Business Analytics for Better Outcomes by Karen Parrish

8/2/2019 Business Analytics for Better Outcomes by Karen Parrish

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© 2010 IBM Corporation

Business Analytics for Better Outcomes

Karen Parrish

Vice President, Industry Solutions

IBM Software for a Smarter Planet



© 2010 IBM Corporation2

There is an Explosion in Data and Real World Events

4.6 Billon Mobile PhonesWorld Wide

1.3 Billion RFID tags in 2005

30 Billion RFIDtags by 2010

2 Billion Internetusers by 2011

Twitter process

7 terabytes ofdata every day

Facebook process

10 terabytes ofdata every day

World Data Centre for Climate 220 Terabytes of Web data 9 Petabytes of additional data

Capital market

data volumes grew 1,750% , 2003-06




Business Analytics Makes Use of this Data in Meaningful Ways

Business Analytics is the key to enabling businessesto turn oceans of data into predictive models andactionable decisions

Why Analytics Matter:

14.0%

9.4% 11.3% 12.1%9.3%

0.5%

Finance organizations with business insight

All other enterprises Revenue Growth: N = 580; Profit: N = 435; ROIC: N = 606Source: IBM Global Business Services, The Global CFO Study 2010

Return onInvested Capital

Revenue Growth Profit Growth

> 20x more

30% more

49% more




Analytics Landscape

Degree of Complexity

C o m p e t i t i v e A d v

a n t a g e

Standard Reporting

Ad hoc reporting

Query/drill down

Alerts

Simulation

Forecasting

Predictive modeling

Optimization

What exactly is the problem?

What will happen next if ?

What if these trends continue?

What could happen…. ?

What actions are needed?

How many, how often, where?

What happened?

Stochastic Optimization

Based on: Competing on Analytics, Davenport and Harris, 2007

Descriptive

Prescriptive

Predictive

How can we achieve the best outcome?

How can we achieve the best outcome

including the effects of variability?




Where are organizations focusing on Business Analytics?

• Customer Churn• Marketing Spend• Sales Productivity

EnhanceCustomer Understanding

• Customer Service• Channel Management• Loan Origination

FosterCollaborative Decisions

• Trading Advantage• Fraud Protection• Health Monitoring

OptimizeReal-Time Decisions

• Financial & Risk Management• Demand Visibility• Strategy Alignment

EnableEnterprise Visibility

Underpinned by trusted data and an integrated technology foundation

• Reducing your TCO

• Accelerating time to business outcomes




Smarter Health Care

Smarter Retailing

Smarter Cities


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The need for progress in Health Care is clear.

People worldwidepushed below thepoverty line bypersonal healthcareexpenditureseach year.

100million 1.5 millionErrors in the waymedications are prescribed,delivered and taken harm1.5 million U.S. citizensevery year.

Dollars is the total drugdevelopment cost – asclinical trials average acapitalized cost of $626mper drug – making it thebigest line in the LifeSciences company’s budget

Dollars invested in USpharma and biotech R&Din 2008. Only 4 trulyinnovative products weredelivered in the sameperiod.

65.2 billionof drugs work in only 30-50% of people

90 percent

1.3 billion

Dollars US lost due to a10% counterfeit drug supply

74 billion



There are severe global challenges ahead of us…

HEALTHCARE

GLOBALIZATIONGlobal competition limiting

healthcare spend

DISEASES THAT ARE MORE EXPENSIVE

TO TREATIncreased prevalence of chronic conditions around theworld

CONSUMERISMMore knowledgeable,

demanding citizens

CHANGING DEMOGRAPHICS ANDLIFESTYLES

Aging and overweight populations

NEW TECHNOLOGIES ANDTREATMENTS

Advances revolutionizing riskassessment, diagnosis, and

treatments

FINANCIAL CONSTRAINTSPool of funds for healthcare is n

limitless

INABILITY TO ACCESS ANDSHARE INFORMATION

Non-digital/digital data is beinggenerated at

unprecedented rates,causing information glut



How might you solve some of the world’s Healthcare problems?

EuResist

Sick Babies

UNC Health Care

Children’s Memorial

Hospital



Medical information isdoubling every 5 years,much of which isunstructured

81% of physiciansreport spending 5hours or less permonth reading medical journals

“Medicine has become too complex (and only) about 20 percent of the knowledge

clinicians use today is evidence-based.”

Steven Shapiro, Chief Medical and Scientific Officer, UPMC

The Watson Problem…



Understands natural language

questions

Analyzes large volumes of

unstructured data

Generates and evaluates

hypothesis

Presents responses with

confidence

Supports iterative

dialogue to refine results

Learns from results over time

What condition has red eye, pain, inflammation,

blurred vision, floating spots and sensitivity tolight?

Physician Notes, Medical Journals, Clinical Trials,

Pathology Results, Blogs, Wikipedia

Possible Diagnosis Confidence

Uveitis 91%

Iritis 48%

Keratitis 29%

Family History, Patient Interview, Physical Exam,

Current Medications

What actions were taken? What treatments

were prescribed? What was the outcome?

Why is Watson Technology ideal for Healthcare?




Citizens are placing increasing demands on leaders to innovate

Evolution of City Value

LeadersDeliver

CitizensDemand

Time

Lifestyle,Culture

Jobs,Education

Water,Energy

Walls,Roads

ProsperityOpportunityConvenienceSecurity




To ensure the economic health, welfare and security of theircitizens, smart governments will work to…

STRENGTHEN NATIONAL

SECURITY AND PUBLIC SAFETY Enabling defense and lawenforcement organizationsto achieve situational awareness,increased speed of command andcombat superiority.

