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Transcript of © 2009 IBM Corporation Smarter Decisions for Optimized Performance IBM Global Executive Forum Panel...
© 2009 IBM Corporation
Smarter Decisions for Optimized Performance
IBM Global Executive Forum Panel DiscussionBusiness Analytics and Optimization
Fred Balboni, Global Leader Business Analytics and Optimization
November 12, 2009
© 2009 IBM Corporation2
TransactionalAutomation
Business Process Management
Resource Planning
• Task / Process Automation
• Recording & Reporting
Business Analytics
& Optimization
• Business Efficiency• Aggregation and Data
Warehousing
• Cross-functional Integration
• Performance Measurement
• Enterprise Integration• Detection, Direction &
Prediction
$566B 3% CGR*$105B 8%
CGR*
Source: IBM Analysis on addressable market opportunity based on GMV 1H09 data; includes addressable Hardware, Software and Services opportunity. CGRs 2009-2012
Business Analytics & Optimization is the next big investment area for companies – similar to ERP or CRM in the past
© 2009 IBM Corporation3
Today, 80% of new data growth is unstructured content, generated largely by email, with increasing contribution by documents, images, and video and audio
By 2010, the codified information base of the world is expected to double every 11 hours
Executives are being called upon to make more and faster decisions. Today, 70% of executives believe that poor decision making has degraded their companies’ performance
Volume of Digital Data
Variety of Information
Velocity of Decision Making
The management dilemma
© 2009 IBM Corporation
Sense and respond Predict and act
Instinct and intuition Real-time, fact-driven
Efficient Optimized
Skilled analytics experts Everyone
Back office Decision Support
Point of impact Action Support
Traditional Approach New Approach
Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. www.ibm.com/gbs/intelligent-enterprise
1 in 3business leaders frequently make critical decisions without the information they need
1 in 2don’t have access to the information across their organization needed to do their jobs
4 in 5business leaders see information as a source of competitive advantage
Clients see the need to adopt new ways of working to improve speed to insight and speed to impact
© 2009 IBM Corporation5
Intelligent Enterprises integrate information into business decisions and insight into operations
Source: Breakaway with Business Analytics and Optimization: Operationalizing Analytics available in late 2009 at www.ibm.com/gbs/intelligent-enterprise
Business operations
Information and analytics
How the business applies information to
achieve its goals• Policies • Business
Processes• Organization
How the business manages information and learns from it
Ad hoc
Foundational
Competitive
Spreadsheets and extracts
Data warehouses, governance and production reporting
Process automation and workflow
Master data management, dashboards and scorecards
Command and control
Task integration (e.g., ERP)
Business process integration (e.g., CRM) and collaboration
Breakaway
Predictions, contextual business rules and patterns
Prescriptive, real-time, pattern-based strategies with situational context
Business analytics and optimization maturity
Differentiating
© 2009 IBM Corporation6
Top performers encourage questions while management systems also empower employees to anticipate and act
Culture
Source: Breakaway with Business Analytics and Optimization: Operationalizing Analytics available in late 2009 at www.ibm.com/gbs/intelligent-enterprise
Leading performance drivers
Questioning
Challenge the status quo to improve the business and create new
opportunities
Empowered
Enable and empower employees to analyse, decide
and act
Anticipating
Predict and prepare for the future by evaluating trade-offs
proactively
21.9X5.6X
15X
Highest level of Intelligent Enterprise expertise
Key: Top performers (i.e., 1st quintile relative to industry peers).
Lower performers (i.e., 4th and 5th quintile relative to industry peers).
Relative difference of top performers to lower performers
© 2009 IBM Corporation7
Business Objectives for 2010-2011
Revenue protection and growth
Competitive differentiation such as innovation and deeper insight
Cost takeout and efficiency
Improved risk management and regulatory compliance
Operating enablement such as continuous improvement 10%
12%
33%
41%
71%
Top-line focused
Internally focused
IBM’s 2009 survey of 398 executives worldwide found top-line focus is back and it’s a global phenomena
Source: Breakaway with Business Analytics and Optimization: Operationalizing Analytics available in late 2009 at www.ibm.com/gbs/intelligent-enterprise
© 2009 IBM Corporation8
CurrentNext 24 MonthsProject Scope
Top Ten Priorities
• Pricing and offer strategies• Branding and reputation management• Product/services market selection• Lead generation and pipeline management• Promotion and offer management• Logistics and distribution management
Increase Focus
• Customer segmentation and profitability• Demand forecasting and management• Enterprise goal setting and alignment• Budgeting and resource allocation
Maintain Focus
• Reporting and performance measurement• Cost/expense management• Career path and succession management• Fraud and financial risk management• Leadership development• Channel performance
Re-assess Focus
Tactic
We predict a shift in projects to better reflect near term priorities
Source: Breakaway with Business Analytics and Optimization: Operationalizing Analytics available in late 2009 at www.ibm.com/gbs/intelligent-enterprise