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© 2007 IBM Corporation IBM Software Group Dynamic Data Warehousing Vince Leat ASEAN SW Group August 2007
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© 2007 IBM Corporation

IBM Software Group

Dynamic Data Warehousing

Vince LeatASEAN SW Group

August 2007

IBM Software Group

© 2007 IBM Corporation1

Discussion

� Introduction

� Dynamic Data Warehousing

– Data Partioning

– Workload Control

– Compression

– Data Mining

– Industry Models

� Balanced Warehouse

IBM Software Group

© 2007 IBM Corporation2

� Competitors offer similar products

� Competitors use similar technologyand proprietary technologies are quickly copied

� Breakthrough innovation in products or services is increasingly difficult

� The World is Flat – losing geographic & regulatory advantages

Top of Mind Issues for the World’s Leading CEOs

CEO Challenges

� Execute with maximum efficiency and effectiveness

� Make the smartest business decisions possible

What’s Left?

IBM Software Group

© 2007 IBM Corporation3

“In God we trust; all others bring data”- W. Edwards Deming

An Information Based Strategy

IBM Software Group

© 2007 IBM Corporation4

The Next Generation of Business IntelligenceInsightful, Relevant Information When and Where it’s Needed

Help Solve Crimes by

Delivering Suspect List to Detectives Arriving

at the Crime Scene

Optimizing Police Force Deployments

Crime Rate Reports

OLAP & Data Mining

to Understand Why and Recommend Future Action

Query & Reporting

to Understand What Happened

Information On Demand

to Optimize Real-Time Processes

IBM Software Group

© 2007 IBM Corporation5

Using Information to CompeteDriving Real Business Results in Financial Services

Adjust CD rates & rollover incentives to attract and retain best customers at lowest price

Identify most profitable customers and minimize risk to maximize risk-value reward

Using Analytics to Compete

Drove 25% increase in revenue per customer account over first 3 years

Lowered customer acquisition costs by 83%

Increased customer retention for savings accounts by 87%

Business Results

IBM Software Group

© 2007 IBM Corporation6

Using Information to CompeteDriving Real Business Results in Retail & Distribution

Identify most loyal customers and maximize cross-selling

Maintaining lowest possible inventory while insuring availability

Using Analytics to Compete

Drove same store sales gains in 23 of 24 quarters over 6 year period

Increased market share from 36% to 43%

Saved $1.2 billion in inventory costs over 5 years

Business Results

IBM Software Group

© 2007 IBM Corporation7

Dynamic WarehousingA New Approach to Leveraging Information

Dynamic

Warehousing

Traditional Data

Warehousing

OLAP & Data Mining

to Understand Why and Recommend Future Action

Query & Reporting

to Understand What Happened

Information On Demand

to Optimize Real-Time Processes

Dynamic Warehousing Requires:

1. Real-time access – in context

2. Analytics – as part of a business process

3. Unstructured information – extracted knowledge

4. Extended infrastructure – tightly integrated

IBM Software Group

© 2007 IBM Corporation8

Dynamic warehousing Extending beyond the warehouse to enable information on demand

Process management

Enterprisedata modeling

Informationintegration

Search and text analytics

Master data management

Industryperspective

Data Warehouse

IBM Software Group

© 2007 IBM Corporation9

Dynamic warehousing Traditional

warehousing

More Examples of Dynamic Warehousing in ActionEnabling Information On Demand for Business Advantage

Insurance fraudanalysis and reporting

Identifying potentially fraudulent claims prior to approval and payment

Transforms healthcare

Reporting oncustomer issues

Identifying possible related issues, churn risk and cross-sell opportunities while engaged with the customer

Transforms customer service

Historical sales analysis and reporting

Discovering relevant customer information to identify cross sell opportunities and improve negotiating position at the point of sale

Transforms sales effectiveness

IBM Software Group

© 2007 IBM Corporation10

What are the challenges for traditional warehouses?

