Enterprise Analytics for Right-Time,
Highly Competitive Insight
Annette Zawacki
January 2015
Agenda
 Defining Analytics
 New influences driving the need for change
 What holding organizations back
 A new approach to Analytics
 IBM z Analytics: Harness the true potential of analytics
© 2015 IBM Corporation
Analytics & their critical role in the business
 Analytics derive insight from data
 Analytics are only as good as the underlying data &
platform foundation
 Analytics now play a critical role in increasing revenue,
reducing cost and minimizing risk
•
•
•
•
Cross-selling, up-selling
Reducing customer churn
Fraud prevention
Real-time operational reporting
© 2015 IBM Corporation
Gartner 2014 CIO Agenda:
Analytics Ranked Top Technology Priority for 2014
4
Source: Gartner “Taming the Digital Dragon: The 2014 CIO Agenda”, Dave Aron | Poh-Ling Lee – January 2014
© 2015 IBM Corporation
Analytics is the newest resource for competitive advantage
7.6%
5
$13
boost
for every dollar
spent
to customer lifetime
value for firms using
engagement analytics
nucleus estimate
of analytics payback;
1.2 X more than 3 years ago
$226
billion
estimated fraud
loss to healthcare
every year
Source: Aberdeen Group, May 2014; Nucleus Research September 2014 - Report O204
National Health Care Anti-Fraud Association, October 2011
© 2015 IBM Corporation
Analytics empowers every business function
Build trust through risk
aware decision making
Transform financial
& employee
management processes
Fight fraud and
counter threats
Increase operational
efficiency and effectiveness
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Create new
business models
Systems of
Insight
Attract, grow,
retain customers
Prioritize IT investments for
business innovation
© 2015 IBM Corporation
Influences on Analytics Strategies
Big Data
Analytics
65%
of businesses
are not using
big data for
business
advantage
Consumer
Expectations
Mobile
Computing
84%
84%
of consumers
rely on social
networks for
purchase
decisions
of CIOs rate
mobile
solutions as a
critical area to
get closer to
their customers
Cloud
Computing
32%
of organizations
using advanced
analytics enjoy
32% higher
return on
invested capital
© 2015 IBM Corporation
Big Data … all data & all paradigms
Transactional &
Application Data
Machine
Data
Social
Data
Enterprise
Content
 Volume
 Velocity
 Variety
 Variety
 Structured
 Structured
 Unstructured
 Unstructured
 Throughput
 Ingestion
 Veracity
 Volume
“
We have for the first time an economy based on a key resource [Information]
that is not only renewable, but self-generating … Running out of it is not a
problem, but drowning in it is.
--John Naisbitt
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© 2015 IBM Corporation
Increasing Consumer Expectations
The business relationship has changed forever
Then:
Now:
Limited choice
Unlimited choice
WW
Local
Internet
Brick &
Mortar
24/7
9-5
F2F
Social
Customer experience is the competitive advantage for top-line growth
9
© 2015 IBM Corporation
Mobile changes the way we do business
Finance & Banking
Construction & Manufacturing
Manage their investment
portfolios and accounts from
anywhere for complete
bank transactions
Manage complex projects
and operations on site
and streamline survey
and work order processes
Insurance
Retail
File, process and
manage claims and
document damages as
they happen
Engage shoppers in new ways
and intelligently target
personalized and location
sensitive marketing offers
“Worldwide smart connected devices
(SCD) are forecast to grow 15.6%
year over year in 2014, reaching
close to 1.8 billion devices1 ….
PC shipments will decline
1.7% to 74.4M2”
Cross-Industry CIO’s Office
Travel & Transportation
Provide up to date information specific
to their itineraries and location and
enable customer self-service
Empower employees with anytime,
anyplace access to dashboards
and critical information
Mobile data traffic will grow at 61%(CAGR) 2013 to 2018
Where will it be stored ? How will it be managed & processed?
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(1) Worldwide Quarterly SCD Tracker – IDC, Jun 17 2014
(2) Worldwide Quarterly PC Tracker – IDC, Jul 9 2014
© 2015 IBM Corporation
Cloud Computing
standardization, consolidation, do more with less
“
A cloud-based approach can help resolve cost
and complexity associated with…
 Segmented investments in BA tooling & infrastructure
 Siloed metric development
 Limited visibility to the total cost of BA across the
enterprise
 Organizational reluctance to a centralized service
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Using analytics to
better understand
customer satisfaction,
profitability, retention
and churn while
increasing cross-sell
and up-sell are the
most dominant uses
of cloud-based
analytics today.
-- Jim Ericson
http://www.forbes.com/sites/louiscolu
mbus/2013/10/24/cloud-predictiveanalytics-most-used-to-gaincustomer-insight/
© 2015 IBM Corporation
Driving the Need for Change
All
Data
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New
Analytics
More
People
Business
Critical
© 2015 IBM Corporation
What’s holding organizations back?
 Significant complexity
 Analytics latency
 Lack of synchronization
 Data duplication
 Excessive costs
 Many different types of data
 Many device types/multiple personas
 Access to current “real” data
 Rapid growth in mobile transactions
 Integration with existing resources
 24/7 always on applications
 Analytics for the “mobile moment”
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© 2015 IBM Corporation
z13: A new approach to deliver Analytics
•
•
•
•
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Right-time insight at point of impact
Increased business agility
Improved data governance and security
Reduced infrastructure cost and complexity
72%
55%
say greatest value will come
from analyzing transactional data
of enterprise applications need
mainframe to complete transactions
© 2015 IBM Corporation
The Analyst Community Has Taken Notice!

