Post on 17-May-2018
© 2011 IBM Corporation
Business Analytics software
The New Path to Value: Business Analytics
and OptimizationRob Ashe, General Manager, Business Analytics
IBM Business Analytics and OptimizationJuly 21, 2011
Business Analytics
© 2011 IBM Corporation2
Business Analytics software
IMPORTANT DISCLAIMER
IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. Information regarding potential future products isintended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.
© 2011 IBM Corporation3
Business Analytics software
Vast Majority of CEOs Experience the New Economic Environment as Distinctly Different
More volatileDeeper/faster cycles, more risk
More uncertainLess predictable
More complexMulti-faceted, interconnected
Structurally differentSustained change
Not at all/to a limited extent To a large/very large extentTo some extent
“Last year’s experience was a wake-up call, like looking into the dark
with no light at the end of the tunnel.”President and CEO,
Industrial Products, The Netherlands
Source: Q7 To what extent is the new economic environment different? Volatile n=1,514; Uncertain n=1,521; Complex n=1,522 ; Structurally different ,
18%13% 69%
21%14% 65%
22%18% 60%
21%26% 53%
The New Economic Environment
© 2011 IBM Corporation4
Business Analytics software
ERP Backbone
Latency
Siloed
IT/End User Polarization
Internal Data Sources
Information Backbone
Immediacy
Collaborative
Consumer/IT Balance
External Data Sources
The Shift to Analytics
© 2011 IBM Corporation5
Business Analytics software
Is thePriority for CIOs
Has doubled in Importance for CFOs
Source: IBM CIO Study, 2009, IBM CFO Study, 2010
#1
Information as a Strategic Asset
Information Information
ManagementManagement
Business Business
AnalyticsAnalytics
© 2011 IBM Corporation6
Business Analytics software
Analytics-Driven Organizations OutperformEfficiency + Business Insight Contribute to Better Financial Performance
“Business analytics is the key to enabling our clients to turn oceans of data into predictive models and actionable decisions.”
Why analytics matter...
49% moreRevenue Growth
> 20x moreEBITDA
30% moreReturn on
Invested Capital
Source: IBM Institute for Business Value, The Global CFO Study 2010 Revenue, EBITDA Growth: 5 yr CAGR (’04-08); ROIC: 5 yr Avg (04-08)
Value Integrators
All other enterprises
© 2011 IBM Corporation7
Business Analytics software
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Business Analytics and Optimization is a top IBM priority
Smarter Planet
Cloud and Next Generation Data Center
Growth Markets
Business Analytics
and Optimization
Business Analytics
and Optimization
IBM Growth Initiatives
Includes software,
hardware and services
10% CAGR
2009 2015
Source: IBM Investor Relations, May 2010; $16B refers to cross-IBM revenue including Software, Services and Systems.
BAO Revenue(including SW, HW and services)
© 2011 IBM Corporation8
Business Analytics software
Autonomic Operations
Developer Productivity
Deep Compression
pureXML
pureScale
Mid-Market BI/PM Solution
Stream Computing
Content Analytics
Advanced Case Management
Workload Optimized Systems
Social Analytics/Consumer Insight
2011
2005
Decision Management
Investing to Enable Our Customers
• $14B+ in acquisitions since 2005
• 10,000+ technical professionals
• ~8000 dedicated consultants
• 27,000+ business partner certifications
• 8 Analytics Solutions Centers
• 100 analytics-based research assets;
almost 300 researchers
• $14B+ in acquisitions since 2005
• 10,000+ technical professionals
• ~8000 dedicated consultants
• 27,000+ business partner certifications
• 8 Analytics Solutions Centers
• 100 analytics-based research assets;
almost 300 researchers
Unified BI Workspace
8
© 2011 IBM Corporation9
Business Analytics software
Investment Areas
Risk solutions
Finance solutions
Customer solutions
Platform
Slide 10
MD13 the objective of this slide is to lay out Rob's vison for analytics. First point is that you need a platform to get analytics to everyone.second point is the customized solutions or applicaitons for Customer and Finance and Risk.Once we've communicated those thoughts, we need to transition from the points to the graphic in this slide, ending up with the visual on slide 3. This content is a critical portion of Rob's introductory comments so can you please work your magic on this one?Meg Dussault, 4/12/2011
Slide 11
MD14 the objective of this slide is to lay out Rob's vison for analytics. First point is that you need a platform to get analytics to everyone.second point is the customized solutions or applicaitons for Customer and Finance and Risk.Once we've communicated those thoughts, we need to transition from the points to the graphic in this slide, ending up with the visual on slide 3. This content is a critical portion of Rob's introductory comments so can you please work your magic on this one?Meg Dussault, 4/12/2011
© 2011 IBM Corporation13
Business Analytics software
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• 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?”
