The Digital Era Is Not A New Phenomenon
67% of global
shipped by 2016 & 22B connected
devices by 2020
want to use mobile devices to
complete retail transactions
30 Billion pieces of
socialize more online than they do
95% of those who think
they’re not using the cloud,
content shared on Facebook every
users alone back up their
social, mobile, personal data
….but, it is sparking off a convergence of
multiple technology shifts
Rising Uncertainty = Declining Confidence
Aggregate Uncertainty %
Global Data Volume in Exabytes
We are here.
We are here.
Internet of things
Video, Audio and Text
Multiple sources: IDC, Cisco
We Are Entering The “Cognitive” Era of Computing
Time Card Readers
…enabling new opportunities and outcomes
Effective Use Of Information Is Changing Industries
in customer response to campaigns
decrease in fraud
accuracy in customer order forecasts,
4 months ahead
uptime for core business applications
increase in revenue from direct marketing
How can we tap into the
transformative power of
technology to create a
Smarter Enterprise that
?delivers greater value
Four Technologies Help Define the Smarter Enterprise
relationships with clients
and between employees
in all forms
Enabling It To Deliver Greater Business Outcomes
Increase business revenue
Reduce business cost
Align with enterprise’s
“From Cost Center to
Reduce IT Cost
Manage IT cost
“IT Value Is Dead. Long Live
…Requires A New Type Of System
our IT infrastructure, data and processes
how we engage, make decisions and work
Systems of Record
Systems of Engagement
“I believe the real difference
between success and failure in a
corporation can very often be
traced to the question of how well
the organization brings out the
great energies and talents of its
- Thomas Watson Jr
Changing Behaviours to Change Outcomes
A Traditional Business
A Social Business
Product & Service
R&D new ideas internally
Traditional market testing
Shares insights to generate
breakthrough ideas and
speeds time to market
Email & phone
Harvests insights from
networks of people to
Builds trusted relationships
and brand advocacy
Real Businesses. Real Results
Up to 5% reduction in customer
defection rate, increasing profits
up to 68%1
Bring products to market in
1/3 the time2
Improve sales efficiency by up
to 50% 3
Up to 100% increase in
reaching new audiences4
If we don’t invest in mobile, over
time we will reduce our ability to
acquire new customers and
make acquisitions; our customer
metrics will decline.
- Head of Group Digital
The Mobile First Enterprise Sets An Agenda to…
Create new value
at the moment
into the fabric
of the organization
Develop and run
Strategy & Design Services
IBM & Partner Applications
Application & Data Platform
Cloud & Managed Services
Development & Integration Services
Real Businesses. Real Results
80% reduction in per-check-in
cost compared to traditional
Projected 20 percent reduction
in development cycles and
time to market
5.7% increased conversions
through improved user
Potential sales lift for clients,
evidenced by a 109% lift in sales
Cloud (N): On-demand Compute With Consumptive
Rapidly provisioned services
Servers, network, storage, firewalls, ancillary services
• Consumptive billing
Turns traditional fixed IT costs into variable – monthly or hourly
• Initial model – virtualized multi-tenancy computing – does not meet requirements for
100% of applications and use cases
• For broadest applicability, user-selectable levels of performance and isolation are
The Greater Promise Of A Greater Cloud.
IBMers, in 170 countries, speaking 165 languages
U.S. patents in
20 consecutive years of
U.S. patent leadership
in analytics software
software products in
the IBM portfolio
Rich enterprise cloud
in cloud acquisitions
including 5 Nobel
invested in research
20 consecutive years
of U.S. patent leadership
A Better Platform: IBM SoftLayer
• Common command and control interface across a unified architecture
• Combine bare-metal servers, public cloud instances and private cloud deployments
into distributed hybrid architectures and manage from a single control pane and API
• All deployed on-demand and provisioned in real-time
• Ideally suited to big data deployments, high I/O and latency-sensitive apps
• 21,000 customers across 140 countries, 100,000 devices and 13 Datacenters
• Ranked #1 among Top 100,000 Sites By Hosting Provider (Hostcabi.net)
Big Data & Analytics.
Transact with customers, employees and partners through trusted,
insights-driven mobile interactions
Examples of Outstanding Performance Driven
by Big Data and Analytics
One size fits
Personalized, real-time marketing
Real-time, automated weather
Intelligent & accelerated fraud
Real-time Risk Analysis
Just in time
Predictive maintenance &
IBM Big Data and Analytics: Helps You Outperform,
Manage Risk and Create IT Agility
The Whole is Greater
Than the Sum of the Parts
CONSULTING and IMPLEMENTATION SERVICES
Sales Marketing Finance
Watson and Industry Solutions
Broadest set of capabilities across
big data and analytics
Pre-integrated components accelerate value
Pre-built industry and horizontal solutions
Integration and optimization with storage
Delivered in multiple forms: software,
appliance, and cloud
World-class consulting and implementation
drives innovation and value
Business Intelligence and Predictive Analytics
BIG DATA PLATFORM
Information Integration and Governance
SECURITY, SYSTEMS, STORAGE AND CLOUD
Real Businesses. Real Results
“IBM SmartCloud Analytics helped
detect 100 percent of the major
incidents that occurred, including silent
failures, and helped us eliminate
manual thresholds, which will result in a
cost avoidance of USD300,000
Chris Smith, Director, Tools and
Communications Holdings, Inc.
