analytics: real world use of big data by ibm's neil isford
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Neil Isford, IBM VP of Smarter Solutions, North America, looks at Big Data and analytics in this presentation at the occasion of Kodak Alaris' Global Directions. The demand for Big Data & Analytics is driven by business outcomes yet there are also obstacles. Discover the Big Data Analytics trends, success factors and several cases. More about Kodak Alaris Global Directions '13 on http://ow.ly/uJXWjTRANSCRIPT
© 2013 IBM Corporation
Analytics: Real World Use of Big Data Neil Isford, IBM VP of Smarter Solutions, North America
GlobalDirections ’13 Sept 23, 2013
© 2013 IBM Corporation
Agenda
The Big Data & Analytics Evolution
Institute Business Value Big Data Study
Client Use Cases
What’s Next
© 2013 IBM Corporation
What if …
Chief Marketing Officer
...could predict the right offer for the
right customer at the right time and
improve customer intimacy or
prevent churn?
Chief Product Designer
...could consider the risk
and profitability of the entire
customer relationship chain,
lifetime value and predict
demand trends when
designing and pricing new
product offerings? Chief Finance Officer
...could streamline
compliance and understand
risk exposure across
businesses and regions?
Chief Risk Officer
...uses anti fraud predictive
analytics to detect and
prevent rapid fire anomalous
transactions or wire transfers
identified as high probability
of fraud?
Chief Executive Officer
...could make better business decisions
using accurate data across all time
horizons: past, present and future?
Chief Information Officer
...could analyze oceans of machine
generated logs to predict which components
or equipment in the datacenter are likely to
fail and thereby avert a disruption during
critical quarter end?
© 2013 IBM Corporation
The power of ALL data coming together
with the power of technology
& improved IT economics
“Big Data is high-volume,
high-velocity and high-variety
information assets that demand
cost-effective, innovative forms of
information processing for
enhanced insight and decision
making.”
What is Big Data?
© 2013 IBM Corporation
• Personalization
• Profitability
• Retention
• Acquisition
• Global Operations
• Infrastructure and Asset Efficiency
• Fraud
• Security
Optimize Operations
and Reduce Fraud
• Financial and Operational Performance
• Financial Risk
• Operational Risk and Compliance
Transform Business
Performance
• Data Driven Products and Services
• Non-Traditional Partnership
• Mass Experimentation
2
4 5
1 Acquire, Grow and
Retain Customers
• Harness and Analyze All Data
• Govern All Data
• Optimize Analytical Workloads
• Spectrum of Analytics
Maximize Insights and
Improve Economics 3
Create New Business
Models
Demand for Big Data & Analytics……driven by business outcomes
© 2013 IBM Corporation 6
Obstacles to widespread Big Data & Analytics adoption
Lack of understanding how to use analytics to improve the business 38%
Lack of management bandwidth due to competing priorities 34%
Lack of skills internally in the line of
business 28%
Ability to get the data 24%
Culture does not encourage sharing
information 23%
Ownership of the data is unclear or
governance is ineffective 23%
Lack of executive sponsorship 22%
Concerns with the data 21%
Perceived costs outweigh the projected
benefits 21%
No case for change 15%
Organizational
Data
Financial
Analytics: The New Path to Value Joint Study MIT Sloan Management Review
& IBM Institute of Business Value Copyright © Massachusetts Institute of Technology 2010.
© 2013 IBM Corporation
Agenda
The Big Data & Analytics Evolution
Institute Business Value Big Data Study
Client Use Cases
What’s Next
© 2013 IBM Corporation
IBM Institute for Business Value and the Saïd Business School partnered to benchmark global Big Data activities
IBM Global Business Services, through the IBM
Institute for Business Value, develops fact-based
strategies and insights for senior executives
around critical public and private sector issues.
Saïd Business School
University of Oxford
IBM
Institute for Business Value
www.ibm.com/2012bigdatastudy
The Saïd Business School is one of the leading
business schools in the UK. The School is
establishing a new model for business education by
being deeply embedded in the University of Oxford, a
world-class university, and tackling some of the
challenges the world is encountering.
