1. © 2011 IBM Corporation
IBM Client
Advanced Analytics in support of IBM Marketing and Sales
Spyros Kontogiorgis, PhD.
“Analytics and the 21st Century MBA” Symposium, Oct 21 2011.
George Washington University’ and IBM’ Analytics Solution Center.

2. © 2011 IBM Corporation
IBM Client Insights
22
A century after its inception, IBM operates a broad line of business in Services,
Software, Hardware and Financing in 170 countries.
2
Providing outsourced IT
infrastructure services and
business process services to
accelerate projects and
initiatives
Providing professional services
for strategy, planning and
implementation of transformative
projects
Providing advanced computing, storage
and semiconductor and products with
energy efficient technologies
Providing tools and middleware that
enable our clients to gain business
insights, integrate systems, enhance
processes and manage application
environments
Providing a wide spectrum of
client support and solution value
by integrating, selling and
distributing IBM products &
services
Providing financing solutions that can be
customized to address specific client needs,
from competitive rates to flexible payment
plans and loans
Corporate
Providing best of-class business operations,
helping us identify trends, and planning for
the future
Providing inventions and new
technologies and working on
multidisciplinary projects that lead
to prototypes or long-term
projects
Global
Financing
Systems &
Technology
Software
Global
Business
Services
Global
Technology
Services
Sales &
Distribution
Research
“Analytics and the 21st Century MBA” Symposium

3. © 2011 IBM Corporation
IBM Client Insights
3
IBM
Business Leaders
External
Audiences
Market Development and Insights - Applying deep market knowledge, insight
creation assets, and business expertise to champion actions that drive
profitable growth for IBM
Provide market
headlights to direct
plans and strategies
Drive winning
competitive strategies
and actions
Embrace the voice
of the customer
for impact
Provide direct access
to market insights
Provide market
headlights to direct
plans and strategies
Drive winning
competitive strategies
and actions
Embrace the voice
of the customer
for impact
Provide direct access
to market insights
Clients
Maximize return on
IBM’s Go to Market
investments
Develop IP enabling
clients to chart
courses to greater
value
Deliver innovative
capabilities to address
key issues
Clients
Maximize return on
IBM’s Go to Market
investments
Develop IP enabling
clients to chart
courses to greater
value
Deliver innovative
capabilities to address
key issues
Global + Country Collaboration
Business performance diagnostics
Client acquisition roadmaps
Industry growth assessment
Channels optimization
Define the path
to top-line growth
and increased
profitability
Drive country
level insights
through to
execution
Global + Country Collaboration
Business performance diagnostics
Client acquisition roadmaps
Industry growth assessment
Channels optimization
Define the path
to top-line growth
and increased
profitability
Drive country
level insights
through to
execution
“Analytics and the 21st Century MBA” Symposium

4. © 2011 IBM Corporation
IBM Client Insights
444
Consulting
Root-cause analysis
Data mining
Statistics
Forecasting
Optimization
Client
Analytics
Client Analytics combines quant techniques with consulting, to drive
actionable outcomes
CI Mission: Drive client
action and measurable
outcomes through the
collaborative application of
marketing science to IBM’s
top marketing and sales
issues
Capability Business Issue Business Outcomes
Client Buying Behavior
Analytics
Starbursts & cross-selling
Increased revenue from clients
Higher seller productivity
Client-Base Analytics Erosion in key franchises
Higher retention of clients in
competitive situations
Segmentation &
Targeting
High-potential prospects Higher seller productivity
Marketing
Effectiveness
Demand generation Increased marketing productivity
Growth through partner revenue
“Analytics and the 21st Century MBA” Symposium

5. © 2011 IBM Corporation
IBM Client Insights
5
Analytics in Action: Optimizing the mix of Marketing Events
 IBM executes more than 7,000 customer
events annually, with good to excellent
results
 Next to advertising, events are IBM’s largest
marketing investment, contributing
significant revenue.
 While, most events are face-to-face
(conferences, workshops, road shows), IBM
has begun embracing virtual events.
“Analytics and the 21st Century MBA” Symposium

