Smarter Decisions for Optimized Performance Info Komputer Forum 2011 Hotel Mulia - Mar 24

Smarter Decisions for Optimized Performance

Info Komputer Forum 2011Hotel Mulia - Mar 24

IBM Smart Analytics SystemIBM Smart Analytics System

Overview

New complexity creates an imperative

for change

Enterprises must fundamentally change

the way they work

The comprehensive solutions from IBM

Let’s get started with your BAO program and

initiatives

The growing velocity of the volume, variety and

granularity of information is driving unprecedented

complexity.

Intelligent enterprises leverage information to

reach better, faster decisions, optimal actions,

and more predictable outcomes.

IBM is creating a new service line - Business

Analytics and Optimization – and IBM

Smart Analytics Systems to bring together world class capabilities for our clients

Let’s work together to determine priorities, assess your situation, identify new opportunities, and begin

delivering value.


Today, the processing power of the web is about equivalent to one human brain. By 2040, it will exceed the total processing

power of all of humanity

Every day, 15 petabytes of new information are being generated. This is eight times more than

the information in all U.S. libraries

INFORMATIONBy 2010, the amount of digital information will grow to 988 exabytes (equivalent to a stack of books from the sun to Pluto and back)

80% of new data growth is unstructured content

We are approaching a “do or die” moment:

enterprises that act will survive to prosper, and those that don’t will be

washed away

* Source: TED 2007: Predicting the Next 5000 Days of the Web. IBM analysis

Tomorrow’s issues and opportunities will be bigger and harder to solve in ways that defy our imaginations today

Timelines for action will be compressed

beyond current ability to respond

The growing velocity of the volume, variety, and granularity of information is driving new, unprecedented complexity

1 trillion devicesconnected to the Internet by 2011.

6 terabytes of informationis exchanged over the internet every second.


BusinessOptimization

Core & OtherCore & OtherOperational SystemsOperational Systems

Leveraging Informationfor Smarter Business Outcomes

4

Customer & ProductCustomer & ProductProfitabilityProfitability

Multi-channelMulti-channelMarketingMarketing

Workforce Workforce OptimizationOptimization

Dynamic Dynamic Supply ChainSupply Chain

Financial Financial Risk InsightRisk Insight

Gartner Reveals Five Business Intelligence Predictions for 2009 and Beyond

R O A D B L O C KR O A D B L O C K• ““Through 2012, more than 35% of the top 5,000 global Through 2012, more than 35% of the top 5,000 global

companies will regularly fail to make insightful companies will regularly fail to make insightful decisions about significant changes in their business decisions about significant changes in their business and markets”and markets”

• ““Although IT organizations excel at building BI Although IT organizations excel at building BI infrastructure, business users have lost confidence in infrastructure, business users have lost confidence in the ability of them to deliver the information they need the ability of them to deliver the information they need to make decisions.”to make decisions.”

Information-Led Transformations Optimize Business

A Shift is Underway


AIIM & Accenture Surveys, 2007

47% of users don’t have confidence in their information

42% of managers use wrong information

at least once a week

59% of managers miss

informationthey should have used

Unlocking the Business Value of Information

Velocity of Decision Making70% of executives believe that poor decision making has had a degrading impact on their companies’ performance

Only 9% of CFOs believe they excel at interpreting data for senior management


1 in 3business leaders frequently make critical decisions without the information they need

53%don’t have access to the information across their organization needed to do their jobs

Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf

Factors supporting major decisions

79 %

52 %

62 %

To a little extent

To a great

extent

AnalyticsPersonal Experience

Collective Experience

Organizations are operating with blind spots


Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf

8XIndustry out-performers are 8X more likely to pursue BAO at an enterprise level than industry under-performers

50% Roughly half of organizations are pursuing BAO at a functional level (e.g., Finance, Sales, Marketing)

2%

17%

Not interested in pursuing BAO at any level

Under-performers Over-performers

Industry out-performers recognize and pursue the value much more than under-performers


8 8

FastFlexible

Affordable

8

“Our prices are lower than others. Is this sustainable

given our costs, or a future threat?”

“…What is our risk this

morning?”

“…Who are our most profitable customers? Are

we retaining them?”

“…Do we have product issues or fraudulent claims

from service?”

“…How & when should we adjust plans to reduce

churn & expand share?”

“…Which treatments are ineffective and should be eliminated to lower costs?

