Transforming Business with Smarter Analytics by Deb Mukherji @ BPT IBM Innovative Indonesia with Smarter Analytics, 12 June 2013, Shangri-La Hotel Jakarta

1. Transforming Business with
Smarter Analytics
Deb Mukherji
IBM Smarter Planet Solutions
Asia Pacific
12 June 2013
© 2013 IBM Corporation

2. Four years ago, we started
working with organizations to
build a Smarter Planet.
© 2013 IBM Corporation2
Through thousands of client
engagements, we learned that
analytics is fundamental to success.

3. Analytic
Capabilities
Business
Applications
Application-Centered Today Business Analytics- Centered
Tomorrow
Moving to a New Paradigm
© 2013 IBM Corporation3
3
Business
Applications
Analytic
Capabilities
Analytic
Capabilities
Analytic
Capabilities
Business
Applications
Business
Applications
Transformation
Source: Gartner, 2012

4. Analytics has evolved from business initiative
to business imperative
63%
58
2012
3.6
Likelihood of organizations competing
on analytics to outperform their peers2
Percentage of respondents who cited
a competitive advantage from the use
of information and analytics1,2
© 2013 IBM Corporation4
58
%
37
%
2011
2010 70%
increase
Source: 1 2010 and 2011 datasets © Massachusetts Institute of Technology. 2 Analytics: The real-world use of big data. 2012
Study conducted by IBM Institute for Business Value, in collaboration with Säid Business School at the University of Oxford.
3.6x

5. Analytics is expanding from enterprise data
to big data
Volume Velocity Variety
100’sterabytes
video
feeds
© 2013 IBM Corporation5
from surveillance camerastrade 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
100’sof Tweets create daily
terabytes feedsmillion
350 billion 500million 80%
data
growth

6. The emergence
of big data
analytics
1 Increasing
consumer
expectations
2 Accelerating
pressure to do
more with less
3
And key trends fuel the need and urgency for analytics
© 2013 IBM Corporation6
65%
65% of business are not
using big data for
business advantage
84%
84% of consumers rely
on social networks for
purchase decisions
32%
Organizations using
advanced analytics enjoy
32% higher return on
invested capital

7. Analytics is progressing from the possible
to the proven
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…
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…
You could identify your clients
who are in danger of churning
before they would even know
themselves?
© 2013 IBM Corporation7
Vestas did!
• Reduced response time for
wind forecasting from
weeks to hours
• Shortened time to develop
a wind turbine site by
nearly a month
2.8 petabytes of climate data?
McKesson did!
• Transformed their supply chain
• Reduced working capital by
more than US$100 million.
carbon footprint?
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

8. • Advanced client segmentation
• Leveraging customer sentiment analysis
• Reducing customer churn
• Enabling rolling plan, forecasting and budgeting
• Automating the financial close process
• Delivering real-time dashboards
Finance
Examples:
Focusing on high-value initiatives in core business areas
Customers
© 2013 IBM Corporation8
• Optimizing the supply chain
• Deploying predictive maintenance capabilities
• Transform threat & fraud identification processes
Operations
• Delivering real-time dashboards
• Making risk-aware decisions
• Managing financial and operational risks
• Reducing the cost of compliance
Risk

9. through analytics for
breakaway results
Transform
IBM Smarter Analytics is a holistic approach that
turns information into insight and insight into outcomes
© 2013 IBM Corporation9
from solutions that get
smarter with every outcome
with confidence at the point of
impact to optimize outcomes
see, predict and shape
business outcomes
your organization
around information
Align Anticipate Act
Learn

10. • Create a trusted information foundation.
Deploy an information strategy that
flows from your business strategy
Align your organization around information
Align
© 2013 IBM Corporation10
• Integrate and govern information
to ensure business confidence.
• Control the capture, management,
governance and sharing of enterprise content
• Leverage the volume, velocity and
variety of internal and external information.
Big Data Platform
Data Warehousing
Information Integration and
Governance
Enterprise Content Management
Data Management

11. • Spot trends, anomalies and opportunities.
Anticipate to see, predict, and shape business outcomes
Anticipate
Leverage business analytics to
deliver actionable insights
© 2013 IBM Corporation11
• Spot trends, anomalies and opportunities.
• Plan, budget and forecast resources.
• Measure and monitor business performance.
• Automate and align strategic and operational
decisions
Performance
Management
Predictive
Analytics
Risk
Analytics
Business
Intelligence
Content
Analytics

12. • Embed analytics into processes that
optimize operations and future strategies.
Act with confidence at the point of impact
Act
Embed analytics into processes
and create a data-driven,
decision-making culture
© 2013 IBM Corporation12
optimize 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 an analytics-based decision
making culture.
Decision Management
Advanced Case Management
Digital Marketing Optimization
Cross-channel Selling and Marketing
Pricing, Promotion and Assortment Optimization
Organization and Workforce Transformation
Marketing Performance Optimization
Supply Chain Optimization

13. • Learn from evidence and outcomes to get
smarter with each iteration.
Learn from solutions that get smarter with every outcome
Natural
language 1
Learn
Employ reasoning and return
confidence-based responses to
deliver answers
© 2013 IBM Corporation13
smarter with each iteration.
• Navigate the complexities of human
speech through natural language processing
• Generate and evaluate possible
hypotheses dynamically to the most complex
• Ingest and analyze big data continuously
and discover new patterns and insights
Watson
Watson for Healthcare
Watson for Financial
Services
Ready for Watson
Hypothesis
testing
Evidence-
based learning
3
2

