IBM presentation

Leveraging Information For Smarter Business Outcomes

Tony RummansVP, Information Management SoftwareIBM Southwest Europe

© 2009 IBM Corporation

Agenda

How to Get Started…the IBM Information Agenda

IBM Information On Demand Portfolio

Our Smarter Planet and the Information Challenge

Proceeding Along an Information-Led Transformation

2


The world is changing… becoming instrumented, interconnected, and 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….

Instrumented

Interconnected

Intelligent

© 2009 IBM Corporation4

Variety of Information 80% of new data growth is unstructured content Emails, images, audio, video..

Volume of Digital Data 57% CAGR for enterprise data through 2010 Machine generated data : Sensors, RFID, GPS..

Velocity of Decision Making Rapidly changing business climate Need to get ahead of the curve : predict issues

and fix them

With this change comes an explosion in information …


…. but that information is not driving better decisions.

1 in 31 in 3spent by knowledge workers each

week just searching for and understanding information

managers frequently make critical decisions without the

information they need

19+ Hours19+ Hours

3 in 43 in 4

“…40 exabytes of data created in 2008…more than created in the previous 5,000 years combined…”

business leaders say more predictive

information would drive better decisions

Source: Various Industry Studies


Doing so empowers an information-led transformation

Physician Telco Call Center Rep Loan Officer Retail Sales

Associate

…predict infection in premature newborns 24 hours earlier?

…apply social relationships of

customers to prevent churn?

…adjust credit lines as transactions are occurring to account for risk fluctuations?

…determine who to offer discounts at

time of sale instead of offering to all?

The key is enabling informed, real-time decisions at the point of impact, without requiring that everyone be an analytical expert

Imagine if you could…


Information Agenda

Deploy real-time predictive analytics & the supporting

information platform

Information-Led Transformation

Additional benefit from micro-efficiencies

Organizations will reach a tipping point when they apply real-time analytics at the point of impact

Rapid, informed, confident decisions consistent across the organization

BusinessValue

Information and AnalyticsUse Over Time


What is needed for an information-led transformation?

3 elements required but you can start anywhere

Apply business

analytics to optimize

decisions

Establish a flexible


Plan an information

agenda


How do you get started on an information-led transformation?

IOD Software & Solutions; Information Infrastructure

BI/Performance Management; Advanced Analytic & Optimization Services

Information Agenda;BAO Strategy Services

Apply business


decisions



Plan an information

agenda


75% of CIO’s believe their competitive advantage can be strengthened by better using and managing enterprise data

75%

Source: Accenture CIO Data Management Survey 2007. n=167 CIOs

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…but only 15% believe that their data is comprehensively well managed

15%

Source: Accenture CIO Data Management Survey 2007. n=167 CIOs

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Times of Change… New Opportunities

11.1% CGR

5.1% CGR

Business OptimizationBusiness Optimization

Business AutomationBusiness Automation

Client Investment in Business Optimization

Projects is Growing 2x as fast as Business Automation

12


What is an Information Agenda ?

A Strategy - to provide trusted information

Enterprise-wide plan - to unlock information across silos

Roadmap - to turn information into a strategic asset


Setting an Information Agenda

Call CenterOperations

Human ResourceManagement

ERP &Financials

AutomationApplication

Agenda

Optimization


Review Information Agenda

Understand key business initiatives, strategic priorities, challenges, etc

3-hour to 1 day workshop

Build vision and high level roadmap for IOD journey

Interviews with key stakeholders from business and IT

1-5 day workshop; 2-4 weeks offsite

Defines and scopes an IA project

Interviews with key project stakeholders from business and IT

1-4 week workshop

Briefing

1

2 Roadmap Workshop

3Solution Workshop

Introduction

Begin Developing Your Agenda

Architect and Plan Your First Project

IBM Information Agenda Workshops


Business Analytics & Optimization IBM Global Business Services Consulting Organization

