain times where parsimony and risk must be
balanced with a rapid response capability to
safeguard human made systems against unexpected
events such as market turmoil, financial stress,
fraud or technical faults.
Alexander KOPRIWA
Quote from the White House:
“There are known known’s; there are things we know that we know.
There are known unknown’s; that is to say, there are things that we now know we don't know.
But there are also unknown unknowns – there are things we do not know we don’t know.”
February 12, 2002:
Press Conference by Donald Rumsfeld – Former US Secretary of Defense
“All organizations in disarray are companies ignoring their intrinsic added value capabilities”
Dr. Ing. Jacek Marzyck
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3. Creating Breakthrough Analytical Applications for Strategic Governance
EXECUTIVE INTRODUCTION
If your data contains the answer, ONTONIX will discover all
significant elements needed to resolve your strategic
objectives.
Should your data not contain the answers, then this clearly
indicates that your business process model must be revised
– regardless of the subject matter expertise at hand.
ONTONIX has patented a model free analytical technology to
manage the biggest threat for our economy and your
existence: the rapid growth of complexity. Complexity is
quickly increasing in all spheres of social life and business
and represents a fearful source of fragility, risk, and
inefficiency.
Complex systems and organizations are less robust, less
efficient and more costly. Reducing complexity helps to
ensure better bottom line results when the economy is
shrinking and uncertain.
Our purpose is to aid stake-holders in their strategic decision
making and to understand all interactions fast.
Understanding how to reduce complexity costs helps to
drive your competitive advantage. The result is a healthier
and less fragile operation.
To manage complexity objective measurement is required –
this is our patented expertise.
Many organizations which have been subject to excessive
complexity (risk) failed despite implementation of classical
risk management technologies. Lehman Brothers, Enron are
good examples, Dexia and other banks/electronic trading
systems have experienced costly failures due to excessive
and uncontrolled proliferation of hyper-complexity which is
a major risk today.
ONTONIX offers a technology to monitor and manage such
complexity risks by measuring it objectively so it can be
managed correctly.
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4. Creating Breakthrough Analytical Applications for Strategic Governance
This White Paper exposes and discusses the concept and characteristics needed for cost effective
breakthrough analytical application in more detail. Furthermore, we also intend to cover the
underlying elements required (R&D and testing) as well as, all other functions needed to embrace
a model-free quantitative complexity management (QCM) based decisions systems as provided by
ONTONIX.
HOW TO GET STARTED
Breakthrough applications must deliver real value fast. Time to result is reduced to weeks instead
of months, quarters or even years. Breakthrough decision governance management tools must
change the way organizations function by delivering six key considerations:
1. Quickly automate the discovery of data elements which are
relevant,
without
impacting
existing
software
or
IT
infrastructures.
2. Monitor (rate) the observed system (process) by delivering: “very
good, good, medium, moderate or poor”. Offer one single multisystem indicator.
3. Accelerate
decision
making;
using
objective
facts
– not “gut feeling”. Human intuition is highly error prone when
data velocity and the number parameters grow.
4. Improve decision accuracy: model all consequences of decisions
to make (and train) on best (and worst) case protection scenarios
should the “unthinkable” happen.
5. Increasingly, un-controllable external parameters influence
business operations. Your strategic understandings of these are
vitally important.
6. Prohibit laborious development of complex mathematical
models using expert resources on a recurring basis.
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5. Creating Breakthrough Analytical Applications for Strategic Governance
ANALYTICS PROTOTYPING AND RAPID DEPLOYMENT
Today’s Big Data and massively parallel real-time e-business
processes, with traditional DW and BI concepts too slow for
effectively intercepting risk at its earliest point of origin
without delays, is a challenging issue for application analysts
/ developers.
Companies and nations experience more and bigger losses
caused by unknown unknown’s (c.f. D. Rumsfeld), new
vulnerabilities are constantly discovered and exploited.
New business processes and “creative hacker strategies”
facilitate rouge attacks made possible by systemic fragilities.
Dynamic business processes and technical hyper- complexity
must be monitored permanently. Classical technical
monitoring is insufficient; a new holistic analytical rating /
monitoring paradigm is required.
Some big organizations (banks, insurance companies, Telco’s
and others) experience every 10 to 20 minutes an attempted
digital intrusion, therefore they must apply smart and active
intelligence to protect their business (physical, digital and
logical processes). This can include intelligent video intrusion
surveillance systems, monitoring of IT application
environments and checking of unusual business patterns.
The combination of complex business process and multi
layered IT environments are true challenges for all
managers.
Modern business applications are now more demanding
than ever. They deserve the most capable QCM technology
to separate data, from logic and user dashboard interface.
New possibilities offered by ONTONIX advanced model free
analytics can produce pertinent results on both small and Big
Data sets. Minimum data is 10 parameters and 12 periods. A
period is any time interval which is relevant to the observed
systems criticality.
