Smarter Decisions for Optimized Performance
Info Komputer Forum 2011
Hotel Mulia - Mar 24
IBM Smart Analytics System
Overview
New complexity
creates an imperative
for change
Enterprises must
fundamentally change
the way they work
The comprehensive
solutions from IBM
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 get started with
your BAO program and
initiatives
Let’s work together to
determine priorities, assess
your situation, identify new
opportunities, and begin
delivering value.
IBM Smart Analytics System
The growing velocity of the volume, variety, and granularity of
information is driving new, unprecedented complexity
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
6 terabytes of information
is exchanged over the internet every second.
Every day, 15 petabytes of new information are
being generated. This is eight times more than
the information in all U.S. libraries
1 trillion devices
80% of new data growth is
unstructured content
connected to the Internet by 2011.
By 2010, the amount of digital
information will grow to 988 exabytes
(equivalent to a stack of books from the sun to
Pluto and back)
* Source: TED 2007: Predicting the Next
5000 Days of the Web. IBM analysis
INFORMATION
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
We are approaching a
“do or die” moment:
enterprises that act will
survive to prosper, and
those that don’t will be
washed away
IBM Smart Analytics System
A Shift is Underway
Information-Led Transformations Optimize Business
Financial
O
RiskRInsight
A
Workforce
D
B L
Optimization
Dynamic
O Supply
C KChain
• “Through 2012, more thanBusiness
35% of the top 5,000 global companies
& Product
Multi-channel
willCustomer
regularly
fail to make
insightful
decisions
about
significant
Optimization
Profitability
Marketing
changes in their business and markets”
• “Although IT organizations excel at building BI infrastructure,
Leveraging
Information
business users
have lost confidence
in the ability of them to
deliver the
need to make
decisions.”
forinformation
Smarterthey
Business
Outcomes
Gartner Reveals
Five Business Intelligence Predictions for 2009 and Beyond
Core & Other
Operational Systems
IBM Smart Analytics System
Unlocking the Business Value of Information
Velocity of Decision Making
70% 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
59% of managers
miss
information
47% of users
don’t have
confidence
42% of managers
use wrong
information
they should have used
in their information
at least once a week
AIIM & Accenture Surveys, 2007
IBM Smart Analytics System
Organizations are operating with blind spots
Factors supporting major decisions
1 in 3
To a little
extent
business leaders frequently
make critical decisions without
the information they need
79 %
62 %
52 %
53%
don’t have access to the
information across their
organization needed to do
their jobs
To a
great
extent
Personal
Experience
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
Analytics
Collective
Experience
IBM Smart Analytics System
Industry out-performers recognize and pursue the value much
more than under-performers
50%
Not interested in pursuing
BAO at any level
17%
Roughly half of organizations are
pursuing BAO at a functional level (e.g.,
Finance, Sales, Marketing)
8X
Industry out-performers are 8X more
likely to pursue BAO at an enterprise
level than industry under-performers
2%
Under-performers
Over-performers
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
IBM Smart Analytics System
Businesses Need Answers And They Need Them Now!!
“…What is our risk
this morning?”
“…Who are our most profitable
customers? Are we retaining
them?”
“…Which treatments are
ineffective and should be
eliminated to lower costs?
“Our prices are lower than
others. Is this sustainable
given our costs, or a future
threat?”
8
8
“…Do we have product
issues or fraudulent
claims from service?”
Fast
Flexible
Affordable
“…How & when should we
adjust plans to reduce churn &
expand share?”
8
IBM Smart Analytics System
Early adopters ride the wave … What if?
What if insurance claim data could
be make people healthier and
reduce their costs?
What if we could actually and
accurately forecast the weather?
What if a medicine’s speed to market
saved a life? Or a million lives?
What if you could trace food straight
through from the farm to your fork?
IBM 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 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 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
Years, months, weeks
Hours, minutes, seconds
Human insight
Applied semantics
Decision support
Action support
Efficient
Optimized
IBM Smart Analytics System
The value is immediate and strategic for the smarter organization
Improve opportunities for growing
customers, improving relationships,
identifying new markets, and developing
new products and services
Intelligent
profitable
growth
Cost takeout and
efficiency
Better predict and identify risk
events and build resiliency and
agility of the organization to
respond and act.
