Embed Size (px)
Citation preview
October 1, 2009 • Johannesburg, South Africa
Business Analytics and OptimisationShane Radford Global Business Service Associate PartnerBusiness Analytics and Optimisation Lead
Why now for Business Analytics?
22
A new imperative has emerged for enterprises to aggressively pursue business
analytics and optimize their businesses in order to address important and
complex business and societal opportunities.
Business Analytics and Optimization brings together the comprehensive services
and leading edge industry solutions that enable organizations to make and act upon
critical decisions. We help our clients realize their strategies through information
management, advanced analytics and process management while leveraging the
power of smarter technology.
Volume of Digital DataEvery day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries.
By 2010, the codified information base of the world is expected to double every 11 hours.
44
Variety of InformationToday, 80% of new data growth is unstructured content, generated largely by email, with increasing contribution by documents, images, and video and audio
38% of email archiving decisions receive input from a C-level executive and 23% from legal/compliance professional
55
Velocity of Decision Making70% 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
66
What’s happening?
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
IBM report surveyed 225 business leaders worldwide
77
Business leaders regard their experience and intuition as inadequate tools for optimising their enterprises
Enterprises are making important decisions without access to the right information
Enterprises are making important decisions without access to the right information
It’s not too late to start
1 in 3business leaders frequently make critical decisions without the information they need
53%don’t have access to the information across their organisation needed to do their jobs
Organisations are operating with blind spots
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
Factors supporting major decisions
79 %
52 %
62 %
To a little extent
To a great
extent
AnalyticsPersonal Experience
Collective Experience
88
Organisations need to adopt new ways to improve speed to insight and speed to impact
Traditional Approach New Approach
Instinct and intuition Fact-driven
Corrective Directive
Efficient Optimised
Years, months, weeks Hours, minutes, seconds
Human insight Applied semantics
Decision support Action support
2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf
99
What is an Intelligent Enterprise?
1010
Intelligent Enterprises pursue value along multiple dimensions
Profitable Growth
Lower Costs Manage Risk
Accelerating Performance
Outperform Peers
Deeper Insight Innovate to lead
Competitive differentiation
Trusted Information
Empowered Workforce
Continuous Improvement
Operating Effectiveness
1111
Analytics is the next bow wave of business change
Task/Process Automation
Business Efficiency
Cross-Functional Integration
Enterprise integration
Aggregation and data warehouse
Recording and Reporting
Performance measurement
Detection, direction & prediction
Business process management & Business Intelligence
Resource planning (e.g., ERP, CRM)
Transactional automation adoption (POS, accounting)
Business Analytics and Optimisation
* 2009 IT Spending Estimates for Business Optimisation
$105bn*
Business Optimization
Objectives
Analytics and Intelligence Objectives
Major Eras in Modern Business Automation
1212
Intelligent Enterprises integrate information into business decisions and insight into operations
Heroics
Foundational
Competitive
Differentiating
•Spreadsheets•Extracts
•Data Warehouses•Data Governance•Production reporting
•Contextual Business rules
•Pattern recognition
•Process Automation and Workflow
•Master Data Management•Metrics•Dashboards/Scorecards
•Command and control
•Task automation (eg, ERP)
•Workgroup Design
•SOPs
•Customer and Partner Collaboration
•Business Process Integration
Break-awayIntelligent Enterprise
1313
Business Optimisation
How the business applies information to achieve it’s goals
• Policies • Biz Processes
How the business manages information and learns from it
Business Analytics
BAO Maturity Stage
Intelligent Enterprises integrate information into business decisions and insight into operations
Business Optimisation
Business Analytics
How the business applies information to achieve it’s goals
• Policies • Biz Processes
How the business manages information and learns from it
BAO Maturity Stage
Heroics
Foundational
Competitive
Differentiating
•Spreadsheets•Extracts
•Data Warehouses•Data Governance•Production reporting
•Contextual Business rules
•Pattern recognition
•Process Automation and Workflow
•Master Data Management•Metrics•Dashboards/Scorecards
•Command and control
•Task automation (eg, ERP)
•Workgroup Design
•SOPs
•Customer and Partner Collaboration
•Business Process Integration
Break-awayIntelligent Enterprise
• Customer loyalty and event management
• Risk Management
• Segment-specific products and pricing
• Supply chain optimization
• Data and Analytics simplification
• Credit Risk assessment
• Single view of the customer
• Marketing Dashboard
• Quality management
• Brand and reputation analysis
1414
The intelligent enterprise is…
Acce
lera
ted
Perfo
rman
ce
Competitive
Differentiation
Operating Effectiveness
Anticipating
Precise
Aware
Questioning
Empowering Linked
1515
Where to start?
1616
Most organisations focus on individual functions. Over-performers focus on the enterprise level.
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
8XIndustry out-performers are 8X more likely to pursue BAO at an enterprise level than industry under-performers
50% Roughly half of organizations are pursuing BAO at a functional level (e.g., Finance, Sales, Marketing)
2%
17%
Not interested in pursuing BAO at any level
Under-performers Over-performers
1717
Business analytics and optimisation requires a new set of skills
Business Analytics and Optimisation
Strategy
Business Intelligence & Performance Management
Advanced Analytics and Optimisation
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 optimisation 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 optimisation initiatives
• Manage document & records, including archives
• Manage structured and unstructured content
• Manage digital assets & rights
• Provide efficiency and transparency to complicated workflows
1818
Conclusion
19
New complexity creates an imperative
for change
Enterprises must fundamentally change
the way they work
IBM brings the comprehensive
solutions enterprises need
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.
IBM has created a new GBS service line -
Business Analytics and Optimization - to bring
together world class capabilities for our clients.
