Transcript
Page 1: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

1© 2011 IBM Corporation

Challenges in succeeding in the new economic environment

September, 2011

1© 2011 IBM Corporation

BAO capabilities play a strategic role in driving a firm’s global competitivenessBAO capabilities play a strategic role in driving a firm’s global competitiveness

Page 2: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

2© 2011 IBM Corporation

What you need to do …

…Transforming the business, reducing cost, foundation for growth

Alice:Can you tell me, please, which path I ought to take from here?

The Cheshire cat: That depends on where you want to get to.Alice: I don't much care where.The Cheshire cat: Then it doesn't matter which way you walk.Lewis Carroll Alice in Wonderland

Page 3: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

3© 2011 IBM Corporation

Succeeding in the New Economic Environment – Companies need to do three things:

Do more with less Cash/capital focus Flexibility

Focus on the core Businesses Initiatives

Re-align relationships Financial solidity of

suppliers, partners and customers

Revisit/renegotiate

Capture share Disrupt weak competitors Acquisitions

Build future capabilities Protect & acquire talent Develop required assets

Change your industry Bold moves Position globally

Manage change Clearly communicate

simple goals Seek and leverage

experience

Leadership Get the information to act Set the agenda

Risk & Transparency Business performance

management & analytics Risk management

Focus on ValueExploit

opportunitiesAct with Speed

Page 4: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

4© 2011 IBM Corporation

Capture share Disrupt weak competitors Acquisitions

Build future capabilities Protect & acquire talent Develop required assets

Change your industry Bold moves Position globally

Succeeding in the New Economic Environment – What is required to survive

Do more with less Cash/capital focus Flexibility

Focus on the core Businesses Initiatives

Re-align relationships Financial solidity of

suppliers, partners and customers

Revisit/renegotiate

Manage change Clearly communicate

simple goals Seek and leverage

experience

Leadership Get the information to act Set the agenda

Risk & Transparency Business performance

management & analytics Risk management

Focus on ValueExploit

opportunitiesAct with Speed

These deal with“now”

& survival in therecession

Page 5: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

5© 2011 IBM Corporation

Capture share Disrupt weak competitors Acquisitions

Build future capabilities Protect & acquire talent Develop required assets

Change your industry Bold moves Position globally

Succeeding in the New Economic Environment – Focusing on the future

Do more with less Cash/capital focus Flexibility

Focus on the core Businesses Initiatives

Re-align relationships Financial solidity of

suppliers, partners and customers

Revisit/renegotiate

Manage change Clearly communicate

simple goals Seek and leverage

experience

Leadership Get the information to act Set the agenda

Risk & Transparency Business performance

management & analytics Risk management

Focus on ValueExploit

opportunitiesAct with SpeedClients also want to see

strategies and propositions which equip them to

compete through and beyond any economic

recoveryperiod

Page 6: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

6© 2011 IBM Corporation

Business Analytics and Optimization

Page 7: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

7© 2011 IBM Corporation

Business Analytics and Optimization

A new imperative has emerged for enterprises to aggressively pursue business

analytics and optimize their businesses in order to address important and

complex business and societal opportunities.

Page 8: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

8© 2011 IBM Corporation

Overview

New complexity creates an imperative

for change

Enterprises must fundamentally change

the way they work

Comprehensive solutions enterprises

need

The growing velocity of the volume, variety and

granularity of information is driving unprecedented

complexity.

Intelligent enterprises leverage information to

reach better, faster decisions, optimal actions,

and more predictable outcomes.

IBM is creating a new GBS service line - Business

Analytics and Optimization - to bring

together world class capabilities for our clients.

Page 9: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

9© 2011 IBM Corporation

There is lots of room for improvement across the board with some big differences in the details

(1) Extract Relevant

Information

(2) Prioritize Relevant

Information

(4) Apply Info for More Predictive

Outcomes

(5) Apply Info to Understand

Risk

(3) Apply Info to optimize operations

To what extent do you feel that your organization is operating with major “blind spots” — gaps or lack of trust in information — in regard to the following areas?

