· Web viewWhy Analytics - Analytics collectively is the combination of various capabilities that...

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Why Analytics - Analytics collectively is the combination of various capabilities that integrate multiple data sources for statistical, mathematical, and other algorithmic analyses.

This document can be found on the web at www.ibm.com/support/techdocs

Under the category of “White Papers.

IBM Integrated hardware, software, services and support into comprehensive, highly optimized solutions that deliver better and more reliable value at substantially lower total cost.

Version Date: 2012

Systems GroupChuck Gray

[email protected] Management Foundation Architect

__________________________________________________________________________________© Copyright IBM Corporation, 2011- 2012- 2013

Date: 20121

http://www.ibm.com/support/techdocs

To start off with let's set the stage. Business leaders know that to meet their goals for profitability, revenue, cost reduction, and risk management, especially in the current economy, and to be competitive they cannot continue to operate the way they have in the past. Today’s marketplace involves an exponential growth in the number and sources of customer interactions (email, social media, video and many others) it is now a high-volume, multi-channel world.

Business does have to find improved ways to compete and use technology to become adaptive. Using better management of information, business leaders can improve the ability to be told about what may be hindering informed decisions, and achieve the next generation of efficiencies by providing precise, contextual analytics and insight to the point where these items can make a direct impact on business. Doing so can enable the ability to make changes, improving insight into patterns of customers, processes, and businesses, and deliver better real-time decisions and actions in every area of the organization.

The ability to make quick adjustments is made possible by establishing well-constructed processes and empowering individuals throughout the organization with pervasive, predictive real-time analytics. This approach can help shift from a guess and respond to a forward-looking predict and act focus. This approach also moves analysis from a back-office activity limited to a handful of experts to an approach that can empower everyone in the organization at the point of touch and in the context of the current situation. The result is quicker, informed, and confident decisions and actions throughout the organization, based on consistent and trusted information.

The past has been around decisions that have been made based on anecdotal experience, or hunches, of seasoned domain experts. These “gut feel” decisions are subjective and often inconsistent, thereby limiting their value.

Over the past few years, the strategy for business survival has been straightforward.

Cut costs Avoid big changes Hide (This is one that has closed the doors of many companies) Wait for the downturn to end The last and most used - hope for the ability to make the right choices

Now that the economy appears to have begun to turn slowly, a large number of companies will maintain a status quo, continuing their austerity measures and focusing on hanging on to market positions (the truth is nothing stands still it either moves forward or backward). Competitive enterprises will recognize that now is a chance to position themselves


Date: 20122

for growth. Instead of taking a hide and see position, business’s will seize the opportunity to make strategic investments in tools, platforms, and processes to bring success in the future.

The big questions to get answered are.

What is the primary methods, framework and tools that will enable us to ride the recovery curve ahead of the competition?

What is big data and what does it mean to me?

How do I get a handle on my information assets?

I hope to answer these questions and include ways your business can enhance it’s ability to compete. So now let our journey begin. Lets think about the notion, I have too much data, not enough time, and it is in every form and written language imaginable.

As the future unfolds, intelligence is the turning of events into data, data into information, Information into knowledge and knowledge into insights with actionable plans. This is done by leveraging business analytics, including continuous and content intelligence. We will need to find and embrace applications that deliver lasting value to the business.

This will require the new analytic enable business to compete on velocity, the speed of information, volume the massive quantities of data from multi-channel sources, and variety such as at rest data, and in motion, both can be interactive formats (multi- language and cultural content). The solution will need to provide tools to consume and process larger volumes of data. It also must bridge the chasm between data, information, and insight. Such as what of this data makes sense? If that is not enough to make you think that, we need to take our business concerns and define them into actionable questions to get back answers that make sense while weighting the results. I haven’t done my job to this point in exposing the need for a analytical method to drive my business.

