Smarter Analytics giver dig indsigt i hele forretningen, Rich Holada, IBM US

© 2012 IBM Corporation

IBM Smarter Analytics

September 18, 2012

© 2012 IBM Corporation2

Four years ago, we started working with organizations to build a smarter planet.

Through thousands of client engagements, we learned that analytics is fundamental to success.


• From business initiative to business imperative

• From enterprise data to big data • From advancing single organizations to

transforming entire industries

Since then, analytics has continued to evolve:


Respondents who say analytics creates a competitive advantage

57%increase

Organizations achievinga competitive advantage with analytics are

2.2xmore likely to substantially outperform their industry peers

Ratio of respondents who indicated analytics creates a competitive advantage to those who indicated it did not and the likelihood they also indicated their organizations was “substantially outperforming their competitive peers.” The ratio was 2.0 to 1 in 2010.

Analytically sophisticated companies outperform their competition

2010

58%2011

37%

Analytics has evolved from business initiative to business imperative

Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research partnership. Copyright © Massachusetts Institute of Technology 2011


Analytics is expanding from enterprise data to big data

from surveillance cameras trade events per second

meter readings per annum

Analyze product sentiment

Predict power consumption

Monitor events of interestIdentify potential fraud

Prevent customer churn

call detail records per day are images, video, documents…

Improve customer satisfaction

Volume Velocity Variety

5 100’sof Tweets create daily

12 terabytesvideo feeds million

350 billion 500 million 80% data growth


Analytics is progressing from the possible to the proven

Vestas did!

• Reduced response time for wind forecasting from weeks to hours

• Shortened time to develop a wind turbine site by nearly a month

What if…You could pinpoint optimal location for wind turbines to maximize power generation and reduce energy costs by analyzing 2.8 petabytes of climate data?

What if…

McKesson did!

• Transformed their supply chain

• Reduced working capital by more than US$100 million.

You could optimize inventory and free up capital using a highly accurate view cost-to-serve by product line, transportation and carbon footprint?

What if…

XO Communications did!

• Reduced churn rate by 35% in the first year

• Improved billed revenue retention rate by 60%

• Achieved 376% ROI in 5 months

You could identify your clients who are in danger of churning before they would even know themselves?


Organizations drive transformation by starting with one of these four high-value initiatives

Examples:

• Churn management• Social media sentiment analysis• Propensity to buy/Next best action

• Rolling plan, forecast and budget • Financial close process automation • Real-time dashboards

• Rolling plan, forecast and budget • Financial close process automation • Real-time dashboards

• Predictive maintenance • Supply chain optimization• Claims optimization

• Predictive maintenance • Supply chain optimization• Claims optimization

• Operational and financial risk visibility• Policy and compliance simplification• Real-time Fraud identification

• Operational and financial risk visibility• Policy and compliance simplification• Real-time Fraud identification

1234

Grow, retain and satisfy customers

Manage risk, fraud & regulatory compliance

Increase operational efficiency

Transform financial processes


IBM Smarter Analytics is a holistic approach that turns information into insight and insight into business outcomes.

from solutions that get smarter with every outcome

through analytics for breakaway results

with confidence at the point of impact to optimize outcomes

see, predict and shape business outcomes

your organization around information

Align Anticipate Act

Transform

Learn


Align your organization around information

Fully exploit all sources of data and content for insightFully exploit all sources of data and content for insight

Only IBM offers an enterprise-class big data Platform as part of a comprehensive information management foundation.

Deploy an information and big data strategy that flows from your business strategy.

Create a trusted information foundation that improves IT economics and optimizes analytic workload performance.

Integrate and govern information to ensure business confidence.

Instrument the lifecycle governance of content to ensure the right information is captured, activated and accessible while unnecessary data is promptly disposed

Leverage the volume, velocity and variety of internal and external information in context for new, deeper insights.