Source: EIU launch survey for IBM BAO, March 2009, n=225, Question 3: Early adopters have programs well underway to take advantage of new analytics for business advantage and Unaware declare having “not thought about the opportunity”; Out- and under-performance is relative to peers; Services-based industries: financial, professional services, entertainment, media, publishing, telecommunication, education, government, transportation. Goods-based industries: technology, manufacturing, energy, pharmaceuticals, automotive, consumer goods, retail, agriculture, real estate, chemicals and aerospace/defense.

Material blind spots

Many blind spots

Some blind spots

Few blind spots

No blind spots

Early adopters

Unaware

Out-performers

Under-performers

Services-based Organizations

Goods-based Organizations

Bars represent entire sample set. Triangles (hash marks) represent break point between ‘Few Gaps’ and ‘Some Gaps’ for subsets of the data as follows:

Bar color coding:

*Callout note: Material and many combined

Out- exceed Under- performers 2 to 1

Out- exceed Under- performers 2+ to 1

Early adopters exceed unaware 2:1 AND

Services-based exceed Goods-based ~2 to 1

Early adopters exceed unaware

3+ to 1

Page 10: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

10© 2011 IBM Corporation

One in two organizations neither connect the dots internally nor share much with external partners and suppliers

Have sufficient information from across your organization to do your job? 2

Share critical information with partners and suppliers for mutual benefit? 1

3 in 5 don’t

To a great extent

To some extent

To a limited extent

Completely

To a limited extent

To some extent

To a great extent

1 in 2 don’t

Early adopters

Unaware

Out-performers

Under-performers

Services-based Organizations

Goods-based Organizations

Bars represent entire sample set. Triangles (hash marks) represent break point between ‘To a Great Extent’ and ‘To Some Extent’ for subsets of the data as follows:

Source: EIU launch survey for IBM BAO, March 2009, n=225. 1Question 1 : 2Question 5: Early adopters have programs well underway to take advantage of new analytics for business advantage and Unaware declare having “not thought about the opportunity”; Out- and under-performance is relative to peers; Services-based industries: financial, professional services, entertainment, media, publishing, telecommunication, education, government, transportation. Goods-based industries: technology, manufacturing, energy, pharmaceuticals, automotive, consumer goods, retail, agriculture, real estate, chemicals and aerospace/defense.

Completely

Not at all

Page 11: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

11© 2011 IBM Corporation

Lack of information forces decision makers to be most reliant on their intuition

Source: EIU launch survey for IBM BAO, March 2009, n=225: 1Question 2; 2Question 6

To what extent do you make business decisions based on the following factors? 2

“Guestimation” has worked up to a point (arguably we’ve passed it), but is prone to serious failure in new circumstances, greater complexity and higher speed

25 %9 %

19 %

54 %

43 %

43 %

15 %

35 %

28 %

5 %14 %

9 %

To a great extent

To a little extent

Analytically-derived

Personal experience and intuition

Collective Experience

How often have you made major decisions with incomplete information or

information you don’t trust? 1

Never

Rarely

Sometimes

Frequently

Always

1 in 3 often do

Page 12: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

12© 2011 IBM Corporation

Most organizations recognize the opportunity for analytics, but are still very early in the adoption process

Is your organization taking advantage of new opportunities to leverage information for its advantage?

2

Would more predictive information drive better decisions? 1

No, we have not even thought about it

Yes, we do it now and it is

well underway

Yes, we recognize,

but we’ve just begun to act

Yes, we recognize the

opportunity27%

41%

13%

18%

Nearly 3 in 4 said

yes

To some extent

To a great extent

Completely

To little or no extent

2 out of 3 are still getting started

1 out of 5 does not get it

Source: EIU launch survey for IBM BAO, March 2009, n=225: 1Question 7; 2Question 9

Page 13: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

13© 2011 IBM Corporation

Out-performers recognize and pursue the value much more than On-par and Under-performers

Does your organization have a plan in place to improve all of thefollowing: its ability to collect and analyze data, present relevant

information, and empower people to act on it?

Out-performers On Par Under-performers

Yes, Enterprise-wide Yes, for Some Units/Groups No, But We Want to Do So No, Not a Priority

Don’t recognize the value at any level

Pursuing the value at enterprise level

81%

58% 56%

Source: EIU launch survey for IBM BAO, March 2009, n=225: Question 10. Out-, on-par and under-performance is relative to peers.