Social“Last two matches for Sachin.
Commit any sins in those 10 days
because even God will be watching
Sachin’s leg glance for one last
Rohit Sharm a
R Ashw in
Fans take to
more conversations on
Facebook than Twitter.
is not just any
Balancing Innovation And Optimization To Drive
our IT infrastructure, data and processes
how we engage, make decisions and work
Systems of Record
Systems of Engagement
Progress Comes With Ever-evolving Threats
of C-level execs
say that negligent
insiders are their
Your Smart Ideas + IBM =
Big Data and
Smarter Actions: Right Here at IBM
IBM’s Business Strategies
Build a Network
Sign Up For Software Connect
(Tailored Account Days for Your Organization)
Notes de l'éditeur
Welcome to IBM SolutionsConnect 2013.
Most of you must have 2 or more mobile devices on your right now. You may be tweeting out how excited you are to hear this presentation (hopefully!), You might be down to the wire on an anniversary gift and shopping from your mobile phone right now. Every action you take is instrumented to collect a piece of data about you. So we know that technology has changed everything about our lives and our customer’s lives.
Let’s look at India:
The number of social media users in Urban India would reach 86 million in October this year, and 91 million by the end of this year. Social media users in urban India are expected to grow by 19% between June and December this year. The report further found that 19.8 million users use mobile phones to access social media platforms in urban India. This is massive reach. Maybe that’s why the political parties in India have earmarked around 2%-5% of their election budgets for social media!
(Source: ‘Social Media in India – 2013’ by the Internet and Mobile Association Of India (IAMAI) and IMRB)
Virtually every organization today is facing major technology transitions and IT is under pressure to deliver. And all this is happening all at the same time….creating an environment we have not seen before. Creating information & data that is simply getting out of control. 90% of the data/information that is available today have been created in the last 2 years alone!!
Research shows that data uncertainty is rising along with the volume of data, and we’re relatively early in the cycle.
Why is uncertainty rising? One reason is that we are tapping into external data more than ever before. When combining external data, sometimes from uncertain sources, the overall level of uncertainty rises. Another reason are the various inputs – there are more sources of data. More fragmented records that need to be reconciled.
1/3 make decisions on untrustworthy data. That’s from 2012. What is it like today? Or in 2014? 1/2 lack information and want more, yet 60% have too much data. That’s a paradox. We want more, but we can’t handle it.
The answer isn’t making data “smaller”. It isn’t ignoring new sources of big data and insight. And it isn’t making the data perfectly certain – that’s a fools errand. It’s about understanding the level of uncertainty, or confidence and acting despite that uncertainty. It’s about making the data good enough that you’re comfortable to act.
We are getting into the era of “cognitive computing”. Systems that learns….and helps make sense out of this massive volumes of structured as well as unstructured information…..most of the information we have today is unstructured - videos, blogs, images. This trend is changing industries.
The implications of this pattern are clear – a major transformation is underway. This transformation is fundamentally changing how organizations are structured, how daily operations are managed and where new investments are made to create value. It is being powered by the onset of big data, which in turn is being instrumented and analyzed by new computing systems with deep analytic capabilities.
ING’s campaigns were slow, costly, and lacked coordination across channels. So, they worked with IBM on a customer differentiation program to coordinate and personalize campaigns across multiple channels, using next-best action models based on customer history and recent interactions. As a result, they achieved a three-fold increase in customer response to marketing campaigns, while reducing marketing costs by 35%.
Nim See Seng Leasing Co. Ltd. improved its operational efficiency for improve responsiveness to customer requests with greater agility.
With an aggressive growth plan, it was essential that the company better respond to customer requests as well as improve the efficiency of its IT infrastructure and reduce costs. Working with IBM, they company deploy a complete, cost-effective IBM solution enabling predictive analysis on the business transactions and financial histories of customers above the real-time data flow. As a result, all loan applications can now be reviewed and approved in half the previous time, and automated blacklist alerts have reduced fraud by 50 percent.
Elie Tahari, a global fashion brand with revenue across 40 countries, sought to better analyze information across five separate systems that the company relied on to run its business, as well as standardized product activity transaction reports it received from its wholesale channel. To unify these sources into a coherent and complete picture of the situation, employees in various departments had to manually collate and analyze the data using spreadsheets.
Working with IBM, Elie Tahari gained the ability to predict customer orders four months in advance with better than 97 percent annual accuracy, enabling them to optimize production and guarantee full availability of its products while maintaining very lean inventory levels. They also now enjoy faster and more intelligent decision-making through the availability of real-time sales, inventory and logistics information enabled by a “near-real-time” data warehouse design where all transactional data is updated within five minutes or less. Overall, their reporting cycle dropped from two days to a few minutes.
BC Jindal Group needed to be able to control operations, cut costs and start new business ventures to meet the needs of the rapidly growing Indian economy. Combining an SAP ERP system with IBM Software for cloud and IT optimization and for social collaboration, running on IBM Power systems hardware, they achieved near 100 percent uptime for core business applications, reduced administration workload, saved around 50 percent of predicted capital expenditure, and increased user productivity through automated data backup across around 30 servers.
Telefonica needed to grow revenue through personalized marketing to its 60 million customers and eliminate the high costs, risks and inefficiency of a manual approach to campaign development and execution. With an IBM centralized marketing automation solution, the company now runs 200 campaigns a month by text message, email and telemarketing, and has improved the speed, quality and effectiveness of outbound communications. As a result, they have increased the revenues generated by direct marketing by 30 percent and reduced its operational costs by 80 percent, while realizing gains in efficiency and its ability to personalize interactions with customers.