Proactive
risk
management
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 System
The intelligent enterprise is…
Anticipating
Predicts and prepares for the
future and doesn’t only react or
correct actions, but also steers
and evaluates trade-offs
Aware
Gathers, senses, & uses structured
and unstructured information from
every node, person, and sensor
within the environment
Empowering
Linked
Enables and extends
employees' memory,
insight and reach, as well
as the authority to decide
and act
Questioning
Reserves the right to get
smarter by challenging its
status quo while creating new
opportunities
Connects internal and
external functions front
to back across
geographies in a way
that aligns to desired
business outcomes
Precise
Uses only the most relevant
information to support timely
decisions/actions closer to the point
of impact and consequence
IBM Smart Analytics System
Aware
Gathers, senses, & uses structured and
unstructured information from every
node, person, & sensor within the
environment
Today’s enterprise
Collects data from its own
transactional systems and
internally generated data
What if the smarter enterprise
could
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 uninterpretable, ununderstandable, 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 System
Anticipating
Predicts and prepares for the future and doesn’t
only react or correct actions, but also steers and
evaluates trade-offs
Today’s enterprise
What 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 ‘postmortem’ 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
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?
IBM Smart Analytics System
Precise
Uses only the most relevant information to support
timely decisions/actions closer to the point of impact
and consequence
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
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.
IBM Smart Analytics System
Questioning
Reserves the right to get smarter by challenging its
status quo while creating new opportunities
Today’s enterprise
What 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
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?
IBM Smart Analytics System
Empowering
Enables and extends employees' memory, insight
and reach, as well as the authority to decide and act
Today’s enterprise
What 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 userfriendly fact-based tools
available over the channels and
devices of their own choosing
What if a service agent knew how
to, and was able to, go above and
beyond the norm to delight a topcustomer 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?
IBM Smart Analytics System
Linked
Internal and external functions are connected front
to back in a way that aligns to desired business
outcomes
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
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?
IBM Smart Analytics System
Why change and why now?
The information environment is
at a tipping point
To survive, business leaders
must act
The enterprise has not kept
up and cannot keep up
Traditional transactional and
human-authored enterprise data
is rapidly growing
People at all levels need better
information and executives need
to make decisions more quickly
Decision making is based on
instinct, subjective information,
and often the wrong facts
Unstructured data is growing at
geometric and exponential
progressions, and most of it is
not used in analytics
Decisions need to be made
based on a new set of facts
based on the entirety and
richness of the information base
Existing tools cannot access or
analyze the growing data
effectively and aren’t positioned
to handle the data deluge
The unblinking eyes of
instruments and sensors are
producing tireless streams of
new data
Mental bandwidth needs to be
reallocated towards harder and
more pressing decisions
Huge amounts of data are
ignored, mismanaged, or underutilized
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
IBM Smart Analytics System
In a smarter planet, opportunity and progress is clear
QuickTime™ and a
decompressor
are needed to see this picture.
Smarter traffic: In Singapore, the ability to
predict where traffic jams will occur at any given
hour minimizes congestion and reduces carbon
levels
Hospital Research Center: Created a
continually updated reservoir of clinical and
genomic information to accelerate research while
cutting administrative costs by 75%.
The Operational Riskdata eXchange
Association: A consortium serving 18 countries
and 50 leading financial institutions improves
statistical modeling and more accurately
quantifies risk exposure
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%.
IBM 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 System
Business Analytics and Optimization is the next bow wave of change where
operational execution meets new opportunity
Business
Optimization
Change
Enterprise
Integration
Business
Analytics
and
Optimization
CrossFunctional
Integration
Business process
management and
Business
Intelligence
Business
Efficiency
Task/Process
Automation
Resource planning
(e.g., ERP, CRM, SCM)
Transactional automation
adoption (POS,
accounting)
Analytics and
Intelligence
Detection,
direction &
prediction
Performance
measurement
Aggregation
and data
warehouse
Recording
and
Reporting
IBM Smart Analytics System
IBM Business Analytics and Optimization capabilities will provide
speed to insight and speed to Impact
Predictive Analytics
and Optimization
IBM Research, algorithms
and advanced mathematics
assets, methods and
capability to create
predictive analytics and
business optimization.
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
IBM Smart Analytics System
Business Analytics & Optimization: Competencies and Offerings
Enterprise Content
Management
• Document & Records Management
• Web 2.0 / Web Content Management
• Digital Asset & Rights Management
• Archiving & Record Management
Advanced Analytics
and Optimization
• Advanced Analytics
• Analytic Applications
Enterprise Information
Management
• Data Integration
• Data Quality
• Predictive Modeling
• Business
Optimization
• Visualization
• Data Architecture
• Master Data Management
BAO Strategy
• BAO Strategy
and Roadmap
• BAO Process
Improvement
• BAO Governance
Business Intelligence &
Performance Management
• Dashboards & Scorecards
• Planning, Budgeting, &
Forecasting
• Business Analytics &
Reporting
IBM Smart Analytics System
The Business-value Oriented View is built on value propositions that
resonate with your CFO.