25%16%

3%

42%53%

56%

17%

2%

36%

7%

27%

17%

Page 14: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

14© 2011 IBM Corporation

The growing velocity of the volume, variety, and granularity of information is driving new, unprecedented complexity

Today, the processing power of the web is about equivalent to one human brain. By 2040, it will exceed the total processing

power of all of humanity

Every day, 15 petabytes of new information are being generated. This is eight times more

than the information in all U.S. libraries

INFORMATIONDuring 2010, the amount of digital information exceeded 1 Zettabytes (1 trillion gigabytes)

80% of new data growth is unstructured content

We are approaching a “do or die” moment:

enterprises that act will survive to prosper, and those that don’t will be

washed away

* Source: TED 2007: Predicting the Next 5000 Days of the Web. IBM analysis

Tomorrow’s issues and opportunities will be bigger and harder to solve in ways that defy our imaginations today

Timelines for action will be compressed

beyond current ability to respond

Page 15: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

15© 2011 IBM Corporation

The Analytics imperative is familiar to CFOs

Globally mandated standards

Standard chart of accounts

enterprise-wide

Common data definitions

enterprise-wide

Standard common processes

enterprise-wide

Components of an Integrated Finance

Org

Source: IBM Global Business Services, The Global CFO Study 2008

Growth rates 5 year CAGR

Enterprises with an IFO

Enterprises without an IFO

Outperform industry peers/market

More time spent on analytical activities

Ability to report more deeply

Increased resilience and decision support

Increased confidence in data

More effective at executing CFO agenda

Benefits and Results

Enterprises with an Integrated Finance Organization (IFO) outperform their peers and are effective at executing their agendas

Increased effectiveness in driving integration of information enterprise-wide

Page 16: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

16© 2011 IBM Corporation

Business Optimization

Business Intelligence

Resource Planning

Business Automation

CFOs will see Business Analytics and Optimization as the next bow wave of business change in their enterprises

2XClient Investment in

Business Optimization Projectsis growing over twice as fast as

Business Automation

$105B8% CGR*

$105B8% CGR*

BusinessBusinessOptimizationOptimization

BusinessBusinessOptimizationOptimization

Business Automation

$566B3% CGR*

•Source: IBM Analysis, includes addressable hardware, software and services opportunity. CGRs 2009-2012

Page 17: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

17© 2011 IBM Corporation

1 in 3business leaders frequently make critical decisions without the information they need

53%don’t have access to the information across their organization needed to do their jobs

According to our 2009 study of 225 business leader, operating effectiveness is hindered by blind spots

Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf

Factors supporting major decisions

79 %

52 %

62 %

To a little extent

To a great extent

AnalyticsPersonal Experience

Collective Experience

Page 18: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

18© 2011 IBM Corporation

Industry out-performers recognize and pursue the value much more than under-performers

Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf

8XIndustry out-performers are 8X more likely to pursue BAO at an enterprise level than industry under-performers

50% Roughly half of organizations are pursuing BAO at a functional level (e.g., Finance, Sales, Marketing)

2%

17%

Not interested in pursuing BAO at any level

Under-performers Over-performers

Page 19: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

19© 2011 IBM Corporation

The greatest value is where information integral to business operations and insight is integrated into operations

Business Optimization

Business Analytics

How the business applies information to achieve it’s goals

• Policies • Biz Processes

How the business manages information and learns from it

BAO Maturity Stage

Heroics

Foundational

Competitive

Differentiating

Break-away

•Spreadsheets•Extracts

•Data Warehouses•Data Governance•Production reporting

•Contextual Business rules

•Pattern recognition

•Process Automation and Workflow

•Master Data Management•Metrics•Dashboards/Scorecards

•Command and control

•Task automation (eg, ERP)

•Workgroup Design

•SOPs

•“Predict and Prevent”•Intelligent Enterprise

•Customer and Partner Collaboration

•Business Process Integration

Page 20: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

20© 2011 IBM Corporation

Watson

• Watson, named after IBM founder Thomas J. Watson, is a breakthrough analytical computing system that specializes in analyzing natural human language over a nearly unlimited range of knowledge and provides specific answers to complex questions with confidence and at rapid speeds.

