Transform Unstructured Data into Relevant Data with IBM StoredIQ

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Perficient is a leading information technology consulting firm serving clients throughout

North America.

We help clients implement business-driven technology solutions that integrate business

processes, improve worker productivity, increase customer loyalty and create a more agile

enterprise to better respond to new business opportunities.

About Perficient

• Founded in 1997

• Public, NASDAQ: PRFT

• 2013 revenue ~$373 million

• Major market locations throughout North America• Atlanta, Boston, Charlotte, Chicago, Cincinnati, Cleveland,

Columbus, Dallas, Denver, Detroit, Fairfax, Houston, Indianapolis, Los Angeles, Minneapolis, New Orleans, New York City, Northern California, Philadelphia, Southern California, St. Louis, Toronto and Washington, D.C.

• Global delivery centers in China, Europe and India

• >2,100 colleagues

• Dedicated solution practices

• ~90% repeat business rate

• Alliance partnerships with major technology vendors

• Multiple vendor/industry technology and growth awards

Perficient Profile

BUSINESS SOLUTIONSBusiness IntelligenceBusiness Process ManagementCustomer Experience and CRMEnterprise Performance ManagementEnterprise Resource PlanningExperience Design (XD)Management Consulting

TECHNOLOGY SOLUTIONSBusiness Integration/SOACloud ServicesCommerceContent ManagementCustom Application DevelopmentEducationInformation ManagementMobile PlatformsPlatform IntegrationPortal & Social

Our Solutions Expertise

Introduction

Christine LivingstonSenior Project Manager, PerficientChristine Livingston leads Perficient's advanced case management practice and works in collaboration with IBM to develop industry-leading solutions that incorporate IBM's case management, information lifecycle governance, enterprise content management, and business process management technologies.

Sylvan "Sibito" MorleyWorldwide Director of Information Lifecycle Governance, IBMSibito Morley is an experienced IT executive, business leader and legal professional, assisting clients in developing information strategies, then organizing and implementing those strategies through programs of business transformation.

Common Information Stakeholders Across All Industries

Often part of Legal or Compliance

Values:• Reduced legal risk• Preserving information

(by custodian, subject)• Avoiding spoliation• Privacy obligations

Values:• Generating revenue• Finding information

(by various topics)• Analytics• Collaboration• Mobility

Values:• Compliance• Retaining information

(by Record type)• Record Repository• Audit obligations

Stakeholders Value Information Assets Differently

LEGAL RISK & DUTIES BUSINESS VALUE REGULATORY DUTIES

IT SERVICESValues:• Efficient operations• Managing information

(per service levels)• Enhancing value

(for all stakeholders)• Controlling data costs

Stakeholder Disconnects Undermine Value

BUSINESS VALUE

LEGAL RISK & DUTIES

REGULATORY DUTIES

• Can’t find data• Overpay for IT &

Legal

• eDiscovery is flooded

• Risk isn’t reduced

• Focused on regulatory data• Duplicates data for

compliance

IT SERVICES

• Guesses what stakeholders want• Can’t dispose of data• Storage pool & spend are exploding• Frustrated in managing records

PRIVACY DUTIES

• Lack of visibility to data

• Duties hard to satisfy• Risk isn’t reduced

Time Accentuates the Gap Between Value, Cost and Risk

Cost

Risk

ValueCost-to-Value Gap

Risk-to-Value Gap

CGOC 2012 Summit Survey

Stakeholders Often Operate in Silos

Difference in stakeholder demands often creates silos• Stakeholder disconnect is a function of how we operate• Managing data in isolation can be very misleading

End Users

Executive Board

Records

IT

Legal

Line of BusinessExecutives

“The whole is greater than the sum of its parts.” – Aristotle

Eat the elephant a bite at a time, but know you are eating an elephant!

Information Economics: The Value of Overcoming Silos

How Can We Overcome Stakeholder Silos?