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6. Creating Breakthrough Analytical Applications for Strategic Governance
A good rating and monitoring mechanism must be highly
scalable, fast and easy to deploy. Capable to retrofit all
environments and use cases, ONTONIX single model-free
analytics engine allows fast and cost effective deployment
into all applications.
Parallel checking of technical and business process is a new
emerging market need which ONTONIX successfully
addresses for achieving overall governance.
DATA METHODOLOGY: LET YOUR DATA DO THE “WALK &TALK”
When model-free-data analytics is applied, users only need
to discover (and retain) pertinent data and which patterns to
look out for. Even if you only have a single platform and
data source, it is likely that you want to combine data from
both internal and external sources to perform your most
pertinent analysis possible. Some sources can be free
statistics from Euro Stat, the UN, Bloomberg’s, commercial
sources can be Dun & Bradstreet, Kompass or even, firms
such as Experian.
To gain benefit from analytical insights, you can do the
following:
Define your key objectives and risk/fragilities, some
examples:
• IT (production, project, data integrity)
• Financial (P&L, Cash flow, Fixed Assets, CRM, SCM…)
• Portfolio (stock market, volatility…)
• Markets
• Currency
• Nonperforming loans (NPL)
• Real estate market
• Competitive
• Churn analysis
• Restructuring (M&A, MBO, LBO)
• Change management strategy, is the change (fix)
predictable or not?
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7. Creating Breakthrough Analytical Applications for Strategic Governance
DATA METHODOLOGY: DATA DISCOVERY PHASE
Start with a data discovery phase, ONTONIX automatically
discovers and displays all correlations / interaction patterns
found. Depending on the data, some preprocessing may be
required. Missing data is not an issue.
We work with your Expert Users to shortlist input data.
Very big data, such as the world economic risks, a Banks
complete client portfolios can also be processed.
This process is simple; however, implementing highly critical
system processes such as IT production fragility or Air Traffic
Control risk, power plants / process industries may require a
more extensive implementation project with multiple realtime data “sensors” and pre-processing preparation.
ONTONIX unique advantages are its native business
structure performance parameters - a.k.a. Key Performance
Indicators (KPI). The KPI are produced automatically (no
subject matter expert required). KPI’s are sorted by
relevance (importance) inside the observed system of
parameters. Strategic management can now quickly address
the “low hanging fruit” first, for yielding ROI gains.
Many popular traditional and classical analytical tools
require coding, script building or using languages (or
procedures) such as “R”, “Python” or other Open Source
products. This requires (recurring) manpower, rarely free of
charge (nor fast). Licensed software products tend to be
more stable, some vendors offer prepackaged “analytical
PnP modules” - referred to as best practice or “shrink
wrapped” analytical applications. When junior data analysts
implement such “turn-key” analytics and not fully
understand a complex mathematical model, then this can be
extremely dangerous. ONTONIX model free analytics allow
you to quickly expand, embrace and protect existing and
new business domains. All activities are subject to constant
change and threatened by excessive complexity (risks) and
influenced by internal and external parameters.
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8. Creating Breakthrough Analytical Applications for Strategic Governance
DRIVING STRATEGIC DECISION MAKING AND REDUCING UNCERTAINTY
Disruptive breakthrough analytical applications must know
how to automate analytical results. This is achieved by a
computerized scanning process performed as follows:
•
•
•
•
•
First discern pertinent data,
Next assemble and process your data
Third consult results via ONTONIX interactive
dashboard
Fourth discuss analytical findings, take decisions
how to address the issues.
Finally, define execution and change strategy.
You now can help your business to be more agile, more
resilient to unexpected events (a.k.a. Black Swans).
Organizations using ONTONIX, meet objectives faster, for
some clients this has resulted in major cost and business
cycle reductions of analytical processes (up to 50% faster).
Users can void (or limit) many set-up costs for analytical data
governance, by exploiting existing Data Warehouse (DW)
investments.
SAP BW interface available (option).
ONTONIX can exploit any existing DW or Data Mart (DM)
investments already used.
OUR CLIENT ENGAGEMENT STEPS
A typical process ONTONIX expects to follow when getting
involved with your organization:
1. Planning stage – during the project research and
planning stage we need access to client resources to
address the scope and areas to be addressed
2. Pilot stage - after the initial discovery stage is
completed, we process the data and discern where
and how complexity strikes and how to predict
required change and associated risks.
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9. Creating Breakthrough Analytical Applications for Strategic Governance
3. Delivery and handover - after forensic detective data
analytics work is completed, we issue
recommendations on how to address the discovered
complexity best (by simplifying) and suggest
possibilities how to improve the observed system as
a whole and its parts.
CLIENT SNAPSHOTS OF BREAKTHROUGH ANALYTICAL EXAMPLES
More information can be found on our website and blog:
www.ontonix.com/Articles.htm and ontonix.blogspot.com
Case Study 1: Measuring Air Traffic Complexity: Estimation
of ATC Workload through continuous measurement of air
traffic complexity using real-time data from radar system.
http://ontonix.blogspot.com/2013/08/a-different-look-atair-traffic.html
Case Study 2: Top European Bank, the client focus was to
understand all IT Production & application constraints
through the measurement of complexity and robustness of
the
whole
environment
http://www.slideshare.net/alexanderkopriwa/it-bancapopulare-de-sondrio
Case Study 3: Competitive Benchmarking Analysis of our
banking customer’s ability to compete as compared to its
market opponents and to understand the bank’s ability to
maintain their business model, to better understand barriers
to profitability and to improve our client’s competitive
market position.
