Smarter Decisions for Optimized Performance Info Komputer Forum 2011 Hotel Mulia - Mar 24

1. Smarter Decisions for Optimized PerformanceInfo Komputer Forum 2011Hotel Mulia - Mar 24

2. 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 comprehensive solutions from IBM 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 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.

3. 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 Tomorrow’s issues and opportunities will be bigger and harder to solve in ways that defy our imaginations today 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 Timelines for action will be compressed beyond current ability to respond 80% of new data growth is unstructured content 1 trillion devices connected to the Internet by 2011. INFORMATION 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) 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

4. Financial Risk Insight Workforce Optimization Dynamic Supply Chain R O A D B L O C K • “Through 2012, more than 35% of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets” • “Although IT organizations excel at building BI infrastructure, business users have lost confidence in the ability of them to deliver the information they need to make decisions.” Customer & Product Profitability Multi-channel Marketing Gartner Reveals Five Business Intelligence Predictions for 2009 and Beyond Core & Other Operational Systems A Shift is Underway Information-Led Transformations Optimize Business Business Optimization Leveraging Information for Smarter Business Outcomes 4

5. 59% of managers miss information they should have used 47% of users don’t have confidence in their information 42% of managers use wrong information at least once a week 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 AIIM & Accenture Surveys, 2007

6. 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 % 53% 52 % don’t have access to the information across their organization needed to do their jobs To a great extent Personal Experience Collective Experience Analytics 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

7. Industry out-performers recognize and pursue the value much more than under-performers Not interested in pursuing BAO at any level 50% 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

8. 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? “…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?” Fast Flexible Affordable “…How & when should we adjust plans to reduce churn & expand share?” 8 8 8

9. Early adopters ride the wave … What if? 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? What if we could actually and accurately forecast the weather? What if you could trace food straight through from the farm to your fork?

10. 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 A smarter planet demands smarter analytics

11. 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 comprehensive solutions from IBM 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 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.

12. Decision support Action support 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 Efficient Optimized

13. 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 Better predict and identify risk events and build resiliency and agility of the organization to respond and act. Intelligent profitable growth Cost take-out and efficiency 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

14. The intelligent enterprise is… Anticipating Aware 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 Empowering Linked Enables and extends employees' memory, insight and reach, as well as the authority to decide and act Connects internal and external functions front to back across geographies in a way that aligns to desired business outcomes Questioning Precise 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

15. Aware Gathers, senses, & uses structured and unstructured information from every node, person, & sensor within the environment 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?

16. 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?

17. 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.

18. 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?

19. 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?

20. 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?

21. Why change and why now? The information environment is at a tipping point The enterprise has not kept up and cannot keep up To survive, business leaders must act 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 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 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 under-utilized 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

22. In a smarter planet, opportunity and progress is clear The Operational Riskdata eXchange Association: A consortium serving 18 countries and 50 leading financial institutions improves statistical modeling and more accurately quantifies risk exposure 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%. 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%.

23. 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 comprehensive solutions from IBM 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 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.

24. Business Analytics and Optimization is the next bow wave of change where operational execution meets new opportunity Business Optimization Analytics and Intelligence Change Detection, direction & prediction Business Analytics and Optimization Enterprise Integration Business process management and Business Intelligence Cross-Functional Integration Performance measurement Aggregation and data warehouse Resource planning (e.g., ERP, CRM, SCM) Business Efficiency Recording and Reporting Transactional automation adoption (POS, accounting) Task/Process Automation

25. 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

26. 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 • Predictive Modeling • Business Optimization • Visualization Enterprise Information Management • Data Integration • Data Quality • Data Architecture • Master Data Management Business Intelligence & Performance Management • Dashboards & Scorecards • Planning, Budgeting, & Forecasting • Business Analytics & Reporting BAO Strategy • BAO Strategy and Roadmap • BAO Process Improvement • BAO Governance

27. The Business-value Oriented View is built on value propositions that resonate with your CFO. Financial Services Public Distribution Industrial Comm. Svc. Providers BAO Solution Set Financial Performance Management… Human Capital Management… Supply Chain Management… Customer Relationship Management… Cross Industry Intelligent Enterprise CFO Value Proposition Intelligent Profitable Growth Proactive Risk Management Cost-takeout and Efficiency Solutions Business Analytics &Optimization Platform Performance Management & Analysis Advanced Analytics Business Process Management / Rules Collaboration, Web 2.0 Information Integration and Master Data Management Software Platforms Enterprise Content Management Data Warehouse and Other Data Management Operate and Run Application Mgmt BPO Hosting DC Outsourcing Information Technology Hardware

28. Extending our existing portfolio of industry-based solutions and building additional big plays are our highest priorities Financial Performance Management Financial Services Public Distribution Industrial Comm. Svc. Providers BAO Solution Set Human Capital Management Supply Chain Management Customer Relationship Management Financial Performance Management… Human Capital Management… Supply Chain Management… Customer Relationship Management… Cross Industry Information Intensive Applications…IBM Initial Solution Set Cross Industry Financial Services Public Distribution Industrial Communications • 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 InformationWarehouse • CFO Dashboard • Tax Audit & Compliance • Customs Border Risk Management • Fraud & AbuseManagement • 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 Designand 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

29. Guide to how Business Analytics & Optimization helps your organization Business Intelligence & Performance Management Enterprise Content Management Enterprise Information Management Advanced Analytics and Optimization BAO Strategy • 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 • Identify and prioritize opportunities for improvement • Change business processes and operations to exploit analytics • Implement management systems to maintain control and achieve goals

30. Pre-Integrated IBM Smart Analytics System for speedy enabler EVERYTHING you need for Business Analyticsnot just a data warehouse appliance… • 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 Transforming information into business insight 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)

31. Vs. IBM Smart Analytics SystemWhy it is better to sell the system over custom solution “piece-parts”

32. 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 comprehensive solutions from IBM IBM is creating a new GBS service line - Business Analytics and Optimization - to bring together world class capabilities for our clients. 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.

33. Getting started IBM offers simple ways to continue the conversation and discover how business analytics and optimization works for your organization. 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” Prioritization and readiness planning 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” In flight portfolio analysis and planning Opportunity exploration “We have an untapped data asset that could be turned into something valuable” Identify possible innovations and opportunities within existing or desired information assets BAO concentrated workstream “We know the solution we need and we need to get it done right” Get started on immediate BAO projects and solutions for known, identified analytic priorities

35. THANK YOU