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Transcript of Business Analytics for Better Outcomes by Karen Parrish
8/2/2019 Business Analytics for Better Outcomes by Karen Parrish
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© 2010 IBM Corporation
Business Analytics for Better Outcomes
Karen Parrish
Vice President, Industry Solutions
IBM Software for a Smarter Planet
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© 2010 IBM Corporation2
There is an Explosion in Data and Real World Events
4.6 Billon Mobile PhonesWorld Wide
1.3 Billion RFID tags in 2005
30 Billion RFIDtags by 2010
2 Billion Internetusers by 2011
Twitter process
7 terabytes ofdata every day
Facebook process
10 terabytes ofdata every day
World Data Centre for Climate 220 Terabytes of Web data 9 Petabytes of additional data
Capital market
data volumes grew 1,750% , 2003-06
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© 2010 IBM Corporation3
Business Analytics Makes Use of this Data in Meaningful Ways
Business Analytics is the key to enabling businessesto turn oceans of data into predictive models andactionable decisions
Why Analytics Matter:
14.0%
9.4% 11.3% 12.1%9.3%
0.5%
Finance organizations with business insight
All other enterprises Revenue Growth: N = 580; Profit: N = 435; ROIC: N = 606Source: IBM Global Business Services, The Global CFO Study 2010
Return onInvested Capital
Revenue Growth Profit Growth
> 20x more
30% more
49% more
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© 2010 IBM Corporation4
Analytics Landscape
Degree of Complexity
C o m p e t i t i v e A d v
a n t a g e
Standard Reporting
Ad hoc reporting
Query/drill down
Alerts
Simulation
Forecasting
Predictive modeling
Optimization
What exactly is the problem?
What will happen next if ?
What if these trends continue?
What could happen…. ?
What actions are needed?
How many, how often, where?
What happened?
Stochastic Optimization
Based on: Competing on Analytics, Davenport and Harris, 2007
Descriptive
Prescriptive
Predictive
How can we achieve the best outcome?
How can we achieve the best outcome
including the effects of variability?
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© 2010 IBM Corporation5
Where are organizations focusing on Business Analytics?
• Customer Churn• Marketing Spend• Sales Productivity
EnhanceCustomer Understanding
• Customer Service• Channel Management• Loan Origination
FosterCollaborative Decisions
• Trading Advantage• Fraud Protection• Health Monitoring
OptimizeReal-Time Decisions
• Financial & Risk Management• Demand Visibility• Strategy Alignment
EnableEnterprise Visibility
Underpinned by trusted data and an integrated technology foundation
• Reducing your TCO
• Accelerating time to business outcomes
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© 2010 IBM Corporation6
Smarter Health Care
Smarter Retailing
Smarter Cities
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The need for progress in Health Care is clear.
People worldwidepushed below thepoverty line bypersonal healthcareexpenditureseach year.
100million 1.5 millionErrors in the waymedications are prescribed,delivered and taken harm1.5 million U.S. citizensevery year.
Dollars is the total drugdevelopment cost – asclinical trials average acapitalized cost of $626mper drug – making it thebigest line in the LifeSciences company’s budget
Dollars invested in USpharma and biotech R&Din 2008. Only 4 trulyinnovative products weredelivered in the sameperiod.
65.2 billionof drugs work in only 30-50% of people
90 percent
1.3 billion
Dollars US lost due to a10% counterfeit drug supply
74 billion
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There are severe global challenges ahead of us…
HEALTHCARE
GLOBALIZATIONGlobal competition limiting
healthcare spend
DISEASES THAT ARE MORE EXPENSIVE
TO TREATIncreased prevalence of chronic conditions around theworld
CONSUMERISMMore knowledgeable,
demanding citizens
CHANGING DEMOGRAPHICS ANDLIFESTYLES
Aging and overweight populations
NEW TECHNOLOGIES ANDTREATMENTS
Advances revolutionizing riskassessment, diagnosis, and
treatments
FINANCIAL CONSTRAINTSPool of funds for healthcare is n
limitless
INABILITY TO ACCESS ANDSHARE INFORMATION
Non-digital/digital data is beinggenerated at
unprecedented rates,causing information glut
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How might you solve some of the world’s Healthcare problems?