Anticipate to see, predict, and shape business outcomes

Leveraging business analytics to deliver actionable insights

Leveraging all information, all people, all perspectives and enabling all decisionsLeveraging all information, all people, all perspectives and enabling all decisions

Financial PerformanceManagement

Financial PerformanceManagement

Predictive AnalyticsPredictive Analytics

RiskAnalyticsRiskAnalytics

Business IntelligenceBusiness Intelligence

Content AnalyticsContent Analytics

Only IBM offers comprehensive analytic capabilities that are dually specialized to the task and interconnected to facilitate shared insights

Spot and analyze trends and anomalies

Predict potential threats and opportunities

Plan, budget, and forecast resources

Assess and manage risk

Compare “what-if” scenarios

Measure and monitor business performance

Automate decisions

Align strategic and operational decisions


Act with confidence at the point of impact to optimize outcomes

Embedding past, present and future insights into your operations and processes

Embed analytics into your processes and empower a culture of data-driven decision making

Embed analytics into organizational processes to guide and optimize day-to-day operations and future strategies

Leverage proven solutions and models designed and tuned for the task

Empower people with historic, real-time, and predictive insights

Establish a culture that believes in and fosters analytics-based decision making

Only IBM enables organizations to take the best action based on predictive analytics, process models, and optimization technologies to achieve better outcomes


Transform through analytics for breakaway results

Enabling you to go beyond solving the problem to capturing new opportunities

Accelerate the time to value and deliver game-changing resultsAccelerate the time to value and deliver game-changing results

Develop a clear analytics strategy aligned to business priorities and desired outcomes

Challenge current thinking, explore new ideas, and follow the facts to innovate

Enhance current approach with analytics advancements and innovation

Utilize proven industry solutions, use cases, and accelerators to deliver rapid value

Go beyond solving problems to identifying new opportunities and sources of value

Develop a clear analytics strategy aligned to business priorities and desired outcomes

Challenge current thinking, explore new ideas, and follow the facts to innovate

Enhance current approach with analytics advancements and innovation

Utilize proven industry solutions, use cases, and accelerators to deliver rapid value

Go beyond solving problems to identifying new opportunities and sources of value

Only IBM provides market-leading services, proven solutions, use cases, accelerators, and world-class research to enable breakaway results


Learn from solutions that get smarter with every outcome

Natural language

Hypothesistesting Evidence-based

learning3

1

2

Moving your organization from search to discovery, from possibilities to probabilities, and from simple outputs to intelligent options

Solutions that can learn from evidence and outcomes to get smarter with each iteration

Capable of navigating the complexities of human speech through natural language processing

Dynamically generating and evaluating possible hypotheses to the most complex questions

Applying advanced analytics to weight and evaluate responses that are optimized based on only relevant information

Continuously ingesting and analyzing Big Data and discovering new patterns and insights in a matter of seconds

Smart enough to reason and return confidence-based responses for the next best action

Only IBM brings together the technologies that define the next generation of Smarter Analytics solutions that can reason and learn.


Why is IBM Smarter Analytics unparalleled in the industry?

Broad and integrated portfolio of information and analytics capabilities• Largest investment in analytics software and solutions with over $16B in acquisitions since 2005

• Enterprise Class Big Data Platform as part of a comprehensive Information Management Foundation

• Analytic Capabilities that scale from personal to enterprise to next generation systems that reason and learn

• Decision management solutions that embed predictive analytics into business processes

Broad and integrated portfolio of information and analytics capabilities• Largest investment in analytics software and solutions with over $16B in acquisitions since 2005

• Enterprise Class Big Data Platform as part of a comprehensive Information Management Foundation

• Analytic Capabilities that scale from personal to enterprise to next generation systems that reason and learn

• Decision management solutions that embed predictive analytics into business processes

Proven experience accelerating time-to-value and delivering breakaway results • Over 9,000 experienced strategy, analytics, and technology experts and consultants around the globe

• Proven solutions & use cases across industries and functions, from 1000’s of client engagements

• Thought leadership and practical insights from the IBM Institute for Business Value

• Jumpstart services and eight global IBM Analytics Solution Centers to help organizations get started

Proven experience accelerating time-to-value and delivering breakaway results • Over 9,000 experienced strategy, analytics, and technology experts and consultants around the globe

• Proven solutions & use cases across industries and functions, from 1000’s of client engagements

