Smarter analytics101 v2.0.1

Discovering the Value of Analytics and Big Data with IBM
Smarter Analytics
David Carew – IT Architect
carewl@us.ibm.com
IIC Austin
6/12/2013
© Copyright International Business Machines Corporation 2012. All rights reserved.

Agenda
Why Business Analytics and Big Data Matter
IBM Business Analytics and Big Data Strategy
IBM SmarterAnalytics - key capabilities
–  Business Intelligence
–  Predictive Analytics
–  Big Data
Concluding remarks
– Call to Action
– Reference

Why Business Analytics Matter
CIOs rank analytics as the #1 factor
contributing to an organization’s
competitiveness.
– CIO study 2012
Financial outperformers are 64% more
likely to use analytics to evaluate talent
supply and demand on an ongoing
basis.
– CHRO study 2010
Enterprises that apply advanced
analytics have 33% more revenue
growth and 12X more profit growth.
– CFO study 2010
Eight out of ten CEOs expect
complexity to increase significantly in
the next five years; insight and
intelligence is ranked a top 3 priority.
- CEO study 2010
Top-performing enterprises use business analytics 5 times more than lower performers.
– 2010 joint study, MIT and IBM Institute for Business Value

Copyright 2012 IBM Confidential 4
“At the World Economic Forum
last month in Davos, Switzerland,
Big Data was a marquee topic. A
report by the forum, “Big Data,
Big Impact,” declared data a new
class of economic asset, like
currency or gold.
“Companies are being
inundated with data—
from information on
customer-buying habits to
supply-chain efficiency.
But many managers
struggle to make sense
of the numbers.”
“Increasingly, businesses are
applying analytics to social
media such as Facebook and
Twitter, as well as to product
review websites, to try to
“understand where customers
are, what makes them tick and
what they want”, says Deepak
Advani, who heads IBM’s
predictive analytics group.”
“Big Data has arrived
at Seton Health Care
Family, fortunately
accompanied by an
analytics tool that will
help deal with the
complexity of more
than two million patient
contacts a year…”
“Data is the new oil.”
Ann Winbald, Co-founder
Hummer Winbald
Venture Capital
The Oscar Senti-meter — a
tool developed by the L.A.
Times, IBM and the USC
Annenberg Innovation Lab —
analyzes opinions about the
Academy Awards race shared
in millions of public messages
on Twitter.”
“…now Watson is being put to
work digesting millions of pages
of research, incorporating the
best clinical practices and
monitoring the outcomes to assist
physicians in treating cancer
patients.”

Forbes
The Wall Street
Journal
Forbes
The New York Times
CNBC
Los Angeles Times
Financial Times
Why Big Data matters

The Need for Analytics is Pervasive Across Business and Industry
The healthcare industry spends $250 - $300 billion on
healthcare fraud, per year. In the US alone this is a
$650 million per day problem.1
One rogue trader at a leading global financial services
firm created $2 billion worth of losses, almost
bankrupting the company.
5 billion global subscribers in the telco industry are
demanding unique and personalized offerings that match
their individual lifestyles.2
$93 billion in total sales is missed each year because
retailers don’t have the right products in stock to meet
customer demand.
Source: 1.Harvard, Harvard Business Review, April 2010.
2,IBM Institute for Business Value, The Global CFO Study, 2010.

Why SmarterAnalytics Now
Market Forces are Driving New Client Needs
The emergence of
Big Data –
enabled by cost
effective storage and
processing of data
The shift of
power to the
consumer
Pressure to do
more with less

