© 2011 IBM Corporation
May 11, 2015
© 2011 IBM Corporation
© 2011 IBM Corporation
Breakthrough Cloud Environments for Business Analytics
Paul Scorza VP, Business Analytics, Finance, Global Finance & Tech Support Transformation Exec.
© 2011 IBM Corporation
Agenda:
Business Analytics
Business Analytics at IBM: Then and Now…
Blue Insight: What is it, why it works and who uses it at IBM
IBM’s Business Analytics Center of Competence (BACC): Where it is going and how it has paid off
Keys to a successful BACC
© 2011 IBM Corporation
Focuses on developing new insights and understanding of current business performance
Leverages extensive use of data, quantitative analysis, predictive modeling to drive decision making
Includes skills, technologies and processes for continuous analysis of past business performance to gain insight and data-driven planning
What is Business Analytics?Business Analytics represents the combination of skills, technologies and processes to deliver data-driven business performance
Intelligent profitable growth
Efficiency and cost take-out
Proactive risk
management
Risk and Fraud Analytics
Advanced Customer
Insight
Analytics and Data
Optimization
Intelligent profitable growth
Efficiency and cost take-out
Proactive risk
management
Risk and Fraud Analytics
Advanced Customer
Insight
Analytics and Data
Optimization
Analytics
Environment
Risk and Fraud Analytics
Advanced Customer
Insight
Analytics and Data
Optimization
Data & Tools
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Business insight and market differentiation are a by product of leveraging advanced analytics
What exactly is the problem?
What will happen next if?
What if these trends continue?
What could happen?
What actions are needed?
How many, how often, where?
What happened?Standard Reporting
Ad hoc reporting
Query/drill down
Alerts
Simulation
Forecasting
Predictive modeling
Optimization
Stochastic Optimization
Descriptive
PrescriptiveAnalytics
PredictiveAnalytics
How can we achieve the best outcome?
How can we achieve the best outcome including the effects of variability?
low
high
Complexity
low
high
Business Advantage
Competitive
Breakaway
Differentiating
Adapted from Competing on Analytics, 2007
Foundational
© 2011 IBM Corporation
Business analytics trends are driving Business Analytics Competency Centers (BACC) and Cloud delivery models
BA remains top CIO priority
BA investment set to grow despite economic climate
IT budgets will come under increased scrutiny, especially if the economic down turn continues
But expect leaner and meaner BI practices Move from a piece meal departmental deployment to across the wider
enterprise Do more sophisticated types of BI with less money and IT staff
BA goes mainstream Mission Critical
Continued transition towards operational BA Enabling more users, increases deployment
Self-sufficiency - shifting power to the users
Competency center deployments will rise
Attaining level of BA maturity is key to success
BA standardization A way of reducing costs and maximizing the potential of existing skill sets and technologies
Shift towards pervasive BI
Competency center
* Ovum – BI –PM user trends to look for in 2009 by Madan Sheina & Helena Schwenk
© 2011 IBM Corporation
Business analytics at IBM: Then and Now…
© 2011 IBM Corporation
Historically, our “functionally fragmented’ Business Analytics (BA) environment created a number of challenges for business and technical leadership …..
Segmented investments in BA tooling and infrastructure
Silo’d metric development
Lack of tooling standardization
Limited visibility
Organizational reluctance to a
centralized service
Data Mart/ Warehouse
Senior Executives
Sales & Marketing
HR
Product Development
Fulfillment
Finance
© 2011 IBM Corporation
Today our Business Analytics (BA) environment is centralized with a common infrastructure and standardized processes … providing numerous advantages for the business
Cloud Administrators
BA Administrators
Report Authors
Blue Insight
Senior Executives
Sales & Marketing
HR
Product Development
Fulfillment
Finance
Business Analytics Center of Competency
(BACC)
Deliver
common and
centralized defined BA
services
Align solution pattern with
adopter usage pattern
Maintain solution
autonomy
Blue Insight is the world's largest private cloud environment for business analytics which delivers a centralized hosting and support environment for Cognos 8 BI applications.
Business Analytics Center of Competence (BACC)- manages the Blue Insight environments and provides guidance
to adopters to efficiently deliver business analytics solutions enterprise wide.