“By eliminating analytic latency and data synchronization
issues, hybrid transaction/analytical processing will enable IT
leaders to simplify their information management
infrastructure”

“This architecture will drive the most innovation in real-time
analytics over the next 10 years via greater situation
awareness and improved business agility”
Gartner Research Note G00259033: Gartner 01-2014 Hybrid Transaction Analytical
Processing Will Foster Opportunities
© 2015 IBM Corporation
Dramatic improvements in query response times for faster
time to insight
DB2 Analytics Accelerator
A workload optimized, appliance add-on to DB2 for z/OS, that enables the
integration of analytic insights into operational processes to drive business critical
analytics and exceptional business value
What does it do?
 Accelerates complex queries, up to 2000x faster
 Lowers the cost of storing, managing and
processing historical data
 Minimizes latency
 Reduces zEnterprise capacity requirements
 Improves security and governance
 Reduces operational costs and risk
 Complements existing investments
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© 2015 IBM Corporation
Always on Business Analytics that are high performing, cost
effective & scalable
Cognos Business
Intelligence
 Understand your
current & potential
state
 Monitor results &
fine-tune your business
 Inform strategy with a
view into the future
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TM1 –
Performance
Management
 Reporting, analysis,
operational & financial
planning
 Product profitability
 Sales Performance
Management
SPSS Predictive
Analytics
 Predict customer
segment & category
affinity
 Identify the next best
offer for the customer
 Profile customers
BigInsights –
Investigative
Analytics
 Gain additional
perspectives by
discovering insights
from - logs, social
media, streams,
machine data, mass
archives …
© 2015 IBM Corporation
Right time Analytics for
heightened competitive
advantage
Interaction
Data In
In-transaction & In-database scoring
on the same platform
End to end
solution
Business
System /
OLTP
ETL
DB2
Application for
Real-Time Score/ w/latest data z/OS
R-T,
min, hr,
wk, mth
DB2 for
z/OS Data
Historical Store
Copy
Decision Out
Reduced
Networking
SPSS
Modeler
Meet & Exceed
SLA
 Proven to meet the most
demanding workloads
 Score 12K transactions per
second in real-time
For Linux on
System z
Scoring
Algorithm
Consolidates Resources
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© 2015 IBM Corporation
Analytics integrated into every transaction
Integrating real-time scoring for DB2 for z/OS into
Mobile Application
1. Create a stream to build a model
2. Execute the model building node to
produce a model apply node
3. Evaluate the model against a separate
partition of the historical data to test
the model
4. Publish the model to the DB2 for z/OS
5. Add the scoring call to application
To rebuild the model as business policies
change, repeat steps 1..4 above
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© 2015 IBM Corporation
Mobile Analytics & z Systems in Action
Suspicious Transaction Management
Mobile Device
Initiate Funds
Transfer Request
Video: Real-time
Fraud Detection
zLinux