14. • Develop a clear analytics strategy aligned
to business priorities and desired outcomes
Transform through analytics for breakaway results
Transform
Accelerate the time to value and
deliver game-changing results
© 2013 IBM Corporation14
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
• Use proven industry solutions, use cases,
and accelerators to deliver rapid value
BAO Strategy
IBM Research First-of-a-kind Projects
Application Management Services
IBM Industry Solutions

15. IBM delivers the core capabilities for success
Align Anticipate Act
 Big Data Platform
Business Analytics and Optimization Consulting Services
BAO Strategy | Customer Analytics | Regulatory and Risk | Fraud Analytics | Financial Performance Management
Information Management Foundation | IBM Research First-of-a-kind Projects | Application Management Services
IBM Smarter Analytics Signature Solutions
Customer | Finance | Anti-Fraud, Waste & Abuse
IBM Solution Accelerators
Portfolio aligned to Industry Imperatives
 Business Intelligence  Decision Management
Transform
© 2013 IBM Corporation15
 Big Data Platform
 Data Warehousing
 Information Integration and
Governance
 Data Management
 Enterprise Content Management
 Defensible Disposal
 Business Intelligence
 Performance Management
 Predictive and Advanced Analytics
 Risk Analytics
 Sentiment Analytics
 Big Data Analytics
 Content Analytics
 Web and Digital Analytics
 Online Benchmark
 Spend Analytics
 Decision Management
 Advanced Case Management
 Digital Marketing Optimization
 Cross-channel Selling and Marketing
 Pricing, Promotion, and Assortment
Optimization
 Marketing Performance Optimization
 Supply Chain Optimization
 Organization and Workforce
Transformation
Systems that learn and reason
Watson l Watson for Healthcare l Watson for Financial Services l Ready for Watson
Learn

16. Resulting in solutions that deliver big impact
InsuranceGovernment Retail TelecommBanking
Create a customer
focused enterprise
Customer Profitability
Create a customer
focused enterprise
Customer Retention &
Deliver smarter services
to generate new revenue
Churn Prediction
Deliver a smarter
shopping experience
Market Basket Analysis
Improve citizen
services
Citizen Services
© 2013 IBM Corporation16
Customer Profitability
Marketing Optimization
Enterprise risk
optimization
Compliance
Financial & Operational
Risk Analytics
Increase flexibility &
streamline operations
Payments analytics
Customer Retention &
Growth
Enterprise risk
optimization
Compliance
Financial & Operational
Risk Analytics
Increase flexibility &
streamline operations
Claims Optimization
Transform
operations
Next best action
Build smarter
networks
OPEX and CAPEX
planning
Churn Prediction
Network Analytics
Build smarter
operations
Store operations
Smarter merchandising
& supply chains
Store assortment
Market Basket Analysis
Sentiment Analysis
Citizen Services
Analytics
Manage resources
effectively
Operational
Analytics
Budget & Financial
Management
Improve public safety
Crime Prediction

17. Grow, retain and satisfy
customers
Increase operational
efficiency
Moving clients from the possible to the proven
Improved campaign
response rate
100%
Accuracy predicting
97%
© 2013 IBM Corporation17
efficiency
Manage risk, fraud and
regulatory compliance
Transform financial
processes
Optimizing
profitability for over
30KSKUs
Accuracy predicting
demand 4 months in
advance
Suspicious Medicaid
claims identified
$200M

18. Organizations vary on where they start
with Smarter Analytics
Many start by focusing on a specific high value business problem to:
• Grow, retain and satisfy customers
• Increase operational efficiency
• Transform financial processes
• Manage risk, fraud & regulatory compliance
© 2013 IBM Corporation18
• Manage risk, fraud & regulatory compliance
Some build out foundational capabilities such as information
governance or decision management.
And, others start strategically at the top to create an analytics-driven
enterprise.

19. Drive Innovation and Growth
IBM changed its business mix toward high-
value, more profitable technologies and
market opportunities…
• Exited commoditized businesses:
– PCs/ hard disk drives/ printing systems
• Strengthened position in:
– business consulting/ analytics/ cloud computing
• Mergers & acquisitions:
– 60 companies over the last 5 years/ $18B invested
2011 a record year…
© 2013 IBM Corporation19
– 60 companies over the last 5 years/ $18B invested
• Global shared services:
– business process excellence/ IT simplification &
integration
• Growth market leadership:
– 22% of revenue (30% by 2015)

20. Unparalleled in the industry
Broad and integrated portfolio of information and
analytics capabilities
Proven experience accelerating time-to-value and
Enterprise-class
Big Data Platform
Comprehensive analytic
capabilities
Decision Management
solutions
IBM Smarter Analytics
© 2013 IBM Corporation20
Proven experience accelerating time-to-value and
delivering breakaway results
Advanced technology and expertise applying
innovation to real world problems
30K+ analytics-focused
client engagements
9,000+ consultants 9 Analytic Solutions
Centers
IBM Watson
World’s largest math
department in private industry
600+ analytics patents
per year

21. © 2013 IBM Corporation21