These shifts present immense opportunity, but as with any market inflection, the time is short to seize the competitive advantage. We see that outperformers are even more focused on combining technology with the business to drive innovation and growth. One key theme we want to explore through today’s sessions is how organizations can harness these technologies to give themselves a new competitive edge in the era of “smart.”
So how did they make it happen? How are these enterprises leveraging the power of transformative technology to become smarter?
To explore….I would like to call on stage – JOHN FRECH.
HANDOVER TO JOHN FRECH, VP – SALES, C&SI
Thank you, Jason.
Technology has become intrinsic in leveraging the mass of data, not only helping businesses know their customers better, but also in determining key insights from data to take pre-emptive, personalised actions. Numerous businesses have partnered with IBM to determine the next best action for their organisation. As part of this session, I want to talk about the 4 key technologies (social, mobile, cloud and analytics) and how IBM can partner with you to turn your smart ideas into smarter actions!
As Jason mentioned, technology has changed everything about our lives and our customer’s lives. Evidence of this change is everywhere. And every enterprise will need to become a Smarter Enterprise.
Leaders are capitalizing on the latest innovations in Big Data and Analytics, mobile, social and cloud to be competitive and drive results. They are transforming their enterprise by infusing intelligence into their systems, processes and infrastructure to make better decisions, operate more efficiently and to create value in new and more individual ways.
There is a shift taking place in the IT Industry where value for service providers is shifting from delivering IT outcomes to delivering business outcomes. Traditional IT focused primarily on reducing on IT costs. The new value for IT is shifting towards delivering business outcomes represented by the orange line, with a focus on reducing the business cost or increasing business revenue for clients.
In an article, an author argues that CIO need to start transforming IT organizations from costs centers to profit centers to provide additional business value for enterprises. A similar article argues that providing pure IT value is no longer relevant in an enterprise. CIOs need to start focusing on providing business value. According to a recent survey of CIOs by Gartner, more and more CIOs list increasing enterprise growth as their top business priority into 2014.
The inflection point enabled by analytics, cloud, mobile access and systems of engagement models are driving then need to balance optimization of traditional systems to reduce costs and align budgets with innovation that is driven by line of business organizations focused on IT to differentiate their offerings with customers.
“Systems of Record” are the ERP-type systems we rely on to run our business (financials, manufacturing, CRM, HR).
“Systems of Engagement” are systems which are used directly by employees for “sticky uses” – like email, collaboration systems, and new social networking and learning systems. They “engage” employees. Today’s Systems of Record were once the Systems of Engagement.
We are seeing a renewed emphasis on the exploitation or pervasive computing to shift the focus of IT spending to be more directed by the CMO leaders over traditional CIO and CFO directions. Lines of business executives are viewing the opportunities for computing architectures in a new light: to leverage their access and differentiation to their customers over traditional views of IT as a cost center that must be endured.
A quarter century ago, the internet began to fundamentally change the way in which we interact and share information. Today, social technologies have brought this to the individual level.
It gives each of us immediate access to hundreds, thousands, even millions of people. It lets us tell our stories and, in the process: connect, entertain, inform, engage, uncover injustice, and even foster revolutions. It carries immense power.
This is how we come together today, as a society – and it’s where today’s marketing is happening. It’s where organizations build and strengthen a brand, learn about and attract potential customers, and foster long-term relationships. With 81% of customers getting advice on purchases from social sites, it’s more important than ever to understand those conversations, and to be a part of them.
One company doing a great job of this is Amadori.
In order to communicate more effectively with younger consumers, as well as gain new insights into its customer base, the Italy-based poultry product company worked with IBM to create and manage content for four product-based mini-sites. The sites have been integrated with Facebook and YouTube, enabling direct access to Amadori’s YouTube channel and Facebook page.
This has enabled new mini-sites to be created up to 40 percent faster, saving time and costs, but more importantly, has significantly improved Amadori’s online profile, attracting nearly 50,000 Facebook fans in under a year.
Full case study: ibm.com/software/success/cssdb.nsf/cs/STRD-8MZHM4?OpenDocument&Site=corp&ref=crdb
Imagine the power of a workforce where people are in the “best fit” jobs, fully engaged, empowered and highly productive. Picture a workforce as a network of communities where employees can instantly find the right colleagues — inside or outside the immediate workforce — to fill gaps in their expertise and tap knowledge across departments, across languages, across oceans. These images are no longer just visions of the future; today smarter work forces are driving innovation to bring products and services to market faster, resolving problems before they arise to improve customer service and increasing sales by building new skills. Hear how organizations are rethinking their front-office business processes to improve productivity, unleash innovation and further enhance their ability to delight their customers.
A quarter century ago, the internet began to fundamentally change the way in which we interact and share information. Today, social technologies have brought this to the individual level. It gives each of us immediate access to hundreds, thousands, even millions of people. It lets us tell our stories and, in the process: connect, entertain, inform, engage, uncover injustice, and even foster revolutions. It carries immense power. This is how we come together today, as a society – and it’s where today’s marketing is happening. It’s where organizations build and strengthen a brand, learn about and attract potential customers, and foster long-term relationships. With 81% of customers getting advice on purchases from social sites, it’s more important than ever to understand those conversations, and to be a part of them.