• Watson is the latest outcome of IBM’s commitment to R&D and extends IBM’s heritage of scientific achievement that can help transform the way the world works

• Watson is the first non-human contestant on the quiz show Jeopardy!. It uses technology currently available from IBM, harnessing IBM’s commercially-available POWER7 system and showcasing how it is optimized to process thousands of simultaneous tasks at rapid speeds

• Watson’s ability to understand the meaning and context of human language, and rapidly process information to find precise answers to complex questions -- holds enormous potential for businesses

• Watson, named after IBM founder Thomas J. Watson, is a breakthrough analytical computing system that specializes in analyzing natural human language over a nearly unlimited range of knowledge and provides specific answers to complex questions with confidence and at rapid speeds.

• Watson is the latest outcome of IBM’s commitment to R&D and extends IBM’s heritage of scientific achievement that can help transform the way the world works

• Watson is the first non-human contestant on the quiz show Jeopardy!. It uses technology currently available from IBM, harnessing IBM’s commercially-available POWER7 system and showcasing how it is optimized to process thousands of simultaneous tasks at rapid speeds

• Watson’s ability to understand the meaning and context of human language, and rapidly process information to find precise answers to complex questions -- holds enormous potential for businesses

Watson Overview

Page 21: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

21© 2011 IBM Corporation

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?

Watson Overview

Page 22: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

22© 2011 IBM Corporation

Watson Launch: Taking on a quiz show - Jeopardy!

• Jeopardy! is a quiz show covering a broad range of topics including:

– History, literature, politics, arts and entertainment, and science

• Jeopardy! poses a grand challenge for a computing system:

– Broad range of subject matter

– Speed of accurate responses and confidence

– Requires analyzing subtle meaning, irony, riddles, and other complexities – tasks that humans excel at but which computers traditionally do not.

Watson Overview

Page 23: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

23© 2011 IBM Corporation

DeepQA: The Technology Behind WatsonGenerates and scores many hypotheses using Natural Language Processing, Information

Retrieval, Machine Learning and Reasoning Algorithms. These gather, evaluate, weigh and balance different types of evidence to deliver the answer with the best support it can find.

Answer Scoring

Models

Answer & Confidence

Question

Evidence Sources

Models

Models

Models

Models

ModelsPrimarySearch

CandidateAnswer

Generation

HypothesisGeneration

Hypothesis and Evidence Scoring

Final Confidence Merging & Ranking

Synthesis

Answer Sources

Question & Topic

Analysis

EvidenceRetrieval

Deep Evidence Scoring

Learned Modelshelp combine and

weigh the Evidence

HypothesisGeneration

Hypothesis and Evidence Scoring

QuestionDecomposition

Watson Overview

Page 24: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

24© 2011 IBM Corporation

How can Watson capabilities address your company’s grand business challenges?

From battling humans at Jeopardy! to transforming business

Watson Overview

Page 25: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

25© 2011 IBM Corporation

Analytics Proof-of-Value

Information Management Foundation Strategy & Roadmap

Targeted projects identified during the BAO Deep Insight project

IBM Research First-of-a-Kind project

BAO Deep Insight explores Watson capabilities, envisions the possibilities, and enables results through a BAO action plan

• Confirms a client’s Watson focus areas and identifies 2-3 subjects to be explored

• Provides insight on Watson capabilities and analytics use cases that align witha client’s area of interest

• Creates BAO action plan with next steps and a list of strategic analytics initiatives

BAO Deep Insight

Potential Follow-on Activities

BAO Deep Insight – Project Overview

Page 26: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

26© 2011 IBM Corporation

Early adopters ride the wave … What if?

What if we could actually and accurately forecast the weather?

What if you could trace food straight through from the farm to your fork?

What if insurance claim data could be make people healthier and

reduce their costs?

What if a medicine’s speed to market saved a life? Or a million lives?

Page 27: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

27© 2011 IBM Corporation

In a smarter planet, opportunity and progress is clear

Smarter traffic: In Singapore, the ability to predict where traffic jams will occur at any given hour minimizes congestion and reduces carbon levels

The Operational Riskdata eXchange Association: A consortium serving 18 countries and 50 leading financial institutions improves statistical modeling and more accurately quantifies risk exposure

QuickTime™ and a decompressor

are needed to see this picture.