Businesses Need Answers And They Need Them Now!!


What if we could actually and accurately forecast the weather?

What if you could trace food straight through from the farm to your fork?

What if insurance claim data could be make people healthier and

reduce their costs?

What if a medicine’s speed to market saved a life? Or a million lives?

Early adopters ride the wave … What if?


A smarter planet demands smarter analytics

Discover insights by capturing and synthesizing information from a variety of sources

Predict outcomes by consolidating systems to establish an integrated view of the business

Act faster with real-time business insight to better understand customer preferences


Overview


for change


the way they work


initiatives



complexity.





delivering value.






Organizations will need to adopt new ways of working to improve speed to insight and speed to impact

Traditional Approach New Approach

Instinct and intuition Fact-driven

Corrective Directive

Efficient Optimized

Years, months, weeks Hours, minutes, seconds

Human insight Applied semantics

Decision support Action support


The value is immediate and strategic for the smarter organization

Intelligent profitable

growth

Cost take-out and

efficiency

Proactive risk

management

Improve opportunities for growing customers, improving relationships, identifying new markets, and developing new products and services

Better predict and identify risk events and build resiliency and agility of the organization to respond and act.

Optimize the allocation and deployment of resources and capital to create more efficiency and manage costs smartly

Different organizations may identify different priorities for business analytics


The intelligent enterprise is…

Anticipating

Precise

Aware

Questioning

Empowering

Gathers, senses, & uses structured and unstructured information from every node, person, and sensor within the environment

Predicts and prepares for the future and doesn’t only react or correct actions, but also steers

and evaluates trade-offs

LinkedConnects internal and external functions front to back across geographies in a way that aligns to desired business outcomes

Enables and extends employees' memory,

insight and reach, as well as the authority to decide

and act

Reserves the right to get smarter by challenging its

status quo while creating new opportunities

Uses only the most relevant information to support timely decisions/actions closer to the point of impact and consequence


Aware

Gathers, senses, & uses structured and unstructured information from every node, person, & sensor within the environment

Today’s enterpriseWhat if the smarter enterprise

could

Collects data from its own transactional systems and internally generated data

Collect and analyze data from anywhere, including external sources, new instrument data, and unstructured and societal data

Processes some large databases in batches to create snapshots of the past

Process incredible quantities of data at incredible new speeds as needed

Interprets information differently by different people and different departments – with limited levels of detail

have “one version of the truth” across the enterprise – with appropriate granularity

Keeps large just-in-case stores of information that are un-interpretable, un-understandable, and ultimately un-usable

Gain insights from previously un-quantifiable and un-usable data

What if an investor could mine every broker’s e-communication, each consumers’ public Facebook post, and multiple companies’ annual reports at the same instant?

What if your city’s ability to read satellite images, to capture historic traffic data, and to sense moving vehicles meant it could predict and prevent traffic jams in real time?


Anticipating

Predicts and prepares for the future and doesn’t only react or correct actions, but also steers and evaluates trade-offs

What if you could orchestrate and dynamically reroute a global logistics and international trade operation based on your ability to model and predict how global weather patterns affect shipping and air routes?

What if human resource managers had the insight and capability to hire and train entire workforces in enough time to meet sudden waves of demand, but not a second earlier?


could

Uses personal experience and informed guess-work to make decisions

Build simulations and models to understand future implications for alternatives based on facts, not just instinct

Uses historical data for ‘post-mortem’ reporting and tracking

See opportunities and threats as they happening and beforehand

Recognizes events based upon the noise they make and responds on an ad-hoc basis

Track events in real-time applying sophisticated rules enabling the automation and speed of response

Manages performance and risk separately with all future variance and chance managed reactively

Be informed for opportunity and risk, know what to do tactically about events well before action is needed


Precise

Uses only the most relevant information to support timely decisions/actions closer to the point of impact and consequence

What if repairmen servicing thousands of different types of intelligent grids had the instrumentation to sense breakdowns and inefficiencies? They would be automatically alerted and deployed based on their skill, location and availability and fed all the metrics, history and solutions they need. Schematics are beamed to screens on their goggles or wireless devices. Then their actions and data are added to the collective repair history of the entire grid.