7
Insurance
•  Claims Fraud
•  Next Best Action
•  Catastrophe Modeling
Banking
•  Optimize Offers and
Cross Sell
•  Contact Center Efficiency
and Problem Resolution
•  Payment Fraud Detection
& Investigation
•  Counterparty Credit Risk
Management
Telco
•  Pro-active Call Center
•  Network Analytics
•  Location Based Services
•  IT/Network Infrastructure
Transformation
•  Smarter Campaigns
Energy &
Utilities
•  Smart Meter Analytics
•  Distribution Load
Forecasting/Scheduling
•  Condition Based
Maintenance
•  Create & Target
Customer Offerings
Media &
Entertainment
•  Business process
transformation
•  Audience & Marketing
Optimization
•  Multi-Channel
Enablement
•  Digital commerce
optimization
Retail
•  Actionable Customer
Insight
•  Merchandise
Optimization Playbook
•  Dynamic Pricing
Travel &
Transport
•  Customer Analytics &
Loyalty Marketing
•  Capacity & Pricing
Optimization
•  Predictive Maintenance
Analytics
Consumer
Products
•  Optimized Promotions
Effectiveness
•  Micro-Market Campaign
Management
•  Real Time Demand
Forecast
Government
•  Threat Prediction and
Prevention
•  Detect and Prevent
Improper Payments
•  Single View
Healthcare
•  Measure & Act on
Population Health
•  Engage Consumers in
their Healthcare
•  Increase visibility into
drug safety and
effectiveness
Automotive
•  Data Warehouse
Optimization
•  Predictive Asset
Optimization (PAO)
•  Actionable Customer
Intelligence
Life
Sciences
•  Increase visibility into
drug safety and
effectiveness
Chemical &
Petroleum
•  EDW Smart Consolidation
& Augmentation
•  Operational Surveillance,
Analysis & Optimization
•  Engineering & Operational
Data Exploration & Mining
Aerospace
& Defense
•  Uniform Information
Access Platform
•  Data Warehouse
Optimization
Optimization (PAO)
Electronics /
Industrial
Products
•  Channel Driven Customer
Analytics (CDCA)
Monitoring & Optimization
(PAMO)
Every Industry Can Leverage Big Data & Analytics Solutions

20%reduction
in client’s accident rates
Partners that embrace analytics see dramatically improved
business outcomes
100% increase
in response rate to
targeted marketing
campaigns

Where we are
–  Big Data
Concluding remarks

IBM Strategy - Maintain and extend leadership with offerings that are
unparalleled in the industry
Continue to build and/or acquire a broad and
integrated portfolio of information and analytics
capabilities
Leverage proven experience accelerating time-to-
value and delivering breakaway results
Continue to build advanced technology and
expertise applying innovation to real world
problems
Enterprise-class
Big Data Platform
Comprehensive analytic
capabilities
Decision Management
solutions
20,000+ analytics-driven
client engagements
10,000+
consultants
100’s of Business Partner
offerings built on IBM technology
IBM Watson World’s largest math department
in private industry
600+ analytics patents
per year

IBM is Making Significant Investments in Smarter Analytics
Investment
Technical
Expertise
Technology
Research
Business
Partners
§  $ 16B for 30 acquisitions since 2005
§  More than 10,000 technical professionals
§  9,000 consultants delivering IBM analytics solutions
§  Power7: workload optimized analytic processing
§  Pure Data for Analytics (powered by Netezza)
§  Comprehensive, heterogeneous Big Data platform for
the Enterprise
§  World’s largest math department in private industry
§  FOAK breakthrough innovations including IBM Watson
§  Number 1 in patent ranking for 19 years and more than
500 analytics-related patents / year for last two years
§  More than 27,000 Business Partner certifications in
related product technologies

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

IBM Capabilities: Innovative, Integrated, Open
§  Big Data Platform
§  Realtime Streaming Data
§  Data Warehousing
§  Information Integration and
Governance
§  Data Management
§  Enterprise Content Management
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
Smarter Computing - Systems that are tuned to the task, designed for data, managed with cloud technologies
§  Business Intelligence
§  Performance Management
§  Predictive and Advanced Analytics
§  Risk Analytics
§  Sentiment Analytics
§  Big Data Analytics
§  Realtime Analytics
§  Content 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
Systems that learn and reason
Watson l Watson for Healthcare l Watson for Financial Services l Ready for Watson
Learn
Transform

IBM SmarterAnalytics – key capabilities
■  Business Intelligence
■  The Cognos Family
■  Predictive Analytics
■  The SPSS Family
■  Big Data
■  InfoSphere Big Insights
■  InfoSphere Streams
■  Pure Data System for Analytics

Governance
Optimization
Learn
Transform
IBM Cognos family

IBM Cognos family
Analytics in the hands of everyone
§ Insight to action with
every product
§ Right-sized for your
organization
§ Built to future-proof
your investment

IBM Cognos family
Organizations can start anywhere and grow from there
CDD
CDD
CDD
Cognos Insight Cognos Express Cognos Enterprise
CDD
CDD
CDD
CDD
CDD
CDD
•  Gather and analyze data
•  Take insight to action
•  Share their insights and
actions with others
•  Report, analyze and gain
insight
•  Plan within a managed
workflow
•  Centrally manage information
•  Gain complete insight with a
unified workspace
•  Historical, real-time, future
plans and predictive results
•  Achieve cost-effective scale
Individuals
Working independently
Workgroups
Working together
Organizations
Working as one
Cognos
Express

IBM Cognos family
Right-sized set of capabilities to fit the business need
Cognos

