working smarter - implementing dynamic, collaborative or connected working practices enabled by Business Intelligence and Business Analytic technologies

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CEO Forum: Lead Through CreativityPravin PatelIBM Software Group BA ASEAN

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Uncertainty – The New NormalVelocity and Volatility

“Over 60% of Executives believe that when

the recovery takes hold, the heightened

uncertainty in the business will remain.”

Duke University Business Outlook, September 2009

Sense that volatility, uncertainty and risk are going to be part of the new economic

landscape.

The world has been transformed from a series of loosely connected economies with reasonably predictable flows between them to a complex web of relationships where the global impact of local events is felt almost instantaneously.


Information is exploding.

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Amount of new information being generated every day, 8x more than the information in all U.S. libraries.

In volume.15 petabytes

More than 200 billion emails are sent every day.

200 billionAmount of digital information that will exist in 2010—equivalent to a stack of books from the sun to Pluto and back.

988 exabytes

By 2010, up to 30 billion RFID tags will be produced globally, embedded into products, pass-ports, buildings—even animals.

30 billionFor every 1,000 knowledge workers it employs, a company loses $5.7 million annually in time wasted reformatting information between applications.

$5.7 million


Standout organizations capitalize on complexity in three ways

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• “Getting closer to customers” is the single most important theme.• Better understand customer needs through collaboration and info sharing.• Exploit the information explosion to deliver unprecedented customer service.

2010

Capitalizing on Complexity

Key Findings

Rapid escalation of complexity creates need to:

� Embody creative leadership

�Reinvent customer relationships� Build operating dexterity

Business Imperative


• Who are our customers?

• What’s their buying behavior?

• What are their product/channel/pricing affinities?

• When do customers respond to promotions?

• Which customer group offers the highest total and average revenue and

margin contribution?

• Which customers are most profitable?

Business Driver:Increase Revenue

Customer Analysis: Current State

The need to further understand the behavior,

activities, location, affinities, (and more) of

your customers.


Customer Analysis: Current State

• What are our best performing channels?

• What is our customer churn?

– Product/service

– Geography

– Channel

– Demographics/psychographics

• What are our most effective promotions/programs?

• When and in what channel do customers respond to promotions?

• What are our service costs per channel? Per customer group?

Increase Revenue

Business Driver:Decrease Costs

� Channel Analysis� Customer Churn Analysis� Marketing Program Analysis� Response Analysis� Cost to Serve Analysis


Less and less information is being effectively captured, analyzed and made available to the people who need it

59% do not have

access to

information

across the value

chain that would

be most useful to

them

85% of CIOs do not

believe that their

information is well

managed

70% do not get

predictions on

future

opportunities and

problemsSource: Information Management Online


Customer Information lacking to support consistent & shared view

Source: Business Analytics Product Marketing global survey June 2010 with Marketing Line of Business

0 10 20 30 40 50

No Common Shared Visibility is

Available

Yes through spreadsheets

Yes through manager/analyst

dashboards

Yes through reports

Survey Response %

42% of respondents did not share common view of the customer.


Many of the key priorities for businesses today are dependent on the ability to deliver timely, trusted information.

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Business challenges

Respond quickly to business

change

Be fast to market

with products

customers want

Improve business processes

Attract and retain new

customers

Expand current

customer

relationships Target markets

more effectively


CIOs face a range of obstacles to delivering value from business information.

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Information pain points

Redundant data, applications and infrastructure

Information locked in business silos and

applications

No single view of the customer

High cost – up to 40% of IT budget

Can't deliver information users need in real time

Lack of trusted information for decision-making


Three Questions that Drive Performance

IT

SALES

MARKETING

CUSTOMERSERVICE

HR

OPERATIONS

PRODUCTDEVELOPMENT

FINANCE

Why?How are we doing?

What should

we be doing?

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How Answers are Often Found

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Why?

How are we doing?

What should we be doing?

INTERNAL DATA

EXTERNAL DATA

Why?

How are we doing?