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IBM created a BACC to provide Analytics Common Services to accelerate delivery and yield economies of scale
Cognos (BA)
SPSS (Prediction)
DataStage (ETL)
Marts / Cubes
Business Domain
IT Transformation Executive (TE)
• Analytics tool delivery in the Cloud - ETL
- Business Intelligence - Predictive analytics - Warehousing• Standard boarding
services• Architecture standards
& governance• Solution consulting• Defined operation
levels• Education consulting
BACC
• Solution Architecture• Project Management• Data extract• Data modeling• Intelligent analytics
Business Domain
+ =
Requirements Solution Design Components Solutions
© 2011 IBM Corporation
The BACC is comprised of centralized and decentralized components
Centralized BACC
Common ProcessesCommon Processes
Shared ServicesShared Services
Adopter BI Teams
Project Management Project Management
Resource ResourceAdviseAdvise
Unit or Functional Level
BusinessStrategy
Alignment
Best Practices& StandardsManagement
Communication& Evangelism
CommunityServices
EnterpriseTechnical
Architecture
Advise & Consult
Support
ITGovernanceAlignment
DataGovernanceAlignment
Education
BACC
DecentralizedCentralized
Infrastructure /
Services Org
BACC owns the definition of the consumable central service to end users
© 2011 IBM Corporation
CIO Dashboard
– Establish top to bottom management system ensuring alignment to the CIO priorities and performance objectives
– Provide drill down capability to meet the needs of each direct line organization
– Drive fundamental change towards a balanced dashboard between run and transform
– Enable optimization, streamlining and automation of CIO operations
– Ensure clear outcomes and targets for CIO organization – make visible baseline and target measurements
– Provide reference point to drive Business Analytics maturity across IBM and showcase Cognos"
Supporting strategic and operational agenda of the CIO: through instrumentation, priority setting,communication, target definition, progress measurement/transparency and business analytics.
© 2011 IBM Corporation
Blue Insight: What is it, why it works and who uses it at IBM
© 2011 IBM Corporation
What exactly is Blue Insight?Transformational technology delivery matched with process and solution delivery model changes
Common BA “appliance like” service for delivering
Business Intelligence to IBM(Infrastructure)
• Common extensible infrastructure ( HW & SW) – zLinux for scale
• Common operational support
• Common management of Cognos 8 BI licensing and Level 3 support
• Transformational technology delivery matched with process and solution delivery model changes
Common service definition and boarding process(Common Processes)
• Defined BA tooling service scope (Reports, Adhoc, cubing, pervasive, etc.)
• Defined standard security and LDAP management
• Common operational processes
Business analytics experts to assist adopters
(People)
• Business Analytics Center of Competence (BACC)• Consultants available to assist in solution definition and consumption
of service
© 2011 IBM Corporation
Why Blue Insight?
Stops the proliferation of siloed analytics installations
- Without centralization and oversight an estimated 35-50 independent installations would occur across IBM within 36 months @ a cost of ~$30M
Commoditize tools and the operations service levels
Delivers operational excellence for a well defined service
Provides central “Always on” analytics platform on a scalable zLinux environment
BACC drives the BA strategy for IBM internally
Maximizes leveraging scarce Cognos skills by centralizing some into the BACC
Promote sharing and education to grow teams with common analytics skills
Proliferation of Cognos installations Standardized operations
Analytics skills are scarcePlatform and organizational structure
© 2011 IBM Corporation
IBM’s Blue Insight Analytics Cloud leverages standardization and centralization for process and IT delivery efficiencies
In the spotlight Our commitment to informed decision making led us to consider private cloud delivery of Cognos via System z, which is the enabling foundation
that makes possible +$25M savings over 5 years.
- IBM CIO Office
Blue Insight enables IBM to deliver business analytics with greater efficiency across the enterprise
• Establishes a corporate strategy for service delivery of BA
• Reduces the time and cost to deliver BI to new divisions and departments
• Maintains current departmental business processes, corporate security and compliance
• Maximizes departmental budgets by subscribing to standard services
• Private cloud solution implementation offers economies of scale and flexibility
Customer results:
• Consolidating +40 multi-product, departmental BI deployments to Cognos 8 BI on System z
• Deploying a private cloud to support +200,000 named users across our global workforce
• Realizing value from +100 data sources across IBM
Learn More http://www.ibm.com/systems/z/solutions/cloud/smart.html
© 2011 IBM Corporation
IBM WW Blue Insight Deployment Scope and Penetration
Service delivery scope is business domain agnostic…
Adopters cover all Geographies and business process areas User groups range from 50 K to < 50 users
Sales CommissionsSales ManagementSales OperationsSupply chain – Fulfillment, ProcurementFinance – Expense, RevenueBrand/Unit reportingChannel reporting – Direct, Business Partner, Web
Blue Insight user support2009: 72K users (exceeded 2009 objective of 55k)2010 objective: 120K users (currently 160K users have boarded)2011 projection: 200K users (expected to hit steady state)
© 2011 IBM Corporation
Smart Analytics Cloud
IBM Smart Business - services with industry
leading hardware & software
A private cloud computing solution for business
analytics
A services solution for delivering business analytics to the entire
organization
Defined as … To create… That delivers …
A hosted analytics platform offering exists called the Smart Analytics Cloud (A private cloud optimized for analytic services in large enterprises)
Open, enterprise-class BI platform
Web OfficeSearchMobile
Cognos 8 BAA broad range of BI capabilities
IBM System zCentralize, Virtualize & Simplify the BI
infrastructure
IBM software
IBM hardware
Create awareness of BA and understand the needs for a BA strategy across the organization
Complete a readiness assessment to define the
IBM Services
Deploy Cognos 8 BA for Linux on System z as a private cloud
Provide the skills for the on going management & expansion of their BA private cloud deployment
scope and priorities for the solution
© 2011 IBM Corporation
IBM’s Business Analytics Center of Competence (BACC): Where it is going and how it has paid off..