Business Analytics and Optimization

Strategy

Business Intelligence & Performance Management

Advanced Analytics and Optimization

Enterprise Information

Management

Enterprise Content

Management

• Identify and prioritize opportunities for improvement

• Change business processes and operations to exploit analytics

• Implement management systems to maintain control and achieve goals

• 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

Over 4,000 Dedicated Consultants Worldwide

Leveraging IBM Software, and Research...Pervasive Skill Across All Practices

Analytics & Optimization






Apply business


decisions



Plan an information

agenda


Business Intelligence & Performance ManagementOptimize business performance

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Realize fast time to value with adaptable,

packaged BI applications

IBM Cognos 8 Analytic Applications

Drive dynamic, reliable and sustainable financial performance management practices

IBM Cognos 8 Planning, IBM Cognos 8 BI, IBM Cognos 8 ControllerIBM Cognos TM1

Make better, faster decisions by sharing,

understanding, analyzing and sharing

informationIBM Cognos 8 BI



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

LVMH Increases Productivity Of Sales Force

http://images.google.com/imgres?imgurl=http://www.christian-dior-only.com/images/landing.jpg&imgrefurl=http://www.christian-dior-only.com/&usg=__r7c8egEa6u1vSJMApetsAnJ7Dds=&h=300&w=450&sz=18&hl=en&start=1&tbnid=5Qy82IaX8kMsAM:&tbnh=85&tbnw=127&prev=/images?q=Perfumes+cosmetics+purses&gbv=2&hl=en

http://images.google.com/imgres?imgurl=http://www.loadedshopper.com/entry_images/1107/20/LVMH.jpg&imgrefurl=http://www.loadedshopper.com/other_stuff/lvmh_cognac.php&usg=__9li_-Aznji5_--tF14CaTda8Ktk=&h=384&w=450&sz=23&hl=en&start=12&tbnid=CeKdY2b05SIWVM:&tbnh=108&tbnw=127&prev=/images?q=LVMH&gbv=2&hl=en

http://www.flickr.com/photos/tskno/2310598769/


Pre-optimized Business Intelligence Software triples out of the box performance*

* Based on IBM Laboratory Tests. Actual results may vary depending on specific environment and configuration.

IBM Smart Analytics SystemA Broad Range of Analysis, Dashboards & Reporting







Apply business


decisions



Plan an information

agenda


Leverage Information For Smarter Business OutcomesInformation on Demand Software Portfolio

22

BusinessOptimization

Customer & ProductProfitability

Multi-channelMarketing

Workforce Optimization

Dynamic Supply Chain

Financial Risk Insight

Information Infrastructure

Information Platform


Data ManagementManage data over its lifecycle

Lower the cost of data and improve service levels

Free information to create new business value

IBM DB2, IMS, Informix, solidDB, U2

Improve performance, cut costs and reduce risksIBM Optim, DB2/IMS tools



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%

Corning Reduces Cost by Millions Of Dollars


Enterprise Content ManagementOptimize content, process and compliance management

Capture, manage & leverage your enterprise

contentIBM FileNet Content

Manager,IBM Content Manager,IBM Content Manager

OnDemand

Create insight from unstructured information

IBM OmniFind Search & Content Analytics

Optimize content-centric business processesIBM FileNet BPM

Manage regulatory complianceIBM Content Collection & Archiving, IBM Classification Module, IBM

Records Management, IBM eDiscovery Search & Analytics



"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

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

JB Hunt Increases Revenue

http://www-01.ibm.com/software/info/television/index.jsp?lang=en_us&cat=infomanagement&item=xml/M719430H97631W20.xml

http://www-01.ibm.com/software/info/television/index.jsp?lang=en_us&cat=infomanagement&item=xml/M719430H97631W20.xml


Trusted Information ManagementCreate, manage, govern and deliver trusted information

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Get your arms around your data

IBM InfoSphereFoundation Tools

Deliver better business intelligence faster

IBM InfoSphereWarehouse

Get a single view of your businessIBM InfoSphere MDM Server

Consolidate your application infrastructureIBM InfoSphere Information Server



Trust In Financial Services Firms Is Falling

May 2009 “Trends 2009: European Retail Banking eBusiness And Channel Strategy”

Trust Impacts Business…

European ExampleTrust has, and continues to drop

“I trust Financial firms to treat me fairly & honestly”


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

The Co-operators Increases Revenue


Business Intelligence & Performance ManagementOptimize business performance

30

Realize fast time to value with adaptable,

packaged BI applications

IBM Cognos 8 Analytic Applications

Drive dynamic, reliable and sustainable financial performance management practices