CFO Value
Proposition
Intelligent Enterprise
Proactive Risk Management
Cost-takeout and Efficiency
Intelligent Profitable Growth
BAO Solution Set
Financial
Services
Public
Distribution
Industrial
Comm. Svc.
Providers
Solutions
Financial Performance Management…
Human Capital Management…
Cross Industry
Supply Chain Management…
Customer Relationship Management…
Business Analytics &Optimization Platform
Software
Platforms
Performance Management & Analysis
Advanced Analytics
Business Process Management / Rules
Collaboration, Web 2.0
Information Integration and Master Data Management
Enterprise Content Management
Data Warehouse and Other Data Management
Operate
and Run
Hardware
Application Mgmt
Hosting
DC Outsourcing
Information Technology
BPO
IBM Smart Analytics System
Extending our existing portfolio of industry-based solutions and building
additional big plays are our highest priorities
BAO Solution Set
Financial
Services
Public
Distribution
Financial Performance Management…
Human Capital Management…
Industrial
Cross Industry
Comm. Svc.
Providers
Supply Chain Management…
Customer Relationship Management…
Information Intensive Applications…IBM Initial Solution Set
Cross Industry
Financial Performance
Management
Human Capital
Management
Supply Chain
Management
Customer Relationship
Management
Financial Services
• 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
Public
Distribution
• 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 Performance
Analytics
• 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
Industrial
• Common Quality
Framework /
Warranty Analytics
• Petroleum BPM
• Production Design
and Operations
Scheduling
• Dynamic Inventory
Optimization (DIOS)
• Sense & Respond
• Integrated Operations
Solution
Communications
• Loyalty
Identification
Focused Targeting
(LIFT/CELM)
• Telco Customer
Intelligence
• M&E Advertising
Analytics
• Consumer Analytics
• Enterprise Metadata
Management
• Enterprise Media
Library
IBM Smart Analytics System
Guide to how Business Analytics & Optimization helps your organization
BAO Strategy
Business
Intelligence &
Performance
Management
• Identify and
prioritize
opportunities for
improvement
• Report outcomes
of business
processes and
programs
• Change business
processes and
operations to
exploit analytics
• Automate
management
dashboards and
scorecards
• Implement
management
systems to
maintain control
and achieve
goals
• Create planning,
Budgeting, &
Forecasting tools
Advanced Analytics
and Optimization
• Apply advanced
statistical and
regression
analysis upon
historical data for
predictive
decision-making
• Integrate
optimization
algorithms and
technology into
operations
Enterprise
Information
Management
• 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
Enterprise
Content
Management
• Manage document
& records,
including archives
• Manage structured
and unstructured
content
• Manage digital
assets & rights
• Provide efficiency
and transparency
to complicated
workflows
IBM Smart Analytics System
Pre-Integrated IBM Smart Analytics System for speedy enabler
EVERYTHING you need for Business Analytics
not just a data warehouse appliance…
Hardware
• Power, xSeries, zSeries
• IBM Disk Storage System & SDD
Transforming
information into
business insight
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
3x Faster – Workload optimized analytics run business
intelligence faster
50% less floor space – data compression reduces
storage cost
Services
• Build, Deploy, Health Check, & Accelerated Value
Program
World record performance
Analytics ready in days not months
(from 6 months to 12 days)
IBM Smart Analytics System
IBM Smart Analytics System
Why it is better to sell the system over custom solution “piece-parts”
Workload
Optimized Analytic
System Vs. Custom
Deployment
Vs.
Smart Analytics System
Custom
One Call support
• Included
• Not Available
Coordinated Stack
certification
(SW, OS, & Firmware)
• Included
• Not Available
• 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
Services
Implementation
Premium Support
Health Check
IBM 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 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.
IBM Smart Analytics System
Getting started
IBM offers simple ways to continue the conversation and discover how business analytics and
optimization works for your organization.
Prioritization and
readiness planning
In flight portfolio
analysis and planning
Assess current business analytic
environment and determine
priorities for future enterprise
information vision
“We’re not sure what
our top priorities are
or what we should be
doing next”
Examine existing business analytic
programs or capabilities and
determine improvements and
larger BAO enterprise vision.
“We have programs in
place and need to know
how they will work in
the big picture”
Identify possible innovations and
opportunities within existing or
desired information assets
“We have an untapped
data asset that could be
turned into something
valuable”
Opportunity exploration
BAO concentrated
workstream
Get started on immediate BAO
projects and solutions for known,
identified analytic priorities
“We know the solution
we need and we need
to get it done right”
IBM Smart Analytics System
IBM Smart Analytics System
THANK YOU