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Increase revenue and reduce costs using
your data to understand performance
and make better decisions.
Juha Teljo
Business Analytics Solution Executive
Data vs. Information

• Data are plain facts. When data are processed,
  organized, structured or presented in a given context so
  as to make them useful, they are called Information.
                                                 Diffen.com 2010
Companies that invest in business insight consistently outperform




         Revenue Growth                                               EBITDA                    Return on Invested Capital
    5 Year CAGR (2004-2008)                                 5 Year CAGR (2004-2008)                5 Year Average (2004-2008)


                           33%                                             > 12x                                  32%
               12,5%       more                                            more                                   more
                                                                                                          11,9%

                               9,4%                                                                                 9,0%
                                                                    7,3%




                                                                                   0,6%




                                                            Finance organizations with business insight

                                                            All other enterprises

  Revenue Growth: N = 580; EBITDA: N = 435; ROIC: N = 606
  Source: IBM Global Business Services, The Global CFO Study 2010
Data Explosion In A Smarter World!

 Volume of Digital Data
  57% CAGR for enterprise data through 2010
  Machine generated data : Sensors, RFID, GPS..



 Variety of Information
  80% of new data growth is unstructured content
  Emails, images, audio, video..


 Velocity of Decision Making
  Rapidly changing business climate
  Need to get ahead of the curve : predict issues
  and fix them




New Data                    New Information!        New intelligence

      4
New Insight can be found !
     Answering tough questions….
        Social Network Insights             Customer Acquisition                    Customer Retention




    Cell phone provider: How do        Retail Bank: How do we increase        Large US Automotive Company:
    social networks effect churn and   product ownership and deposit          How do we prevent customer
    what are the best intervention     levels by differentiating our branch   attrition risk arising from
    strategies with opinion leaders?   strategy and localizing our            discontinued models, divested
                                       branches?                              brands and dealership closings?


          Brand Management                 Salesforce optimization                Marketing Optimization




    Consumer Products Company:         Large pharmaceutical company:          Large Electronics Retailer: How do
    How do we revive a failing brand   How do we focus sales reps time        we reduce $1 billion advertising
    by better understanding            and promotional budgets on the         budget by 40% without adversely
    consumer appetite and sentiment    physicians most likely to prescribe    effecting revenue?
    toward the product?                our branded medications?


5
Ability to predict and share becoming a
  differentiator
                                                         Better Decisions !
Collection by systems
Orders
Claims
Social media
Surveys,
Failures
Maintenance...
                                                   Information Delivery
                                                   Reports
                                                   KPIs -> KPPs




Collection by people
Forecasts
Plans                   Predictions by behaviour
Discussions,..          Statistical patterns
                        Predictive algorithms
                        Text Mining,...
Doing things at ‘Right-time’
‘Smart’ applications are fast emerging for Streams
    Neonatal Care     Trading Advantage     Environment




   Law Enforcement     Radio Astronomy        Telecom




                                          Fraud Prevention
    Manufacturing        Smart Traffic
8


Yes, there is an explosion in        … Yet organizations are
information happening…               operating with blind spots
                                      Lack of Insight
                                      1 in 3 managers frequently make
                                      critical decisions without the
                                      information they need
         Volume of Digital Data



                                      Inefficient Access
                                      1 in 2 don’t have access to the
                                      information across their organization
                                      needed to do their jobs
         Variety of Information



                                      Inability to Predict
                                      3 in 4 business leaders say more
                                      predictive information would drive
                                      better decisions
       Velocity of Decision Making

                                         Source: IBM Institute for Business Value
Common Landscape in Information Environments
Creates an Information Gap with Strategic Challenges
                Channels            Business Units             Data              Systems

                                                          DB   App    DW
                                       Rolled                               Core
                                      Materials                             Apps                  SIF
                                                         CRM   DB     App
                     Direct
                     Sales
                                                         DB    App    DB
                                        Retail                               Core
                                       Systems           CRM   DB     App    Apps                 ODS
                 B2B
                                                         DB    App    DW
                                      Specialty                              Core
 Customer                            Applications        CRM   DB     App
                 Inside Sales                                                Apps                 CIF

                                                          DB   App    DB
                                      Distribution                            Core
                                      / Logistics        CRM   DB     App     Apps
                 B2C

                                                                                                 Partners
                                      Emerging            DB   App    DW
                                                                             Core
            52% of users                     59% of managers DB
                                       Markets
                                                       CRM            App
                                                                              42% of managers
                                                                            Systems
               Direct Sales
            don’t have                            miss                          use wrong
            confidence          1
                                              information       2
                                                                               information                  2
        in their information               they should have used              at least once a week

                                                                                      1
                                                                                          AIIM 2008 Survey
                                                                                      2
                                                                                          Accenture 2007 Managers Survey
Bridging the Gap
                                                                                               Information as a
                                                                                                Strategic Asset
                                                                           Adaptive
 Business                                                                 Business
 Value                                                                 Performance
                                                                                          Information as a
                                                                                            Competitive
                                                   Real-time Single                         Differentiator
                                                   View of the Truth
                                                                         Information to
                                                                             Enable
                                            Information
                                            in Context                     Innovation


                                                            Flexible
                                                          Information
                                                          Architecture
               Basic Information
                  Interaction


                           Information to
  Focus on Data             Manage the
  And Reporting               Business



     Data to Run the
        Business
                                                                                                       Maturity of
                                                                                                    Information Use
An Information Agenda is a proven approach for establishing value
                             Establish an information driven
                             strategy & objectives to enable
                                   business priorities…




    Discover & design                                              Accelerate information
    trusted information                                          intensive projects aligned
   with unified tools and                                        with the strategy to speed
    expertise to sustain                                         both short- and long-term
  competitive advantage                                           returns on investment…
        over time…




                            Deploy open and agile technology
                            and leverage existing information
                             assets for speed and flexibility…
Infrastructure supporting Information Agenda
© Copyright IBM Corporation 2008 All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty
of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is
intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license
agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM
operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are
not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Cognos, the Cognos logo, and other IBM products and services are trademarks of
the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.