According to the a recent McKinsey study –The Social Economy: Unlocking Value and Productivity Through Social Technologies - Organizations that leveraged social technologies in the workplace experienced increases in the productivity of their knowledge workers of up to 25%. Additionally, by leveraging social business technologies to connect more effectively with customers, organizations in industries such as consumer packaged goods have increased margins by up to 60%.
CEMEX: CEMEX was looking for a collaboration solution that would help make it more efficient and agile. The solution would need to be capable of helping employees share their information, experience, knowledge and best practices. One of the end goals was for the collaboration to fuel product innovation, allowing CEMEX to expand its ready-mix concrete products into new marketplaces around the world.
CEMEX engaged IBM to develop and implement an internal collaboration platform called Shift, based on IBM Connections software. Over 12,000 CEMEX employees use Shift to share ideas, suggestions and recommendations across the network. Communities of interest are formed to tackle challenges common to locations, marketplaces and skill sets. In addition, CEMEX employees also use activities, wikis, blogs and profiles. The benefit:
Encouraged collaboration among all CEMEX business units and functions, helping the organization overcome challenges as it expands into new marketplaces
Leveraged in-house expertise to achieve lower cycle times, faster time to market, and real-time process innovation and improvement
Worked as a collaborative force to develop initiatives that enabled the companyto better serve customers, improve productivity and be better prepared forfuture challenges
VCC: Mobile information access and collaboration expedite projects and improve quality. Approximately 90 percent of VCC’s staff now access company information from a mobile device. Security is robust and business processes have accelerated. Benefits included continued confidence in the security of corporate information accessed from mobile devices, accelerated business processes — up to three to four times faster — due to anywhere-anytime access to real - time information and enhanced the efficiency and accuracy of decision making with superior collaboration capabilities
Amadori: In order to communicate more effectively with younger consumers, as well as gain new insights into its customer base, the Italy-based poultry product company worked with IBM to create and manage content for four product-based mini-sites. The sites have been integrated with Facebook and YouTube, enabling direct access to Amadori’s YouTube channel and Facebook page.
This has enabled new mini-sites to be created up to 40 percent faster, saving time and costs, but more importantly, has significantly improved Amadori’s online profile, attracting nearly 50,000 Facebook fans in under a year.
Now, we talked about the immediacy of social technologies – and I mentioned that 91% of mobile users keep their device at arm’s reach at all times. The connection is probably obvious – we have immediacy because we have access to social technologies wherever we go. How many of you have a smart phone with you today? Many of you likely sent a text or checked a social media site within the last hour. Some are doing it now.
Personal engagement happens everywhere, all the time – because we carry our access to the world in our pockets. This creates the opportunity for contextually-relevant experiences – delivering greater value to customers and better results for marketers.
This is not a doomsday prophecy, but a very real possibility.
In a very real sense, mobile engagement means the difference between relevance and obscurity.
We’re going to choose relevance.
Think about mobile banking - on the surface you might think about security - but how do you personalize your interactions with the customer and what would that do for your cross-sell/up-sell. What if the customer completes a payment on the mobile device and the network goes down in the middle of it -does the transaction go through twice?
There is little doubt that consumer adoption of mobile products and services is continuing to grow exponentially. Currently, there are approximately 1.5 billion smartphone subscribers, with an estimated growth rate of over 30 percent. Over 79 percent of smartphone owners use this to purchase goods and services, with worldwide estimates for mobile commerce estimated to reach $199 billion by 2013.
Enterprise adoption of tablets, a category that barely existed three years, is estimated to grow by almost 50 percent per year. Further, recent data from the IBM Institute for Business Value show that individuals are using both mobile phones and tablets to accomplish a wide range of work activities that previously been restricted to desktops – ranging from accessing email (62 percent via phone, 38 percent via tablet) to collaboration and project management (25 percent via phone, 34 percent via email) to videoconferences (30 percent by phone, 33 percent via tablet).
At the same time, mobility represents opportunities beyond the use of phones and tablets. Sensors built into wearable devices such as wristwatches and glasses, and embedded in everything from cars to medical devices to thermostats will provide new sources of “big data” that can be harnessed to deliver more targeted products and services, as well as create new sources of revenue for organizations.
Given the significant opportunities posed by mobile technologies, what can we learn from leaders in the marketplace? What are they doing differently to take advantage of mobile?
Transform the business: For our customers, mobile has to start with a business opportunity, and in many cases these business opportunities are leading to industry disruption. One example, Daimler’s Cars2Go service is challenging the notion of what it means to rent a car. Once people had to go to a rental counter and commit to renting cars for days at a time. Now they can find a car parked on the street in a location that is nearest to them and use it for as long – or as short – a time as they need to.
Engage the customer: One of the near universal business opportunities that mobile presents is to deepen customer engagement. Mobile is ubiquitous. And people are using their devices in ways that can be turned into advantage for the enterprise - 71% of smartphone users that see a captivating TV advertisement will immediately do a mobile search. But mobile users are discerning - 61% of customers who visit a mobile unfriendly site are likely to go to a competitor's site. And CMO’s recognize this problem. 57% of them say that designing experiences for tablet/mobile apps as a key priority to drive customer loyalty. Leaders are not only providing better, more differentiated service to their end customers, they are enabling their employees with mobile so that they can provide faster and better service wherever they are.