• Ensure organization-wide insight and alignment
© 2011 IBM Corporation14
Business Analytics software
Business challenge:
•Limited visibility
•Labor intensive and costly analyses
•Static and inflexible reports
Solution (or strategy):
•Web-based functionality that allows finance to publish standardized reports and tools to the Web, effectively creating department-specific portals
•The ability for staff and LOB managers to create ad-hoc and end-user reports without assistance of IT or Finance
•Java-based functionality enabling users to drill into databases or reports that are continuously updated for new transactions
Benefits:
•Improved productivity by an average of 13 % for the 120 users
•Reduced financing costs by accelerating turnover of both AR and inventory
ROI:ROI:ROI:ROI:
3,623%Payback:Payback:Payback:Payback:
11 daysSource: Nucleus Research 2009
© 2011 IBM Corporation15
Business Analytics software
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• 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
© 2011 IBM Corporation16
Business Analytics software
Business challenge:
•Identify fraudulent claims
•Accelerate collection of payments
•Automate workflows and data gathering
Solution (or strategy):
•Enable the company to more rapidly identify and investigate suspicious claims
•Identify unsuspicious claims so that they could be handled rapidly in order to improve customer satisfaction
Benefits:
•Accelerated payment collection
•Reduced cost of claims payments
Source: Nucleus Research 2009
© 2010 IBM Corporation
© 2011 IBM Corporation17
Business Analytics software
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� 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.
© 2011 IBM Corporation18
Business Analytics software
Business challenge:
•Rapid growth from acquisition, new facilities
•Reporting revenues/costs across multiple business lines was lengthy and labor intensive
•Needed operational visibility required of a public company
Solution:
•Optimize the frequency and granularity of reporting
•Increase focus on lines of business; and
•Identify, create and monitor KPIs.
Benefits:
•Reduced labor costs by $2.5M /year
•Eliminated excess inventory
•Avoided headcount
•Improved reporting – made better business decisions
ROI:
1822%
Payback:
1 month
Source: Nucleus Research 2009
Blue Mountain Ski Resort
© 2011 IBM Corporation19
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
© 2011 IBM Corporation
Business Analytics software
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Integrated Financial Controls and Operational Risk Management
Bettercontrol…of risk and opportunity
• Reduced cost, improved efficiency and effectiveness
• Better overall view of risk and compliance posture
© 2011 IBM Corporation21
Business Analytics software
2121
� 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
© 2011 IBM Corporation22
Business Analytics software
� Detailed view of network performance
� 719M Euros in increased profit
Fast Time to Value with Analytic Applications
Increase Increase Increase Increase agilityagilityagilityagility…rapidly respond to opportunity
© 2011 IBM Corporation23
Business Analytics software
Trends and Areas of Focus
� Social Analytics/Big Data
� Advanced/Predictive Analytics
� Desktop Discovery
� Mobile
� Optimized Systems
© 2011 IBM Corporation24
Business Analytics software
74% integrating Web 2.0 with customer interaction
75% integrating Web 2.0 into employee day-to-day activities
71% integrating Web 2.0 with partner/supplier interaction
69% report that Web 2.0 tools have delivered measurable business benefits
Of nearly 1700 executives surveyed by McKinsey
Companies are embracing social media
?Policy
Integration
Adoption
© 2011 IBM Corporation25
Business Analytics software
Social Media is not only influencing consumer behaviour but creating vast amounts of new and valuable information
78%of consumers trust peer
recommendations
Source: August 25, 2009, “The Broad Reach Of Social Technologies” Forrester report
770million people worldwide visited
a social networking site.