Insight

Cognos

Express

Cognos

Enterprise

Dashboards
✔ ✔ ✔
Analysis
✔ ✔ ✔
What-‐if
Scenario
Modeling
✔ ✔ ✔
Planning
and
Budge;ng
✔ ✔ ✔
Produc;on
Reports
✔ ✔
Microso>
Oﬃce
Integra;on
✔ ✔
Support
for
iPad
✔ ✔
Other
Mobile
Devices
✔
Enterprise-‐wide
Collabora;on
✔
Scorecarding
✔

Why IBM Cognos Insight
Cognos Insight is part of the Cognos Family
●  Common capabilities: dashboards, analysis, planning and collaboration
●  Everything you build with Insight can be shared and extended within the Cognos
Family
●  You can trade-up from Cognos Insight to Cognos Express or Cognos Enterprise
Insight is a great place to get started when
●  Line of business requires flexible independence to quickly analyze data
●  IT is not available or report authoring processes take time
●  Small team or workgroup collaboration is required
●  Price sensitive budgets for software and support
●  Want to begin now
Add Cognos Express or Cognos Enterprise when your business needs grow
●  Security, access control
●  Governed deployment
●  Additional capabilities

Free! Cognos Insight Personal Edition
Access your personal data to do fast, meaningful analysis right on your desktop
Import data from spreadsheets and comma separated value files (.CSV)
Create dashboards and plans in seconds, use built in calculations and what-if scenario
modeling, all with no scripting
Available in over 20 languages
Utilize for non-commercial use only
Quickly download Cognos Insight and access samples, demo videos or even a short
tutorial all from AnalyticsZone - Getting Started with Cognos Insight
AnalyticsZone.com Install and Get started!Click Download Now

Personal
Edition
Standard
Edition
Licensed with Cognos
Express or Cognos
Enterprise Roles
License
limited
for
personal,

non-‐commercial
use

Yes
No
No

Import
data
from
xls/csv
Yes
Yes
Yes

Import
data
from
databases
No
Yes
Yes

Import
from
pre-‐built
Cognos
BI

reports
or
Framework
Manager

packages

No
No
Yes

Save
work
locally
Yes
Yes

Yes

Share
results
with
other
Cognos

Insight
users

No
Yes
Yes

Publish
data
and
UI
to
a
Cognos

Server

No
No
Yes

Reuse
and
extend

published

content

with
Web,
Mobile
and

other
server
user
interfaces

No
No
Yes

Opera;ng
systems
supported
Windows

Windows

Windows

Subscrip;on
and
support
Analy;csZone.com
only
Yes
Yes

Cost
Free
$500
USD
Included
with
various

roles

IBM Cognos Insight capability comparison
Note: Prices Subject to Change. Cognos Enterprise is Cognos Insight, BI and TM1. Cognos Express may not bundle the most recent version of Cognos Insight.
Publishing to a Cognos server requires at least one appropriate Cognos Administrator role.

Scorecards & Dashboards
Immediate Insights to Business Performance

Scorecards & Dashboards Reports

Scorecards & Dashboards Reports
Real-Time Monitoring

Ad Hoc Query
Deeper Analysis of Trends & Patterns

Ad Hoc Query
Trend & Statistical Analysis

Ad Hoc Query
Trend & Statistical Analysis Content Analytics

What If
Foresight to Plan & Allocate Resources

What If
Predictive Modeling

What If
Predictive Modeling Planning & Budgeting

Governance
Optimization
Learn
Transform
IBM SPSS family

The Baseline of Predictive Analytics – Applied Mathematics
Statistics: Ask a Question of a Sample to Generalize to the Universe
A Sample of Data A Universe of Things That Generate Data

Taking Predictive Analytics to the Next Level
Data Mining: Predict the Behavior of the Next Case with a Model
A Universe of Data
Attributes:
• Married, 1 kid
• Lives in Suburbs of Chicago
• Owns two Cars
• 39 years old
• Drinks Scotch
Predicted Attributes
• Likes Guns n Roses
• Likes Johnnie Walker Black
• Works long hours
• Commutes
• Upper Middle Income
Predicted Behavior
• Wants to Buy a Sportscar!
• Buys Car Washes!
• Buys Chardonnay
• Vacations where it’s warm
A Predictive Model

The End Game of Predictive Analytics
Deployment: Apply Predictions at the Point of Interaction
What should
I do Now???
DO
THIS!
What should
I do Now???
DO
THIS!
Help People Take the Best Course of Action
Help systems Take the Best Course of Action