© 2013 IBM Corporation
Nearly two out of three respondents reports realizing a competitive advantage from information and analytics
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for Business Value
and the Saïd Business School at the University of Oxford. © IBM 2012
Total respondents n = 1144 2010 and 2011 datasets © Massachusetts Institute of Technology
Realizing a competitive
advantage
Respondents were asked “To what extent does the use of information (including big
data) and analytics create a competitive advantage for your organization in your industry
or market.” Respondent percentages shown are for those who rated the extent a [4 ] or
[5 Significant extent]. The same question has been asked each year.
63%
58%
37%
2012
2011
2010
70%
increase
© 2013 IBM Corporation
Three out of four organizations have Big Data activities underway; and one in four are either in pilot or production
Big Data adoption
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
© 2013 IBM Corporation
Five key findings highlighted in the 2012 Big Data study
Big Data is dependent upon a scalable and extensible
information foundation 2
The emerging pattern of Big Data adoption is focused
upon delivering measureable business value 5
Customer analytics are driving Big Data initiatives 1
Big Data requires strong analytics capabilities 4
Initial Big Data efforts are focused on gaining insights
from existing and new sources of internal data 3
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute
for Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
© 2013 IBM Corporation
Improving the customer experience by better understanding behaviors drives almost half of all active Big Data efforts
Total respondents n = 1061
Big Data objectives
Top functional objectives identified by organizations with active big data pilots or
implementations. Responses have been weighted and aggregated.
Customer-centric outcomes
Operational optimization
Risk / financial management
New business model
Employee collaboration
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
© 2013 IBM Corporation
Big Data efforts are based on a solid, flexible information management foundation
Respondents with
active big data
efforts were asked
which platform
components were
either currently in
pilot or installed
within their
organization.
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
Big Data infrastructure
© 2013 IBM Corporation
Internal sources of data enable organizations to quickly ramp up big data efforts
Big Data sources
Respondents were
asked which data
sources are
currently being
collected and
analyzed as part of
active big data
efforts within their
organization.
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
© 2013 IBM Corporation
Strong analytics capabilities – skills and software – are required to create insights and action from Big Data
Respondents were
asked which
analytics
capabilities were
currently available
within their
organization to
analyze big data.
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
Analytics capabilities
© 2013 IBM Corporation
Big Data leadership shifts from IT to business as organizations move through the adoption stages
Leadership shifts
Respondents were asked which executive is most closely aligned with
the mandate to use big data within their organization. Box placement
reflects the degree to which each executive is dominant in a given stage.
Total respondents n = 1028
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
© 2013 IBM Corporation
Executive desire for quick and precise decisions to keep up with the pace of business drives real-time data needs
Speed to insight
Total respondents n = 973
Respondents were asked how quickly business users require data to be
available for analysis or within processes. Box placement reflects the
prevalence of that requirement within each stage.
