Præsentation fra Smarter Business 2012

1. September 18, 2012
IBM Smarter Analytics
© 2012 IBM Corporation

2. 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.
2 © 2012 IBM Corporation

3. Since then, analytics has
continued to evolve:
• From business initiative to business imperative
• From enterprise data to big data
• From advancing single organizations to
transforming entire industries
3 © 2012 IBM Corporation

4. Analytics has evolved from business initiative
to business imperative
Analytically sophisticated companies outperform their competition
Respondents who say analytics Organizations achieving
creates a competitive advantage a competitive advantage
with analytics are
2010 37% 57%
increase 2.2x
more likely to
substantially outperform
2011 58% 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.
Source: The New Intelligent Enterprise, a joint MIT Sloan Management Review and IBM Institute of Business Value analytics research
4 partnership. Copyright © Massachusetts Institute of Technology 2011 © 2012 IBM Corporation

5. Analytics is expanding from enterprise data to
big data
Volume Velocity Variety
12 terabytes
of Tweets create daily
5 million
trade events per second
100’s
from surveillance cameras
video
feeds
Analyze product sentiment Identify potential fraud Monitor events of interest
350 billion
meter readings per annum
500 million
call detail records per day
80% data
growth
are images, video, documents…
Predict power consumption Prevent customer churn Improve customer satisfaction
5 © 2012 IBM Corporation

6. Analytics is progressing from the possible
to the proven
What if… What if… What if…
You could pinpoint optimal You could optimize inventory and You could identify your clients
location for wind turbines to free up capital using a highly who are in danger of churning
maximize power generation and accurate view cost-to-serve by before they would even know
reduce energy costs by analyzing product line, transportation and themselves?
2.8 petabytes of climate data? carbon footprint?
Vestas did! McKesson did! XO Communications did
• Reduced response time for • Transformed their supply chain • Reduced churn rate by
wind forecasting from 35% in the first year
weeks to hours • Reduced working capital by
more than US$100 million. • Improved billed revenue
• Shortened time to develop retention rate by 60%
a wind turbine site by
• Achieved 376% ROI in 5
nearly a month
months
6 © 2012 IBM Corporation

7. Organizations drive transformation by
starting with one of these four high-value initiatives
Examples:
1 Grow, retain and
satisfy customers
• Churn management
• Social media sentiment analysis
• Propensity to buy/Next best action
2 Increase operational
efficiency
• Predictive maintenance
• Supply chain optimization
• Claims optimization
3 Transform financial
processes
• Rolling plan, forecast and budget
• Financial close process automation
• Real-time dashboards
7
4 Manage risk, fraud &
regulatory compliance
• Operational and financial risk visibility
• Policy and compliance simplification
• Real-time Fraud identification
© 2012 IBM Corporation

8. IBM Smarter Analytics is a holistic approach that turns
information into insight and insight into business outcomes.
Transform
through analytics
for breakaway
results
Align Anticipate Act
your organization see, predict and shape with confidence at the point
around information business outcomes of impact to optimize
outcomes
Learn
from solutions that get
8 smarter with every outcome © 2012 IBM Corporation

9. Align your organization around information
Deploy an information and big Only IBM offers an enterprise-class big data
data strategy that flows from your Platform as part of a comprehensive information
business strategy. management foundation.
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
Fully exploit all sources of data and
new, deeper insights.
content for insight
9 © 2012 IBM Corporation

10. Anticipate to see, predict, and
shape business outcomes
Only IBM offers comprehensive analytic capabilities
that are dually specialized to the task and
Leveraging business analytics to
interconnected to facilitate shared insights
deliver actionable insights
 Spot and analyze trends and anomalies Business Predictive
Intelligence Analytics
 Predict potential threats and opportunities
 Plan, budget, and forecast resources
 Assess and manage risk
 Compare “what-if” scenarios Content Risk
Analytics Analytics
 Measure and monitor business performance
 Automate decisions Financial
Performance
 Align strategic and operational decisions Management
Leveraging all information, all people, all
perspectives and enabling all decisions
10 © 2012 IBM Corporation