Today’s enterprise What if the smarter enterprise could

Uses content and structured information transactionally, i.e., used for its primary purpose and then discarded or archived

Manage and analyze vast stores of content, including prose, email, voice, SMS, images, and video

Has users who must be seek out information based on the immediate need

Prepare data and automate analysis to ensure the quality and timeliness of information

Does not give the information employees need when they need it

Deliver information in ways that are useful to the context of the situation being handled

Delivers volumes of data separately and rarely in context of the situation or parceled together into actionable packages

Deliver just the right amount of quantitative data, definitions, knowledge bases, unstructured data, and expert networks to meet the decisions-maker’s need at the point of need


Questioning

Reserves the right to get smarter by challenging its status quo while creating new opportunities

What if an auto manufacturer could monitor driving behavior via dashboard-embedded computers – and analyze the patterns it discerned to understand what new features would be most appreciated?

What if a procurement specialist could initiate comparative audits of suppliers’ environmental practices when sensing that their proposals are “too good to be true”... and then based on audit results provide new guidelines for responsible pricing levels in specific geographic regions?


could

Focuses on getting today’s job done

Get the job done today with enough extra employee bandwidth to think about and improve tomorrow

Views innovation as a discrete function of R&D or product managers

Put all knowledge workers on a path to innovate and improve

Views questioning and exploration are ‘hobby’ activities, encouraged only when there is time

Include questioning and exploration as part of people’s jobs and reward them for doing it

Makes its decisions and moves on with little interest in whether expectations are met

Evaluate outcomes relative to expectations, tracking and understanding exceptions both good and bad


Empowering

Enables and extends employees' memory, insight and reach, as well as the authority to decide and act

What if a service agent knew how to, and was able to, go above and beyond the norm to delight a top- customer who had had two bad experiences in the last week?

What if large, multidisciplinary teams of sales people could close the next big multimillion dollar deal in hours instead of months because they can reconfigure complicated schedules of prices and resources over years of contract length?


could

Piles more work on employees, adding headcount to meet demands

Automate and orchestrate routine tasks in order to focus people on new, unsolved issues and opportunities

Takes decisions up and down the flagpole and to be vetted and approved by layers upon layers of management

Delegate decision making to the best agents for the situation whether they are employees, workflows, bots or customers, requiring less managerial and administrative oversight as employees solve issues immediately and locally

Aligns incentives to how much someone works or what they produce

Align incentives to smart results while also considering how the results were achieved

Hunts, searches, and compiles information but guestimate answers, when it’s too hard to get the facts

Give people access to user-friendly fact-based tools available over the channels and devices of their own choosing


Linked

Internal and external functions are connected front to back in a way that aligns to desired business outcomes

What if an oil rig could constantly “speak” to its production supervisors in the control room ... which is connected to the supply chain planning systems, which are connected to the oil markets, which are connected to the pump? Each change in the actual petroleum supply could inform the entire value chain.

What if retailers used loyalty card information to identify shoppers while still in the store, and inform them of new meat and poultry products that meet their personal requirements for humane husbandry practices?

Today’s enterprise What if the smarter enterprise could

Works with each other locally, but work is constantly ‘thrown over the wall’ to other departments down the line

Mobilize a federation of experts to work together both within the enterprise as well as collaborate with external entities for mutual advantage

Has expertise and accesses wisdom based upon who you know and who’s close by

Generate a new type of collective wisdom from larger and more sophisticated crowds of experts

Uses information for its sole job at hand without attention to impact on related activities

Keep information more relevant and use it beyond its spot application, having implications both up and down the value chain (e.g., the flow from suppliers to customers)

Finds it too difficult to work across boundaries

Connect people, systems, and external entities so they could ‘speak’ to each other seamlessly


Traditional transactional and human-authored enterprise data

is rapidly growing

Unstructured data is growing at geometric and exponential

progressions, and most of it is not used in analytics

The unblinking eyes of instruments and sensors are producing tireless streams of

new data

The enterprise has not kept up and cannot keep up

To survive, business leaders must act

Existing tools cannot access or analyze the growing data

effectively and aren’t positioned to handle the data deluge

Decision making is based on instinct, subjective information,

and often the wrong facts

Decisions need to be made based on a new set of facts based on the entirety and

richness of the information base

Mental bandwidth needs to be reallocated towards harder and

more pressing decisions

Huge amounts of data are ignored, mismanaged, or under-

utilized

People at all levels need better information and executives need to make decisions more quickly

We are approaching a “do or die” moment: enterprises that act on the opportunity will survive to prosper, and those that don’t will be lost

The information environment is at a tipping point

Why change and why now?