Build the App: Providing mobile experience generally starts with an engaging application or mobile web experience. But mobile app development brings with it a host of unique challenges. Faster development cycles, More devices to support, each with its own set of capabilities, OS and UI behaviors, More development approaches, Unique management, security and lifecycle considerations, Unlocking core business knowledge from backend systems and making it available to new mobile front end technologies
Optimize the Infrastructure: And then there are all of the other infrastructure components that companies need to be concerned about – whether it is networking, security, device management, application management, expense management. All of these elements need to be planed for, integrated and optimized so that the enterprise and its workforce can take advantage of new mobile opportunities.
This chart represents all of what IBM is doing in mobility on a single page. When we launched MobileFirst back in February at the Mobile World Congress in Barcelona, we were reacting to the fact that no one in the industry had yet laid out a vision of the key services and capabilities that will be needed in this technology transition.
Forrester very recently assessed providers of Enterprise Mobility services and concluded that breadth and depth were today’s differentiators in a crowded market. They found that “few truly have the scale across the life cycle of services, from user interface and design skills to business acumen to mobile technology expertise”. And you can see that IBM was literally off the chart when compared to other providers. Forrester attributes this leadership to IBMs significant investment in R&D to :drive bleeding-edge mobility solutions” to our client base, noting our 200+ patents in the mobility space. Forrester also cites IBMs range of domain and industry consulting skills in areas like analytics, cloud and social, which we further leverage in many of our mobile engagements
It is this range of services, solutions and skills which we are now consolidating into a corporate initiative to address the mobile opportunities and needs of our clients – IBM MobileFirst
India Case Study: ING Vysya Bank created a mobile banking application with the intention of providing their customers with a greater interactive-banking experience. This allowed ING Vysya Bank to increase customer satisfaction by 50 percent and significantly reduce the cost of doing business. In less than 18 months, 10 percent of the customers have downloaded the mobile-banking application to their mobile devices and using it for transactions. With data-capture capabilities for accurate analysis, ING Vysya Bank is now able to build special offers for targeted customers and up-sell and cross-sell its offering based on banking trends.
Air Canada: Focused on consolidating self-service channels to enable a seamless customer experience, Air Canada launched its latest industry first – the delivery of proactive travel services via iPhone® and BlackBerry® mobile devices. Relying on rules-based intelligence, the solution delivers notification messages that are always up to date. In addition to fitting in with customers’ increasingly mobile lifestyle, their IBM solution enables Air Canada to process transactions such as check-ins 80% more cost effectively than those done at the customer service counter. The solution also helped them to achieve a greater than 50% reduction in time required to launch new services or channels through the reuse of existing service assets.
Cincom’s Synchrony engineers develop using open source and deploy on licensed software. This can cause inconsistencies between the user experience in the development environment and the customer experience. With IBM’s solutions they projected 20 percent reduction in development cycles and time to market, fixed errors and redeployed 60 times faster, streamlined development of high-quality desktop and mobile applications.
Visa: Smart offers help merchants achieve breakthrough marketing effectiveness. Visa’s insight was to recognize its unique potential to make smart marketing campaigns a reality for merchants. That comes down to delivering the right offer at the right time using analytics instead of traditional advertising. Visa worked with IBM to develop a solution that came to be known as Visa’s real-time messaging technology (RTM) by using various IBM Software and Hardware solutions.
Potential sales lift for Visa’s merchant clients, evidenced by a 109% lift in sales for enrolled GapMobile4U consumers. Improved ability for Visa to foster loyal relationships with merchant clients by enabling them to offer higher-value services to their customers. Creation of a new revenue stream that maximizes its real-time analytics capabilities
What excites C-suite executives about cloud? It’s obviously not the usual IT-centric motivations: computing power, scalability, flexibility, CapEx cost cutting. And, frankly, Line-of-Business executives care about business outcomes; not whether or not it’s delivered in the cloud. But the C-Suite is, in fact, reaching for the cloud because they want to transform marketing, procurement, supplier management, human resources, legal – everything it takes to go to market and manage people, reach new customers, and grow their business. And they want those transformations more quickly.
Cloud can be a business accelerator. In fact, Gartner estimates that by 2017, CMOs will spend more on IT than CIOs, and with the ways that cloud is transforming marketing, clearly a growing percentage of that spend will be on cloud solutions. For ex: London-based Speedo, the world’s largest swimwear brand, is using cloud-based digital analytics to improve the shopping experience for its customers. The result? Cross-selling revenue increased by more than 10 percent in online sales, generating six times more revenue per average order.
IT continues to make its way into the front office, and cloud is leading the way. For the C-suite, cloud isn’t about computing power. It’s about agility, innovation, and transformation; finding new business models and revenue streams and better serving customers and employees. This is one reason that 90% of leading organizations are predicted to be investing in cloud technologies by 2014. It’s the great equalizer – enabling any individual or organization to become an enterprise-class player.
Cloud gives customers the ability to be agile, scale up and down, move quickly into new endeavors and even grow topline revenue through new uses of cloud directed by LOB buyers
40% of CEOs view cloud as critical to the business agenda.
According to IDC, 50% of IT budgets will be allocated to operationalizing around cloud technology within 2 years.
The average firm with more than 500 cloud users relies on more than 5 cloud service providers.