11. Act with confidence at the point of impact
to optimize outcomes
Embed analytics into your processes Only IBM enables organizations to take the best
action based on predictive analytics, process
and empower a culture of data-driven
models, and optimization technologies to
decision making achieve better outcomes
 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
Embedding past, present and future insights
into your operations and processes
11 © 2012 IBM Corporation

12. Transform through analytics for breakaway
results
Only IBM provides market-leading services,
proven solutions, use cases, accelerators, and
Accelerate the time to value and world-class research to enable breakaway results
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 Enabling you to go beyond solving the
problem to capturing new opportunities
12 © 2012 IBM Corporation

13. Learn from solutions that get smarter
with every outcome
Smart enough to reason and return Only IBM brings together the technologies that
define the next generation of Smarter Analytics
confidence-based responses for the
solutions that can reason and learn.
next best action
Natural
language
 Solutions that can learn from evidence and 1
outcomes to get smarter with each iteration
 Capable of navigating the complexities of
human speech through natural language Hypothesis
processing testing 3 Evidence-based
2 learning
 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 Moving your organization from search to
and discovering new patterns and insights in a discovery, from possibilities to probabilities,
matter of seconds and from simple outputs to intelligent options
13 © 2012 IBM Corporation

14. 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
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 TCO
Broad 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
14 © 2012 IBM Corporation

15. Getting started
5
4
3
2
1
Develop an
Focus on the Embed insights Keep existing Information
biggest and Start with to drive actions capabilities Agenda to
highest value questions, and deliver while adding plan for the
opportunities not with data value new ones future
Source: Analytics: The new path to value, a joint study by MIT Sloan Management Review and IBM Institute for Business Value. (c) Massachusetts
15 Institute of Technology 2010. © 2012 IBM Corporation

16. A smarter planet
is built on
Smarter Analytics
16 © 2012 IBM Corporation

17. 17 © 2012 IBM Corporation

18. Legal Disclaimer
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18 © 2012 IBM Corporation

19. Back-up
 IBM Smarter Analytics Signature Solutions
 “What If” Examples
 Client Success Stories
19 © 2012 IBM Corporation

20. Overview
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.
Tackle Deliver Accelerate
High-value initiatives Proven outcomes Time-to-value
Address industry imperatives Built on a rich portfolio of Faster return-on-investment
and critical processes analytics capabilities and IBM with short-term projects that
innovations implemented at support the long-term
clients world-wide roadmap
20 © 2012 IBM Corporation

21. IBM Smarter Analytics Signature Solutions
Industry expertise and state-of-the-art analytics applied to
real-world problems
What if… What if… What if…
You could increase You could anticipate and You could prevent and
customer value with shape the impact of minimize losses
every interaction? financial decisions? stemming from fraud?
Customer Finance Fraud
next best action CFO performance anti-fraud, waste,
insight and abuse
Optimize across Improve visibility, insight, and Detect fraudulent behavior
touchpoints to drive loyalty control over performance before payment
and profitability
Telco Banking/FM Insurance Cross-Industry Healthcare Government Insurance
21 © 2012 IBM Corporation

22. Back-up
 IBM Smarter Analytics Signature Solution
 “What If” Examples
 Client Success Stories
22 © 2012 IBM Corporation

23. Analytics is progressing from the possible
to the proven
What if… What if… What if…
You could pinpoint optimal You could reduce crime by You could optimize inventory and
location for wind turbines to recognizing crime trends as they free up capital using a highly
maximize power generation and are happening, anticipating future accurate view cost-to-serve by
reduce energy costs by analyzing crime hot spots, and directing product line, transportation and
2.8 petabytes of climate data? police resources proactively? carbon footprint?
Vestas did! Memphis P.D. Did! McKesson did !
• Reduced response time for • Reduced serious crime by • Transformed their supply chain
wind forecasting from 30 percent and violent
weeks to hours • Reduced working capital by
crime by 15 percent
more than US$100 million.
• Shortened time to develop • Improved allocation of
a wind turbine site by police resources efficiently
nearly a month
23 © 2012 IBM Corporation

