Leading the way with Information-Led Transformation. Mark Register, Vice President Information Management Software, IBM AP

Transcription

1 Leading the way with Information-Led Transformation Mark Register, Vice President Information Management Software, IBM AP 1

2 Today s Topics Our Smarter Planet and the Information Challenge Accelerating an Information-Led Transformation Enabling your Information-Led Transformation Getting Started 2 2

3 The World is Changing The Reality of Living in a Globally Integrated World is Upon Us 3 3

4 Increase in global water usage since the 1900s, twice the rate of human population growth The losses of electrical energy due to inefficiency - around the world Idle computer capacity Worth of produce is wasted in India because of outdated post-harvest infrastructure Citizens in India have no banking facilities Spent on IT maintenance households across India lacks electricity Source: Various IBM and Public Studies Annual loss due to supply chain inefficiencies Annual impact of congested roadways 4 4

5 Building a Smarter Planet Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED 30 billion RFID tags This year! ~2 billion people on the Web 2011 a trillion connected objects Virtually all things, processes and ways of working are becoming INTELLIGENT Source: Various IBM and Public Studies 15 petabytes of new Information generated daily 5 5

6 is Producing an Explosion of Information Volume 988 exabytes: The amount of digital information that will exist in 2010, equal to a stack of books from the sun to Pluto and back Variety 80% of new data growth is generated largely by , with increasing contribution by documents, images, and video and audio. Velocity 77% of executives say they do not have real-time information to make key business decisions. Source: Various IBM and Public Studies 6

7 Yet Organizations are Operating with Blind Spots!! 1 in 3 Business leaders frequently make decisions based on information they don t trust, or don t have $5.7M USD Lost time reformatting information between applications 1 in 2 Business leaders say they don t have access to the information they need to do their jobs $5.3M USD Lost time searching for the right information Annual cost per 1,000 knowledge workers Sources: IBM: Break Away with Business Analytics and Optimization Study; IDC 7 7

8 Information and Analytics can overcome these challenges, providing an entirely new way to compete! Business operations maturity How the business applies information to achieve its goals Policies Business Processes Organization Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations available in late 2009 at Process automation and workflow Task integration (e.g., ERP) Command and control Ad hoc Business process integration (e.g., CRM) and collaboration Foundational Competitive Data warehouses, governance and Spreadsheets and production reporting extracts Differentiating Master data management, dashboards and scorecards Information and analytics maturity How the business manages information and learns from it Breakaway Prescriptive, real-time, pattern-based strategies with situational context Predictions, contextual business rules and patterns 8

9 Imagine if you could predict infection in premature newborns 24 hours earlier? apply social relationships of customers to prevent churn? adjust credit lines as transactions are occurring to account for risk fluctuations? determine who to offer discounts at time of sale instead of offering to all? Physician Telco Call Center Rep Loan Officer Retail Sales Associate 9

10 Organizations Will Reach a Tipping Point When They Apply Real-time Analytics at the Point of Impact Business Value Information-Led Transformation Rapid, informed, confident decisions consistent across the organization Additional benefit from micro-efficiencies Information Agenda Deploy real-time predictive analytics & the supporting information platform Information and Analytics Use Over Time

11 Top performers today have the right management systems for them to seek, evaluate and act on opportunities Winning Characteristics Key Advantages 32.5% High quality information 21.9X 15X 22.7% 5.6X 25% Strong decision support 1.5% Challenging 1.5% Anticipating 4.4% Empowered Disrupt the status quo to improve the business and create new opportunities Predict and prepare for the future by evaluating trade-offs proactively Enable and empower employees to analyse, decide and act Keen focus on driving business change 11 Chart shows differences at the highest achievement levels Key: Top performers (i.e., 1st quintile relative to industry peers) Lower performers (i.e., 4th and 5th quintile relative to industry peers) Relative difference of top performers to lower performers Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at

12 Top performers are armed with state-of-the-art tools to support decisions Above average BAO platforms and toolsets Business direction Trusted information 74% 4.4x 45% 2.4x 56% 60% 65% 2.4x 2.5x 2.0x 55% 17% 2.7x 17% 23% 24% 27% 27% Dashboards and visualization Analytical and predictive tools Business rules management Content management Data integration tools Master data management Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at Key: Top performers (i.e., 1st quintile relative to industry peers) Lower performers (i.e., 4th and 5th quintile relative to industry peers) Relative difference of top performers to lower performers 12

13 Strong data governance discipline helps top performers move faster and collaborate more easily Data Governance Levels 14% 32% 3X 42% Sophisticated Processes and management systems that are strong with some supporting automation in place Competitive 54% 25% Defined processes and management systems that are understood and adopted by most people 33% Rudimentary Lower performers (i.e., 4th and 5th quintiles relative to industry peers) Top performers (i.e., 1 st quintile relative to industry peers) A few basic processes and the beginnings of a management system Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at 13