European Retailer: Leverages a Dynamic Inventory Optimization Solution to meet demand for any of 40,000 products in more than 80 outlets with low replenishment and storage costs - boosting customer service ratings to 99%.

Hospital Research Center: Created a continually updated reservoir of clinical and genomic information to accelerate research while cutting administrative costs by 75%.

Page 28: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

28© 2011 IBM Corporation

Hristo Hristov, IBM GBS Manager

Page 29: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

29© 2011 IBM Corporation

Overview

New complexity creates an imperative

for change

Enterprises must fundamentally change

the way they work

Comprehensive solutions enterprises

need

The growing velocity of the volume, variety and

granularity of information is driving unprecedented

complexity.

Intelligent enterprises leverage information to

reach better, faster decisions, optimal actions,

and more predictable outcomes.

IBM is creating a new GBS service line - Business

Analytics and Optimization - to bring

together world class capabilities for our clients.

Page 30: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

30© 2011 IBM Corporation

Organizations will need to adopt new ways of working to improve speed to insight and speed to impact

Traditional Approach New Approach

Instinct and intuition Fact-driven

Corrective Directive

Efficient Optimized

Years, months, weeks Hours, minutes, seconds

Human insight Applied semantics

Decision support Action support

Page 31: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

31© 2011 IBM Corporation

The value is immediate and strategic for the smarter organization

Intelligent profitable

growth

Cost take-out and

efficiency

Proactive risk

management

Improve opportunities for growing customers, improving relationships, identifying new markets, and developing new products and services

Better predict and identify risk events and build resiliency and agility of the organization to respond and act.

Optimize the allocation and deployment of resources and capital to create more efficiency and manage costs smartly

Different organizations may identify different priorities for business analytics

Page 32: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

32© 2011 IBM Corporation

The intelligent enterprise is…

Anticipating

Precise

Aware

Questioning

Empowering

Gathers, senses, & uses structured and unstructured information from every node, person, and sensor within the environment

Predicts and prepares for the future and doesn’t only react or correct actions, but also steers

and evaluates trade-offs

LinkedConnects internal and external functions front to back across geographies in a way that aligns to desired business outcomes

Enables and extends employees' memory,

insight and reach, as well as the authority to decide

and act

Reserves the right to get smarter by challenging its

status quo while creating new opportunities

Uses only the most relevant information to support timely decisions/actions closer to the point of impact and consequence

Page 33: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

33© 2011 IBM Corporation

Aware

Gathers, senses, & uses structured and unstructured information from every node, person, & sensor within the environment

Today’s enterpriseWhat if the smarter enterprise

could

Collects data from its own transactional systems and internally generated data

Collect and analyze data from anywhere, including external sources, new instrument data, and unstructured and societal data

Processes some large databases in batches to create snapshots of the past

Process incredible quantities of data at incredible new speeds as needed

Interprets information differently by different people and different departments – with limited levels of detail

have “one version of the truth” across the enterprise – with appropriate granularity

Keeps large just-in-case stores of information that are un-interpretable, un-understandable, and ultimately un-usable

Gain insights from previously un-quantifiable and un-usable data

What if an investor could mine every broker’s e-communication, each consumers’ public Facebook post, and multiple companies’ annual reports at the same instant?

What if your city’s ability to read satellite images, to capture historic traffic data, and to sense moving vehicles meant it could predict and prevent traffic jams in real time?

Page 34: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

34© 2011 IBM Corporation

Anticipating

Predicts and prepares for the future and doesn’t only react or correct actions, but also steers and evaluates trade-offs

What if you could orchestrate and dynamically reroute a global logistics and international trade operation based on your ability to model and predict how global weather patterns affect shipping and air routes?

What if human resource managers had the insight and capability to hire and train entire workforces in enough time to meet sudden waves of demand, but not a second earlier?