© 2011 IBM Corporation
Our Transformation and Deployment Plans for Blue Insight are multi-year and multi-faceted, focused on expanding the IT Service and maturing business processes
# of Analytics Consumers
66K
300K
Simplified
Shared
Consolidate (2009) Virtualize(2010) Automate (2011)
Established executive stewardship of BA Globally
Formed a dedicated cross-functional BACC
Converged / centralized BA infrastructure
Leveraged existing trusted data sources
Defined & Standardized boarding processes & services
Extended Common Boarding Processes
Completed Analytics Maturity Assessment
Extend shared SaaS model for defined services
- Predictive Analytics (SPSS)
Integrate boarding automation
Complete boarding adopters & sunsets
Automate Boarding and Planning Process
Adopter Self Definition
Automated Evaluation of Infrastructure & Service Impacts
Automated evaluation of infrastructure impacts
Automated communications of status, audit reporting & billing
Blue Insight Growth (2011+)
Identify growth areas for standardization of services Data Tools – ILOG Jrules ™ Notes integration Portals / DashboardsHarvest IP from solutions
Dynamic
160K
© 2011 IBM Corporation
Business case : $25M over 5 years
Cloud enablers of business case
VIRTUALIZATION +STANDARDIZATION AUTOMATION+
Increased Flexibility
= Reduced Cost Increased
Flexibility
Z10 Infrastructure Common service definition
Web 2.0 Boarding application
Shared peripheral infrastructure
Common security Automated choreography & administration
Shared middleware Common promotion process
Predictive infrastructure planning
Shared Cognos V8 Common operations process
Fully automated provisioning
60% SavingsHW ConsolidationsSW Costs3rd Party vendor savings
35% SavingsOperations efficiencyDevelopment efficiencyImproved time to value
5% SavingsAdopter administration
- Future focus
• Achieved 2010 hard savings of over $5M and booked $5M of hard savings in 2011• IBM is delivering BI centrally for <20% of the cost of decentralized solution installation• True value is in a BI strategy that provisions standard tooling freeing the business to innovate.
Cloud attributes
© 2011 IBM Corporation
BACC Business analytics success and maturity breed growth…
Common Compute Platform – System Z (Compute/ Network/ Storage)
Information preparation and
Warehousing
Business Analytics Center of Competence (BACC)
IBM Information Server and Warehouse
Business Intelligence
BACC Cognos
Predictive Analytics
BACCSPSS
W3 Portal Services
BACCBlue Insight Extension
BACC will extend standard services for Data preparation, predictive analytics and portal integration services…
Information Management Lifecycle
Future Current
© 2011 IBM Corporation
Keys to a successful BACC
© 2011 IBM Corporation
What’s needed for a successful centralized business analytics center of competency ?
Executive sponsorship of the CIO:– Extensive socialization of the notion of centralized services as being self service and necessary
for enterprise efficiency without sacrificing business agility
– Governance of licensing and infrastructure delivery of BI solutions
Know where BI investments are being made throughout the enterprise: “Follow the money”
– Control points in procurement and infrastructure delivery for new BI solutions
– Inventory and review planned investments in BI enterprise wide
Not all services for a particular business segment need to be controlled by the organization
– Cloud approach provides the tenant with central tools NOT central solutions
– Perception by adopters needs to be a ‘”self service” model, with extended services available
Positive business case:– Centralized service needs to produce real savings
– Conservative projection of 20-30% savings (IBM achieved > 50%)
© 2011 IBM Corporation