Leverage ALL information, including unstructured

Not just for traditional query and reporting

Address expanding needs for analytics

Increasing types of applications lead to varying service level demands

Increasingly mixed workload environmentsand the constantly changing needs of different business constituents

require more dynamic warehousing capabilities

IBM Software Group

© 2007 IBM Corporation11

Traditional warehouse

IBM provides more than just a warehouse DB2 Warehouse provides extended capabilities and value

Embedded analytics (Inline and as a Service)

Multidimensional analysisData mining and visualization

Beyond traditional structured data

Generate and leverage knowledge from

unstructured information

OLTPBenefits of a transactional data server foundation

Optimized for real-time access,High availability and reliability

Scalable, secure and auditable

DWDBMS

Dedicated warehousing

Shared-nothing architecture Advanced data partitioning

Workload management

Deep compression

Reduced storage costsBetter disk utilization

Query speed improvement

Best of Both Worlds Architecture

IBM DB2 Warehouse

Da

ta V

olu

me

s

Unstructured

Structured

IBM Software Group

© 2007 IBM Corporation12

Master data management

Industryperspective

Process management

Informationintegration

Search and text analytics

Enterprisedata modeling

IBM Global Services and Business Partners

SOA Infrastructure

How IBM Enables Dynamic WarehousingIntegrated offerings to enable information on demand

Dynamic Warehouse

IBMDB2 Warehouse

Process MgmtFileNet BPM

WebSphere BPM

Information IntegrationInformation Server

MDMWS Customer CenterWS Product Center

Industry PerspectiveIBM industrydata models

EnterpriseData Modeling

Rational®Data Architect

Search & Text Analytics

OmniFind™Analytics Edition

IBM Software Group

© 2007 IBM Corporation13

Warehousing strategic pillarsGuiding principles for innovation

Actionable InsightBeyond traditional capabilitiesFurther leverage informationExtended business insight

Support broader usage

SimplicityEasy to deploy and integrate

Easy to useEasy to manage

Easy to start and grow as needed

Reliability & PerformanceReliable access to information

Highly availableReal-time performance

Maximized resource efficiency

IBM Software Group

© 2007 IBM Corporation14

IBM Warehouse software A complete, integrated platform

Mo

de

lin

g a

nd

des

ign

Ad

min

istr

ati

on

an

d c

on

tro

l

Data movement and transformation

database management

Performance optimization

Workloadcontrol

Data partitioning

Deepcompression

Embedded analytics

Data mining, modeling and scoring

Visualization andin-line analytics

DB2 Warehouse

IBM Software Group

© 2007 IBM Corporation15

Warehousing Made SimpleCommon Eclipse Based Design Studio for All Administration

SQL Generated From Data

Flow

Data Flow

Control Flow

Enterprise Schema

Data Warehouse

Project

Simplicity

IBM Software Group

© 2007 IBM Corporation16

� Partition a database within a single server or across a cluster of servers

– Scale to support very large data sets

– Minimize impact of complex workloads

– Provide increased parallelism for administration tasks

Data Partitioning

Reliability & Performance

IBM Software Group

© 2007 IBM Corporation17

Streaming Updates andBatch ETL

Short TacticalQueries

Complex Strategic Queries

Workload Control

Reliability & Performance

“Query Traffic Corp”• Prioritize queries across applications• Ensure operational processes are

serviced first• Minimize impact of complex queries or

batch processes

“Accountant”• Keep a lid on “cost”

• Real-time & historical query-execution statistics

• Reports on:• data accessed most frequently• data NOT being accessed• users or groups generating most workload

IBM Software Group

© 2007 IBM Corporation18

Deep CompressionReduced storage costs – better disk utilization – faster queries

� NULL and Default Value Compression

– No disk storage consumed for NULL column values, zero length data in variable length columns and system default values

� Multidimensional Clustering

– Significant index compression can be achieved through block indexes

– One key per thousands of records (vs one key per record with traditional indexes)

� Database Backup Compression

– Smaller backup images; compress index and long tablespaces

� Data Row Compression

� Dictionary based - symbol table for compressing/decompressing data records

Compression of 100GB TPC-H Tables

0%

10%

20%

30%

40%

50%

60%

70%

LineItem Orders Entire DB

DB2

Other DB

Compression of 100GB TPC-H Tables

0%

10%

20%

30%

40%

50%

60%

70%

LineItem Orders Entire DB

DB2

Other DB

3x better

2x better

Reliability & Performance

Complex Queries Comparison( Lower is bet t er )

0

500

1000

1500

2000

2500

3000

V9 Baseline

V9 Compression

Response Times(milliseconds)

Compression Leads to Faster Queries!

IBM Software Group

© 2007 IBM Corporation19

� Associations– Which item affinities (“rules”) are in my data?

– [Beer => Diapers] …single transaction

� Sequences– Which sequential patterns are in my data?

– [Love] => [Marriage] => [Baby Products] …sequential transactions

� Clustering– Which interesting groups are in my data?