Today’s enterpriseWhat if the smarter enterprise

could

Uses personal experience and informed guess-work to make decisions

Build simulations and models to understand future implications for alternatives based on facts, not just instinct

Uses historical data for ‘post-mortem’ reporting and tracking

See opportunities and threats as they happening and beforehand

Recognizes events based upon the noise they make and responds on an ad-hoc basis

Track events in real-time applying sophisticated rules enabling the automation and speed of response

Manages performance and risk separately with all future variance and chance managed reactively

Be informed for opportunity and risk, know what to do tactically about events well before action is needed

Page 35: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

35© 2011 IBM Corporation

Precise

Uses only the most relevant information to support timely decisions/actions closer to the point of impact and consequence

What if repairmen servicing thousands of different types of intelligent grids had the instrumentation to sense breakdowns and inefficiencies? They would be automatically alerted and deployed based on their skill, location and availability and fed all the metrics, history and solutions they need. Schematics are beamed to screens on their goggles or wireless devices. Then their actions and data are added to the collective repair history of the entire grid.

Today’s enterpriseWhat if the smarter enterprise

could

Uses content and structured information transactionally, i.e., used for its primary purpose and then discarded or archived

Manage and analyze vast stores of content, including prose, email, voice, SMS, images, and video

Has users who must be seek out information based on the immediate need

Prepare data and automate analysis to ensure the quality and timeliness of information

Does not give the information employees need when they need it

Deliver information in ways that are useful to the context of the situation being handled

Delivers volumes of data separately and rarely in context of the situation or parceled together into actionable packages

Deliver just the right amount of quantitative data, definitions, knowledge bases, unstructured data, and expert networks to meet the decisions-maker’s need at the point of need

Page 36: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

36© 2011 IBM Corporation

Questioning

Reserves the right to get smarter by challenging its status quo while creating new opportunities

What if an auto manufacturer could monitor driving behavior via dashboard-embedded computers – and analyze the patterns it discerned to understand what new features would be most appreciated?

What if a procurement specialist could initiate comparative audits of suppliers’ environmental practices when sensing that their proposals are “too good to be true”... and then based on audit results provide new guidelines for responsible pricing levels in specific geographic regions?

Today’s enterpriseWhat if the smarter enterprise

could

Focuses on getting today’s job done

Get the job done today with enough extra employee bandwidth to think about and improve tomorrow

Views innovation as a discrete function of R&D or product managers

Put all knowledge workers on a path to innovate and improve

Views questioning and exploration are ‘hobby’ activities, encouraged only when there is time

Include questioning and exploration as part of people’s jobs and reward them for doing it

Makes its decisions and moves on with little interest in whether expectations are met

Evaluate outcomes relative to expectations, tracking and understanding exceptions both good and bad

Page 37: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

37© 2011 IBM Corporation

Empowering

Enables and extends employees' memory, insight and reach, as well as the authority to decide and act

What if a service agent knew how to, and was able to, go above and beyond the norm to delight a top- customer who had had two bad experiences in the last week?

What if large, multidisciplinary teams of sales people could close the next big multimillion dollar deal in hours instead of months because they can reconfigure complicated schedules of prices and resources over years of contract length?

Today’s enterpriseWhat if the smarter enterprise

could

Piles more work on employees, adding headcount to meet demands

Automate and orchestrate routine tasks in order to focus people on new, unsolved issues and opportunities

Takes decisions up and down the flagpole and to be vetted and approved by layers upon layers of management

Delegate decision making to the best agents for the situation whether they are employees, workflows, bots or customers, requiring less managerial and administrative oversight as employees solve issues immediately and locally

Aligns incentives to how much someone works or what they produce

Align incentives to smart results while also considering how the results were achieved

Hunts, searches, and compiles information but guestimate answers, when it’s too hard to get the facts

Give people access to user-friendly fact-based tools available over the channels and devices of their own choosing

Page 38: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

38© 2011 IBM Corporation

Linked

Internal and external functions are connected front to back in a way that aligns to desired business outcomes

What if an oil rig could constantly “speak” to its production supervisors in the control room ... which is connected to the supply chain planning systems, which are connected to the oil markets, which are connected to the pump? Each change in the actual petroleum supply could inform the entire value chain.

What if retailers used loyalty card information to identify shoppers while still in the store, and inform them of new meat and poultry products that meet their personal requirements for humane husbandry practices?

