Introducing SPSS customer overview

© 2009 IBM Corporation

®

Predictive Analytics - Driving Smarter Business Outcomes

Martin YoungChannel Manager C&EE, SPSSRiga, 27 May 2010

IBM Software Group | Information Management software

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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

An Information Explosion … and Faster Decisions Required

Business Imperative:Accelerate innovation, business optimization, and sustained competitive differentiation


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Challenges facing Decision Makers Today

1 in 3business leaders frequently make critical decisions without the information they need

1 in 2don’t have access to the information across their organization needed to do their jobs

19+ hoursSpent by knowledge workers each week just searching for and understanding information


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Analytics Critical for Driving Competitive Advantage

“At a time when companies in many industries offer similar products and use comparable technology, high-performance business processes are among the last remaining points of differentiation.” Tom Davenport, “Competing on Analytics”

57%

55%

61%

62%

63%

64%

66%

70%

76%

80%

63%

68%

70%

67%

71%

73%

71%

73%

77%

86%

Unified Communication

SOA/Web Services

Business Process Management

Application Harmonization

Self-Service Portals

Customer and Partner Collaboration

Mobility Solutions

Risk Management and Compliance

Virtualization

Business Intelligence and Analytics

Ten Most Important Visionary Plan ElementsInterviewed CIOs could select as many as they wanted

Source: IBM Global CIO Study 2009; n = 2345

Highgrowth

Low growth

BI/Analytics #1investment to

improve competitiveness

IBM Global CIO Study 2009


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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 Efficiencies come from Optimizing Every Decision, Transaction or Process at the Point of Impact…


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Imagine If Your Decision Makers Could…

Physician Telco Call Center RepLoan Officer Retail Sales

Associate

…predict and treat infection in

premature newborns 24 hours earlier?

…apply inferred social relationships of

customers to prevent churn?

…adjust credit lines as transactions are

occurring to account for risk fluctuations?

…determine who is most likely to buy if offered discounts at

time of sale?

…optimize every transaction, process and decision at the point of impact, based on the current situation,

without requiring that everyone be an analytical expert


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How can I capture and analyze information about

how my customers, prospects or employees are

feeling?

How can I capture and analyze information about

how my customers, prospects or employees are

feeling?

How can I predict behaviors and preferences so I can reduce

churn, prevent fraud, maximize campaign results and more?

How can I predict behaviors and preferences so I can reduce

churn, prevent fraud, maximize campaign results and more?

How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?

How can I make decisions in real-time or ahead of a potential issue, instead of making decisions when it is too late?


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Predictive Analytics is a transformational technology that enables more proactive decision making, driving new forms of competitive advantage

Analyzes patterns found in historical and current transaction data as well as attitudinal survey data to predict potential future outcomes

Predictive Analytics offers Unique Insights to Answer those Tough Business Questions


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Introducing SPSS, an IBM Company

A leading provider of predictive analytic software, services and solutions– Software – data collection, text and data mining, advanced statistical

analysis and deployment technologies– Services – implementation, training, consulting, and customization

– Solutions – combine software and services to deliver high-value line-of-business solutions; used for optimizing marketing campaigns, call center effectiveness, identification of fraudulent activity and more

40 years of experience and a broad customer base– 250,000 customers: 100 countries, 50 states, 100% of top universities

Enables decision makers to predict future events and proactively act upon that insight to drive better business

outcomes

Enables decision makers to predict future events and proactively act upon that insight to drive better business

outcomes


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Capture Predict Act

…

…

DataCollection

DeploymentTechnologiesPlatform

Pre-built Content

Statistics

Attract Up-sell Retain

TextMining

DataMining

Data Collection delivers an accurate view of customer

attitudes and opinions

Predictive capabilities bring repeatability to ongoing decision

making, and drive confidence in your results and decisions

Unique deployment technologies and methodologies maximize the

impact of analytics in your operation

Enabling the Predictive Analytics Process


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SPSS Predictive Analytics Software 4 Key Categories

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Data CollectionDelivers accurate view of customer attitudes & opinions

• IBM SPSS Data Collection

StatisticsDrives confidence in your results & decisions

• IBM SPSS Statistics

ModelingBrings repeatability to ongoing decision making

• IBM SPSS Modeler• IBM SPSS Text Analytics

DeploymentMaximizes the impact of analytics in your operation

• IBM SPSS Decision Management• IBM SPSS Collaboration & Deployment Services


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Capture: SPSS Data Collection

Data collection capabilities to capture attributes, interactions, behaviors, and attitudes for customers, employees or constituents

Augments internally captured data with sentiment and opinion data and use this combination as part of the analytic process

Delivers an accurate view of customer attitudes and opinionsDelivers an accurate view of customer attitudes and opinions


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Predict: SPSS Statistics

Advanced statistics and data management for analysts researching business problems

Collection, preparation, analysis, interpretation, explanation and presentation of data

Provides insight into a sample of data and tools for prediction and forecasting based on the data

Drives confidence in your results and decisionsDrives confidence in your results and decisions


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Predict: SPSS Modeler

Workbench with data preparation functions to build analytic streams or jobs and a run time environment for job execution

Set of mining algorithms that provide insight and prediction

Enables the discovery of key insights, patterns and trends in data that can be used to optimize business decisions

Brings repeatability to ongoing decision makingBrings repeatability to ongoing decision making


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Predict: SPSS Text Analytics

Uses natural language processing heuristic rules and statistical techniques to reveal conceptual meaning in text

Extracts concepts from text and categorizes them

Makes unstructured qualitative data more quantifiable, enabling the discovery of key insights from sources such as survey responses, documents, emails, call center notes, web pages, blogs, forums and more

Brings repeatability to ongoing decision makingBrings repeatability to ongoing decision making


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Act: SPSS Decision Management

Set of tools to automate high-volume decision making enterprise-wide

Injects powerful predictive analytics into core business processes

Extends predictive insights to the business user at the point of decision– E.g. Should a claim be ‘fast

tracked’ or evaluated more closely based on a calculated risk score?