6. © 2011 IBM Corporation
IBM Client Insights
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Analytics begins by mapping business goals to a quant frame
 Optimize event portfolio.
 Reach target audiences
(existing and potential
customers).
 Achieve growth objective.
 Increase events in Growth
Markets.
 Reach clients in all stages
of sales pipeline.
 Reduce non-performing
events.
 Increase virtual activities.
Understand event planning strategy
and business goals
Express the goals in quant terms
and select analytic method and tools
Work with the client to answer these questions:
• What are the key classes of events we need to
optimize? What data do we have on them?
• What are the decisions? (E.g. select the number
of events of each class.)
• What is the planning horizon? (strategic vs.
tactical.)
• What are the drivers? (E.g. maximize the
expected revenue, or the expected number of
attendees, or the number of events)
• What are the operational constraints? (E.g. stay
within a set budget, do a minimum of events of a
certain type in a certain geography.)
• How will we measure the impact of a proposed
solution?“Analytics and the 21st Century MBA” Symposium

7. © 2011 IBM Corporation
IBM Client Insights
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Analytics leads to an Optimization model, that suggests an event mix to meet
the business goals at minimum cost
Event
Attributes
Categorization
Objective Awareness, Lead
Creation, Lead
Progression,
Thought Leadership
Type Third Party, IBM and
Virtual
Brand GTS, GBS, S&D,
SWG, STG
Geography GMU, Japan, NA,
NE Europe, SW
Europe
 There are 300 event classes (attribute
combinations). For each, we compile historical
“averages” of revenues and costs.
 The optimization model produces a mix of event
classes, which
– Uses high-ROI events.
– Maximizes overall win revenue.
– Keeps the total cost (budget) flat.
– Aligns event revenue to Finance brand/geo
projections for overall IBM revenue.
– Maintains Business presence and continuity.
– Makes special provision for growth in virtual events.
 To achieve this, the model optimally trades
events across brands, geos and classes, using
ILOG CPLEX.
“Analytics and the 21st Century MBA” Symposium

8. © 2011 IBM Corporation
IBM Client Insights
888
IBM’s ILOG Optimization Studio is the best-in-class tool to implement the
analytical model
ILOG Optimization models can identify the best alternatives in
complex decisions under limited resources that meet targets.
Optimization models can explore alternatives, understand trade
offs, and respond to changes in operations.
One third of Global 500
have built custom
applications using ILOG
optimization tools.
Examples:
– Finding optimal
transportation routes.
– Scheduling Airline, Bus,
Train, and Hospital
Crews.
– Optimizing a Financial
Portfolio.
“Analytics and the 21st Century MBA” Symposium

9. © 2011 IBM Corporation
IBM Client Insights
9
Validate the proposed mix with the
brands and geos.
Build an ILOG mathematical model
to select the high-ROI event mix.
Mine data sources to build
performance profiles of event
classes.
Collect/refine requirements (drivers,
revenue goals, operational
constraints).
With this project we introduce an analytics methodology that enhances Event
Planning - on top of the immediate ROI benefits
Analytics Optimization Methodology
 Enhances decision-making by using analytically-robustified historical data.
 Facilitates business integration in planning.
 Jointly optimizes geographies and brands, under the same KPIs
 Aligns to Finance directives, to direct growth to future opportunities.
 Produces multiple scenarios, to illustrate impacts of choices and trade-offs.
Methodology Benefits
“Analytics and the 21st Century MBA” Symposium

10. © 2011 IBM Corporation
IBM Client Insights
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Example: Scenario analysis helps planners understand trade-offs
1. Without optimization (red), we meet the revenue goal with a proportionate scale-up of
current spend.
2. Keeping spend at current levels and optimizing the event mix (blue), increases the
revenue markedly, however it misses the goal.
3. The optimized-mix option (green) meets the goal with a modest increase in spending.
Spend
Revenue
Optimized for midterm
growth goals
Optimized for
current spend
Unoptimized for midterm
growth goals
Current
“Analytics and the 21st Century MBA” Symposium