EuResist
Sick Babies
UNC Health Care
Children’s Memorial
Hospital
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Medical information isdoubling every 5 years,much of which isunstructured
81% of physiciansreport spending 5hours or less permonth reading medical journals
“Medicine has become too complex (and only) about 20 percent of the knowledge
clinicians use today is evidence-based.”
Steven Shapiro, Chief Medical and Scientific Officer, UPMC
The Watson Problem…
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Understands natural language
questions
Analyzes large volumes of
unstructured data
Generates and evaluates
hypothesis
Presents responses with
confidence
Supports iterative
dialogue to refine results
Learns from results over time
What condition has red eye, pain, inflammation,
blurred vision, floating spots and sensitivity tolight?
Physician Notes, Medical Journals, Clinical Trials,
Pathology Results, Blogs, Wikipedia
Possible Diagnosis Confidence
Uveitis 91%
Iritis 48%
Keratitis 29%
Family History, Patient Interview, Physical Exam,
Current Medications
What actions were taken? What treatments
were prescribed? What was the outcome?
Why is Watson Technology ideal for Healthcare?
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© 2010 IBM Corporation12
Citizens are placing increasing demands on leaders to innovate
Evolution of City Value
LeadersDeliver
CitizensDemand
Time
Lifestyle,Culture
Jobs,Education
Water,Energy
Walls,Roads
ProsperityOpportunityConvenienceSecurity
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© 2010 IBM Corporation1313
To ensure the economic health, welfare and security of theircitizens, smart governments will work to…
STRENGTHEN NATIONAL
SECURITY AND PUBLIC SAFETY Enabling defense and lawenforcement organizationsto achieve situational awareness,increased speed of command andcombat superiority.
MANAGE RESOURCESEFFECTIVELYLeveraging businessintelligence and planning toimprove insight and elevateperformance with visibility
and control.
IMPROVE CITIZEN ANDBUSINESS SERVICES
Connecting people toprograms based on individualneeds—achieving sustainable
outcomes while reducing
operational costs andmaximizing taxpayer value.
ENSURE A SUSTAINABLE
ENVIRONMENTDeploying environmentallyresponsible operations,
from energy efficiency andconservation to transportationmanagement and the pursuit
of renewable resources.
GOVERNMENT
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© 2010 IBM Corporation14
How might you solve some of our cities challenges?
New York PoliceDepartment (NYPD)
Queensland Motorways
DC Water
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© 2010 IBM Corporation15
Consumers have varying levels of comfort in using technology toshop and purchase.
Mobile technologies have increased
92% globally and are still more widelyaccepted in the growth markets
25%
Willingness to use TVs to make purchases
is growing as a preferred technology
24%
Websites remain the dominant technology
75%
Kiosks are popular inall countries
39%
Source: IBM Institute for Business Value, Retail 2011 Global, WW survey of 30,624 consumers
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© 2010 IBM Corporation16
There are many issues facing retailers today…
Industry consolidation
Credit crunch
Retail
Global Economic FinancialCrisis
Decreased spendingability
Savvy and informedconsumer
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© 2010 IBM Corporation17
How would you use Business Analytics to Make Retailing Smarter ?
Moosejaw
Sears
Yansha
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© 2010 IBM Corporation18
What skill areas should you consider investing in?
Enterprise content
management
Advanced case management
Content analytics
Document imaging and capture
Information lifecycle governanceSocial content management
Data management
Database design and development
Database management
Database administration
Information
governance
Data lifecycle management
Data security and privacy
Data quality management
Information integration
and federation
Information integration
Master data management
Big data analytics
Business analytics
Business intelligence
Predictive analytics
Analytic applications
Financial performance management
Governance, risk and compliance
Web analytics
Data warehousing
Warehousing appliances
Warehousing software
Industry models
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© 2010 IBM Corporation19
Thank you
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© 2010 IBM Corporation20
Begin References
The following slides are hyperlinked from the main presentation
21
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© 2010 IBM Corporation21
1
Client Challenges
The need to create a consolidated view ofpatient information that could better servethe diverse needs of the varied user groups.