MANAGE RESOURCESEFFECTIVELYLeveraging businessintelligence and planning toimprove insight and elevateperformance with visibility

and control.

IMPROVE CITIZEN ANDBUSINESS SERVICES

Connecting people toprograms based on individualneeds—achieving sustainable

outcomes while reducing

operational costs andmaximizing taxpayer value.

ENSURE A SUSTAINABLE

ENVIRONMENTDeploying environmentallyresponsible operations,

from energy efficiency andconservation to transportationmanagement and the pursuit

of renewable resources.

GOVERNMENT




How might you solve some of our cities challenges?

New York PoliceDepartment (NYPD)

Queensland Motorways

DC Water




Consumers have varying levels of comfort in using technology toshop and purchase.

Mobile technologies have increased

92% globally and are still more widelyaccepted in the growth markets

25%

Willingness to use TVs to make purchases

is growing as a preferred technology

24%

Websites remain the dominant technology

75%

Kiosks are popular inall countries

39%

Source: IBM Institute for Business Value, Retail 2011 Global, WW survey of 30,624 consumers




There are many issues facing retailers today…

Industry consolidation

Credit crunch

Retail

Global Economic FinancialCrisis

Decreased spendingability

Savvy and informedconsumer




How would you use Business Analytics to Make Retailing Smarter ?

Moosejaw

Sears

Yansha




What skill areas should you consider investing in?

Enterprise content

management

Advanced case management

Content analytics

Document imaging and capture

Information lifecycle governanceSocial content management

Data management

Database design and development

Database management

Database administration

Information

governance

Data lifecycle management

Data security and privacy

Data quality management

Information integration

and federation

Information integration

Master data management

Big data analytics

Business analytics

Business intelligence

Predictive analytics

Analytic applications

Financial performance management

Governance, risk and compliance

Web analytics

Data warehousing

Warehousing appliances

Warehousing software

Industry models




Thank you




Begin References

The following slides are hyperlinked from the main presentation

21




1

Client Challenges

The need to create a consolidated view ofpatient information that could better servethe diverse needs of the varied user groups.

Existing systems were neither sustainablenor capable of generating the kind ofinformation needed to create new

treatments for major diseases. Growing need for quality and Pay-for-

Performance reporting within clinical care.




Smarter healthcare

Client Challenges:

•Doctors want to betterdiagnose newbornchildren who might besusceptible to infectiousdiseases

•The goal is to treat theproblem before it occurs – prevention is key.




Client Challenges:

Researchers at EuResist want to

be able to predict how a patientwith HIV will respond to treatmentby comparing a blood samplesagainst 33,000 HIV treatmenthistories.

The goal is to treat patients based

on insights that are moreaccurate.

Smarter healthcare




Smarter healthcare

Client Challenges:

•3000 children/year diagnosed withbrain tumors, and pedatric tumorsare very difficult to identify, classifyand categorize.

•Pediatric specialists are on amission to find new treatmentsfaster, and build a gene expressionknowledgebase for pediatric braintumors.

•The goal is to figure out what thetumor is as fast as possible, andprovide treatment accordingly.

S i i




Client Challenges:

Faced with an aging waterdistribution and collectionsystem and numerous customercomplaints

DC Water needed to modernizemanagement of its massivewater and sewer infrastructure -which includes hundreds ofthousands of assets such aswater distribution pipes, valves,public fire hydrants, collectionpipes, man holes and water

meters The goal is to extend the useful

life of critical components.

Smarter cities




Smarter Business Outcomes

Client Challenges:

Address increasing demand onroadways with 230,000 vehiclesper day

The goal is to reduce motorists’

time spent in traffic and vehicleemissions

258 hours a Brisbane driver spend

in traffic every year

AUD$400 extra cost in fuel per year

to each motorist

30% increase in greenhouse emissions

Smarter cities

S




Client Challenges:

Improve public safety in New York City

Prevent emerging crime

Increase speed of solving crimes

The goal was to insure NYC as a safedestination for businesses, touristsand citizens

Access to 120 million criminal

complaints, arrests, and 911 records

Smarter cities




Client Challenges:

•Know customers throughevery channel of

engagement (web, catalog,store)

•The goal was to retain andgrow their customer base

Moose jaw

Interconnected consumers Smarter retail




Sears Client Challenges:

Customer browsed through theircatalog, but not as many purchasedfrom catalog.

Customers didn’t enjoy the

shopping experience at Sears

The goal was to transform catalogbrowsing to one of creating anonline customer centric experience.

Instrumented consumers




Client Challenge

The customer’s supply chain process for order processing as 2.5 days

In a open market, this would not becompetitive

Yansha desired to maintain a leadershipposition in an increasingly deregulated

Chinese retail industry

The goal was to find a competitiveadvantage through technology andautomation




End References

The previous slides are hyperlinked from the main presentation




Innovative leadership in Alameda County transformed social services

Reducing benefits overpayment, improving appeals litigation , and increasing productivity for 1,200 case workers

Initial focus – increase effectiveness of

social services case workers

Expanded to integrate all key social

services departments

Provides better service to clients, avoids

overpayments and detects fraud

http://www.alamedasocialservices.org/public/index.cfm



Innovative leadership in Rio de Janeiro transformed city operations

Initial focus - prevent deaths fromannual flooding

Expanded to manage all emergency

response situations

Analyzes weather, energy, building,

transportation, & water data in real-

time

Nationwide adoption in advance ofOlympics and World Cup

Increasing efficiency in resource deployment, expanding early warnings to 48 hours, and coordinating all agencies in response

Documents

Business Analytics for Better Outcomes by Karen Parrish