• Thought leadership and practical insights from the IBM Institute for Business Value

• Jumpstart services and eight global IBM Analytics Solution Centers to help organizations get started

Comprehensive delivery options to compliment capabilities and lower TCOBroad range of implementation models, including:• System Integration, Consultancy, Transformation

• Application Management Services

• Appliance, Hardware, Cloud, Mobile

Comprehensive delivery options to compliment capabilities and lower TCOBroad range of implementation models, including:• System Integration, Consultancy, Transformation

• Application Management Services

• Appliance, Hardware, Cloud, Mobile

Advanced technology and expertise applying innovation to real world problems• First-of-its-kind breakthrough innovations, including IBM Watson

• World’s largest math department in private industry since 1960

• Nearly 600 analytics patents per year and first in patent ranking

Advanced technology and expertise applying innovation to real world problems• First-of-its-kind breakthrough innovations, including IBM Watson

• World’s largest math department in private industry since 1960

• Nearly 600 analytics patents per year and first in patent ranking


Getting started

Develop an Information Agenda to plan for the future

Focus on the biggest and highest value opportunities

Embed insights to drive actions and deliver value

Start with questions, not with data

1

34

2

5

Keep existing capabilities while adding new ones

Source: Analytics: The new path to value, a joint study by MIT Sloan Management Review and IBM Institute for Business Value. (c) Massachusetts Institute of Technology 2010.


A smarter planet is built on Smarter Analytics



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Back-up

IBM Smarter Analytics Signature Solutions

“What If” Examples

Client Success Stories


Overview

TackleHigh-value initiatives

Address industry imperatives and critical processes

Deliver Proven outcomes

Built on a rich portfolio of analytics capabilities and IBM innovations implemented at clients world-wide

Accelerate Time-to-value

Faster return-on-investment with short-term projects that support the long-term roadmap

IBM Smarter Analytics Signature Solutions A portfolio of outcome-based analytics solutions that address the most pressing industry and functional challenges by bringing together the breadth and depth of IBM’s intellectual capital, software, infrastructure, research, and consulting services to deliver break-away results.


Customernext best action

Optimize across touchpoints to drive loyalty and profitability

Fraudanti-fraud, waste, and abuseDetect fraudulent behavior before payment

FinanceCFO performance insightImprove visibility, insight, and control over performance

Banking/FMTelco GovernmentHealthcareInsurance

IBM Smarter Analytics Signature SolutionsIndustry expertise and state-of-the-art analytics applied to real-world problems

You could increase customer value with every interaction?

You could anticipate and shape the impact of financial decisions?

You could prevent and minimize losses stemming from fraud?

What if… What if… What if…

InsuranceCross-Industry


Back-up

IBM Smarter Analytics Signature Solution

“What If” Examples




What if…

McKesson did!

• Transformed their supply chain

• Reduced working capital by more than US$100 million.

Vestas did!

• Reduced response time for wind forecasting from weeks to hours

• Shortened time to develop a wind turbine site by nearly a month

What if…You could pinpoint optimal location for wind turbines to maximize power generation and reduce energy costs by analyzing 2.8 petabytes of climate data?

You could optimize inventory and free up capital using a highly accurate view cost-to-serve by product line, transportation and carbon footprint?

• Reduced serious crime by 30 percent and violent crime by 15 percent

• Improved allocation of police resources efficiently

You could reduce crime by recognizing crime trends as they are happening, anticipating future crime hot spots, and directing police resources proactively?

What if…

Memphis P.D. Did!



Becker Underwood did!

• Increased inventory turns of 50 percent over three years

• Increased forecast accuracy by up to 15 percent.

What if…You could increase inventory turns by incorporating customer and product-level plans into a 12-month rolling forecast?

What if…

HealthNow did!

• Saved $5 million by reducing duplicate/incorrect mailings

• Reduced ER visits and hospitalizations

You could improve healthcare, communication and lower costs by creating single view of a member across 60 repositories?

What if…

Del Monte did!

• Accelerated productivity savings to approximately $100 million per year

• Optimized transportation costs to save over40 million miles.