Existing systems were neither sustainablenor capable of generating the kind ofinformation needed to create new
treatments for major diseases. Growing need for quality and Pay-for-
Performance reporting within clinical care.
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© 2010 IBM Corporation22
Smarter healthcare
Client Challenges:
•Doctors want to betterdiagnose newbornchildren who might besusceptible to infectiousdiseases
•The goal is to treat theproblem before it occurs – prevention is key.
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© 2010 IBM Corporation2323
Client Challenges:
Researchers at EuResist want to
be able to predict how a patientwith HIV will respond to treatmentby comparing a blood samplesagainst 33,000 HIV treatmenthistories.
The goal is to treat patients based
on insights that are moreaccurate.
Smarter healthcare
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© 2010 IBM Corporation24
Smarter healthcare
Client Challenges:
•3000 children/year diagnosed withbrain tumors, and pedatric tumorsare very difficult to identify, classifyand categorize.
•Pediatric specialists are on amission to find new treatmentsfaster, and build a gene expressionknowledgebase for pediatric braintumors.
•The goal is to figure out what thetumor is as fast as possible, andprovide treatment accordingly.
S i i
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© 2010 IBM Corporation25
Client Challenges:
Faced with an aging waterdistribution and collectionsystem and numerous customercomplaints
DC Water needed to modernizemanagement of its massivewater and sewer infrastructure -which includes hundreds ofthousands of assets such aswater distribution pipes, valves,public fire hydrants, collectionpipes, man holes and water
meters The goal is to extend the useful
life of critical components.
Smarter cities
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© 2010 IBM Corporation26
Smarter Business Outcomes
Client Challenges:
Address increasing demand onroadways with 230,000 vehiclesper day
The goal is to reduce motorists’
time spent in traffic and vehicleemissions
258 hours a Brisbane driver spend
in traffic every year
AUD$400 extra cost in fuel per year
to each motorist
30% increase in greenhouse emissions
Smarter cities
S
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© 2010 IBM Corporation27
Client Challenges:
Improve public safety in New York City
Prevent emerging crime
Increase speed of solving crimes
The goal was to insure NYC as a safedestination for businesses, touristsand citizens
Access to 120 million criminal
complaints, arrests, and 911 records
Smarter cities
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© 2010 IBM Corporation28
Client Challenges:
•Know customers throughevery channel of
engagement (web, catalog,store)
•The goal was to retain andgrow their customer base
Moose jaw
Interconnected consumers Smarter retail
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© 2010 IBM Corporation29
Sears Client Challenges:
Customer browsed through theircatalog, but not as many purchasedfrom catalog.
Customers didn’t enjoy the
shopping experience at Sears
The goal was to transform catalogbrowsing to one of creating anonline customer centric experience.
Instrumented consumers
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© 2010 IBM Corporation30
Client Challenge
The customer’s supply chain process for order processing as 2.5 days
In a open market, this would not becompetitive
Yansha desired to maintain a leadershipposition in an increasingly deregulated
Chinese retail industry
The goal was to find a competitiveadvantage through technology andautomation
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© 2010 IBM Corporation31
End References
The previous slides are hyperlinked from the main presentation
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© 2010 IBM Corporation32
Innovative leadership in Alameda County transformed social services
Reducing benefits overpayment, improving appeals litigation , and increasing productivity for 1,200 case workers
Initial focus – increase effectiveness of
social services case workers
Expanded to integrate all key social
services departments
Provides better service to clients, avoids
overpayments and detects fraud
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Innovative leadership in Rio de Janeiro transformed city operations
Initial focus - prevent deaths fromannual flooding
Expanded to manage all emergency
response situations
Analyzes weather, energy, building,
transportation, & water data in real-
time
Nationwide adoption in advance ofOlympics and World Cup
Increasing efficiency in resource deployment, expanding early warnings to 48 hours, and coordinating all agencies in response