24. Analytics is progressing from the possible
to the proven
What if… What if… What if…
You could increase inventory You could improve healthcare, You could increase productivity
turns by incorporating customer communication and lower costs by and reduce costs to boost
and product-level plans into a creating single view of a member financial performance as part of a
12-month rolling forecast? across 60 repositories? best in class, corporate-wide
productivity initiative?
Becker Underwood did!HealthNow did! Del Monte did !
• Increased inventory turns • Saved $5 million by reducing • Accelerated productivity
of 50 percent over three duplicate/incorrect mailings savings to approximately
years $100 million per year
• Reduced ER visits and
• Increased forecast hospitalizations • Optimized transportation
accuracy by up to 15 costs to save over
percent. 40 million miles.
24 © 2012 IBM Corporation

25. Analytics is progressing from the possible
to the proven
What if… What if… What if…
You could identify new You could reduce the cost of You could implement a defensible
commercial opportunities for patient readmissions and approach to only retaining data of
your research? proactively provide optimal patient business value and regulatory
treatment? need?
North Carolina State did!
Seton Healthcare did! Novartis did !
• Used advanced contextual data • Uncovered top 18 indicators for
analytics to discover and CHF patient readmissions. Seton •Reduced costs and lowered
process a research asset from now provides targeted patient
months to as little as 7 days care to prevent readmissions and
• Increased the list of potential avoid unnecessary costs.
license partners by 300%
25 © 2012 IBM Corporation

26. Back-up
 IBM Smarter Analytics Signature Solution
 “What If” examples
 Client Success Stories
26 © 2012 IBM Corporation

27. 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 Vestas Wind Systems has
platform to predict weather patterns at potential sites. installed more than 43,000 wind
 Reduced IT footprint and costs, and decreased energy turbines in 66 countries
consumption by 40 percent. worldwide. Its turbines generate
Results more than 90 million megawatt-
 Reduced response time for wind forecasting information hours of energy per year.
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.
27 © 2012 IBM Corporation

28. Increase operational efficiency:
What if you could optimize inventory and free up capital?
Challenge
 Company leaders recognized that their operations were so
complex that they no longer could be managed without
analytics.
Solution
McKesson Corporation is the
 Developed a supply chain model that provides a highly
world’s largest healthcare
accurate view of its cost-to-serve—by product lines,
services company and the
transportation and even carbon footprint.
largest pharmaceutical
 Applied advanced analytics to optimize the physical
distributor in North America—
placement of inventory within its distribution centers.
providing one-third of the
Results medicines used every day.
 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.
28 © 2012 IBM Corporation

29. Increase operational efficiency:
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 Becker Underwood produces
focused on sales and the order/refresh process. specialty bio-agronomic and
 Incorporated customer and product-level plans into a colorant products. Founded in
12-month rolling forecast for greater visibility. 1982 and headquartered in
Results Ames, Iowa, the company’s
 Resolved supply chain issues resulting in increased annual revenues are more than
inventory turns of 50 percent over three years. $150 million.
 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.
29 © 2012 IBM Corporation

30. Increase operational efficiency:
What if you could improve healthcare, communication and
lower costs?
Challenge
 Improve personalized member communication, analysis of
quality of care and reduce costs.
Solution
 Eliminated redundancy by creating consolidated view of HealthNow, the parent company
members across sixty different repositories. of BlueCross BlueShield of
 Personalized communications and identified preventive Western New York and
care opportunities for members. BlueShield of Northeastern New
Results York, is the leading health plan
 Saved $5 million by personalizing membership in Western New York with
communication and reduced duplicate/incorrect mailings. approximately 700,000
 Cut time to create and implement new products from members. The company
months to weeks. provides a variety of healthcare
 Delivered ability to identify preventive care opportunities insurance plans, benefits and
that reduce ER visits and hospitalizations. services to companies and
individuals.
30 © 2012 IBM Corporation