What should we be doing?

ERP

HR

RETAIL

AC NEILSON

TBS/DLB

CRM

CEO FINANCE


Manage information over its lifetime and as part of

processes

Better Business

Outcomes

Business Optimization

Flexible Architecture for Leveraging Existing Investments

Other

Information

Sources

Establish and maintain an accurate, trusted view of

information

Plan, understand and optimize business performance

End-to-End

Capabilities

IBM Information On Demand solutions offer end-to-end information infrastructure capabilities for executing your information agenda.

Customer & Product

Profitability

Workforce

Optimization

Dynamic

Supply ChainMulti-Channel

Marketing

Financial

Risk Insight


Delivering business objectives with IBM Business Analytics

ONE PLATFORM ALL DATA SOURCES

COMPLETE MANAGEMENT VIEW OF THE BUSINESS

Scorecarding& DashboardingScorecarding

& DashboardingPlanning, Budgeting

& ForecastingPlanning, Budgeting

& Forecasting

How are we doing? Why? What should webe doing?

OPSOPS PLMPLM SALESSALES WMSWMS SCMSCM CRMCRM ERPERP

Reporting& AnalysisReporting& Analysis

Advanced PredictiveAnalytics

Advanced PredictiveAnalytics


Over 43,000 Objects including

� 250+ Dimensions

� 850+ Metrics

� 230+ Defined Calculations

Adaptive Framework

� Unlimited Extensions

� Delivered ERP extraction

� Unlimited Data Sources

Generated Data Repository

1000+ Report Permutations

Financial Analytics� Ledger

� Payables

� Receivables

� Cash Management

� Customer/Vendor Risk

Workforce Analytics� Talent Development

� Talent Management

� Talent Retention

� Workforce Strength

� Compensation

Procurement Analytics� Spend Analysis

� Vendor Analysis

� Contract Management

� Operational Efficiency

Sales Analytics� Pipeline Performance

� Sales force Performance

� Sales Segmentation

� Customer Relations

� Pricing and Program Analytics

What’s Included?

Open, Enterprise PlatformCommon Decision-Making Model

Seamless Business Intelligence

Source System

Packaged Reporting & AnalysisAnalytics Drill Through

IBM Cognos Analytic Applications

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What is likely to happen?

There are times when only predictive analytics can deliver the kinds of insights needed to answer key customer-related questions:

� How do I reduce churn and retain my most loyal customers to maximize profitability?

� Which factors are most likely to drive customers to choose my product vs. the competitor’s?

� Which offers will my customers most likely respond to?

� Which channels are most effective for my different customer segments?

Predictive Analytics - IBM SPSS Customer Intimacy

Flu/OJ Beer/Nappy’s

The Final Step in the Customer Insight Continuum


Information led business optimization applies extensive capabilities across the organisation to turn raw data and information into decision-driving wisdom.

Degree of Implementation Complexity

Degree of impact on organisation performance

Standard Reporting

Ad hoc reporting

Query/drill down

Alerts

Simulation

Forecasting

Predictive modeling

Optimization

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?

Stochastic Optimization

Adopted from: Competing on Analytics, Davenport and Harris, 2007

Descriptive

Prescriptive

Predictive

How can we achieve the best outcome?

How can we achieve the best outcome including the effects of variability?


ASEAN Clients in 2009


ASEAN Clients 1H 2010


IOD Software & Solutions Information Infrastructure

BI/Performance Management; Advanced Analytic & Optimization Services

Information AgendaBAO Strategy Services

Apply business analytics to optimize decisions

Establish a flexible

information platform

Plan an information agenda

Industry out-performers are 8 times more likely to pursue information-led transformation at an enterprise level than industry under-performers

How Do you Get Started…………

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Call To Action

Leverage Information for Smarter Business Outcomes

Create Your Information Agenda Now

Let IBM Help Accelerate Your Journey with a 1 Day “Discovery Workshop”

Drive Smarter Business Outcomes With IBM Business Analytics


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