In a smarter planet, opportunity and progress is clear

Smarter traffic: In Singapore, the ability to predict where traffic jams will occur at any given hour minimizes congestion and reduces carbon levels

The Operational Riskdata eXchange Association: A consortium serving 18 countries and 50 leading financial institutions improves statistical modeling and more accurately quantifies risk exposure

QuickTime™ and a decompressor

are needed to see this picture.

European Retailer: Leverages a Dynamic Inventory Optimization Solution to meet demand for any of 40,000 products in more than 80 outlets with low replenishment and storage costs - boosting customer service ratings to 99%.

Hospital Research Center: Created a continually updated reservoir of clinical and genomic information to accelerate research while cutting administrative costs by 75%.


Overview


for change


the way they work


initiatives



complexity.








delivering value.



Business Analytics and Optimization is the next bow wave of change where operational execution meets new opportunity

Task/Process Automation

Business Efficiency

Cross-Functional Integration

Enterprise Integration

Aggregation and data

warehouse

Recording and

Reporting

Performance measurement

Detection, direction & prediction

Business process management and

Business Intelligence

Resource planning (e.g., ERP, CRM, SCM)

Transactional automation adoption (POS,

accounting)

Business Optimization

Analytics and Intelligence

Business Analytics

and Optimization

Change


IBM Business Analytics and Optimization capabilities will provide speed to insight and speed to Impact

Foundational Business Intelligence and Advanced Analytics

World class technology, unparalleled techniques and intellect applied to your business issues

Industry and Business Solutions

Industry models, accelerators and assets

that instrument key processes to provide

revenue growth, proactively manage risk, and create efficiency and

cost take-out

Predictive Analytics and Optimization

IBM Research, algorithms and advanced mathematics assets, methods and capability to create predictive analytics and business optimization.


Business Analytics & Optimization: Competencies and Offerings

BAO Strategy

Business Intelligence & Performance Management

Advanced Analytics and Optimization

Enterprise Information Management

Enterprise Content Management

• BAO Strategy and Roadmap

• BAO Process Improvement

• BAO Governance

• Dashboards & Scorecards

• Planning, Budgeting, & Forecasting

• Business Analytics & Reporting

• Advanced Analytics

• Analytic Applications

• Predictive Modeling

• Business Optimization

• Visualization• Data Integration

• Data Quality

• Data Architecture

• Master Data Management

• Document & Records Management

• Web 2.0 / Web Content Management

• Digital Asset & Rights Management

• Archiving & Record Management


The Business-value Oriented View is built on value propositions that resonate with your CFO.

Information Technology

Application Mgmt Hosting DC Outsourcing BPO

Intelligent EnterpriseCost-takeout and Efficiency Proactive Risk Management Intelligent Profitable Growth

CFO Value Proposition

Solutions

Software Platforms

Hardware

Operate and Run

Business Analytics &Optimization Platform

Data Warehouse and Other Data Management

Enterprise Content Management

Information Integration and Master Data Management

Performance Management & Analysis Advanced Analytics

Business Process Management / Rules Collaboration, Web 2.0

BAO Solution Set

DistributionFinancialServices

Industrial Comm. Svc.Providers

Public

Cross IndustryFinancial Performance Management…

Human Capital Management…Supply Chain Management…

Customer Relationship Management…


Information Intensive Applications…IBM Initial Solution Set

Extending our existing portfolio of industry-based solutions and building additional big plays are our highest priorities

Public DistributionFinancial Services Industrial CommunicationsCross Industry

• Customer Care & Insight

• Customer Data Management Solution

• Data Integration Solution

• Fraud & Abuse Management Solution

• Credit Risk Performance

• Risk Insight• Identity Risk &

Investigation• Insurance Executive

Dashboard

• Healthcare Analytics • Member 360• Crime Information

Warehouse• CFO Dashboard • Tax Audit &

Compliance• Customs Border Risk

Management• Fraud & Abuse

Management• START

(ARRA/Stimulus)• Insight for Schools /

Education Perf. Mgmt.