IBM SmartCloud is our family of enterprise-class cloud computing technologies and services for securely building public, private and hybrid clouds. Deep expertise, open standards and proven infrastructure enable you to confidently achieve new levels of innovation and efficiency.
We have over 60 SaaS offerings for clients today – in many cases sold to and consumed by lines of business buyers
More than 5000 new private cloud clients and over 1700 Managed services providers as business partners in just the last year we essentially become the ARMS DEALERS to these MSPs who offer their platform as a service in the market
And again on our investments both organic and inorganic -we have Greenhat, the PureSystems innovations which many like to refer to as ‘cloud in a box’ - -and just recently we bought a company called Butterfly which lets clients to data analytics on backup and migration of their data to storage or cloud services. And of course, SoftLayer.
VIDEO: Business Tranformation In The Cloud http://www.youtube.com/watch?v=5uoahgBRg_E&feature=c4-overview-vl&list=PL65F46AECC4502FA3
SoftLayer, uniquely, has designed and deployed a global, interconnected platform that meets the key operational and economic requirements of cloud infrastructure across a broad portfolio of infrastructure - dedicated and shared devices, physical and virtual servers, hourly compute instances and four-way, octo-core bare metal, along with a wealth of storage, networking and security components.
Our customers can take these building blocks and deploy public cloud instances, build private clouds on their choice of virtualization stack, leverage the raw power of bare metal on demand, or combine these solutions into distributed, hybrid architectures. Build what you want, or leverage our turn-key big data and private cloud solutions to design and deploy complex, scalable infrastructure online in real time. It’s all delivered as a unified service, managed from a single pane of glass via our Web portal or mobile apps, and accessible via a powerful, full-featured API. One bill, one portal, one platform.
It's a model that provides users with a greater range of choice, flexibility and control than any other cloud infrastructure solution in the industry.
Offerings across IBM and SoftLayer will span a continuum of capabilities including bare-metal dedicated servers, virtualized servers, managed private and public cloud, storage, networking, managed services, and much more, all rapidly provisioned from the web or via API. This continuum translates into a portfolio able to meet the spectrum of a customer’s cloud needs.
One of the top reasons IBM chose SoftLayer is that it will marry the security, privacy and reliability of private clouds with the economy and speed of a public cloud.
With a strong cloud infrastructure from SoftLayer under our belt, we can focus on delivering to clients the business transformation. As such, the acquisition is a milestone not only for IBM, but for the industry, in changing the cloud discussion from one of reducing “IT cost” to impacting the business.
Big Data is the NEW NATURAL RESOURCE - - we mine for it, sift through it, parse out the good from the bad. And then analytics becomes the UNIVERSAL TRANSLATOR that sits on top of all that new and interesting data so you can extract insights and patterns to change different dimensions of the business.
Data Analytics Will Revolutionize Decision-Making. Big data and analytics is crucial to understand who your customers are – their behaviors, intentions, preferences and needs. All of the interactions we discussed – mobile and otherwise – generate immense amounts of information. Properly leveraged, this wealth of data provides insights to further personalize customer, partner and employee engagement; improve innovation; optimize operations; identify threat and fraud; more accurately monitor and report business performance; and, overall, support more informed decisions and increased competitive advantage.
Excerpts from Ginni’s Interview with Fortune: Many more decisions will be based on predictive elements versus gut instincts,” Rometty said. Even in the most scientifically oriented fields, she noted that decisions are still being made based on anchoring biases. In other words, leaders and managers interpret information through the lens of their subjective perspective and set of experiences. However, with the incoming “tsunami of information,” Rometty believes that those companies that are able to use data to their advantage will make better, more objective calls. As an example, she cited IBM’s use of software analytics in its CRUSH (Criminal Reduction Utilizing Statistical History) initiative with the Memphis Police Department. Finding a correlation between rapes and outdoor pay phones, they decided to move the phones indoors, which ultimately contributed to a 30% reduction in crime.
Shinsegae Mall - A leading retailer in South Korea gathers deep insights into consumer behavior and runs targeted online marketing campaigns for greater profitability and loyalty when it implements a solution based on IBM Unica Campaigns software, IBM Netezza Data Warehouse software, IBM InfoSphere software, IBM Cognos software, IBM SPSS Modeling software and IBM Power 570 systems running IBM AIX 6 (http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-8H8GRX&appname=crmd)
Guohua Energy Investment Co. - A renewable wind energy utility company in Beijing improves forecasting accuracy by 15 percent and boosts power-producing capabilities by 10 percent when it engages IBM China Research Lab and deploys a power output-forecasting solution based on a HyREF solution; IBM business analytics and IBM Information Management software; and IBM BladeCenter, IBM System Storage and IBM System x technology (http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-9868WR&appname=crmd)
Allianz Life Insurance - A major Korean insurance company estimates gaining nearly USD1.4 billion in profits, reducing liability fees by 12 percent, accelerating the fraud detection process by 50 percent and increasing employee productivity by 60 percent when it engages IBM Business Partner KSTEC to implement a fraud detection solution based on KSTEC SmartWorks FDS software as well as IBM DB2 Enterprise data server, IBM SPSS Modeler, IBM WebSphere ILOG and IBM WebSphere Application Server applications running on IBM System p, IBM System x and IBM System z servers and validated on the IBM Insurance Industry Framework (http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-8JKKCM&appname=crmd)
State Bank of India –A global bank based in India analyzes credit risk in near-real time and cuts reporting time by 92 percent when it taps IBM Global Services - Global Business Services and IBM SPSS Lab Services to implement IBM Business Analytics and IBM Information Management software supported by an IBM WebSphere solution to help it proactively manage risk and comply with Basel II recommendations (http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-97SARQ&appname=crmd)
Thiess Pty. Ltd - A mining company in Australia reduces heavy equipment maintenance costs and improves productivity when it works with IBM Global Services - Global Business Services and IBM Research to pilot an advanced condition-monitoring solution based on IBM SPSS software and an IBM DB2 data server (http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-94A3KM&appname=crmd)
The value of IBM’s big data & analytics platform is it’s breadth. We have the broadest set of capabilities for big data of any vendor.
