At the forefront of the identity analytics development in the mid-2000s, sales reps were required to build much of their own marketing collateral. This is a sample of my collateral using sanitized, non-proprietary data.

1. S A M P L E
N O T
C O N F I D E N T I A L
S A M P L E
N O T
C O N F I D E N T I A L
Entity Analytic Solutions Benefits for Organized Retail Crime
1
Entity Analytic Solutions: Identity Resolution and Relationship Resolution
In June of 2005, at Customer’s invitation, IBM completed an Entity Analytic Solutions (EAS) proof of
concept using more than 12-million records of Customer associate, claims, vendor, and offender data.
EAS processes data from disparate sources to identify “non-obvious” relationships between identities and
to issue alerts of fraudulent activities or claims, reveal networks of collusion and organized crime, improve
hiring decisions, improve target marketing, etc. EAS Identity Resolution provides unparalleled capability
to answer in real-time the question, “Who is who?” EAS Relationship Resolution provides real-time
detection and alerting of relationships up to 30-degrees of separation, answering the question, “Who
knows who?” EAS becomes more accurate with more identifiable information, self-corrects, maintains
all contexts, and scales to beyond the US population.
Organized Retail Crime Costs
Projected 2006-2007 Two-year Total Organized Retail Crime Costs
Projected Wal-Mart Organized Retail Crime Shrink
ProjectedCustomer OrganizedRetail Crime Shrink
$3,000,000,000
$3,000,000,000
$2,500,000,000
$2,500,000,000
$2,000,000,000
$2,000,000,000
$1,500,000,000
$1,500,000,000
$1,000,000,000
$1,000,000,000
$1.5 billion
“…according to an estimate
from the Federal Bureau of
Investigation,
losses
from
organized retail theft have
reached as much as $30 billion.”
-The New York Times
$500,000,000
$500,000,000
$0
2006
Projected Total Shrink
Projected Total Shrink
2007
Projected Organized Retal Crime
Projected Organized Retal Crime
During the proof of concept, EAS discovered associates and offenders (known thieves) with relationships
to internal offenders, external offenders, and known organized crime rings; and, of the 202,000 total
offender alerts issued, more than 41% involve relationships with other offenders.
Entity Analytic Solutions: Customer Offender Data Proof of Concept Key Findings
Key Findings
•
•
84,999 alerts of Offenders related to past and present Associates
•
98 alerts of Internal Offenders related to active Vendors—fired for theft then invited back into
Customer as a vendor
•
4,655 alerts of Internal Offenders related to other Offenders
•
1
6,651 alerts of Offenders related to active Associates
92,581 alerts of External Offenders related to other Offenders
Detailed ROI and examples using Customer and retail industry data are available separately.
IBM Entity Analytic Solutions Benefits for Organized Retail Crime
1/14/2010

2. S A M P L E
N O T
C O N F I D E N T I A L
S A M P L E
N O T
C O N F I D E N T I A L
Selected Examples of Alerts from the EAS Proof of Concept with Customer Data and Retail Industry Findings
•
Eight members of the Ghali crime-organization were indicted for Organized Retail Crimes,
including returned merchandise fraud. EAS identified two of the eight within Customer’s Claims
and External Offender data sources—Stephanie and Denise Ghali. Plus, EAS discovered
relationships with two other External Offenders—Omar and Addan Ghali.
•
Cynda Bryor was caught shoplifting on 07/27/1998 and is related to shoplifters: Jaquay Bryor
(07/27/1998), Kenan Bryor (01/16/1999, and Becky Sith (08/29/2001).
•
At a large electronics retailer, EAS discovered over 5,000 active customers involved with more
than $6.5M in organized retail crime.
Entity Analytic Solutions: Projected Return on Investment2
The analysis from the proof of concept
sample indicates deploying EAS would
enable Customer to resolve identities and
issue real-time alerts that an employment
applicant has previously stolen from
Customer, has a history of filing injury
claims, has filed fraudulent claims, is a
known sex-offender, or is a wanted
person3.
CustomerSavings/Cost for EAS Deployment
Wal-Mart Savings/Cost for EAS Deployment
$40,000,000
$40,000,000
$35,000,000
$35,000,000
$30,000,000
$30,000,000
$25,000,000
$25,000,000
$20,000,000
$20,000,000
$15,000,000
$15,000,000
$10,000,000
$10,000,000
$5,000,000
$5,000,000
The following ROI projections for an end$0
to-end deployment of EAS at Customer
2006
2007
are based on Customer’s 2005 Annual
Projected Organized Retail Crime Savings
of EAS Deployment
Projected Organized Retail Crime Savings Cost of EAS Deployment
Report; data provided from Customer
Loss Prevention IT associates; retail publications on organized retail crime, shrink, injury claims fraud;
and, results from the EAS proof of concept using Customer data.
Projected 2006-2007 Two-year EAS Organized Retail Crime Savings
2006 Projected Organized Retail Crime Savings
2007 Projected Organized Retail Crime Savings
Total Projected Organized Retail Crime Savings
Projected 2006-2007 Two-year EAS Deployment Costs
Initial License, Deployment, and Configuration Costs
Ongoing Administration and Maintenance Costs
Total Projected Costs
Two-year Return on Investment in Net Present Value (8%)
2
$34.6 million
$38.5 million
$73.1 million
$14.6 million
$2.6 million
$17.2 million
409%
A detailed ROI projection document is available separately.
Customer may acquire third-party data to be analyzed by EAS in order to identify relationships between entities beyond Customer’s
data set.
3
IBM Entity Analytic Solutions Benefits for Organized Retail Crime
1/14/2010