IBM Cognos 8 Planning, IBM Cognos 8 BI, IBM Cognos 8 ControllerIBM Cognos TM1

Make better, faster decisions by sharing,

understanding, analyzing and sharing

informationIBM Cognos 8 BI



Information InfrastructureSecurely manage information and mitigate business risks

Keep information available & accessible Storage optimization & integration

services, Business continuity & resiliency services, System

Storage SAN Volume Controller, IBM Power Systems, System x and

System z

Retain & manage information more

efficiently Data mobility services, Scale out

file services, System Storage ProtecTIER deduplication, Tivoli

Storage Manager

Keep information secure & protected Information protection services, Internet Security Services, Tivoli Key Lifecycle Manager, System Storage DS8000 drive-level encryption, IBM Power Systems,

System x and System z

Reduce reputation risks and audit deficiencies Enterprise Archive Services, System Storage N Series with SnapLock, System Storage

Archive Manager (SSAM)

31



Business Challenge Lacked ability to respond rapidly to legal discovery

demands for email 3.5B emails in back up storage – no easy way to

search/retrieve

What’s Smart? Email archiving, retention and retrieval solution for

enterprise message servers using IBM ECM Compliant Information Management

30,000 mailboxes, 1.2M daily volume, 750M archived

Smarter Business Outcome Ensure compliance with Discovery Orders, avoiding

penalties and judgments from inability to produce emails in timely fashion

Search across mailboxes and apply multiple holds, preventing critical email deletion and ensuring email retention for the required duration

De-duplication stores email and attachments more efficiently

Major U. S. Insurance Services Company Reduces Risk Of Legal Non-compliance

Major U. S. Insurance Services Corporation


Over 200 Core Systems… Mergers & AcquisitionsOver 200 Core Systems… Mergers & Acquisitions

Trusted Customer Information

Enterprise-wideExpansion

AdvancedAnalytics

Trusted Information Information as an Asset

Information-Led Transformation at CommerzbankReal-time, Predictive Analytics

Real-time

Real-time Trading Positions, Real-time Risk Analysis,

Withholding Tax Optimization, M&A Agility…

Profitable Growth

CostTake-out

& Efficiency

ProactiveRisk

Management


SNCF the French railway company handles hundreds of investment projects a year. SNCF called on IBM to help them optimize their financial performance related to hundreds of investment decisions they make yearly and to improved the linkage between headquarters and investment project directors.

Implanet French medical device company worked with IBM to develop a proprietary new technology called BeepNTrack, to trace the location of surgical implants from manufacturer to implantation, ensuring medical professionals would have access to the right device at the right time, optimizing resources and aiding in recalls.

Leading the Way in Southwest Europe …

Carrefour The largest retailer in Europe receives product information from 80,000 suppliers and manages more than 2,5M products at any point in time in its catalogue. They turned to IBM to help them reduce time to market for the introduction of new products with an optimized system which helps them accelerate the introduction of new product catalogues

European Financial Services FirmAdvanced anti-money laundering analytics brings fraud detection and avoidance closer to the point of contact through trusted information from sources including banks, casinos, census, property transactions and notaries.


Call To Action

Plan your information agenda

Deploy business analytics to optimize decisions

Gain control with an information platform and infrastructure

Drive Smarter Business Outcomes With IBM Information Management


IBM Leads Overall & in All Categories…

“…You are definitely ahead of the competition.The question is by how much? Is it 2 years?”

“…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.



Thank you



ADDITIONALINFORMATION


Financial lifecycle of investments to be managed end-to end.

Inconsistent spreadsheet based decision process

SNCF Optimizes StrategicInfrastructure Investments

39

Optimized financial performance of investment funds ( 2B €)

60% improvement in decision making cycle time across over 1,500 users

Linkage in decision making between headquarters and investment project directors

100s of Investment Decisions Annually... 100s of Investment Decisions Annually... Inconsistent Process & Information...Inconsistent Process & Information...

14,000 Trains Daily,32,000 KM of Track…

18,000 Workers…Multiple ERP

SystemsNo Consistent

Decision Making Processes


Optimize decisions and transactions at every contact point without being an expert

Historical analysis enablesmacro-optimization

Contextual insight applied with precision at point of impact drives micro-optimization

Typically enabled by each individual. The background analytics gives

different business level suggestions in sub-seconds

based on the few questions asked at the point of impact.

