Cognos and SPSS: Putting Business Analytics to Work Simon Ng Senior Client Technical Professional, Business Analytics, IBM HK

Cognos and SPSS: Putting Business Analytics to Work

Simon NgSenior Client Technical Professional, Business Analytics, IBM HK

Business Analytics and Optimization is the next big investment area for companies – similar to ERP or CRM in the past

3

TransactionalAutomation

Business Process Management

Resource Planning

• Task / Process Automation

• Recording & Reporting

Business Analytics & Optimization

• Business Efficiency• Aggregation and Data

Warehousing

• Cross-functional Integration

• Performance Measurement

• Enterprise Integration• Detection, Direction &

Prediction

$566B 3% CGR*$105B 8% CGR*

Source: IBM Analysis on addressable market opportunity based on GMV 1H09 data; includes addressable Hardware, Software and Services opportunity. CGRs 2009-2012

IDC Business Analytics Software Market

4

Business Analytics Software

Performance Management Tools and Applications

Analytic ApplicationsAnalytic Applications Business Intelligence ToolsBusiness Intelligence Tools

Query, Reporting and AnalysisIncludes dashboards, production reporting, OLAP, ad-hoc query

Query, Reporting and AnalysisIncludes dashboards, production reporting, OLAP, ad-hoc query

$6.5B 4.2% 6.9%

Advanced AnalyticsIncludes Data Mining and StatisticsAdvanced AnalyticsIncludes Data Mining and Statistics

$1.6B 5.2% 7.1%

$8.1B 4.4% 6.9%

Analytic Spatial Info Mgmt ToolsAnalytic Spatial Info Mgmt Tools

$0.7B 4.0% 6.5%

Financial Performance & Strategy Mgmt AnalyticsBudgeting, planning, consolidation, profitability mgmt/ ABC, scorecards

Financial Performance & Strategy Mgmt AnalyticsBudgeting, planning, consolidation, profitability mgmt/ ABC, scorecards

$2.3B 5.1% 8.1%

CRM AnalyticsSales, customer service, contact center, web site analytics, marketing, price optimization

CRM AnalyticsSales, customer service, contact center, web site analytics, marketing, price optimization

$1.9B 4.5% 9.6%

Workforce AnalyticsWorkforce Analytics

$0.23B 6.1% 7.8%

Production PlanningProduction Planning

$1.2B 1.1% 4.3%

Services Operations AnalyticsOperational analytics in financial services, education, government, healthcare, etc.

Services Operations AnalyticsOperational analytics in financial services, education, government, healthcare, etc.

$1.4B 2.1% 5.1%

Supply Chain AnalyticsRelated to procurement, logistics, inventory, manufacturing

Supply Chain AnalyticsRelated to procurement, logistics, inventory, manufacturing

$1.6B 1.8% 5.1%

’09 Market Estimate, projected 08-09 growth, 5 yr CAGR 08-13

Data Warehouse PlatformDW management and DW generation (ETL+ portions of Data Quality)Data Warehouse PlatformDW management and DW generation (ETL+ portions of Data Quality)

$7.5B 4.1% 7.9%

$25.1B 3.9% 7.2%

Source: IDC Worldwide Business Analytics Software 2008-2012 Forecast and, July 2009

$8.7B 3.3% 7%

IBM Investing in Business Analytics

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• Over $12B in software investments since 2005

• A top IBM Corporate Growth Priority for 2010

• Extensive internal deployment of Analytics to Improve IBM Business Performance

• New division for Business Analytics

• Over 4,000 dedicated BAO consultants

• Creation of 6 BAO Analytic Solution Centers

• Strong linkage to Large Math Department focused on Computational Mathematics and real world applications

“IBM, not SAP or Oracle, is now the industry's premo analytics solution/platform vendor…”

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Autonomic OperationsDeveloper Productivity

Deep Compression

pureXML

pureScale

Pervasive Content

Stream Computing

Content Analytics

Advanced Case Management

Workload Optimized Systems

Social Analytics/Consumer Insight

2011

2005

Decision Management

• $14B+ in Acquisitions Since 2005

• 10,000+ Technical Professionals

• 7,500+ Dedicated Consultants

• Largest Math Department in Private Industry

• 27,000+ Business Partner Certifications

• 8 Analytics Solutions Centers

• Optimized hardware and software offerings

• 100 analytics-based research assets;almost 300 researchers

• Significant marketing investment worldwide through Smarter Planet

IBM is Helping Clients Maximize Results with Innovation That Matters

BAO Gives Businesses an Entirely New Way to Compete But Most Have Yet to Take BAO the Full Distance and need a Journey Partner