Maximizes the impact of analytics in your operationMaximizes the impact of analytics in your operation


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Act: SPSS Collaboration and Deployment Services

Flexible enterprise foundation for managing and deploying analytics throughout the organization

Automates analytical processes

Enables collaboration by securely sharing and reusing analytic assets

Streamlines deployment of analytical information on a scheduled or real-time basis

Maximizes the impact of analytics in your operationMaximizes the impact of analytics in your operation


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SPSS, an IBM Company Uniquely Offers You…

Value of analytics across your organization

– Highly productive, business-friendly predictive modeling, collaboration and deployment services

– Based on the convergence of analytics, architecture and business processes

Open SOA that seamlessly fits your existing environment

– Componentized, enabling it to easily fit within your existing environment, immediately adding value without the need for a “rip and replace” of information infrastructure

– Natural part of a user’s normal activity versus a separate, disconnected application

Deep domain expertise with 40 years experience analyzing data about people

– Ability to dynamically capture attitudes, attributes and behaviors and improve people interactions


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IBM BI and Performance Management Capabilities Help Decision Makers Find the Answers

Why are we on/off track?

How are we doing?

What should we do next?


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SPSS Enables New Solution Value for IBM Cognos Customers

Why are we on/off track?

How are we doing?

What should we do next?

New customer insight through Data Collection

New customer insight through Data Collection

Time series forecasting

Time series forecasting

Predictive analytics for deeper understanding

of the data

Predictive analytics for deeper understanding

of the data

Addition of KPPs (Key Performance

Predictors)

Addition of KPPs (Key Performance

Predictors)

Broad distribution of statistical

results

Broad distribution of statistical

results


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SPSS’ Modeler is Complementary to InfoSphere Warehouse

PMML

SQLTables

PASW ModelerServer

InfoSphere Warehouse

Business Analysts

SPSS Modeler adds business-oriented

predictive modeling and model management

SPSS Modeler adds business-oriented

predictive modeling and model management


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Applying SPSS Portfolio to Accelerate Your Success Example: Customer Intimacy

• Reduces customer defection, increases uplift from cross-sell/up-sell targeting, and improves acquisition of the “right” customers, by enabling decision makers to:• Understand unstructured data that is found in everything from

e-mails, call center notes, blogs, and open ended survey questions• Identify drivers of customer behavior via survey analysis• Identify key performance predictors (KPPs) including customer

defection and outcome of particular customer interactions• Prioritize customer programs as part of real-time decision processes • View customer insights alongside key performance information

through standard IBM reports, analyses and dashboards


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Sample Case Studies: Customer IntimacyGrow and Retain

“The power and ease of use of PASW Statistics enables the AMR Consumer Research department to perform more research than ever before and deliver timely reports while maintaining a small, dedicated staff.”

Grow

“With SPSS, HSBC Bank USA effectively mines an ever-growing file of customer data, creating predictive models to uncover cross-selling and “roll over” sales opportunities.”

Attract, Grow and Retain

“SPSS solutions add intelligence to our business ensuring efficiencies in pricing, marketing and reporting – something no company can afford to ignore in today’s business environment”Hong Juan Liu, R&D AnalystPremierline Direct


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“This is one of the highest ROI scores Nucleus has ever seen in its Real ROI series of research reports” Rebecca Wettemann, VP of Research, Nucleus Research

Customers Experience a Measurable ROI

94% of customers achieved a positive ROI, average payback in 10.7 months

Over 90% of users attributed an increase in productivity to SPSS

81% of projects were deployed on time, 75% on or under budget


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Delivering Customer Value

•Quickly capture and filter in real-time vast amounts of data on critical public health issues found through interviews, email and the Internet

•Now able to better characterize diseases, identify risk factors and quickly assess medical needs of specific populations

•Plot the expected course of outbreaks and plan responses for improved public safety

Center for Disease ControlImprove Health Care and Patient Outcomes


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• Identify early indicators of customer churn using data collection surveys and data and text mining, tailoring direct marketing efforts as a result

•100% improvement in churn detection and an initial reduction in actual churn from 19% to 2%

•53% of its unsatisfied customers became company promoters

Cablecom GmbHReducing Customer Churn


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• Identify and predict crime patterns through timely analysis of incident reports, tips and service calls

•Can now pinpoint “hot spots” and place tactical units where they are needed most

•20-30 % decrease in violent crime and homicides in a 12-month period

Richmond Police DepartmentPredict and Prevent Criminal Activity


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•Real-time claims scoring solution to determine whether claims are legitimate and qualify for immediate approval or are potentially fraudulent and should be further investigated

•Cut referral time from 14 days to less than 24 hours on Special Investigation claims

• Identified and addressed subrogation claims at twice the speed – from 26 to 10 days

Infinity Property and Casualty Corporation Reducing Fraud


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SPSS, an IBM Company Enables Next-Generation Decision Making

A leading provider of predictive analytic software, services and solutions with 40 years of experience and a broad customer base

Enables decision makers across the organization to predict future events and proactively act upon that insight to drive better business outcomes

From sense and respond…From sense and respond………to predict and act!to predict and act!

Documents

Introducing SPSS customer overview