Leveraging Information For Smarter Business Outcomes

1. Leveraging Information For Smarter Business Outcomes Greg AdamsDirector of Information Management, IBM

2. Agenda Our Smarter Planet and the Information Challenge Proceeding along an information-led transformation How to Get Started…the IBM Information Agenda IBM Information On Demand Portfolio 2

3. The world is changing… becoming instrumented, interconnected, and intelligent Instrumented Interconnected Intelligent On a Smarter Planet, new business challenges and conditions have placed a renewed urgency on optimization and a need for a new kind of intelligence…. 3

4. 1 in 3 business 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 Organizations are processing more information than ever before, and yet still operate with major blind spots Source: IBV Business Analytics and Optimization Study, March 2009, n=225:

5. Volume, Variety and Velocity Compounding the Problem …or Creating New Possibilities? Volume of Digital Data • 57% CAGR for enterprise data through 2010 • Machine generated data : Sensors, RFID, GPS.. Variety of Information • 80% of new data growth is unstructured content • Emails, images, audio, video.. Velocity of Decision Making • Rapidly changing business climate • Need to get ahead of the curve : predict issues and fix them New Data New Information! 5

6. Information that transforms businessTrusted, Pervasive, Predictive & Real-Time “…What is our risk this morning?” “…Are we using our stimulus funding effectively?” “…Which treatments are ineffective and should be eliminated to lower costs? “…Do we have product issues or fraudulent claims from service?” “Our prices are lower than others. Is this sustainable given our costs, or a future threat?” “…How & when should we adjust plans to reduce churn & expand share?” 6 6

7. Information-Led TransformationInformation is the connective tissue enabling organizations to survive and thrive in today’s world. Cost Takeout & Efficiency Proactive Risk Management Profitable Growth Business Value Business Optimization RealTime Predictive Analytics In Context Trusted Information Pervasive Information Governed Over Time Automation Re-use of Information as Strategic Asset 7

8. Smarter Businesses Are Able To Leverage Information To Drive Smarter Business Outcomes Increase Revenue Increase Productivity Reduce Costs Reduce Risk 8 8

9. How do you get started on an information-led transformation? Plan your information strategy Gain controlof your information Apply informationto optimize your business

10. Think Differently To Drive Smarter Business Outcomes Optimization Human Resource Management Application Agenda Call CenterOperations Automation ERP & Financials 10 10

11. Leverage Information For Smarter Business Outcomes: How To Get Started! Proven Approach Software Business Optimization Information Infrastructure 11

12. Proven Approach Smarter Business Outcomes With Information Agenda Establish end-to-end vision & business-driven value Align people, process, & information Accelerate projects for short & long-term ROI Architect an extensible information infrastructure 12

13. Proven Approach Smarter Business Outcomes With Information Agenda Strategy, Roadmaps: Information Agenda Guides Guides, Workshops, Accelerators, Roadmaps… 13

14. Proven Approach Smarter Business Outcomes With Information AgendaIndustry Accelerators Financial Services Insurance Retail Industrial • Risk Adjusted Profitability • Branch Performance • Retail Banking Customer Segment Performance • Corporate Banking Customer Segment Performance… • Product Profitability • Claims Submission Optimization • Insurance Self Service • Insurance Scorecard… • Store Development • Strategic Promotions • Financial Merchandising • Financial Workbench & Scorecard… • Sales & Operation Planning • Allocations Optimization • Risk Analysis • Trade Promotion Management • Asset Management… Telco Government Healthcare Energy & Utilities • Customer Service • Customer Billing • Compliance • Simple Order… • Intelligent Utility Network • Asset Plant Lifecycle Mgmt. • Central Engineering • Rate Case • Aging Workforce • Violations… • Crime Information Warehouse • Case Management • Municipal Performance Management • Court Management • Fraud Investigation … • Enterprise Health Analytics • Health Plan Industry Models • Customer Care & Insight for Health Plans • Risk, Fraud, & Compliance for Health Plans… 14

15. Data Management Manage data over its lifecycle Software Improve performance, cut costs and reduce risks IBM Optim, DB2/IMS tools Lower the cost of data and improve service levels Free information to create new business value IBM DB2, IMS, Informix, solidDB 15

16. CorningReduces Costby Millions Of Dollars • Business Challenge • Consistent data growth of 25% to 30% annually had caused significant performance issues throughout the PeopleSoft ERP • What’s Smart? • Archive data from PeopleSoft production environment to improve performance & save on storage costs using IBM Optim Data Growth Solution • Smarter Business Outcome • Achieved full ROI of $10 million over a 3 year period and a payback in 9 months • Improve payroll, HR and finance processing times by 60% 16

17. Enterprise Content Management Optimize content, process and compliance management Software Optimize content-centric business processes IBM FileNet BPM Capture, manage & leverage your enterprise content IBM FileNet Content Manager, IBM Content Manager, IBM Content Manager OnDemand Create insight from unstructured information IBM OmniFind Search & Content Analytics Manage regulatory compliance IBM Content Collection & Archiving, IBM Classification Module, IBM Records Management, IBM eDiscovery Search & Analytics 17