Bus

ines

s op

erat

ions

mat

urity

Information and analytics maturity

How the business applies information to achieve its goals• Policies • Business Processes• Organization

How the business manages information and learns from it

Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations available in late 2009 at www.ibm.com/gbs/intelligent-enterprise

Spreadsheets and extracts

Data warehouses, governance and production reporting

Process automation and workflow

Master data management, dashboards and scorecards

Command and control

Task integration (e.g., ERP)

Business process integration (e.g., CRM) and collaboration

Predictions, contextual business rules and patterns

BreakawayPrescriptive, real-time,

pattern-based strategies with situational context

Ad hoc

Foundational

Competitive

Differentiating

http://www.ibm.com/gbs/intelligent-enterprise

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• Open Heterogeneous Leverage, IBM Compelling

• Industry Recognized Leadership in each Category

• Packaged, prescriptive solutions• Graduate from Entry Points without

the need to re-tool/ re-vendor• Optimized Delivery including

Virtualization, Appliances, SAAS/Cloud (consider how to further leverage Z Series which has the multi-tenancy, scale, and Green IT positive footprint for Enterprise 2.0)

Prescriptive Whole Information Stack - Traditionally or Virtually

Portals

Dashboards

BI/PM Capabilities

Enterprise Content Management

Enterprise Search

Metadata Management/Dimensionality

Master Data Management

ETL/Data Warehouse/Data Movement/Data Quality

Database

On-Demand

Web Platform

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Best in Class – Performance Management

Enterprise Planning – combining the best of Cognos Planning and TM1 to achieve high user and high model/ data scale - Driver and Action Based Pervasive Planning

Real-Time Metric Management

Enterprise Consolidation

GRC solutions to drive accountability-based platform with Scorecards/Dashboards, Financial Controls in Consolidation and Planning, Records Management

Enterprise Ready, Simplicity, Ease-of-use, “owned by the business”

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Enterprise 2.0 - Capture the Hearts and minds of the Next Generation Knowledge Worker

Current Generation:Linking information to makethe decision makersmore effective

Next Generation:Linking the decision makersto make the enterprisemore effective

Surround data with metadata to create an information network

Surround people with metadata to create a decision-making network

Enterprise spending on Web 2.0 expected to grow 43% to 4.6B in 5 years - Forrester Research

Search and Social Networking convergence with Performance Management

Collaborative Decision Making and Decision Capture

Collaborative Tagging (Folksonomy), Touch and TelePresence

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Analytics Landscape & IBM’s Software Footprint in These Areas

Degree of Complexity

Com

petit

ive

Adv

anta

ge

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?

http://www.spss.com/

12

IBM BA Broad and Complete Portfolio

IBM BAO - Leadership Portfolio

Data Integration

CPM

Data Mining

Warehousing

BI

14BAO SIMPLIFICATION AND INTEGRATION

Business Analytics Drivers

Finance

Supply Chain

Human Capital

Customer

Industry Specific

A N

A L

Y T

I C A

R E

A S

Globally Integrated, Market Leading Capabilities

Financial Performance & Strategy Management

Predictive and Advanced Analytics

Governance Risk and Compliance

Analytic Applications

Business Intelligence

Business Users EvolvingRole centric capabilities are giving way to different styles of interaction driven by business need

Information GrowthWorldwide volume of digital data was 800,000 petabytes in 2009, 1.2 million petabytes in 2010, 35 million petabytes by 2020

Business Pace AcceleratingToday’s online business cycles are 3-7 times shorter

Changing Workforce

Volume of Digital Data

Speed of Business


Strategic Focus on Business Intelligence

Finance

Supply Chain

Human Capital

Customer

Industry Specific

A N

A L

Y T

I C A

R E

A S







Continued investment to Address Key Business Problems:Business users want to explore data , but User Interfaces are too complexReporting on corporate history is insufficient to ensure good business decisionsData Volumes and User Counts are growing but IT budgets are notBusiness Intelligence needs to be available pervasively, not isolated in BI applications


Strategic Focus on Finance and Risk

Supply Chain

Human Capital

Customer

Industry Specific

A N

A L

Y T

I C A

R E

A S


IBM’s offerings provides a set of pre-integrated solutions, built on our highly scalable platform to: Plan, forecast and control

enterprise resources;

Measure, analyze and optimize performance;

Identify and manage key business risks across the enterprise;

Report to external stakeholders with confidence

Enterprise Governance

Risk and Compliance

Financial Performance &

Strategy Management

AND• Business Intelligence• Predictive Analytics• Enterprise Information

Management

Finance


Business Analytics Solutions




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BAO SIMPLIFICATION AND INTEGRATION