– …customer profiles, store profiles

� Classification– How to predict categorical values in my data?

– …will the patient be cured, harmed, or unaffected by this treatment?

� Prediction– How to predict numerical values in my data?

– …how likely a customer will respond to the promotion

– …how much will each customer spend this year?

DB2 Warehouse

Actionable Insight

Data MiningEnhancing Business Insight with Predictive Analytics

� “Easy Mining” algorithms

� Score data directly in DB2, scalable and real time

IBM Software Group

© 2007 IBM Corporation20

Embedded mining with integrated tools Seamless integration of analytics capabilities

Actionable Insight

Simplicity

Filter required data directly in the warehouse

Get subset of data for analysis

Drag-and-drop interface

Seamlessly add specific analytics and mining operations

IBM Software Group

© 2007 IBM Corporation21

Out-of-the-box visualization tools

Can be embedded directly into applications and Web pages

Deliver inline visualization and analyticsEmbedded analytics capabilities

Actionable Insight

Simplicity

IBM Software Group

© 2007 IBM Corporation22

Banking(Banking Data Warehouse)

Financial Markets(Financial Markets Data Warehouse)

� Claims

� Medical management

� Provider and network

� Sales, marketing and membership

� Financials

� Profitability

� Relationship marketing

� Risk management

� Asset and liability management

� Compliance

� Risk management

� Asset and liability management

� Compliance

Health Plan(Health Plan Data Warehouse)

� Customer centricity

� Claims

� Intermediary performance

� Compliance

� Risk management

Retail (Retail Data Warehouse)

� Customer centricity

� Merchandising management

� Store operations and product management

� Supply chain management

� Compliance

Telco(Telecommunications Data Warehouse)

� Churn management

� Relationship management and segmentation

� Sales and marketing

� Service quality and product lifecycle

� Usage profile

Insurance(Insurance Information Warehouse)

Industry data models Leverage industry best practices for faster time to market

New Offering!

EnhancedCapabilities!

Over 400 Customers!

IBM Software Group

© 2007 IBM Corporation23

Introducing IBM Balanced WarehouseTM

A fast track to warehousing

Simplicity� Predefined configurations for reduced

complexity� One number to contact for complete

solution support

Flexibility for growth

� Add BCUs to address increasing demands

� Multiple on-ramps for different needs

� Reliable, nonproprietary hardware for reusability

Optimized performance

� Preconfigured and certified for guaranteed

performance

� Based on best practices for reduced risk

Balanced Configuration Modules

Preconfigured, pretested allocation of software, storage and hardware to support a specified combination of function and scale

Better than an appliance

Balanced WarehouseSIMPLEFLEXIBLE

OPTIMIZED

IBM Software Group

© 2007 IBM Corporation24

IBM Balanced Warehouse Offerings

Starting at $15K

C-Class

Out of the Box Warehousing Solution for SMB Customers

(includes out-of-the-box BI tools)

Scales to 1 TB

Up to 200 Users

Affordable Hardware & Storage

E-Class

Starting at $850KStarting at $275K

D-Class

Departmental Data Marts and Small to Mid-Size Data Warehouses

Large Enterprise Data Warehouses

4TB and Up

Unlimited, Modular Scalability

High End Hardware & Storage

1TB to 5TB (target)

Modular Scalability

Mid-Range Hardware & Storage

Linux on System x Linux on System x AIX on System p

IBM Software Group

© 2007 IBM Corporation25

IBM is the Leading Provider of WarehousingThe Industry Leaders Use DB2 for Warehousing

11 of the top 12 banks

7 of the top 8 auto manufacturers

5 of the top 6 insurance companies

4 of the top 6 general merchandisers

4 of the top 5 specialty retailers

3 of the top 4 food & drug stores

IBM Software Group

© 2007 IBM Corporation26

IBM enables dynamic warehousingDelivering greater value from information

� More dynamic and balanced approach to warehousing is key

� Broad set of capabilities beyond the warehouse required

� IBM provides the most comprehensive platform to address these needs

IBM Software Group

© 2007 IBM Corporation27

Copyright information© Copyright IBM Corporation 2007

IBM CorporationSoftware GroupRoute 100Somers, NY 10589 U.S.A.

Produced in the United States of America03-07All Rights Reserved.

DB2, IBM, the IBM logo, OmniFind, Rational and System z are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries or both.

Other company, product and service names may be trademarks or registered trademarks or service marks of others.The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is”without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation 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.


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