Typically enabled by large historical data stores with

modeling & analysis done by

experts


Building a Smarter Planet

41

Sense and respond Predict and act

Back office Point of impact

Instinct and intuition Real-time, fact-driven

Foundational Breakaway

Skilled analytics experts Everyone

Automated Optimized

Next Generation of efficiencies come from optimizing every decision, transaction or process at the point of impact… Micro-optimization



42


Smarter Planet/New Intelligence

IBM’s Approach to AccelerateInformation-Led Transformation

Plan anInformation

Agenda

Apply Business Analytics to Optimize Decisions & Actions

Establish aFlexible Information

Platform



43

Plan anInformation

Agenda

Apply Business Analytics to Optimize Decisions & Actions

Establish aFlexible Information

Platform

IBM’s Approach to AccelerateInformation-Led Transformation

• Information Agenda Workshops & BAO Strategy

• Industry-specific Experience

• Deep Skills• Technology &

Software

• IOD Software Portfolio• Information Infrastructure• Workload Optimized Systems

1H091H09

Over 4,000 Business Analytics & Optimization

Consultants

IBM SmartAnalytics Systems

2H092H09

Over $10BIn Software

Investments

2005…20082005…2008

InformationOn Demand

Launch

20052005


Smarter Planet/New Intelligence



4444

Solutions

Over 4,000Dedicated Consultants

Software

Over $10BSoftware Investments

Systems

Leveraging Over $6Bin Systems Level R&D

Research

10 Years Research in Services; Largest Math Department in Private

Industry

IBM is Investing to AccelerateInformation-Led Transformations



45

Optimize Decisions and Transactionsat Every Contact Point without Being an Expert

Historical analysis enablesmacro-optimization

Contextual insight applied with precision at point of impact drives micro-optimization

Typically enabled by each individual. The

background analytics gives

different business level suggestions in sub-seconds based on the few questions asked at the

point of impact.

Typically enabled by

large historical data stores

with modeling & analysis done by experts



4646

SPSS (in progress)Predictive Capabilities

Cognos TM1Real-time Financial Control

InfoSphere Streams, InfoSphere CDC, SolidDB

Real-time Financial Trading Systems

Research Real-time Fraud Analytics

Driving Micro-optimization Technologiesinto the Information Platform


Provide real-time updates & statistics from live sporting events to customers

Increase revenue by 15% annually 10-40% market share growth

Market leaders are already on their journey

Manage Geographic Information System (GIS) data for critical decisions

Reduce costs by over $150,000 annuallyReduce risks by coordinating emergency services & homeland security

Gather and update clinical information to drive pediatric research

Reduce administrative costs by 75% Ten Fold Increase in productivity for gathering research cohorts

Create complete 360 degree view of over one million customer relationships

Increase Revenue by effective cross-selling of new services to the customer base

Streamline annual planning and budgeting for restaurants

Reduce labor costs by over $2 Million annually

47

City of Los Angeles


? Sustainedcompetitiveadvantage

Desired StateFlexibility& Speed

Current StateInformation

Intensive Projects

Highlyjustifiedprojects

Information Based Enterprise

…transform information into a trusted strategic asset that can be rapidly

leveraged across applications, processes and decisions for

sustained competitive advantage…

…an enterprise with an Information agenda

So, What’s Next?Helping our Customers Establish an Information Agenda

Establish a business based information

strategy

Get started quickly, minimize risk and ensure long term success

Leverage and extend existing IT investments


Maturity ofInformation Use

Bridging the Gap is a Necessity Driving Value with Information as a Strategic Asset

Information to Manage the Business

Basic Information Interaction

BusinessValue

Data to Run the Business

Focus on DataAnd Reporting

Adaptive Business

PerformanceInformation as a

Competitive DifferentiatorReal-time Single

View of the TruthInformation to

Enable InnovationInformation

in Context

Flexible Information Architecture

Desired StateFlexibility & Speed

Current StateInformation Intensive

Projects

33%still here*

59%currently focused

here*

* Based on Gartner 2007 Survey

Documents

IBM presentation