You could increase productivity and reduce costs to boost financial performance as part of a best in class, corporate-wide productivity initiative?


You could identify new commercial opportunities for your research?

• Used advanced contextual data analytics to discover and process a research asset from months to as little as 7 days

• Increased the list of potential license partners by 300%

You could reduce the cost of patient readmissions and proactively provide optimal patient treatment?

• Uncovered top 18 indicators for CHF patient readmissions. Seton now provides targeted patient care to prevent readmissions and avoid unnecessary costs.

You could implement a defensible approach to only retaining data of business value and regulatory need?

• Reduced costs and lowered litigation risk by increasing the ability 10-fold to dispose of unnecessary data


What if…

North Carolina State did!

What if…

Seton Healthcare did!

What if…

Novartis did!


Back-up

IBM Smarter Analytics Signature Solution

“What If” examples



Increase operational efficiency:

What if you could analyze climate data to generate more power?

Challenge Pinpoint optimal location for wind turbines to maximize

power generation and reduce energy costs.

Solution Analyzed 2.8 petabytes of climate data using big data platform to predict weather patterns at potential sites.

Reduced IT footprint and costs, and decreased energy consumption by 40 percent.

Results Reduced response time for wind forecasting information

by approximately 97 percent — from weeks to hours.

Improved accuracy of turbine placement shortened the time to develop a wind turbine site by nearly a month.

Lowered the cost to customers per kilowatt hour produced and increased customers’ return on investment.

Vestas Wind Systems has installed more than 43,000 wind turbines in 66 countries worldwide. Its turbines generate more than 90 million megawatt-hours of energy per year.



What if you could optimize inventory and free up capital?

McKesson Corporation is the world’s largest healthcare services company and the largest pharmaceutical distributor in North America—providing one-third of the medicines used every day.

Challenge Company leaders recognized that their operations were so

complex that they no longer could be managed without analytics.

Solution Developed a supply chain model that provides a highly

accurate view of its cost-to-serve—by product lines, transportation and even carbon footprint.

Applied advanced analytics to optimize the physical placement of inventory within its distribution centers.

Results Ability to assess changes in its policies and supply

chains has helped it increase customer responsiveness.

Transformed supply chain thereby reducing working capital by more than US$100 million.



What if you could increase inventory turns?

Challenge Corporate expansion through acquisitions and organic

growth resulted in lack of visibility and consistency.

Solution Implemented planning to achieve quick, high impact results

focused on sales and the order/refresh process.

Incorporated customer and product-level plans into a 12-month rolling forecast for greater visibility.

Results Resolved supply chain issues resulting in increased

inventory turns of 50 percent over three years.

Incorporated order data into the forecast process and increased accuracy by up to 15 percent.

Better access to information across the organization has led to better customer service and shorter lead times.

Becker Underwood produces specialty bio-agronomic and colorant products. Founded in 1982 and headquartered in Ames, Iowa, the company’s annual revenues are more than $150 million.



What if you could improve healthcare, communication and lower costs?

HealthNow, the parent company of BlueCross BlueShield of Western New York and BlueShield of Northeastern New York, is the leading health plan in Western New York with approximately 700,000 members. The company provides a variety of healthcare insurance plans, benefits and services to companies and individuals.

Challenge Improve personalized member communication, analysis of

quality of care and reduce costs.

Solution Eliminated redundancy by creating consolidated view of

members across sixty different repositories.

Personalized communications and identified preventive care opportunities for members.

Results Saved $5 million by personalizing membership

communication and reduced duplicate/incorrect mailings.

Cut time to create and implement new products from months to weeks.

Delivered ability to identify preventive care opportunities that reduce ER visits and hospitalizations.


Transform financial processes:

What if you could increase productivity and reduce costs?Challenge Identify areas to boost financial performance as part of a

best in class, corporate-wide productivity initiative.

Solution Integrated planning cycle reduced data mining activities by

up to 80%.

Conducted sensitivity and scenario analyses enhancing visibility, generated insights and increased productivity savings.

Results Accelerated productivity savings to 4% of cost of goods,

approximately $100 million per year.