Predictive Analytics – What Kind of Business Problems
Target new customers
on web site or direct
mail
Sales cross sell or
upsell offers
presented via the
call centre
Assessment of risk at the
point of data entry
Behavioral
data
Descriptive
data
Attitudinal
data
Interaction
data
Real-time retention
actions via chat
messages
Attract
RetainGrow
Risk
Fraud
Real-time identification
of suspicious transactions

Capture: IBM Social Media Analytics
Unstructured
customer/market
comments
Innovative and effective user
interface for a broad range of users –
“traditional BI” blended with search-
index data exploration
Web/blogs, twitters,
media, news feeds,
reviews
100000+
discussion
forums
30,000+ news
feeds
2 billion+ blog
postings

46
Predict: IBM SPSS Modeler
§  Workbench with data
preparation functions to
build analytic streams or
jobs and a run time
environment for job
execution
§  Set of mining algorithms
that provide insight and
prediction
§  Enables the discovery of
key insights, patterns and
trends in data that can be
used to optimize business
decisions
Brings repeatability to ongoing decision making

47
Act: IBM SPSS Decision Management
§  IBM SPSS Decision
Management combines
predictive analytics,
business rules and
optimization to automate the
high volume, high value,
decisions made every day
within an organization.
§  Configurable
§  Business User UI
§  Built on top of existing
products and infrastructure
and works seamlessly with
them
Predictive Analytics for the 21st Century

48
Act: IBM SPSS Collaboration and Deployment Services
§  Flexible enterprise foundation
for managing and deploying
analytics throughout the
organization
§  Automates analytical
processes
§  Enables collaboration by
securely sharing and reusing
analytic assets
§  Streamlines deployment of
analytical information on a
scheduled or real-time basis
Maximizes the impact of analytics in your operation

Demo – SPSS Modeler
•  Predicting risk for new homeowners policy
applications

Governance
Optimization
Learn
Transform
IBM Big Data offerings

Characteristics of Big Data
§  V4 = Volume Velocity Variety Veracity
Collectively analyzing
the broadening Variety
Responding to the
increasing Velocity
Cost efficiently
processing the
growing Volume
Establishing the
Veracity of big
data sources
1 in 3 business leaders don’t trust
the information they use to make
decisions
50x 35 ZB
20202010
30 Billion
RFID sensors
and counting
80% of the
worlds data is
unstructured

Where Is This Data Coming From?
12+ TBs
of tweet data
every day
500+ TBs
of
log data
every day
?TBsof
dataeveryday
2+
billion
people
on the
Web by
end 2011
30 billion RFID
tags today
(1.3B in 2005)
4.6
billion
camera
phones
world
wide
100s of
millions
of GPS
enabled
devices
sold
annually
76 million smart
meters in 2009…
200M by 2014

InfoSphere BigInsights
Hadoop-based low latency
analytics for variety and volume
Data-At-Rest
PureData for Analytics
BI+Ad Hoc Analytics on
Structured Data
InfoSphere Warehouse
Large volume structured data
analytics
InfoSphere Streams
Low Latency Analytics for
streaming data
Data-In-Motion
Data Warehouse
Stream
Computing
Information
Integration
Hadoop
InfoSphere Information
Server
High volume data integration
and transformation
IBM Big Data Platform

© 2013 IBM Corporation54
InfoSphere BigInsights Brings Hadoop to the Enterprise
§  Manages a wide variety and huge
volume of data
§  Augments open source Hadoop with
enterprise capabilities
●  Performance Optimization
●  Development tooling
●  Enterprise integration
●  Analytic Accelerators
●  Application and industry accelerators
Visualization
§  Security
§  Provides Enterprise Grade Hadoop
analytics

IBM Significantly Enhances Hadoop
•  Scalable
●  New nodes can be added on the fly.
•  Affordable
●  Massively parallel computing on
commodity servers
•  Flexible
●  Hadoop is schema-less, and can absorb
any type of data.
•  Fault Tolerant
●  Through MapReduce software framework
IBM Innovation
• Performance & reliability
–  Adaptive MapReduce,
Compression, Indexing, Flexible
Scheduler
• Analytic Accelerators
Machine Data, Social Analytics,
Telecommunications Event Data
Analytics
• Productivity Accelerators
–  Web-based UIs
–  Tools to leverage existing skills
–  End-user visualization
• Enterprise Integration
–  To extend & enrich your information
supply chain.