                                                                                                                                                                                          13

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IBM Information Management - Efter stormen: Uppnå konkurrenskraft och sänkta kostnader med bättre affärsinformation

  • 1. Increase revenue and reduce costs using your data to understand performance and make better decisions. Juha Teljo Business Analytics Solution Executive
  • 2. Data vs. Information • Data are plain facts. When data are processed, organized, structured or presented in a given context so as to make them useful, they are called Information. Diffen.com 2010
  • 3. Companies that invest in business insight consistently outperform Revenue Growth EBITDA Return on Invested Capital 5 Year CAGR (2004-2008) 5 Year CAGR (2004-2008) 5 Year Average (2004-2008) 33% > 12x 32% 12,5% more more more 11,9% 9,4% 9,0% 7,3% 0,6% Finance organizations with business insight All other enterprises Revenue Growth: N = 580; EBITDA: N = 435; ROIC: N = 606 Source: IBM Global Business Services, The Global CFO Study 2010
  • 4. Data Explosion In A Smarter World! Volume of Digital Data 57% CAGR for enterprise data through 2010 Machine generated data : Sensors, RFID, GPS.. Variety of Information 80% of new data growth is unstructured content Emails, images, audio, video.. Velocity of Decision Making Rapidly changing business climate Need to get ahead of the curve : predict issues and fix them New Data New Information! New intelligence 4
  • 5. New Insight can be found ! Answering tough questions…. Social Network Insights Customer Acquisition Customer Retention Cell phone provider: How do Retail Bank: How do we increase Large US Automotive Company: social networks effect churn and product ownership and deposit How do we prevent customer what are the best intervention levels by differentiating our branch attrition risk arising from strategies with opinion leaders? strategy and localizing our discontinued models, divested branches? brands and dealership closings? Brand Management Salesforce optimization Marketing Optimization Consumer Products Company: Large pharmaceutical company: Large Electronics Retailer: How do How do we revive a failing brand How do we focus sales reps time we reduce $1 billion advertising by better understanding and promotional budgets on the budget by 40% without adversely consumer appetite and sentiment physicians most likely to prescribe effecting revenue? toward the product? our branded medications? 5
  • 6. Ability to predict and share becoming a differentiator Better Decisions ! Collection by systems Orders Claims Social media Surveys, Failures Maintenance... Information Delivery Reports KPIs -> KPPs Collection by people Forecasts Plans Predictions by behaviour Discussions,.. Statistical patterns Predictive algorithms Text Mining,...
  • 7. Doing things at ‘Right-time’ ‘Smart’ applications are fast emerging for Streams Neonatal Care Trading Advantage Environment Law Enforcement Radio Astronomy Telecom Fraud Prevention Manufacturing Smart Traffic
  • 8. 8 Yes, there is an explosion in … Yet organizations are information happening… operating with blind spots Lack of Insight 1 in 3 managers frequently make critical decisions without the information they need Volume of Digital Data Inefficient Access 1 in 2 don’t have access to the information across their organization needed to do their jobs Variety of Information Inability to Predict 3 in 4 business leaders say more predictive information would drive better decisions Velocity of Decision Making Source: IBM Institute for Business Value
  • 9. Common Landscape in Information Environments Creates an Information Gap with Strategic Challenges Channels Business Units Data Systems DB App DW Rolled Core Materials Apps SIF CRM DB App Direct Sales DB App DB Retail Core Systems CRM DB App Apps ODS B2B DB App DW Specialty Core Customer Applications CRM DB App Inside Sales Apps CIF DB App DB Distribution Core / Logistics CRM DB App Apps B2C Partners Emerging DB App DW Core 52% of users 59% of managers DB Markets CRM App 42% of managers Systems Direct Sales don’t have miss use wrong confidence 1 information 2 information 2 in their information they should have used at least once a week 1 AIIM 2008 Survey 2 Accenture 2007 Managers Survey
  • 10. Bridging the Gap Information as a Strategic Asset Adaptive Business Business Value Performance Information as a Competitive Real-time Single Differentiator View of the Truth Information to Enable Information in Context Innovation Flexible Information Architecture Basic Information Interaction Information to Focus on Data Manage the And Reporting Business Data to Run the Business Maturity of Information Use
  • 11. An Information Agenda is a proven approach for establishing value Establish an information driven strategy & objectives to enable business priorities… Discover & design Accelerate information trusted information intensive projects aligned with unified tools and with the strategy to speed expertise to sustain both short- and long-term competitive advantage returns on investment… over time… Deploy open and agile technology and leverage existing information assets for speed and flexibility…
  • 13. © Copyright IBM Corporation 2008 All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Cognos, the Cognos logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. 13