© 2009 ibm corporation smarter decisions for optimized performance ibm global executive forum panel...

© 2009 IBM Corporation

Smarter Decisions for Optimized Performance

IBM Global Executive Forum Panel DiscussionBusiness Analytics and Optimization

Fred Balboni, Global Leader Business Analytics and Optimization

November 12, 2009

© 2009 IBM Corporation2

TransactionalAutomation

Business Process Management

Resource Planning

• Task / Process Automation

• Recording & Reporting

Business Analytics

& Optimization

• Business Efficiency• Aggregation and Data

Warehousing

• Cross-functional Integration

• Performance Measurement

• Enterprise Integration• Detection, Direction &

Prediction

$566B 3% CGR*$105B 8%

CGR*

Source: IBM Analysis on addressable market opportunity based on GMV 1H09 data; includes addressable Hardware, Software and Services opportunity. CGRs 2009-2012

Business Analytics & Optimization is the next big investment area for companies – similar to ERP or CRM in the past


Today, 80% of new data growth is unstructured content, generated largely by email, with increasing contribution by documents, images, and video and audio

By 2010, the codified information base of the world is expected to double every 11 hours

Executives are being called upon to make more and faster decisions. Today, 70% of executives believe that poor decision making has degraded their companies’ performance

Volume of Digital Data

Variety of Information

Velocity of Decision Making

The management dilemma

© 2009 IBM Corporation

Sense and respond Predict and act

Instinct and intuition Real-time, fact-driven

Efficient Optimized

Skilled analytics experts Everyone

Back office Decision Support

Point of impact Action Support

Traditional Approach New Approach

Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. www.ibm.com/gbs/intelligent-enterprise

1 in 3business leaders frequently make critical decisions without the information they need

1 in 2don’t have access to the information across their organization needed to do their jobs

4 in 5business leaders see information as a source of competitive advantage

Clients see the need to adopt new ways of working to improve speed to insight and speed to impact


Intelligent Enterprises integrate information into business decisions and insight into operations

Source: Breakaway with Business Analytics and Optimization: Operationalizing Analytics available in late 2009 at www.ibm.com/gbs/intelligent-enterprise

Business operations

Information and analytics

How the business applies information to

achieve its goals• Policies • Business

Processes• Organization

How the business manages information and learns from it

Ad hoc

Foundational

Competitive

Spreadsheets and extracts

Data warehouses, governance and production reporting

Process automation and workflow

Master data management, dashboards and scorecards

Command and control

Task integration (e.g., ERP)

Business process integration (e.g., CRM) and collaboration

Breakaway

Predictions, contextual business rules and patterns

Prescriptive, real-time, pattern-based strategies with situational context

Business analytics and optimization maturity

Differentiating


Top performers encourage questions while management systems also empower employees to anticipate and act

Culture


Leading performance drivers

Questioning

Challenge the status quo to improve the business and create new

opportunities

Empowered

Enable and empower employees to analyse, decide

and act

Anticipating

Predict and prepare for the future by evaluating trade-offs

proactively

21.9X5.6X

15X

Highest level of Intelligent Enterprise expertise

Key: Top performers (i.e., 1st quintile relative to industry peers).

Lower performers (i.e., 4th and 5th quintile relative to industry peers).

Relative difference of top performers to lower performers


Business Objectives for 2010-2011

Revenue protection and growth

Competitive differentiation such as innovation and deeper insight

Cost takeout and efficiency

Improved risk management and regulatory compliance

Operating enablement such as continuous improvement 10%

12%

33%

41%

71%

Top-line focused

Internally focused

IBM’s 2009 survey of 398 executives worldwide found top-line focus is back and it’s a global phenomena



CurrentNext 24 MonthsProject Scope

Top Ten Priorities

• Pricing and offer strategies• Branding and reputation management• Product/services market selection• Lead generation and pipeline management• Promotion and offer management• Logistics and distribution management

Increase Focus

• Customer segmentation and profitability• Demand forecasting and management• Enterprise goal setting and alignment• Budgeting and resource allocation

Maintain Focus

• Reporting and performance measurement• Cost/expense management• Career path and succession management• Fraud and financial risk management• Leadership development• Channel performance

Re-assess Focus

Tactic

We predict a shift in projects to better reflect near term priorities


© 2009 ibm corporation smarter decisions for optimized performance ibm global executive forum panel...

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