© 2011 IBM Corporation
Business Analytics software
Technology and Trends for Smarter Business Analytics
Don Campbell
Chief Technology Officer, Business Analytics, IBM
© 2011 IBM Corporation
Business Analytics software
Where organizations are focusing Business Analytics
• Customer Churn
• Marketing Spend
• Sales Productivity
Enhance Customer Understanding
• Customer Service
• Channel Management
• Loan Origination
Foster Collaborative Decisions
• Trading Advantage
• Fraud Protection
• Health Monitoring
Optimize Real-Time Decisions
• Financial & Risk Management
• Demand Visibility
• Strategy Alignment
Enable Enterprise Visibility
Underpinned by trusted data and an integrated technology foundation
•Reducing your TCO
•Accelerating time to business outcomes
© 2011 IBM Corporation
Business Analytics software
Organizational, not data or financial concerns, are holding back adoption
Ability to get the data
Lack of management bandwidth due to competing priorities
Lack of skills internally in the line of business
Lack of understanding how to use analytics to improve the business
Culture does not encourage sharing information
Ownership of the data is unclear or
governance is ineffective
Lack of executive sponsorship
Concerns with the data
Perceived costs outweigh the projected benefits
No case for change
38%
34%
28%
24%
23%
23%
22%
21%
21%
15%
Primary obstacles to widespread analytics adoption
Organizational
Data
Financial
Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology 2010.
© 2011 IBM Corporation
Business Analytics software
Historic trend analysis and forecasting
Standardized reporting
Data visualization
Analytics applied within business
processes
Simulations and scenario development
Clustering and segmentation
Regression analysis, discrete choice
modeling, and mathematical optimization
Data visualization
Simulations and scenario development
Analytics applied within business processes
Regression analysis, discrete choice
modeling, and mathematical optimization
Historic trend analysis and forecasting
Clustering and segmentation
Standardized reporting
Increased or sustained value
Decreased in value
Today In 24 months
Organizations want to “see” insights more clearly – and act on them
Analytic techniques that provide the most value
Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology 2010.
© 2011 IBM Corporation
Business Analytics software
© 2011 IBM Corporation
Business Analytics software
Secure access to analytic content online and offline
Author once
Simplified user experience across devices
Support a wide range of devices
– iPad, iPhone
– Blackberry
– Android
Leverage device capabilities
– GPS
– Accelerometer
– Multi-touch
Extend applications beyond traditional analytics
– Data collection
Analytics is about information for better decisions while Mobility is
about what people need the most – access to information ‘anywhere’
Mobility
© 2011 IBM Corporation
Business Analytics software
Cloud and Massive Scale Analytics
Cloud infrastructures support
the ability to scale on
demand
Volumes of data lead to the
desire for massive scale
analytics
Speed vs quantity tradeoffs
‘Watson’ shows future value
of massive scale and learning
systems
7
© 2011 IBM Corporation
Business Analytics software
Watson answers a grand challenge
Can we design a computing system that rivals a human’s ability to answer
questions posed in natural language, interpreting meaning and context and
retrieving, analyzing and understanding vast amounts of information in real-time?
© 2011 IBM Corporation
Business Analytics software
Geospatial and Temporal Analytics
Location and Time dimensions are increasingly more important aspects of data
Query by ‘where’ you are, not just ‘who you are’
Results are NOT always a map
Location can link unrelated content – Internal data / public data
Time has special properties – Known by all – Changes properties as it moves
•Past (analytic) •Present (realtime) •Future (predictive)
Business ‘state’ at specific times is growing in important for regulatory compliance
9
© 2011 IBM Corporation
Business Analytics software
Consumable Analytics
Research shows penetration of analytics into client organizations between
18% - 24% (why not 50%? 75%? 90%?)
As the data we are asking users to make sense of is getting more complex, we
must make information easier to consume to grow adoption
Two ends of the spectrum: make the systems smarter (automation)
leverage the power of human perception and cognition (visualization)
Automation Visualization
© 2011 IBM Corporation
Business Analytics software
Visualization – BI Perspectives 2011 - Agenda (many-eyes.com)
© 2011 IBM Corporation
Business Analytics software
IBM Confidential
Attitudinal
Interactions
Descriptive
Behavior
Social Media
Online Surveys
Points of Interactions
Social Media Analytics
Leading Detractors
Leading Advocates
Social Leaders
Quantify, Monitor &
Segment by Content
Business Analytics
Optimize and Execute Campaigns
Viral marketing offers to customer Special offers
for Advocates and Potential
Advocates
Scoring for propensity to buy
Scoring against Social Leader levels
© 2011 IBM Corporation
Business Analytics software
13
A Vision for the future of analytics …
To change the way people think;
To change the way companies decide.
How?
• Visibility across formal and informal
boundaries
• Dynamic decision networks and
information hubs
• A collective intelligence greater than any
individual
© 2011 IBM Corporation
Business Analytics software
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