31. 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 Del Monte Foods is a well-
up to 80%. known producer and distributor
 Conducted sensitivity and scenario analyses enhancing of premium quality, branded
visibility, generated insights and increased productivity food and pet products for the
savings. U.S. retail market, generating
Results approximately $3.7 billion in net
 Accelerated productivity savings to 4% of cost of goods, sales in fiscal 2010. The
approximately $100 million per year. business is split 50:50
 Enhanced integrated planning cycle through better risk and consumer packaged goods and
sensitivity analysis. pet products.
 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.
31 © 2012 IBM Corporation

32. Manage risk, fraud & regulatory compliance
What if you could precisely measure risk?
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.
SunTrust is a leading financial
 Deployed robust risk analytics and reporting, based on
consolidated view of all customers, products, and portfolios.
services firm with total assets of
$172.6 billion1, more than 1,600
Results retail branches and nearly
 Navigated recent financial crisis by proactively managing 3,000 ATMs located in eight US
emerging problem areas such as trading exposures, auto states and the District of
dealer financing, residential mortgage, and homebuilder Columbia.
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 1
Source: SunTrust 9/30/2011
process from pricing to risk acceptance to business
planning to capital management to drive profitable growth.
32 © 2012 IBM Corporation

33. Increase operational efficiency
What if you could predict outcomes to improve quality of
service and reduce costs?
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 Seton Healthcare is a not-for-
management programs using natural language profit organization, the Seton
processing. Family is the leading provider of
• Used predictive models that have demonstrated high healthcare services in Central
positive predictive value against extracted structured and Texas, serving an 11-county
unstructured data population of 1.9 million
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.
33 © 2012 IBM Corporation

34. Manage risk, fraud & regulatory compliance
What if you could get control of your records and lower
litigation risk?
Challenge
• Efficient, defensible approach to retaining information of
business value or subject to regulatory requirement,
preserve information needed for litigation and discard
unnecessary information.
Novartis is a world leader in the
research and development of
Solution products that protect and
• Implemented solution that reduced litigation and improve health and well-being.
compliance risk with defensible, routine disposal of Its core businesses are
unnecessary information. pharmaceuticals, vaccines,
consumer health, generics, eye
Results care and animal health.
• 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.
34 © 2012 IBM Corporation

35. Increase operational efficiency
What if you could identify new commercial opportunities for
your research?
Challenge
 Reduce the effort to find and match commercial partners
to license university research assets.
Solution
 Developed an intelligence solution that analyzed data from
NC State University brings real-
1.4 million documents, websites and enterprise
world solutions to the
applications and created insight from the content.
marketplace. The Office of
 Used advanced contextual data analytics and processing
Technology Transfer protects
to find potential research and commercialization partners.
and promotes University
Results research discoveries and
 Reduced the time to discover and process a research intellectual property.
asset from three-six months to as little as seven days.
 Demonstrated increase in the list of potential license
partners by 300 percent.
35 © 2012 IBM Corporation

36. Grow, retain and satisfy customers:
What if you could increase policy renewals?
Challenge
 Use information to become customer-centric business,
increase retention and reduce operating expense.
Solution
 Created single, customer-centric information foundation Nationwide has grown from a
that included data and content from all touch-points. small mutual auto insurer
 Leveraged analytics to increase insight of the customer, owned by policy -holders to
their experience, and opened up new opportunities. one of the largest insurance
Results and financial services
 Increased retention rates up to 40% by identifying which companies in the world, with
customers should be contacted by an agent’s more than $135 billion in
representative. statutory assets.
 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.
36 © 2012 IBM Corporation