InfoSphere BigInsights – A Closer Look
BigInsights Engine
Accelerators
User Interfaces
Visualization Admin Console
Text
Analytics
Application
Accelerators
Integration
Databases
Information
Governance
Content
Management
Apache Hadoop
IndexingMap Reduce +
Workload Mgmt Security
Dev Tools •  Performance & workload
optimizations
•  Unique text analytic engines
•  Spreadsheet-style visualization
for data discovery &
exploration
•  Built-in IDE & admin consoles
•  Enterprise-class security
•  High-speed connectors to
integration with other systems
•  Analytical accelerators
More Than Hadoop

Current fact finding
Analyze data in motion – before it is stored
Low latency paradigm, push model
Data driven: bring the data to the query
Historical fact finding
Find and analyze information stored on disk
Batch paradigm, pull model
Query-driven: submits queries to static data
Traditional Computing Stream Computing
Query Data Results Data Query Results
Stream Computing – Analyze Data in Motion

IBM InfoSphere Streams – Key Components
Agile Development
Environment
Distributed Runtime
Environment
Sophisticated
Analytics
Toolkits & Adapters
Front Office
3.0
5959
Big Data, CEP, Database,
Data Explorer, DataStage,
Finance, Geospatial,
Internet, Messaging,
Mining, SPSS, Standard,
Text & Timeseries toolkits
Telco & Social Media
accelerators
•  Eclipse IDE
•  Web console
•  Instance Graph
•  Streams Debugger
•  Drag & Drop editor
•  Streams visualization
•  Clustered runtime for
massive scalability
•  RHEL v5.3 and above,
CentOS v5.3 and above
•  x86 & Power multicore
hardware
•  Ethernet & InfiniBand

For apps like E-commerce…
Database cluster services optimized for
transactional throughput and scalability
For apps like Customer Analysis…
Data warehouse services optimized for
high-speed, peta-scale analytics and simplicity
For apps like Real-time Fraud Detection…
Operational data warehouse services optimized to
balance high performance analytics and real-time
operational throughput
Powered by Netezza
technology
Meeting Big Data Challenges – Fast and Easy!
IBM PureData System offerings
System for Transactions
System for Analytics
System for Operational Analytics
DB 2
< 1TB
DB 2
<5TB
Netezza
> 1TB

ü  Purpose-built analytics engine
ü  Integrated database, server and storage
ü  Standard interfaces: SQL, xDBC, OleDB
ü  Low total cost of ownership
Speed: 10-100x faster than traditional system*
Simplicity: Minimal administration and tuning
Scalability: Peta-scale user data capacity
Smart: High-performance advanced analytics
PureData System for Analytics (IPDA)
Transforms the
User Experience
* Based on IBM customers’ reported results. “Traditional custom systems” refers to systems that are not
professionally pre-built, pre-tested, and optimized. Individual results may vary.

Hadoop System with built-in archiving tools
Accelerates big data time to value and architected for high
availability
Seamless Optimization for Analytics Workloads…
Combines advanced, innovative capabilities to accelerate
analytic workloads for databases and data warehouses
“ When we compared the performance of column-
organized tables in DB2 to our traditional row-organized
tables, we found that, on average, our analytic queries
were running 74x faster when using BLU Acceleration. ”
- Kent Collins, Database Solutions Architect, BNSF
Railway
.
BigSQL native engine to access data in Big Insights and Big
Insights High Availability
Free development edition of Streams and many more
enhancements
Meeting Big Data Challenges – Fast and Easy!
April 3rd- Big Data Announcement Highlights
System for Hadoop
10- 20 x performance increases recorded.
A game changer !
DB2 10.5 w/BLU Acceleration
Big Insight + Streams
Refresh

Demo – Big Insights and
Streams working together

Where we are
–  Big Data
Concluding remarks
– Reference

Call to action
Embrace analytics for growth
Pick a starting point
Use analytics as a platform for new opportunity
The Opportunity of a Lifetime!
Contact us to get started

ISV Reference: Fleet Advisors
Product (s): IBM SPSS Modeler, IBM SPSS Collaboration and
Deployment Services
URL(s):
http://www-01.ibm.com/software/success/cssdb.nsf/cs/
STRD-8R4EHD?OpenDocument&Site=spss&cty=en_us

ISV Reference Fiserv:
Product (s):
• IBM InfoSphere® DataStage®
• IBM InfoSphere® Warehouse- -IBM DB2® 9.7
• IBM SPSS® Modeler
• IBM SPSS Statistics
• IBM SPSS Collaboration and Deployment Services
All running on IBM POWER hardware
URL(s):
http://public.dhe.ibm.com/common/ssi/ecm/en/imc14734usen/
IMC14734USEN.PDF

Smarter analytics101 v2.0.1

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