Operational efficiencies stefan baciu

© 2012 IBM Corporation

Business Analytics software

1

Drive the Next Wave of Operational Efficiencies with Analytics

Stefan Baciu

Business Analytics – Channel Sales Manager, South East Europe



2

Agenda

• Processes Continue to be Problematic

• Introducing IBM Operational Analytics

• Attaining Business Value for the Organization



3 3



4 Sources: • The Guardian, May 2010 / IBM Institute for Business Value, 2009 / IBM CIO Study 2010 / IBM CFO Study 2010 /IBM CMO Study 2012

Meeting Priorities is a Challenge Today

1 in 3

Business leaders frequently make decisions based on information they don’t trust, or don’t have

1 in 2 Business leaders say they don’t have access to the information they need to do their jobs



5

Growing complexity of business demands for information

Why?

How are

we doing?

What should

we be doing?

…

Analysis

Reporting

Planning

INT

ER

NA

L

DA

TA

E

XT

ER

NA

L

DA

TA

ERP

MAINFRAME

EXTERNAL

BILLING

HR

CRM

…

Dashboarding

Scorecarding

Budgeting …



6

Organizations drive transformation by

starting with one of these four high-value initiatives

• Churn management

• Social media sentiment analysis

• Propensity to buy/Next best action

• Rolling plan, forecast and budget

• Financial close process automation

• Real-time dashboards

• Predictive maintenance

• Supply chain optimization

• Claims optimization

• Operational and financial risk visibility

• Policy and compliance simplification

• Real-time Fraud identification

1 2 3 4

Grow, retain and satisfy customers

Manage risk, fraud & regulatory compliance

Increase operational efficiency

Transform financial processes



7 © 2013 IBM Corporation 7

Processes Continue to be

Problematic



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Operations is an enterprise-wide responsibility

Business

Partners

Prospective

Employees

Suppliers

Current &

Prospective

Customers

Increase conversion, margin

Reduce sales cycle time

Increase brand preference, especially for

customers with the greatest lifetime value

Improve customer

satisfaction & loyalty

Enable flexible payment

options based on need

Enable employee access to

usable analytics

Manage production

and quality

Understand the met and

unmet needs

Hire capable employees and

enable with appropriate skills

Manufacturing



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Focusing on process improvement remains key for organizations…

Source: CMS Wire

• 74% of best-in-class

corporations state a top

strategic action is to

“improve the efficiency of

manufacturing operations” (Aberdeen Group)

• Companies dedicated to

improving supply chain

hold 15% less inventory,

have 17% stronger

perfect order performance

and 35% shorter cash-to-

cash cycle times (Gartner)

http://www.cmswire.com/cms/information-management/information-management-5-business-process-issues-that-enterprises-need-to-fix-011537.php



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…but meeting Line of Business needs may not be easy

• Lack of insight into

performance

• Rich data, but poor

insight

• Departments not

working towards

common goal

• Inability to accurately

predict

• Disparate sources

• Connecting IT and

Line of Business:

Need to work

together

• Difficulty

synchronizing

demand and supply

(too siloed)

• Losses in processes

have become norm

• Resource complexity

make it harder to

respond to changing

needs

Lack of

Visibility

Disconnected

Processes




Introducing IBM Operational

Analytics



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IBM solutions for Operational Analytics improves process efficiency

Reporting, Analysis, & Predictions

Scorecarding &

Dashboarding

Modeling

Planning, Budgeting & Forecasting

Resource Optimization

Predictive Analytics Statistical

Analysis

Data & Text Mining

Business Rules & Optimization

Forecasting & Simulation

Real-time Decisions Softw

are

Ca

pa

bili

tie

s

Operational

Analytics

Solutions

Pla

n

Manage

Maxim

ize

Plan for operational success

• Align corporate supply with customer demand with sales and

operations planning

Manage day-to-day operations

• Ensure the right quantity of the right product is available at

the right time and location with inventory management

Maximize operational performance

• Improve fraudulent identification with claims optimization



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Operational Analytics for process efficiency leverages several analytics capabilities

First

notification

of loss

Request

additional

information

In-depth

investigation

Payment

& closing

SIU

Subrogation

Assessors

Analyze claims by priority and

rules

Forecast reserve amount and

identify outliers

Allocate and prioritize resources

by scoring claims

Analyze customer information

and predict products to up- and

cross-sell

Allocate and prioritize resources

by scoring claims

Examples of Processes

•Claims •Inventory •Sales and

Operations planning •Warranty •Quality •Financial •Legal



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Failure Pattern Association

An Utility Company wanted to understand what environmental or other factors influenced asset

reliability and identify assets likely to fail

• Failure Predictions according to Associative Factors

Failures and Associations

Consolidation

Usage Data Asset Data Weather Traffic

Patterns Work Order

Data Failure/ Cause

Codes

Energy and Utilities Uses

Use to mine data associations between gas pipe failure and outside influences, such as temperature and traffic, to mitigate issues prior to failure

Associate power line failure according to population growth patterns, weather events or vegetation clearing activities and adjust planning accordingly

Solution

Apply Associated Prediction Models

Business Problem



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Usage Analysis

Utility Company wanted to analyze usage patterns to better understand

seasonal fluctuations, defective meters, customer segmentation and

capacity planning

Consolidation of Usage

and Customer Data

Customer Data Utility Usage

Data Asset Usage

Data

0

200

400

600

800

1000

1200

1400

1600

1 66 131 196 261 326 391 456 521 586 651 716 781 846 911 976 1041 1106 1171

0

200

400

600

800

1000

1200

1400

1600

1800

1 66 131 196 261 326 391 456 521 586 651 716 781 846 911 976 1041 1106 1171

Usage/Revenue Optimization

Global Usage Analysis

Customer Segmentation

Usage Anomaly

Energy and Utilities Uses Understand Customer Behavior and Usage Patterns Detect Defective Meters Understand Percent of Capacity Used Plan for expansion

Solution

Usage and Customer Analysis

Business Problem

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IBM Operational Analytics for Process Efficiency leverages every aspect of the analytical process

Reports, KPIs, KPPs

Analyses

Scoring

Define Thresholds

Determine the level of Risk

Define List Assign weight

(points) to each indicator

... Domain Expertise

Process data

Supplier data

External data

Process Time

Costs

Efficiency

Production

Delivery Quality

Environment

Partner information Customer information

System notifications Email

Reports Dashboards

...

Anticipate Act Align




Attaining Business Value for

the Organization



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Process improvement provides the largest return when it becomes core to the organization

Source: Wordpress

http://iangotts.wordpress.com/2011/03/03/we-are-an-smb-business-bpm-is-an-expensive-unnecessary-overhead-bpm-iso27001-salesforce-com/



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Brammer Group increases inventory process efficiency

Smarter inventory management

Need:

Results:

• Increased inventory turnover by 17%

• Accelerated report creation

by up to 97% providing

near real-time analysis

Visibility and analysis of

all inventory

Optimize processes for

maximum efficiency



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Analytics can break process monotony for IT and Line of Business



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• Automate high-volume decisions • Optimize constraints

and trade-offs of resources • Operational excellence through rules-

based governance Business

Rules Optimization

Decision

Management

Predictive

Analytics



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Next Steps

Identify which business problems are ripe

for improvement 1

2

3

Diagram the process for that specific

business problem

Ensure metrics for success are identified

and agreed upon

Map a course of analytical and decision

maturity for rapid value 4



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Thank You!



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Technology

Operational efficiencies stefan baciu