#IBMInsight Session presentation "Transforming your Enterprise to Get Value from BigData and Analytics: How to Get Started". Transforming Your Enterprise to Get Value from Big Data and Analytics: How to Get Started The Journey, The Value Analytics Drives, Analytics Leadership and Governance, Analytics Case Studies, Best Practices for Getting Started More at ibm.biz/BdEPRs
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IBM IOD 2012 10/24/2014
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Transforming your Enterprise to GetValue from Big Data and Analytics:How to Get StartedSession # 6371
Transforming Your Enterprise to Get Value from Big Dataand Analytics: How to Get Started
• The Journey
• The Value Analytics Drives
• Analytics Leadership and Governance
• Analytics Case Studies
• Best Practices for Getting Started
• Conclusions
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The Journey
IBM’s Transformation Journey has been years in themaking with the analytics portion starting in 2004
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Sharing & partnering
Making things smarter
Globally integrating
• Deliver a signature IBM client experience with an engaged workforce• Build a Smarter enterprise with data, cloud and systems of engagement• Make IBM essential to clients, partners, investors and communities
Transformationdesigned to:
Early years analytics applied to physical assets, i.e. manufacturing, supply chainThen analytics applied to non physical processes / functional side i.e. salesNow expansion more broadly used across the enterprise
Analytics
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IBM’s Analytics Transformation is focused on businessoutcomes
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“Analytics will form asilver thread that weavesthrough the future ofeverything we do.” Ginni
Rometty, Chairman and CEO,IBM Corporation
Fundamental Principles
• Pragmatic approach
• Focus on business outcomes
• Analytics is a way of doing business
Basic Building Blocks
• IBM Institute for Business Value Papers
• Great base for transformation withvalue services structure
• Motivated leadership to make IBMsmarter and essential
The Value Analytics Drives
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First, what do we mean by analytics?
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IDC – Independent Financial Impact Studies
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“The median ROI for the
projects that incorporated
predictive technologies was
145%, compared with a
median ROI of 89% for those
projects that did not.”Source: IDC, “Predictive Analytics and ROI:
Lessons from IDC’s Financial Impact Study”
Update: 2011 study shows ROI for predictive analytics at 250%!
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Understanding how to create value from data has been thefocus of IBM’s analytics studies for 5 years.
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Analytics:The new path to value
Operationalizinganalytics in
sophisticatedorganizations
Analytics:The widening
divide
Mastering analyticcompetencies
Analytics:The real world use
of big data
Fundamentalsof big data
Analytics:A blueprint for value
Extracting valuefrom data and
analytics
2010 2011 2012 2013
The intelligent enterpriseand
Breaking away with BAO
2009
Defining analyticsas a strategic
asset
MIT Sloan Management Review & IBM Institute of BusinessValue teamed up in 2010
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IBM Institute for Business Value
+
•Surveyed 3,000 executives, managers andanalysts plus extensive interviews
•Respondents represent more than 30industries in 108 countries
•Interviews with IBM and MIT thought leaders
•Analysis by IBM and MIT Sloan ManagementReview team
Respondents were asked “To what extent does the use of information (including bigdata) and analytics create a competitive advantage for your organization in yourindustry or market.” Respondent percentages shown are for those who rated theextent a [4 ] or [5 Significant extent]. The same question has been asked each year.
Competitive advantageenabler
A majority of respondentsreported analytics and information(including big data) creates acompetitive advantage within theirmarket or industry
Represents a 70% increasesince 2010
Organizations already active inbig data activities were 15%more likely to report acompetitive advantage
A higher-than-averagepercentage of respondents inLatin America, India/SE Asia andANZ reported realizing acompetitive advantage
63%
58%
37%
2012
2011
2010
70%increase
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Analytics Leadership andGovernance
IBM’s Analytics Transformation Governance Model
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AnalyticsPractices
AnalyticsCommunities
EnterpriseInformation
Management
CIO Office
GlobalIntegratedEnterprise
Shared Services
Big Data &AnalyticsUniversity
BusinessPerformance
Services
IBM Research
Development
Groups
EnterpriseTransformation
Initiatives
Line of BusinessAnalytic Groups
Network of Analytic Communities
DataStrategy
Infrastructure
InitialDeployment
Channel
Education Portal
Apply and solve business problems
Deepmathematicalskills
Product andSolution offerings
ScalingDeployment
Addressing businesschallenges in LOBs
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Business Analytics Transformation
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Mission
Drive the Widespread Use of Analytics across IBM to Elevate BusinessPerformance
Long Term BAT Strategy
Transform for Growth using Analytics via 4 E's:
Evangelize – promote the value gained by using analytics
Educate – provide training in consuming and doing analytics
Enable – assist business leaders in solving their businesschallenges with analytics
Empower – establish business structures to support peopleimplementing analytics
We leverage a rich set of products internally for BusinessAnalytics
Estimated net benefit throughreduced attrition in IBM’s growthmarket employee population
For 2012-2013 investment
Business problem: Retaining high-value employees.
Solution: Identify drivers of attrition and risk level for every
employee. Leverage the model to create a customized retention
plan for each high value employee.
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Finance: Identify and mitigate acquisition risk byleveraging data and analytics
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Business problem: Acquisitions ‘synergies’ arechallenging to quantify and realize and can significantlyalter performance & financial expectations.
Solution: Use acquisition data and advanced analyticsmodels to create tailored risk profiles for eachcontemplated deal and address throughout theacquisition lifecycle.
80+ Acquisitionsbenefited from headlights intoexecution risks to affect bothdeal pricing and integration plan
Is there a common agenda for analytics among leaders? Are your investments aligned to value delivery? Does the funding structure support cross-silo initiatives?
TechnologyArchitect for the future
Are data and analytics skills nurtured within your organization? Are data management practices strong enough to instill confidence? Is the analytic infrastructure architected for today’s challenges?
OrganizationEnable the organization to act
Are data and analytics part of your decision making processes? Can your define the impact from analytics investments? Is the level of trust sufficient to rely on others for data and analytics?
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“New path to value” – a five-point approach tooperationalize analytics
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Recommendation 1:Focus on the biggestand highest valueopportunities
Recommendation 4:Keep existing
capabilities whileadding new ones
Recommendation 5:Use an informationagenda to plan for
the future
Recommendation 2:Within eachopportunity, start withquestions, not data
Data management practices Organizational confidence
Sponsorship Funding Expertise
Amplify
Boostsvalue
creationExecutive support and
involvementFinancial rigor in analytics
funding process
Development and access toskills and capabilities
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Several dynamics are underway that are shaping thefuture for big data and analytics
• Growth of data – 2.5 billion gigabytes generated everyday
• Unstructured data – 80% of big data growth isunstructured (social media, video, audio, images, datafrom sensors).
• Cognitive computing – Just when we need it, the third eraof computing, cognitive, offers the promise of allowing usto rapidly explore big data and uncover insights.
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‒Think Ahead
‒Tell a Story
‒Understand Your Business
‒Get Better Data
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Conclusions
Conclusions
• The use of analytics correlates to organizational performance.
• Developing and deploying analytics solutions consists of threeelements: Data / Analytics / Business Processes
• You can operationalize analytics using a 5-point approach.
• The most competitive companies will move from raw big data toinsight-driven actions with speed; and cognitive computing willhelp do this.
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We Value Your Feedback!
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• Access the Insight Conference Connect tool to quickly submit yoursurveys from your smartphone, laptop or conference kiosk.
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