The whole becomes greater than the sum of the parts once we start integrating those components. And we’ve done that. Our data warehouses and Hadoop systems are well integrated with our IIG capabilities. Our analytic solutions such as Cognos and SPSS are integrated with the relevant components of the big data platform.
Our industry solutions teams built industry specific and horizontal solutions based upon big data and analytics. Watson is one such example.
Our security, systems, storage, and cloud are optimized for this
And our partners build around this platform of capabilities with highly tailored and specific solutions for their clients.
At the center of our BD&A offering is our Big Data Platform and Analytics capabilities. Information Integration and Governanace, Content Management, Hadoop, Stream Computing and Data Warehousing. Everything you need to manage and govern your data.
The Analytics layer contains BI, Predictive, PM, Risk Analytics, Decision Management and Content Analytics.
Solutions that leverage the platform to address specific Ithat address fraud, social media analytics, information lifecycle management
As you start this slide, a few things cause disruption: the lights go off, the mike goes loud and then the volume goes low, the spotlight moves away from you and goes out of focus.
John: [Sounding and looking hassled.] What is this? What is happening? Can someone at the back please let me know why the lights are flickering, and why the mike has problems?
The problems occur even you talk.
Someone from the back: [Shouts.] Sorry John. We're fixing it.
John: Okay. This better be quick! [Smiles at the person, and then at the audience. Then shrugs to show his solidarity with the audience.]
John: I apologize. I'm sure whatever is happening will be resolved soon.
Person from the back: John, the problem's fixed now!
The lights are now working well, so are the mike and the spotlight.
Well, that was embarrassing. But thankfully that’s all there is to this. Imagine if this were your hardware that went off – kaput. Yes, doesn’t sound very good. And the IT Operations specialists in the room will definitely agree with me!
A typical large enterprise has around 5000 servers + Network + Storage + Middleware generating ~1.3 TB of Availability & Performance Management Data per day. Typical Enterprise generates 27 million tickets and 20 million work orders to manage 15 million unique assets – 1 TB of unstructured data a day. 75% of Senior IT Execs dissatisfied with traditional management approaches, 30% claim they cannot predict potential outages.
What if you could predict & prevent IT downtime, improve productivity & generate cost savings?
To tell you more about our latest solution, I’d like to invite Omkar, Director Cloud, Smarter Infrastructure & Security Software, India Software Labs.
Welcome to IBM SolutionsConnect 2013.
Omkar thanks the audience and John. Handover to John.
As director of Tools and Automation with the Consolidated Network Operations Center (NOC), Chris Smith knows that minor network issues can often turn into larger problems that disrupt service.
As a result, proactively detecting unusual network behavior is of paramount importance. However, manually setting thresholds and alerts for the company’s existing performance management software required considerable time and effort, and did not provide enough early warning for staff to prevent operational issues. Smith sought a solution that could intelligently analyze 80,000 network statistics in near-real time, understand “normal” operational behavior automatically, and proactively identify changes that indicate a problem—all without having to set thresholds or develop service models.
After learning about IBM® SmartCloud® Analytics software, Smith signed up to participate in the product’s beta test. During the four-week beta test, the solution achieved the following: Detected an unscheduled maintenance activity, Revealed a configuration error in the company’s Internet Protocol television (IPTV) delivery systems that caused devices to check in at a much higher frequency than desired. Identified bandwidth changes on DNS [domain name system] servers that tracked back to a denial-of-service attack initiated from customers on the network.
The benefit – it doesn’t get better than 100%. And to sweeten the results, they projected they’d save USD300,000.
JOHN THANKS THE AUDIENCE AND HANDS OVER TO JASON
John talked about various applications of analytics in real-life. I wanted to take a few minutes to talk about another cool application of analytics – to judge social sentiments.
The explosion of data in all forms from blogs, online forums, Facebook, Twitter and other social media channels has given consumers a virtual soapbox of unprecedented reach and influence for publicly sharing their thoughts on events, products and services. Businesses, academics and journalists are using sentiment analysis to tap into this social media buzz. By applying analytics and natural language processing technologies, they gain a better understanding of consumer preferences, market trends and brand awareness.
So, I asked my team to do a quick run on India’s favorite sport! What would that be? (Click to show baseball batter image).
BASEBALL! I’m only kidding. I’ve been here for long enough to know that cricket is a religion in India. And I know one of the Gods of Cricket is playing his last test match this week. So, we ran a small analysis on how the social media’s abuzz with Sachin conversations.
Anyhow, on to some serious business.
I don’t have this slide here just to show the “technology” in the CIO-CXO collaboration. The necessity to balance optimization & innovation, is immediate and urgent. As companies start investing in analytics, social or mobile, they need to “optimize” their infrastructure to be scalable (to scale up to customer expectations), flexible (to respond quickly) and accurate. Businesses should look to complement investments for front-office with DevOps, Security, Business Process Management, Integration and others.