18. JB HuntIncreases Revenue • Business Challenge • Manual billing • Deliveries made before customers could accept resulting delays • What’s Smart? • Complete billing process visibility • Automated carrier assignment & billing – drivers know when customers can take deliveries and charge automatically if the customer delays delivery • Multiple forms of information including email and paper are now automatically managed • Smarter Business Outcome • Accurately track and bill charges to the customer adding $870K in revenues annually • 6 times improvement in billing staff productivity • Improve record-keeping to ensure compliance "The success of the HAWK Power Detention System has demonstrated the value and potential of IBM FileNet P8 for J.B. Hunt. As a result, other divisions within the company are exploring business process management as a way to remove non value-added work and add dollars to the bottom line. " Tarek Taha Engineering Manager JB Hunt 18

19. Trusted Information ManagementCreate, manage, govern and deliver trusted information Software Get A single view of your business IBM InfoSphere MDM Server Deliver better business intelligence faster IBM InfoSphere Warehouse Get your arms around your data IBM InfoSphere Foundation Tools Consolidate your application infrastructure IBM InfoSphere Information Server 19

20. The Co-operatorsIncreases Revenue • Business Challenge • Create a source for complete and accurate customer information to drive sales across lines of business • What’s Smart? • Core customer information hub built on service oriented architecture for maximum flexibility, with cross-references to policy, claims and billing systems • Smarter Business Outcome • Insurance agents and customer service representatives can up-sell and cross-sell more effectively, growing revenues and enhancing customer loyalty “ MDM Server provides services that are both reactive and proactive. The product proactively identifies customer events and responds in real time, alerting other applications of the detected events.” Jay Woo, Vice President, Information Technology 20

21. Business Intelligence & Performance ManagementOptimize business performance Software Realize fast time to value with adaptable, packaged BI applications IBM Cognos 8 Analytic Applications Make better, faster decisions by sharing, understanding, analyzing and sharing information IBM Cognos 8 BI Drive dynamic, reliable and sustainable financial performance management practices IBM Cognos 8 Planning, IBM Cognos 8 BI, IBM Cognos 8 Controller IBM Cognos TM1 21

22. LVMH Increases ProductivityOf Sales Force • Business Challenge • Difficult to measure productivity and assess business performance across 50 prestigious brands worldwide • Limited access to information across regions (esp. Asian growth countries) • What’s Smart? • Created a robust information analysis and reporting system for sales and marketing to understand customer buying patterns and adjust product mix • Smarter Business Outcome • Better product mix increased daily deliveries by 100% • Improved sales force productivity and customer loyalty “Our business is driven by customers and our ability to understand what drives them adds value to our business” LVMH Executive 22

23. Business Analytics & OptimizationIBM Global Business Services Consulting Organization Dedicated to advanced business analytics & business optimization… BI& Performance Management Enterprise Information Management Enterprise Content Management Advanced Analytics & Optimization BAO Strategy Over 4,000 Dedicated Consultants Worldwide • 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 Pervasive Skill Across All Practices Leveraging IBM Software, and Research...

24. Business Analytics & OptimizationIBM Global Business Services Consulting Organization “…IBM Roars into Business Consulting…” BusinessWeek April 14, 2009 “…IBM is putting all the parts and pieces together. …” Merv Adrian’s IT Market Strategies April 13, 2009 “…IBM is “moving from strength to strength” …” Forrester Research April 13, 2009 “…leaders need to know what's really going on in their businesses…” IDC, in Bloomberg News April 14, 2009 “…another in a series of genuine announcements where different groups within IBM are quite explicitly working together…” Bathwick Group April 14, 2009

25. What’s Required? 1. Serious insight: Industry dynamics 2. Great technology: Foundational Software 3. Deep Research: Advanced Algorithms A serious commitment to a new destination. A new level of value for clients.

26. Why IBM?…IBM Leads Overall And In All Categories “…the only vendor in the leadership quadrant: Business Intelligence Services, Data Quality, Data Integration, Customer Data Integration, Info Access…” “…Since 2006, IBM has deliberately & doggedly constructed an unparalleled portfolio of software …it's difficult to see how any competitors will be able to compete anytime soon…” IBM has stayed maniacally focused on helping companies to build a "trusted information” layer. It adds technologies when they emerge as important differentiators. 26

27. Driving Growth With Our Business Partners Growing Community Growing Recognition Growing Business Over 2,000 New Business Partners Since IOD Inception… Innovation, Support, Partnership… with our Business Partners… Double Digit Growth

28. Drive Smarter Business Outcomes With IBM Information Management Call To Action Leverage Information for Smarter Business Outcomes Create Your Information Agenda Now Let IBM Help Accelerate Your Journey 28

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