Source: comScore, Social Networking Phenomenon
© 2011 IBM Corporation26
Business Analytics software
Create Relationships. Build Advocacy. Improve Loyalty.
Enhance YourReputation
Improve Yourcustomer experience
Grow YourBusiness
The foundation for the solutions is IBM Cognos Consumer Insight
© 2011 IBM Corporation27
Business Analytics software
In the Labs – Desktop Discovery
� Data Discovery and Visualization
solution
� On the desktop, standalone
– Guided data acquisition
– Personal modeling
– Analysis and visualization
– Dashboard assembly
– Exchange files with other users
� Connected to a Cognos server
– Plan contribution
– Access content store
– Publish dashboards
– Promote content to be managed
� Technical attributes
– Embedded in-memory analytics engine
– Look and feel of Business Insight
© 2011 IBM Corporation28
Business Analytics software
In the Labs – Mobile Information Delivery
Today– Smartphone support
– iPhone browser
– Blackberry app
– Active Reports for the Windows laptop
– Highly visual interactive experience
– Targeting reporting / dashboard agenda
Investment Areas– Active Reports as an iPad app
– Highly visual interactive experience
– Targeting reporting / dashboard agenda
– Broaden to other key mobile OS platforms
Key Benefits – Mobile BI & performance management
– Author once, consume anywhere
© 2011 IBM Corporation29
Business Analytics software
Optimized Systems: Netezza and IBM Business Analytics
� Performance – Fastest time to insight
� Simplicity – Accelerate the time to value
� Broadest Analytics – Deep and relevant insight
� Single IBM Solution – Business success and lower risk
Fastest, Broadest and Deepest Analytic Capabilities
Shashi Vangala, Manager & Chief Solutions Architect of Business Intelligence
“…“…Performance is the mantra for Performance is the mantra for usus……embed larger extents of embed larger extents of datadata……enabled extended visibility enabled extended visibility into the trendsinto the trends…”…”
© 2011 IBM Corporation30
Business Analytics software
The more you infuse analytics into your business, the higher your AQ and the better you and your business will perform
= Analytics Quotient
RealizedPotential
=
© 2011 IBM Corporation31
Business Analytics software
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Manual, slow, error prone, cumbersome, fragmentedData quality concerns
Automated, instant, accurate, seamless, convergedData governance is in place
AQ maturity determined by:� Decision-making savvy� Readiness and capacity to leverage
analytics across critical roles and processes� Mastery of information
The AQ Journey
© 2011 IBM Corporation32
Business Analytics software
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• You rely on spreadsheets with information gaps
• The rear view is your only view
STEP 1:
Novice
• You have a view into current results and a little of what’s driving them
• Results are shared with other teams within your department
STEP 2:
Builder
STEP 4:
Master
• Your VP sets the strategy
• Your department’s metrics map to other departments metrics
• You look forward as much as you review the past
STEP 3:
Leader• Top-down goal setting
• Insights flow freely across divisions and departments.
• You allocate resources, minimize risk and maximize outcomes with equal ease and speed
Manual, slow, error prone, cumbersome, fragmentedData quality concerns
Automated, instant, accurate, seamless, convergedData governance is in place
The AQ JourneyWhat's Your AQ?
© 2011 IBM Corporation33
Business Analytics software
� Shift to Analytics
� IBM Commitment to Analytics
� Platform, Capabilities, Solutions
� Innovation that Matters