Let’s look at a couple of viewpoints, one around the front office and the other regarding security, from a couple of our esteemed customers.
Disruptive forces like Mobility & Cloud are changing the face of IT in India. Your views on this ?
How does IT play a role in acquiring new customers in the Insurance space?
With a strong sales force, financial planning advisers & huge distribution network spreading across nearly 1,000 towns and cities – The role of a CIO becomes extremely critical for a smooth Business process run – What are the biggest challenges you face? And how do you manage it?
Do you see the role of Big Data with information present across internal systems and social media contributing to customer cross sell, up sell opportunities?
Risk management in the Insurance sector is now an imperative Can you shed some light on this ?
Regulatory authorities like IRDA have a substantial bearing on operations of Insurance companies. How do these agencies drive technology adoption?
What are the typical threats to security in the Insurance arena?
How is the Role of an IT leader changing to become more closely involved in business decisions?
What is the vision (or 5-year plan) for Aviva’s technology department? How do you envision the technology division of the future?
CISOs have to be concerned about insiders who may compromise their security, either with malicious intent or simply because they are not being vigilant. They also have to be concerned about external attack vectors, and particularly as the world moves toward cloud and mobile devices. At the same time, the payoff for the attackers keeps going up, meaning that the motivation to attack continues to escalate.
IBM offers integrated security intelligence and industry-leading experience enabled by the IBM Security Framework solution capabilities. All of the IBM Security offerings are backed by an extensive business partner ecosystem which consists of industry-leading technology, sales and service partners.
These capabilities are delivered through a comprehensive and robust set of tools and best practices (including software and hardware) that are supported by the services needed to address:
Intelligence: Through a common and intuitive view that combines deep analytics with real-time security intelligence.
Integration: Through unifying existing tools and infrastructures with new forms of defense in order to reduce complexity and lower the cost of maintaining a strong security posture
Expertise: Through a more proactive and trusted source of threat research and security data in order to stay ahead of emerging threats and risks.
1.India has more than 40 million smartphone users today with only 25% of usage being accounted for Voice calls and texts. What does the Future of connectivity look like? (Figures indicating data explosion in India ..) 2.Information Security in the telecom sector is now an imperative that every operator must meet. Can you shed some light on this ? ( I shall cover Threats (Regulatory, data leaks, attacks etc) and likely protective measures here) 3.What were your priorities when you implemented a Network Security solution? (Bharti's journey down the infosec path...) 4.How have things evolved from there on your Security Intelligence prerogative and where do you see things progress in future? (QRadar's earlier and present avatar to support Airtel ..including way ahead) 5.What is the vision for Bharti’s Information Security department? How do you envision the technology division of the future? (I shall cover Mobility, cloud and other disruptive technologies here)
We commissioned an IBM Business Value on Software Delivery at the start of this year. We interviewed about 400 executives - across industries and around the world - to better understand their views in Software Delivery.
The results of the study were quite dramatic. While 86% of the respondents believe that Software Delivery is important or critical to their business. Only 1 in 4 actually do a good job today. It’s important but too few do it well.
This is a call to action. We also asked them about their self-declared profitability - how well is their firm doing - and those who do a good job of software delivery tend to outperform those who do not. 69% of those who leverage software delivery outperform those that do not.
So Software Delivery is important, too few do it well, and those that do it well outperform those that do not.For many who need to do a better job of software delivery this is a great opportunity - a way to be able to improve the business performance by improving software delivery. We in this room can help our organizations close this gap, and each of us personally stands to benefit greatly. We cannot be complacent. The world continues to demand faster cycles of innovation. We all need to stay ahead.
How can we address the challenges of today’s complexities and get to market faster with a quality product, service or application? The most forward thinking companies will establish an enterprise capability for accelerated delivery of software that enables them to seize market opportunities and reduce time to customer feedback, improve governance while balancing quality and cost. They can do this by taking a lean and agile approach across an expanded lifecycle that includes customers, LOB / business owners, development / test and operations / production and really focus on achieving:
Accelerated software delivery
Reduced time to gather and analyze customer feedback
Improved governance across the lifecycle
Without losing the balance of quality, cost and speed
100 years of innovation. But things are not slowing down at IBM. Infact, we find ourselves looking for ways to bring value to individuals, businesses, sectors and nations!.
Here’s a little IBM formula.
To lead & succeed in today's ever changing world, smart ideas are no longer enough. The speed and accuracy at which actions are taken determines the success of ideas. Technology has become intrinsic in leveraging the mass of data, not only helping businesses know their customers better, but also in determining key insights from data to take pre-emptive, personalized actions. Numerous businesses have partnered with IBM to determine the next best action for their organization. Whether it is "increasing customer acquisition and loyalty by delighting customers" or “proactively responding to market dynamic to increase sales & revenue”, you'll hear more about how IBM can partner with you to turn your smart ideas into smarter actions!
What will this mean for your industry? For the products you deliver? For the way that you partner? How will you respond? Success today requires you develop exceptional experiences, delivered in the precise moment of need, while maximizing the value of each and every interaction. It requires a new approach to IT. And that is why we are here today. We want to prepare you for the next set of actions that you will need to take to harness these forces for yourself in your industry.