Finance

Supply Chain

Human Capital

Customer

Industry Specific

A N

A L

Y T

I C A

R E

A S







Investment areas:User-centered innovation to support individual insight and collective agilityDrive pervasive reach deeper and across functional domainsUnify processes to drive speed and confidenceEnsure continuous relevance with information integration and governance

Strategic Focus in Financial Performance & Strategy Management



Finance

Supply Chain

Human Capital

Customer

Industry Specific

A N

A L

Y T

I C A

R E

A S








Strategic Focus on Predictive and Advanced Analytics

Finance

Supply Chain

Human Capital

Customer

Industry Specific

A N

A L

Y T

I C A

R E

A S







• Full breadth of predictive analytics

• Data collection, statistics, data mining, predictive modeling, deployment services…

• Putting Prediction in the Hands of the Business User

• Decision Management

• Integration with Cognos Platform and products

• Massively scalable analytics

• Extending Built-in Domain Expertise and Configurability

with Industry solutions

• 17 domain packs (including Insurance and Marketing…)

• Built in Solutions for Sales and HR

• Deployment Flexibility

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Strategic Tactical Operational

Years Months Weeks Days Hours Now

Improve policy makers’ decisions with Forecasts and Optimization

Help individual contributors take the Next Best Action

Define the Strategy Run the Business

Time to Business Impact

Improve senior management visibility with Key Performance Predictors

How Predictive Analytics Provides Value:Harmonizing Decisions Across the Enterprise


Strategic Focus on Customer

Supply Chain

Human Capital

Industry Specific

A N

A L

Y T

I C A

R E

A S


Finance

Customer

IBM’s Customer Care & Insight offerings address understanding customer patterns through analytics, identifying target customers and linking the findings with the business processes as actions to provide better customer value and/or prevent fraud and risks

Customer Information Optimization:

Customer Insight Optimization:

Multi-Channel Customer Experience Optimization:

Campaign & Promotion Management:

Threat & Fraud Management:






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Enhance Your Reputation

Understand your customer needs to target new offers and products more cost-effectively through different social media channels

Create Relationships. Build Advocacy. Improve Loyalty.

Evaluate your corporate reputation and make evidence-based messaging decisions that target the right stakeholders at the right time

Improve your customer experience

Respond more quickly with accurate, timely and relevant insight into customer requests to ensure a consistent brand experience across all channels

Grow Your Business

We provide analytics that listen, measure and analyze social media performance to more effectively:

Predictive & Customer Analytics

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Product Capabilities

BLOGSBLOGS

DISCUSSION FORUMSDISCUSSION FORUMS

TWITTERTWITTER

NEWSGROUPSNEWSGROUPS

FACEBOOKFACEBOOK

Source Areas

Dimensional Analysis

Filtering Voice

Keyword Search Dimensional

Navigation Drill Through to

Content

Relevant Topics Associated Themes Ranking and Volume

Relationship Tables Relationship Matrix Relationship Graph

COMPREHENSIVE ANALYSIS

SENTIMENT

EVOLVING TOPICSAFFINITY ANALYTICS

Business Drivers

Customer CareCustomer CareCorporate ReputationCorporate Reputation

Campaign EffectivenessCampaign Effectiveness

Competitive Analysis

Product Insight

MULTILINGUALMULTILINGUAL

IBM Cognos Consumer Insight

Advanced analytics extending from the domain of science & engineering to the world of business

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• Fueled by the availability of data, computational power and the need to make better choices

• IBM is positioned for leadership in the new era of data-driven business management

• IBM's advanced analytics capability is a marketplace differentiator

• Our collaboration with clients is enabling discovery in new areas

• Significant research opportunity remains

Models

Analytics

Data

Insight

Business Benefit

25

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Synergy across IBM Software to Deliver Strategic Solutions

• Collaboration for decision making

• Business Optimization and process

• Information Agenda

• Governance and Regulatory Compliance

• Standardization / TCO

• Workload Optimized Systems

Strategic Initiatives that Drive Synergy Requirements Trusted Information

• Trusted information (data lineage, business glossary)

• Advanced analytics – in database mining• Streams and Entity Analytics• Workload optimized

systems (i.e. IBM Smart Analytics System)

Collaboration• Collaborative decision-making

partnership• Increased user adoption

Business Integration & SOA

Security & System Managementing

Rules

Development & Project Management Tools

ECM• Cognos Content Analytics• Governance & Compliance• Content management

Business Analytics• Business Intelligence• Financial Performance

Management• Information Applications• Predictive Analytics

Thank You!

Documents

Cognos and SPSS: Putting Business Analytics to Work Simon Ng Senior Client Technical Professional, Business Analytics, IBM HK