Case Study 4: A top European Bank measures complexity in
their workflow management process and which is used to
monitor criticality of many processes such as "Credit
Management" process and its various phases. See:
http://ontonix.blogspot.fr/2013/09/measuring-processes-inbanks-using-ddd.html
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10. Creating Breakthrough Analytical Applications for Strategic Governance
PRODUCT AND SERVICE PORTFOLIO
Our ONTONIX solutions do not impact existing IT structures and there is no need to abandon or
modify existing systems. Customers can directly benefit by implementing model-free agile
analytics by selecting ONTONIX services. Users can immediately take advantage of cloud
services, a cost effective option only incurring operational expenditures.
1 - ONTONIX CLOUD PRODUCTS:
Our flexible Cloud usage model, improves productivity, facilitates enterprise-wide collaboration
and, perhaps most important, reduces software licensing costs without compromising quality.
•
•
•
Rate a Business – Predefined data templates for
many use cases and can also accommodate your
specific requirements
Assetdyne – A London based partnership for stock
market and share portfolio volatility rating service
Design for Resilience – empowers engineers to
design the best, least expensive and most robust
products
Optional Custom Cloud services can be set-up when needed
by our clients.
External Value Added providers already have integrated ONTONIX Cloud services to their
portfolio offerings. Business partners such as Altair Engineering's HyperWorks offering, a
computer-aided engineering (CAE) software platform that allows businesses to create marketleading products more efficiently and more cost effectively.
2 - ONTONIX ENTERPRISE SOFTWARE PRODUCTS:
Our Quantitative Complexity Management (QCM) technology is delivered as a Customized
Enterprise Solution which is powered by OntoNet™, our QCM Engine making it possible for
multiple users to simultaneously process any kind of data to manage operations.
We help design and produce the below information for single or multiple analytical portfolios:
•
•
•
•
Updated October 31, 2013
Complexity rating and business/process resilience
measure
Current and critical complexity of a business, a
department, a process
Interactive Business Structure and Complexity Map
Indication of sources of fragility and inefficiency

11. Creating Breakthrough Analytical Applications for Strategic Governance
•
•
•
•
Indications on how to make business/process
simpler
Evolution of business/process fragility
Intrinsic business KPIs
Early-warnings of increasing business vulnerability
The analysis can be automated and executed periodically to produce personalized reports.
3 - WE ALSO, IN ADDITION, PROVIDE:
•
•
Advisory consulting services either directly or
through our worldwide partners network
Custom R&D Development on special projects
SUBSIDIARIES: ONTOMED
The medical profession needs simple, yet powerful tools to
help practitioners make the best possible diagnosis and
facilitate patient monitoring. ONTOMED crosses the
boundary of subjective judgments’, medical doctors and
researchers get rigorous, scientific and quantified measures
on f. ex. trauma intensity, patient’s stability in real-time,
real-time alerts, as well as, how successful a certain
treatment or surgery actually was. This helps guide medical
professionals to better patient care by selecting best
treatments using factual decision making.
ABOUT ONTONIX:
Established in 2005 in the USA, ONTONIX is headquartered in Como, Italy, and develops the
World’s first system which allows measuring and managing complexity - the main enemy of
modern businesses. Our award winning technology and exclusive services help our clients view
strategy, business risk management and economic intelligence from a radically new and
innovative perspective.
As ONTONIX analytics are intuitive and model free, the solution is suited to be used by normal
business people who are not statistical or mathematical geniuses… Hence CEO’s, CFO’s, CRO’s
and Operational staff can make better informed decisions faster. This benefit is also available to
expert populations such as structural Engineers and Healthcare professionals.
Conclusion: In this WP we have discussed the requirements for breakthrough analytical
applications, of course not every application requires every element of these requirements
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12. Creating Breakthrough Analytical Applications for Strategic Governance
however as we have stated access to relevant data is needed, to deliver the key-elements
necessary for informed decision making and not to waste valuable time and resources.
Disclaimer: ONTONIX does not claim that a single analytical product can cover all known
problems, especially when business strategy does not adhere to ethical, unlawful actions or
excessive risk taking due to unrealistic targets. However, we help both large and small
organizations reduce uncertainty; hence decision makers can make informed “best decisions”
as early as possible without imposing heavy weight IT deployments.
Further information on this White Paper is available from: info@ontonix.com
Cloud Services free sign-up here: http://www.ontonix.com/1-1.htm
See what QCM experts say. Join us on Linked-In: http://www.linkedin.com/company/ontonix
Follow us on Twitter: https://twitter.com/ComplexityMngmt
Updated October 31, 2013