Enhanced integrated planning cycle through better risk and sensitivity analysis.

Reduced transportation costs through optimization resulting in savings of over 40 million miles

Delivered 80% savings in supply planning efforts – moving from 5 days to one.

Del Monte Foods is a well-known producer and distributor of premium quality, branded food and pet products for the U.S. retail market, generating approximately $3.7 billion in net sales in fiscal 2010. The business is split 50:50 consumer packaged goods and pet products.


SunTrust is a leading financial services firm with total assets of $172.6 billion1, more than 1,600 retail branches and nearly 3,000 ATMs located in eight US states and the District of Columbia.

Challenge Portfolio data was locked in silos, risk analytics was not

robust, no consolidated enterprise wide view of credit performance and risk exposures.

Solution Implemented comprehensive risk management framework

covering every region and line of business.

Deployed robust risk analytics and reporting, based on consolidated view of all customers, products, and portfolios.

Results Navigated recent financial crisis by proactively managing

emerging problem areas such as trading exposures, auto dealer financing, residential mortgage, and homebuilder financing thereby mitigating losses.

Consolidated risk analytics and reporting establishing a shared service model delivering better information at dramatically lower cost to regions and lines of business.

Imbedded risk analytics in all aspects of management process from pricing to risk acceptance to business planning to capital management to drive profitable growth.


What if you could precisely measure risk?

1 Source: SunTrust 9/30/20111 Source: SunTrust 9/30/2011


Seton Healthcare is a not-for-profit organization, the Seton Family is the leading provider of healthcare services in Central Texas, serving an 11-county population of 1.9 million

Challenge

• Reduce the occurrence of high cost Congestive Heart Failure (CHF) readmissions by proactively identifying patients likely to be readmitted on an emergent basis.

Solution

• Target and understand high-risk CHF patients for care management programs using natural language processing.

• Used predictive models that have demonstrated high positive predictive value against extracted structured and unstructured data

Results

• Proactively targeted care management which will reduce re-admission of CHF patients.

• Identified patients likely for re-admission and introduced early interventions which will reduce cost, mortality rates, and improve patient quality of life.


What if you could predict outcomes to improve quality of service and reduce costs?


Novartis is a world leader in the research and development of products that protect and improve health and well-being.Its core businesses are pharmaceuticals, vaccines, consumer health, generics, eye care and animal health.

Challenge

• Efficient, defensible approach to retaining information of business value or subject to regulatory requirement, preserve information needed for litigation and discard unnecessary information.

Solution

• Implemented solution that reduced litigation and compliance risk with defensible, routine disposal of unnecessary information.

Results

• Increased ability to dispose of unnecessary information by 10 times.

• Lowered litigation and regulatory compliance risk.

• Reduced cost using defensible, routine disposal of unnecessary data.


What if you could get control of your records and lower litigation risk?


NC State University brings real-world solutions to the marketplace. The Office of Technology Transfer protects and promotes University research discoveries and intellectual property.

Challenge Reduce the effort to find and match commercial partners

to license university research assets.

Solution Developed an intelligence solution that analyzed data from

1.4 million documents, websites and enterprise applications and created insight from the content.

Used advanced contextual data analytics and processing to find potential research and commercialization partners.

Results Reduced the time to discover and process a research

asset from three-six months to as little as seven days.

Demonstrated increase in the list of potential license partners by 300 percent.


What if you could identify new commercial opportunities for your research?


Challenge Use information to become customer-centric business,

increase retention and reduce operating expense.

Solution Created single, customer-centric information foundation that included data and content from all touch-points.

Leveraged analytics to increase insight of the customer, their experience, and opened up new opportunities.

Results Increased retention rates up to 40% by identifying which

customers should be contacted by an agent’s representative.

Improved internet application reliability and saved more than $5 million over the first three years.

Created new policies and product offers by capturing, managing and analyzing customer and transaction data.

Grow, retain and satisfy customers:

What if you could increase policy renewals?

Nationwide has grown from a small mutual auto insurer owned by policy -holders to one of the largest insurance and financial services companies in the world, with more than $135 billion in statutory assets.