Today’s enterpriseWhat if the smarter enterprise

could

Works with each other locally, but work is constantly ‘thrown over the wall’ to other departments down the line

Mobilize a federation of experts to work together both within the enterprise as well as collaborate with external entities for mutual advantage

Has expertise and accesses wisdom based upon who you know and who’s close by

Generate a new type of collective wisdom from larger and more sophisticated crowds of experts

Uses information for its sole job at hand without attention to impact on related activities

Keep information more relevant and use it beyond its spot application, having implications both up and down the value chain (e.g., the flow from suppliers to customers)

Finds it too difficult to work across boundaries

Connect people, systems, and external entities so they could ‘speak’ to each other seamlessly

Page 39: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

39© 2011 IBM Corporation

Traditional transactional and human-authored enterprise data is rapidly

growing

Unstructured data is growing at geometric and exponential

progressions, and most of it is not used in analytics

The unblinking eyes of instruments and sensors are producing tireless

streams of new data

The enterprise has not kept up and cannot keep up

To survive, business leaders must act

Existing tools cannot access or analyze the growing data effectively and aren’t positioned to handle the

data deluge

Decision making is based on instinct, subjective information, and often the

wrong facts

Decisions need to be made based on a new set of facts based on the

entirety and richness of the information base

Mental bandwidth needs to be reallocated towards harder and more

pressing decisions

Huge amounts of data are ignored, mismanaged, or under-utilized

People at all levels need better information and executives need to

make decisions more quickly

We are approaching a “do or die” moment: enterprises that act on the opportunity will survive to prosper, and those that don’t will be lost

The information environment is at a tipping point

Why change and why now?

Page 40: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

40© 2011 IBM Corporation

Overview

New complexity creates an imperative

for change

Enterprises must fundamentally change

the way they work

Comprehensive solutions enterprises

need

The growing velocity of the volume, variety and

granularity of information is driving unprecedented

complexity.

Intelligent enterprises leverage information to

reach better, faster decisions, optimal actions,

and more predictable outcomes.

IBM is creating a new GBS service line - Business

Analytics and Optimization - to bring

together world class capabilities for our clients.

Page 41: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

41© 2011 IBM Corporation

Business Analytics and Optimization is the next bow wave of change where operational execution meets new opportunity

Task/Process Automation

Business Efficiency

Cross-Functional Integration

Enterprise Integration

Aggregation and data

warehouse

Recording and

Reporting

Performance measurement

Detection, direction & prediction

Business process management and

Business Intelligence

Resource planning (e.g., ERP, CRM, SCM)

Transactional automation adoption (POS, accounting)

Business Optimization

Analytics and Intelligence

Business Analytics

and Optimization

Change

Page 42: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

42© 2011 IBM Corporation

Business Analytics & Optimization

BAO Strategy

Business Intelligence & Performance Management

Advanced Analytics and Optimization

Enterprise Information

Management

Enterprise Content

Management

• BAO Strategy and Roadmap

• BAO Process Improvement

• BAO Governance

• Dashboards & Scorecards

• Planning, Budgeting, & Forecasting

• Business Analytics & Reporting

• Advanced Analytics

• Analytic Applications

• Predictive Modeling

• Business Optimization

• Visualization

• Data Integration

• Data Quality

• Data Architecture

• Master Data Management

• Document & Records Management

• Web 2.0 / Web Content Management

• Digital Asset & Rights Management

• Archiving & Record Management

Page 43: 1 © 2011 IBM Corporation Challenges in succeeding in the new economic environment September, 2011 1© 2011 IBM Corporation BAO capabilities play a strategic

43© 2011 IBM Corporation

BAO will address critical client needs through big plays in key areas

Intelligent profitable

growth

Efficiency and cost take-out

Proactive risk

management

Risk and Fraud Analytics

Advanced Customer

Insight

• Need for risk transparency and advanced modeling techniques

• Losses due to unmanaged Risk

• High rates of Fraud and Abuse• Increased regulatory oversight• Limited view of customer and

counterparty credit risk

• Limited access to customer data• Limited view of unstructured information• No view of Customer Profitability

• Need for Customer Loyalty• Need for Revenue Assurance• Need for Cost Reduction

Analytics and Data

Optimization

• Duplicated Data• Need Platform for Growth• Need Data Simplification• Need for Cost Take Out• Siloed Data • Complexity due to Acquisitions• Inconsistent Reporting


Top Related