• Retail PerformanceAnalytics

• Life Sciences State Spend

• CP Demand Driven Replenishment

• CP Trade Promotion Optimization

• CRM Analytics for Airlines

• Loyalty Identification Focused Targeting

• Virtual Command Center• Supply Chain

Optimization Workbench

• Common QualityFramework /Warranty Analytics

• Petroleum BPM• Production Design

and Operations Scheduling

• Dynamic InventoryOptimization (DIOS)

• Sense & Respond• Integrated Operations

Solution

• Loyalty IdentificationFocused Targeting(LIFT/CELM)

• Telco CustomerIntelligence

• M&E AdvertisingAnalytics

• Consumer Analytics• Enterprise Metadata

Management• Enterprise Media

Library

Financial Performance Management

Customer Relationship Management

Human Capital Management

Supply Chain Management

BAO Solution Set

DistributionFinancialServices

Industrial Comm. Svc.Providers

Public

Cross IndustryFinancial Performance Management…

Human Capital Management…Supply Chain Management…

Customer Relationship Management…


Guide to how Business Analytics & Optimization helps your organization

BAO Strategy

Business Intelligence & Performance Management

Advanced Analytics and Optimization

Enterprise Information

Management

Enterprise Content

Management

• Identify and prioritize opportunities for improvement

• Change business processes and operations to exploit analytics

• Implement management systems to maintain control and achieve goals

• Report outcomes of business processes and programs

• Automate management dashboards and scorecards

• Create planning, Budgeting, & Forecasting tools

• Apply advanced statistical and regression analysis upon historical data for predictive decision-making

• Integrate optimization algorithms and technology into operations

• Ensure robust and trusted data is available when needed and is easy to consume

• Provide a consolidated and efficient information platform to support optimization initiatives

• Manage document & records, including archives

• Manage structured and unstructured content

• Manage digital assets & rights

• Provide efficiency and transparency to complicated workflows


Transforming information into business insight

EVERYTHING you need for Business Analyticsnot just a data warehouse appliance…

Pre-Integrated IBM Smart Analytics System for speedy enabler

3x Faster – Workload optimized analytics run business intelligence faster

50% less floor space – data compression reduces storage cost

World record performance

Analytics ready in days not months(from 6 months to 12 days)

Hardware• Power, xSeries, zSeries• IBM Disk Storage System & SDD

Powerful Data Warehouse• InfoSphere Warehouse• InfoSphere Warehouse Advanced Workload

Management• Tivoli System Automation

Analytics Software• Cognos 8 Business Intelligence• InfoSphere Warehouse Cubing Services• InfoSphere Warehouse Text Analytics & Data

Mining

Services• Build, Deploy, Health Check, & Accelerated Value

Program


IBM Smart Analytics SystemWhy it is better to sell the system over custom solution “piece-parts”

Workload Optimized Analytic System Vs. Custom Deployment

Smart Analytics System Custom

One Call support • Included • Not Available

Coordinated Stack certification (SW, OS, & Firmware)

• Included • Not Available

Services Implementation Premium Support Health Check

• Included• Included• 1st year Included

• 1 off• 1 off• 1 off

Server, Storage, SW IBM Systems, Storage, Cognos, & InfoSphere Software

IBM Systems, Storage, Cognos, & InfoSphere Software

Bottom Line All of the above part of the System

$ Significantly more expensive

Vs.


Overview


for change


the way they work


initiatives



complexity.




IBM is creating a new GBS service line - Business

Analytics and Optimization - to bring

together world class capabilities for our clients.


delivering value.



Getting started

Prioritization and readiness planning

In flight portfolio analysis and planning

IBM offers simple ways to continue the conversation and discover how business analytics and optimization works for your organization.

Opportunity exploration

BAO concentrated workstream

Assess current business analytic environment and determine priorities for future enterprise information vision

Examine existing business analytic programs or capabilities and determine improvements and larger BAO enterprise vision.

Identify possible innovations and opportunities within existing or desired information assets

Get started on immediate BAO projects and solutions for known, identified analytic priorities

“We’re not sure what our top priorities are or what we should be doing next”

“We have programs in place and need to know how they will work in the big picture”

“We have an untapped data asset that could be turned into something valuable”

“We know the solution we need and we need to get it done right”


THANK YOU

Smarter Decisions for Optimized Performance Info Komputer Forum 2011 Hotel Mulia - Mar 24

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Transcript of Smarter Decisions for Optimized Performance Info Komputer Forum 2011 Hotel Mulia - Mar 24