Technology and Trends for Smarter Business Analytics

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1 Don Campbell Chief Technology Officer, Business Analytics, IBM Technology and Trends for Smarter Business Analytics Business Analytics software

2 Where organizations are focusing Business Analytics Enhance Customer Understanding Customer Churn Marketing Spend Sales Productivity Optimize Real-Time Decisions Trading Advantage Fraud Protection Health Monitoring Foster Collaborative Decisions Customer Service Channel Management Loan Origination Enable Enterprise Visibility Financial & Risk Management Demand Visibility Strategy Alignment Underpinned by trusted data and an integrated technology foundation Reducing your TCO Accelerating time to business outcomes

3 Organizational, not data or financial concerns, are holding back adoption Primary obstacles to widespread analytics adoption Lack of understanding how to use analytics to improve the business Lack of management bandwidth due to competing priorities Lack of skills internally in the line of business Ability to get the data Culture does not encourage sharing information Ownership of the data is unclear or governance is ineffective Lack of executive sponsorship Concerns with the data Perceived costs outweigh the projected benefits No case for change 15% 38% 34% 28% 24% 23% 23% 22% 21% 21% Organizational Data Financial Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright Massachusetts Institute of Technology 2010.

4 Organizations want to see insights more clearly and act on them Analytic techniques that provide the most value Today Historic trend analysis and forecasting Standardized reporting Data visualization Analytics applied within business processes Simulations and scenario development Clustering and segmentation Regression analysis, discrete choice modeling, and mathematical optimization In 24 months Data visualization Simulations and scenario development Analytics applied within business processes Regression analysis, discrete choice modeling, and mathematical optimization Historic trend analysis and forecasting Clustering and segmentation Standardized reporting Increased or sustained value Decreased in value Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright Massachusetts Institute of Technology 2010.

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6 Mobility Analytics is about information for better decisions while Mobility is about what people need the most access to information anywhere Secure access to analytic content online and offline Author once Simplified user experience across devices Support a wide range of devices ipad, iphone Blackberry Android Leverage device capabilities GPS Accelerometer Multi-touch Extend applications beyond traditional analytics Data collection

7 Cloud and Massive Scale Analytics Cloud infrastructures support the ability to scale on demand Volumes of data lead to the desire for massive scale analytics Speed vs quantity tradeoffs Watson shows future value of massive scale and learning systems 7

8 Watson answers a grand challenge Can we design a computing system that rivals a human s ability to answer questions posed in natural language, interpreting meaning and context and retrieving, analyzing and understanding vast amounts of information in real-time?

9 Geospatial and Temporal Analytics Location and Time dimensions are increasingly more important aspects of data Query by where you are, not just who you are Results are NOT always a map Location can link unrelated content Internal data / public data Time has special properties Known by all Changes properties as it moves Past (analytic) Present (realtime) Future (predictive) Business state at specific times is growing in important for regulatory compliance 9

10 Consumable Analytics Research shows penetration of analytics into client organizations between 18% - 24% (why not 50%? 75%? 90%?) As the data we are asking users to make sense of is getting more complex, we must make information easier to consume to grow adoption Two ends of the spectrum: make the systems smarter (automation) leverage the power of human perception and cognition (visualization) Automation Visualization

11 Visualization BI Perspectives Agenda (many-eyes.com)

12 Social Media Analytics Quantify, Monitor & Segment by Content Leading Detractors Social Media Attitudinal Business Analytics Social Leaders Interactions Leading Advocates Online Surveys Descriptive Scoring against Social Leader levels Scoring for propensity to buy Optimize and Execute Campaigns Points of Interactions IBM Confidential Behavior Special offers for Advocates and Potential Advocates Viral marketing offers to customer

13 A Vision for the future of analytics To change the way people think; To change the way companies decide. How? Visibility across formal and informal boundaries Dynamic decision networks and information hubs A collective intelligence greater than any individual 13

14 Copyright IBM Corporation 2011 All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Cognos, the Cognos logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.

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