LEGAL RISK & DUTIES BUSINESS VALUE REGULATORY DUTIES

IT SERVICES

Because value & duties are not tied to systems

and Information, IT ends up keeping everything!

Lessons from the Corporate Move

Movers are focused on moving:

• Work on tight timelines• Safely pack your belongings• Will “tag and box” everything

(still pulling tags off!)• Held accountable only for loss

and breakage of inventory• Just about everything but

flammables, pets and kids

Finding is not part of the service:

• You may have to unpackeverything to find one thing

• Labels are wrong or misleading• Sometimes inventory is wrong• If you don’t dump the garbage,

they will pack that too!• If you aren’t careful, its very

easy to “lose” important items(I’m sure its there somewhere!)

Labels Are Often Not Enough to Find What You Need

Don’t leave it up to the movers:

• Inventory what you care about• Treat valuables as valuables• Just because you can move it …• If you don’t know what its for…• Garage sales give perspective!• Paying “by the pound” for shipping

What Corporate Movers Teach UsAbout Information Economics

• Data volume doubles every 18-24 months1

(Can’t find what business needs)

• eDiscovery costs $18,000 per gigabyte3

(Up to half of litigation budget)

• $4M to store 1PB2

(Data storage overwhelming IT budget)

• More regs than ever before

• Many jurisdictional differences

(Can’t reliably identify records)

Stakeholder Disconnects Are Amplified “By the Pound”

LEGAL RISK & DUTIES BUSINESS VALUE REGULATORY DUTIES

IT SERVICES

1 Source: Big data: The next frontier for innovation, competition, and productivity McKinsey & Company, 2011 Study2 CGOC 2012 Summit Survey3 Gartner e-discovery Report

Risk has not been reduced by keeping all data – it has increased materially. The exposure to cost to produce vintage data is over-taking the risks of sanctions and settlements.

0.05% of vintage data is $13B in eDiscovery cost exposure – a material financial risk

Poor Information Economics:The Tipping Point

No effective means for disposing of unnecessary data today – retention schedule tuned for paper, legal holds tuned for email. Neither is the source of high data growth or IT cost, so 33PB used today at $4m/PB will bloat to 310PB in just 5 years.

Poor Information Economics:The Tipping Point

Hold & Collect Evidence

DISPOSE OF UNNECESSARY DATA

Archive for Value & Dispose

Enterprise Information

Has Business

Utility

25%69%

Subject to Legal Hold

1%Regulatory

Record Keeping

5%

%s based on CGOC Summit 2012 Survey

Everything Else

Cost & RiskReductionEnables Disposal

Cost ReductionNormalizes growth curve

Retain Records & Dispose

Information Economics’ Very Simple Savings Proposition

• Identify and understand business data

• Practice good data hygiene

• Ensure data quality (location, tags, proper integrity, security, etc.)

• Confirm data is acceptable and retainable

• Enact data and records policy on appropriate data

• Take action only on relevant data

Take the First Steps to Right Size Your Data

Unstructured Data Identification and Management

Take Action on Data by Age and by Data Source

13% 12%

58%

14%

2%0%

10%

20%

30%

40%

50%

60%

70%

1-6months

6-12months

1-3years

3-5years

Over 5years

1-6 months

6-12 months

1-3 years

3-5 years

Over 5 years

SharePoint39%

2%

10%

25% 24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1-6months

6-12months

1-3years

3-5years

Over 5years

1-6 months

6-12 months

1-3 years

3-5 years

Over 5 years

Quickly Identify and Protect Regulated Data

Large Energy Company: Identified 21 types of PII, PCI and HCI in its native location and remediated 17% of all data

Are there Social Security Numbers on my file shares?

Is customer information being stored inappropriately?

Is confidential company data at risk?