Link Analysis

Alert / Case Management

Additional Investigation
Worklight Server
Suspicious Trans
z/OS Transaction Environment
Y
Prepare Data
for Business
Rule
Invoke 3
Predictive
Models
Prepare Data
for Predictive
Models
Determine
Fraud Risk
Score
Invoke
Business
Rule
Risk
of
fraud
high?
N
zOS Business
Rules Server
SQL calls
Queue
Suspicious
Transactions
Return
Status and
Response
Sample CICS
Banking
Transactions
Non-Suspicious Transaction,
do transfer
DB2 z/OS Data
Trx Data
Models
History
Analytics Accelerator regularly
preparing data for predictive models
History
Trx Data
Acct
Data
Cust
Data
complete transaction : 26ms
Results
•
•
•
•
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Showed advanced analytic fraud detection executing at bank transaction speeds
Three predictive models with large numbers of inputs (31, 95, 157) executed in real-time
Low IT consumption – does not impact BAU workloads or MIPS
Suspicious transactions queued for additional investigation and processing
© 2015 IBM Corporation
Banca Carige
Providing superior customer service by launching
innovative mobile services on a secure platform
24/7 mobile banking
The transformation: To stay ahead of growing competition, Banca
meets customer demands for more
flexible services
Carige wanted to develop a customer-centric approach to delivering
services, but first needed a deeper understanding of consumer behaviour.
Deploying new analytics and mobile capabilities on the tried-and-tested
IBM mainframe using the DB2 for z/OS enabled the bank to transform its
services without jeopardizing customer trust.
Secure transactions
help strengthen customer trust
Five 9s availability
supports always-on banking services
Real-time analytics
1000+ users get analytics on
real-time data
Real-time analytics
Time to value from months to
weeks to develop and release new
marketing campaigns
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IBM zEnterprise stack, both hardware and software,
“ The
is central to our banking activities.
-- Daniele Cericola, ICT Governance Manager, Banca Carige Group
DB2 Analytics Accelerator enables us to support the
“ IBM
additional workloads that come with business growth
without activating more cores on the mainframe.
© 2015 IBM Corporation
IBM z Systems
Harness the true potential of analytics
Right Time Decision Making
Optimal Business Results
Future Proof
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© 2015 IBM Corporation
zAnalytics: Are you ready to
seize
this moment?
Compete on speed to insight and action
Evolve your architecture for higher value
Get started today: ibm.biz/zAnalytics
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© 2015 IBM Corporation
For More Information please contact…
Len Santalucia, CTO & Business Development Manager
Vicom Infinity, Inc.
One Penn Plaza – Suite 2010
New York, NY 10119
804-918-3728 office
917-856-4493 mobile
lsantalucia@vicominfinity.com
About Vicom Infinity
Account Presence Since Late 1990’s
IBM Premier Business Partner
Reseller of IBM Hardware, Software, and Maintenance
Vendor Source for the Last 10 Generations of Mainframes/IBM Storage
Professional and IT Architectural Services
Vicom Family of Companies Also Offer Leasing & Financing, Computer
Services, and IT Staffing & IT Project Management
© 2015 IBM Corporation
Thank You
z13 – Insight at the point of impact
z13
141 cores and 40%* more
capacity in a single system
The world’s premier data and transaction
system enabled for the mobile generation
2X* performance improvement
with crypto coprocessors for
more secure transactions
2.8B transactions per day
10 TB* memory plus 2X
increase in cache size
3x faster analytic throughput
320 separate channels
dedicated just to driving I/O
throughput
16 Gbps FICON links for
2x faster than competition
73% less expensive than competition
faster throughput
26
© 2015 IBM Corporation
Apple and IBM Forge Global Partnership to Transform
Enterprise Mobility
+
• Mobile solutions that transform business
• Mobile platform: The IBM MobileFirst Platform for iOS will deliver the
services required for an end-to-end enterprise capability
• Mobile service and support
• Packaged service offerings
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© 2015 IBM Corporation