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.
IBM Smart Analytics SystemIBM Smart Analytics System
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.
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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!!
IBM Smart Analytics SystemIBM Smart Analytics System
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?
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
Overview
New complexity creates an imperative
for change
Enterprises must fundamentally change
the way they work
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.
Let’s work together to determine priorities, assess your situation, identify new opportunities, and begin
delivering value.
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
The comprehensive solutions from IBM
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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?
IBM Smart Analytics SystemIBM Smart Analytics System
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?
Today’s enterpriseWhat if the smarter enterprise
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
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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?
Today’s enterpriseWhat if the smarter enterprise
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
IBM Smart Analytics SystemIBM Smart Analytics System
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?
Today’s enterpriseWhat if the smarter enterprise
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
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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?
IBM Smart Analytics SystemIBM Smart Analytics System
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%.
IBM Smart Analytics SystemIBM Smart Analytics System
Overview
New complexity creates an imperative
for change
Enterprises must fundamentally change
the way they work
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.
The comprehensive solutions from IBM
IBM Smart Analytics SystemIBM Smart Analytics System
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 Smart Analytics SystemIBM Smart Analytics System
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.
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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…
IBM Smart Analytics SystemIBM Smart Analytics System
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…
IBM Smart Analytics SystemIBM Smart Analytics System
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
IBM Smart Analytics SystemIBM Smart Analytics System
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 SystemIBM Smart Analytics System
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.
IBM Smart Analytics SystemIBM Smart Analytics System
Overview
New complexity creates an imperative
for change
Enterprises must fundamentally change
the way they work
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 GBS service line - Business
Analytics and Optimization - 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.
The comprehensive solutions from IBM
IBM Smart Analytics SystemIBM Smart Analytics System
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”
IBM Smart Analytics SystemIBM Smart Analytics System
IBM Smart Analytics SystemIBM Smart Analytics System
THANK YOU
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