So just a few more points to create thought points or references, let us pull back, and think of this as how do you ask for business directions, what do my clients think of my company? If you do not know these preceptions how do you effectively steer your business and how can you set business direction? This is unfortunately not like looking for a known piece of information or a obvious solution that will automatically answer your question or steer your company. You may not be looking in the right area of the business for your answer or possibilities to direct your business. This adds complexity, sometimes when you look for possibilities of things you discover you do not even know you do not know.


Date: 20123

So what about the data that will become knowledge and then insight? In the world today, you may ask a specific question in an unambiguous way. If you do this, you have a higher probability to get your answer. This is a lot easier said than done. Sometimes the most enlightening information is what is not found. So do not be afraid to ask why not as our goal is a evaluate trends, detect anomalies and reveal patterns.

A thought point, every business today has a client, and most keep records of every client exchange. This data is in many forms and based on business could include world languages, common slang. One example I just heard was that was sick, I looked around to see who and they actually meant that is very good. This shows that it is not just text analytics, but a understanding of the sources to apply proper slang and idioms.

To make the flow of this document easier I will put the formats of raw data in two buckets transactional (structured) and Interactional information (unstructured/semi-structured) that is all other forms. Interactional-based data is approximately 80 to 85% of the total content of information that a company has as an asset, and it is massive. The value return to mine this mountain of information is worth the effort. A value point I heard from many clients is consolidated and correlated views of information about the client from sales, service and social media made available to each department enables more Insight based operations. Clients are better served in this manner; better products are created, and greater market share can be won.

The thoughts expressed are wow this makes a lot of sense, but I am not convinced. So why and what is going on to make this a concern for my business?

To put some reasons behind the why:

A growing number of CEOs describe their organizations as data rich, but knowledge poor, and voice frustration at not being able to transform available data into feasible action plans, let alone to detect emerging opportunities according to a recent IBM Survey of 1,500 CEOs.

According to Forrester, 90% of customer service decision-makers believe that good service experience is critical to their company’s success, and the importance of client experience is on the rise.

Gartner predicts that enterprise data will grow by 800% in five years, with 80% plus of it unstructured. A big part of this trend includes data from groups, communities and social networks outside the business. So in current terms this is refered to as multi-channel data.

As we enter the coming year, several trends are facing business leaders. These trends call for new ways to operate in order to stay competitive, serve clients better, bring new products to


Date: 20124

market faster and increase market share. Here is a few thought statements (what) we need to share with the business.

The amount of unstructured and semi-structured data (Interactive data) that companies need to make sense of is growing exponentially, with much of it coming from social and interactive media.

Data is everywhere in enterprise systems. (In the two states motion and at rest) More data doesn’t mean more knowledge – It could just be confusion. (how do I

deal with this) Lack of ways to farm this exploding data makes client centricity difficult to achieve. To stay competitive and truly place clients at the center of operations, companies

need better, faster, real-time access to contextually relevant customer information. A well defined, repeatable process to bring knowledge from data into any

organization, and the where to look. How to create music from the noise of data or enterprise knowledge to drive client

centric operations How to make significant transformations to your organization at the right time for

the right reasons.

The simple response is it must bring consolidated and correlated views of information about the client from sales, service and industry sources to each department to enable a knowledge with insight based competitive set of operations. Clients are better served in this manner, better products are created, at reduced cost to the right clients.

If we do this right farming data from transactional and interactional sources is the ability to gain knowledge and develop insight to take action. Many organizations tend to confuse knowledge and insight with information, which is the data residing in a deiverse systems and sources. Knowledge is the human capacity to take action while facing a complex situation from focused and abstract sources. Derived knowledge is often the most important asset of an organization, and referred to it as Knowledge Capital, but is overlooked and under used today.

Knowledge and execution insight triggers enables people such as operational staff in service, sales and development to use the organization’s collective knowledge in order to be more efficient, effective, agile while providing better service, and building better products.