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
© 2013 IBM Corporation
Challenges evolve as organizations move through the stages, but the business case is a constant hurdle
Obstacles to big data
Respondents were asked to identify the top obstacles to big data efforts
within their organization. Responses were weighted and aggregated. Box
placement reflects the degree to which each obstacle is dominant in a
given stage.Total respondents n = 973
Source: Analytics: The real-world use of big data, a collaborative research study by the IBM Institute for
Business Value and the Saïd Business School at the University of Oxford. © IBM 2012
© 2013 IBM Corporation
Agenda
The Big Data & Analytics Evolution
Institute Business Value Big Data Study
Client Use Cases
What’s Next
© 2013 IBM Corporation
University of Ontario
Institute of Technology
(UOIT) Detects Neonatal
Patient Symptoms Sooner
Need
• Performing real-time analytics using
physiological data from neonatal babies
• Continuously correlates data from medical
monitors to detect subtle changes and alert
hospital staff sooner
• Early warning gives caregivers the ability to
proactively deal with complications
Benefits
• Helps detect life threatening conditions up
to 24 hours sooner
• Lower morbidity and improved patient care
“Helps detect life threatening conditions up to 24 hours sooner”
© 2013 IBM Corporation
Memphis Police Department is detecting unwanted threats to improve public safety
Need • Predict and respond criminal activity
where and when it is happening
• Optimize limited resources and funds
through the department
Results • Reduced serious crime by 30% while
increasing convictions by over 4X
• Realized 863% ROI with annual benefit
of over $7M
© 2013 IBM Corporation
Banorte is transforming banking by focusing on key imperatives
Need
• Become more customer centric
• Increase efficiencies
• Increase profitability
Expected Benefits
• Increase flexibility and
streamline operations
• Drive innovation while
managing cost
• Optimize enterprise risk
management
© 2013 IBM Corporation
First Tennessee is increasing customer acquisition by selling based on customer preference rather than product
Need • Reduce overall campaign costs
• Improve campaign performance and
more tailored programs
Results • Lowered mailing costs by 20% with
3.1% boost in response rates
• Realized an ROI of over 600%
© 2013 IBM Corporation
Santam is transforming threat & fraud identification processes
Need • Identify fraud early with a predictive
analytics solution
• Improve productivity and reduce cost
Results • Identified major fraud ring less than 30
days after implementation
• Saved more than USD 2.5 million in
payouts to fraudulent customers
• Reduced claims processing time on
low-risk claims by nearly 90%
© 2013 IBM Corporation 25
Barnes & Noble helps
suppliers track sales and
inventory in real time
25
Need
• Publishers absorb the losses on returns when
they print too many books, and have stock-
outs when they print too few
• To provide publishers with the ability to get
real-time insight into sales and view inventory
trends over time
Benefits
• Decreased time to run queries from weeks to
seconds and enabled an 80% reduction in
time to run compared to its previous system
• Reduced inventory levels and inventory
carrying costs
© 2013 IBM Corporation
Agenda
The Big Data & Analytics Evolution
Institute Business Value Big Data Study
Client Use Cases
What’s Next
© 2013 IBM Corporation
Cognitive Computing…with IBM Watson
…built on a massively parallel
probabilistic evidence-based
architecture
Understands
natural
language
and human
speech
Adapts and
Learns from
user selections
and responses
Generates and
evaluates
hypothesis for
better outcomes
© 2013 IBM Corporation
Watson Decision Advisor helping oncologists treat cancer
Business problem:
Need better individualized cancer treatment plans
Solution:
• Evidence-based suggestions to inform oncologists’
decisions
• Analyzes patient data against massive volumes of
medical literature
• Evolves with the fast-changing field
WellPoint’s Interactive Care
Insights for Oncology
powered by IBM Watson
Attacking the cause of
¼ of deaths
© 2013 IBM Corporation
Watson Decision Advisor helping streamline pre-approvals
Business problem:
Faster review and authorization of medical procedures
Solution:
• Objective review based on clinical, medical, & patient
data
• Actionable, confidence-weighted analysis based on
relevant content, policies, and guidelines
Accelerating pre-
approvals from 24
hours to minutes
WellPoint’s Interactive Care
Guide and Reviewer powered
by IBM Watson
© 2013 IBM Corporation
Delivering Competitive Advantage For Your Organization
Analytics
• inform decisions • optimize processes • drive new business models.
Big Data
• explosion of data • new types of sources • moving at high speed
© 2013 IBM Corporation
Big Data & Analytics: How to get started
Focus on a business case with measurable business outcomes
Take a pragmatic approach
Develop blueprint and roadmap
Expand your big data capabilities and efforts across the enterprise
Tapping into new sources of value
© 2013 IBM Corporation 32 32
Neil Isford
IBM Vice President
Smarter Solutions
1-212-745-2088
www.linkedin.com/pub/neil-
isford/14/5a/89a
Thank You!
We invite you to participate in the 2013 IBV Analytics Study
https://ibm.biz/Bdx3zg