14 Focusing on making the operational changes necessary to create value from new insights pay off 2.5X Top performers nearly triple their odds of success through their keen focus driving change Beating the odds for success Best Driving change Culture and people change Data governance Business process change Organizational alignment 2X Focusing on driving change is more than twice as important to success as having a well run project Better Well run project Good Sound justifications Program governance Project objectives Multi-phased roadmap Sponsorship Capability assessments Funding process management Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at 14

15 Giving Organizations the Insight to Act with Confidence Major US Government Agency: Predictive modeling at the point of disability application submission reduces claim processing time by 100 days, with ROI estimated at >$1B USD by 2011 Stockholm, Sweden: Intelligent toll system resulted in 20% less traffic, 40% lower emissions and 40,000 additional users of the public transportation system Irish Life & Permanent: Single, complete, accurate record of customers leads to improved customer satisfaction and cross-sell, reduced costs Hitachi Construction Machinery Co: Sensors embedded in all 50,000 products & parts feed analytics system, improving service quality and optimizing inventory 15 15

16 The Key is Leveraging Information and Analytics Informed, Real-time Decisions at the Point of Impact An Information-Led Transformation Information-Led Transformation Predict and act Volume Lack of Insight Velocity Inefficient Access Sense and respond Instinct and intuition Skilled analytics experts Real-time, fact-driven Everyone Inability to Predict Variety Information Challenges Back office Automated Traditional Approach Point of impact Optimized 16

17 Information-Led Transformation will Change Business the Same Way as ERP & CRM Information-Led Transformation 2X Client Investment in Business Analytics & Optimization Projects is Growing over Twice as Fast as Business Automation Business Analytics & Optimization Automation 17 17

18 Accelerating an Information-Led Transformation An Industry Context & Technology Innovation to Accelerate the Journey Business Know-how Strategy & Change, 4,000 Dedicated Consultants 18

19 Information Agenda A proven, industry-specific approach for aligning information with business objectives Establish end-to-end vision & business-driven value Create Value Align people, process & information Accelerate projects for short & long-term ROI Lower Costs Architect an extensible information infrastructure 19 19

20 Information Agenda Strategy, Roadmaps, Information Agenda Guides Guides, Workshops, Accelerators, Roadmaps Information Agenda Guide for Banking & Finance 20 20

21 A Flexible Information Platform Create Value Lower Costs Expanding Technology $12B Software Investments Over 15,000 New Clients Over 2,300 New IOD Partners 21 21

22 Taking it to the Next Level: Business Analytics & Optimization Create Value Lower Costs 22

23 Taking it to the Next Level: Predictive Analytics Through 2012, hype around predictive analytics will outpace available skill sets in 80% of organizations. Gartner Create Value Lower Costs * Source: Gartner Predicts 2010: Business Intelligence and Performance Management Matters 23

24 Taking it to the Next Level: Predictive Analytics Richmond County Police pinpoints hotspots & leads to 20-30% decease in violent crimes Center for Disease Control Characterizes disease & quickly assess medical needs in real-time Cablecom GmbH Doubled ability to predict churn & reduced actual churn 10 fold Infinity Property & Casualty Corporation Real-time claims scoring starts fraud investigations within 24hrs. vs. 2 weeks 24

25 Taking it to the Next Level: Content Analytics Create Value Lower Costs 25

26 Taking it to the Next Level: Content Analytics Large Claims 3 rd Party Administrator Content Analytics over claims detects fraud faster, reducing costs by millions University of Ontario Institute of Technology detects life-threatening conditions in infants up to 24 hrs earlier NTT DoCoMo Content Analytics over Voice of Customer data creates insight driving customer-oriented decisions Kraft Content Analytics over online customer postings helps target & deliver new campaigns, increasing sales & loyalty 26

27 27 Taking it to the Next Level: Industry by Industry

28 Accelerating Value Creation through Analytic Applications Blueprints, Best Practices, Industry Assets Create Value Lower Costs Flexible Approach Based on Middleware for Open Platforms 28

29 Taking it to the Next Level: With Experts from IBM and Business Partners BAO Strategy Analytics & Performance Management Advanced Analytics & Optimization Enterprise Information Management Enterprise Content Management 29

30 Putting it All Together IBM Smart Analytics System Analytics Software Options Business Intelligence Capabilities Cubing Services Text and Data Analytics Powerful Data Warehouse Warehousing Platform Advanced Workload Management System Automation Pre-optimized Business Intelligence Software triples out of the box performance* Hardware & Services Server Platform Storage Capacity Build, Deploy, Health Check & Premium Support Services * Based on IBM Laboratory Tests. Actual results may vary depending on specific environment and configuration. 30

31 We ve Only Just Begun to Uncover What is Possible on a Smarter Planet With the information organizations already have and new analytical tools, there are no limits to what is possible Real-time Trading Positions Real-time Risk Analysis Withholding Tax Optimization M&A Agility How can you use information to transform your organization? 31 31

32 Start the Transformation Today, Ask Yourself: Is your information aligned with your business strategy? Is your information managed as a trusted, strategic asset? Do you have the insight needed to make informed decisions and act? But where do you start?? 32