The tools to gain the necessary knowledge and develop insight to face a complex situation is accomplished with the ability to:

Quickly re-assemble the relevant information from all sources Identify the people who possess the knowledge. Understand the difference of Inflight and at rest content


Date: 20125

While data is key to creating information, knowledge and insights, data is just that a building block. In and of itself, data provides limited value. Interactional data from customer interactions and social media in particular, can overwhelm most organizations, but can create tremendous opportunity when leveraged correctly.

Knowledge with actionable insight to improve customer service can be derived from all customer interactions regardless of where those interactions occur, inside the enterprise or externally in social media correlated with all of their products, purchasing history, issues, level of importance to your organization and experts about the users of my services or products.

Development of new products, what to keep and what to discontinue can be leveraged from the combination of customer feedback on new products, past products and project information including tests, materials, and quality programs including input from internal and external experts and communities. This is referred to as the Voice of the Customer (VOTC).

Sales and marketing teams can consolidate and correlate information about a particular customer or prospect within CRM, Product Life Management, chat, voice, product defect databases, and social channels. This can enable better segmenting, targeting, message alignment and response. Voice of the Customer (VOTC) and Customer Experience programs exposes what customers are saying across the board not just in surveys, but from voice to social media, from sales to services.

This was a quick look at the need for knowledge to be a competitive company. This is a business changing event and needs to be handled with the greatest of care. The ability to go to a single source for the enablement of this business critical blending is the difference between success or failure. The first step is to clarify what are the business and industry opportunities, Then I move to what are my sources of data, and are they internal, external, inflight, at rest, large, fast, transactional, interactive, and what do I do now.

What is my time of data, what are the tools sets and exposure models I want. What are the what are’s and again what are my requirements.


Date: 20126

Source: IBM

So taking that in account every organization’s information needs are different, and yet the ways we interact with knowledge in order to gain understanding is universal. So when you are working to increase executable knowledge across the organization, you can duplicate the model or process. Current knowledge systems generally start working with information by searching and navigating it; most will then consolidate information, often manually, and then perform the higher level functions of understanding connections within the data (correlation) and analyzing what it means. Tomorrows knowledge systems will need to change, self educate, using closed loop models that allows for learning and applying. These systems will need to deal with the three dimensions of the Data Challenge.

Volume (Size) - Processing and analyzing terabytes an hour while cost effectively storing, pre-processing and analyzing diverse petabyte+ collections

Velocity (Speed) - Massive parallelization is often just faster than existing customer platforms with the ability to ingest and work with “raw” information can save significant time in practice

Variety (Schema) - Ability to store first, organize later and transform as needed. This addresses the problem “we’re not sure what we’ll need, or what will be valuable, but we know it’s in there” as well as dealing with a mix of diverse information types.


Date: 20127

yr mo wk day hr min sec … ms s

TraditionalData warehouse &Business Intelligence

Data in Motion

Data

at R

est

Up to10,000 timeslarger

Up to 10,000 times faster

Data

Sca

le

100,000records/sec, 6B/day

10 ms/decision

270TB for Deep Analytics

600,000 records/sec, 50B/day

1-2 ms/decision

320TB for Deep Analytics

250K GPS probes/sec

630K segments/sec

2 ms/decision, 4K vehicles

100s GB for Deep Analytics

3 sec/decision

100Ms documents

Millions of Influencers

Daily re-analysis

Decision FrequencyOccasional Frequent Real-time

100M transactions/sec

1 sec/authorization

13 min. for Deep Analytics over 36TB

Our Goal

Listen

We listen to your needs and apply best

practices

Industry leading service, solutions, tools, platforms, &

skills

Enable our customers with the tools, platforms and SMEs to bridge the gap from todays

business to a knowledge enabled business leader

Align Enable

Source IBM

In closing IBM is the right choice for deliving a full enabled scalable analytics platform that integrates into the enterprise information ecosystem. IBM’s Integrated hardware, software, services and support into comprehensive, highly optimized solutions that deliver better and more reliable value at substantially lower total cost. The result is the ability to make informed decisions.


Date: 20128

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