PII

Social Security

Drivers License

National Insurance

Employee Information

Account Identifiers

Personally Identifiable Information

PCI

Identify credit card numbers:

Across 75+ data sources

In the text of:EmailDocumentsAttachments

Payment Card Industry Information

HCI

Digital communications around customers or transactions

Human resources Information

Strategy and research documents

Highly Confidential Information

Defensible Disposal

The IBM solution manages data in a proactive fashion – allowing companies to retain information according to corporate governance and regulatory mandates,

while disposing of unnecessary data with confidence.

PROBLEM: Risk and cost associated with stale and non-business data in the organization.

SOLUTION: IBM identified non-business related data and enabled the customer to create custom classifications for automating file plans and implementing records retention schedules.

IMPACT: Reduce storage costs through routine data destruction, reduce risk associated with non-business data, and ensure overall litigation preparedness.

“DuPont conducted an analysis that found the 50% of documents reviewed were kept beyond the retention period … costing an extra $12m in review.” - Law Technology News

Regulatory Compliance

IBM helps companies successfully manage information for industry – specific compliance mandates – particularly in light of mergers & acquisitions.

PROBLEM: Comply with FDIC paragraph 6.3 – preservation of records as part of the merger of assets during a financial institution acquisition – across 3,000 desktops and 25 terabytes of data.

SOLUTION: IBM enabled acquiring banks to perform a thorough, automated inventory control of the assumed banks ESI across all data sources including desktops and laptops – to properly discover, classify, manage and store all information according to business value and risk.

IMPACT: Ease compliance with FDIC paragraph 6.3, and rapidly index data across thousands of desktops/laptops.

“UBS Warburg and Merck incurred corporate spoliation sanctions and were fined $29.2m and $253m respectively for non-compliance.” - Electronic Discovery

Law by K&L Gates

Reducing Risk

IBM has helped companies – often under investigation or audit pressure –successfully secure privacy-related data assets and avoid industry fines.

PROBLEM: Under tight timeline to execute an internal privacy audit in response to external PII/PCI governance mandates (i.e. MA 201 CMR 17.00, NRS 603 A).

SOLUTION: IBM helped the customer create custom data classifications, identify and analyze data and move sensitive data to a secure repository with restricted access control.

IMPACT: Comply with regulatory measures quickly, avoid fines and eliminate risk.

“Heartland Payment Systems, one of the largest credit card processors in the US incurred a $12.6m fine for privacy breeches … impacting 655 financial institutions.” - Berkeley Technology Law

Journal

Managing SharePoint

IBM is leading the charge to connect, understand and manage the intricacies of all enterprise data sources, including support for the largest, most complex

implementations of SharePoint.

PROBLEM: Managing information stored across 40,000 distributed SharePoint sites with multiple versions and collaborative access to documents, wiki’s, blogs and other enterprise content.

SOLUTION: IBM provided a dynamic, daily preservation system for relevant and related content across the enterprise.

IMPACT: Eliminated manual user intervention and lock-down of users daily access to SharePoint while providing full eDiscovery and information management support to IT.

“SharePoint is an embraced as an enterprise-wide standard for more than 67% of the Global 1000 organizations …. Integrating traditional and new social media sources. - Global 360

Quantity

Time

INFO VALUE

Disposal & Decom Inflection Point: Eliminate Cost When No Value

Archiving & Tiering Inflection Point: Align Cost as Value Declines

Analytics & Collaboration Inflection Point: Realize Value as Context Erodes

Data Disposal Will Help Align Value with Cost & Risk Over Time

Reduce artificial demand driven by unnecessary data

Information Lifecycle

Governance

Technology Expertise

Dedicated ILG and ECM Experts

Enterprise Content Management

Capture

Store

Search

Collaborate

Govern

Archive

Industry Expertise

Industry Knowledge

Technology Expertise

Successful StoredIQ

Implementation

• Agribusiness• Automotive• Consumer Products• Energy• Financial Services• Healthcare

• Insurance• Manufacturing• Life Sciences• Public Sector• Retail• Telecommunications

Questions?

Thank You!

For more information contact:Christine Livingston

christine.livingston@perficient.com

Sibito Morleysmorley@us.ibm.com

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