accelerate business advantage with dynamic data … business advantage with dynamic data warehousing...

© 2007 IBM Corporation

IBM IOD Summit 2007

July 13 & 14, 2007Jeju Shilla

Accelerate business advantage with dynamic data warehousing

IBM IOD Summit 2007

© 2007 IBM Corporation1

Competitors offer similar productsCompetitors use similar technology and proprietary technologies are quickly copiedBreakthrough innovation in products or services is increasingly difficultThe world is flat – losing geographic & regulatory advantages

Top of Mind Issues for the World’s Leading CEOs

CEO ChallengesExecute with maximum efficiency and effectivenessMake the smartest business decisions possible

What’s Left?

IBM IOD Summit 2007


“In God we trust; all others bring data”- Dr. W. Edwards Deming 1900-1993

An Information-Based Strategy

IBM IOD Summit 2007


Leveraging Information to Create Business ValueInsightful, Relevant Information When and Where it’s Needed

OLAP & Data Mining−Merchandising, Inventory,

OperationsWhat may happen ?

Help Solve Crimes by Delivering Suspect List to Detectives Arriving at

the Crime Scene

Optimizing Police Force Deployments

Information On Demand−Optimize each Transaction−Call Centers, Field Operations

Affecting what is happening

Query & Reporting− Financials, Sales

What has happened ?

Crime Rate Reports

IBM IOD Summit 2007


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 – deliver in context2. Analytics – as part of a business process3. Unstructured information – extracted knowledge4. Extended infrastructure – tightly integrated

IBM IOD Summit 2007


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 IOD Summit 2007


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 paymentTransforms healthcare

Reporting oncustomer issues

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

Historical sales analysis and reporting

Discovering relevant customer information to identify cross sell opportunities and improve negotiating position at the pointof saleTransforms sales effectiveness

IBM IOD Summit 2007


Using Information to CompeteDriving Real Business Results in Financial Services

Adjust deposit 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 IOD Summit 2007


Using Information to CompeteDriving Real Business Results in Retail & Distribution

Identify most loyal customers and maximize cross-selling

Maintaining lowest possible inventory while ensuring 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 IOD Summit 2007


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 IOD Summit 2007


Traditional warehouse

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

Embeddable analytics (In-line 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 compressionReduced storage costsBetter disk utilization

Query speed improvement

Best of Both Worlds’ Architecture

IBM DB2 Warehouse

Dat

a Vo

lum

es

UnstructuredStructured

IBM IOD Summit 2007


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

MDMWebsphere Customer CenterWebsphere Product Center

Industry PerspectiveIBM industrydata models

EnterpriseData Modeling

Rational®Data Architect

Search & Text Analytics

OmniFind™Analytics Edition

IBM IOD Summit 2007


Mining

engine

Category Item

[Call Taker] James [Date] 2002/08/30[Duration] 10 min.[CustomerID] ADC00123[type] complaint[issue] denied claim[service] prescription[resolution] add’l info

Extractedmetadata

Search, visualization and interactive mining

Call Taker: James Date: Aug. 30, 2002Duration: 10 min.CustomerID: ADC00123

Structured DataOriginal Data

Rich analysis interface for combining structured and unstructured dataCombines search, text analytics and data visualization

Unstructured analytics framework Analysis tools

Introducing IBM OmniFind Analytics Edition

Linguisticanalysis

Extended Insight

Caller complained about rejected claim for antibiotics; form req’d more information

Unstructured data

IBM IOD Summit 2007


Example: Exploiting Unstructured Analytics by the Call Center

Ability to identify issues and issue types in call center notes

Sample Issue Types• Request• Denied Claim• Late Payment• Poor Service

Sample Issues• Additional Information Required• Incorrect Submission• Refile

IBM IOD Summit 2007


Warehousing strategic pillarsGuiding principles for innovation

Extended 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 IOD Summit 2007


IBM Warehouse software A complete, integrated platform

Mod

elin

g an

d de

sign

Adm

inis

trat

ion

and

cont

rol

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 IOD Summit 2007


Introducing IBM Balanced WarehouseTM

A fast track to warehousing

SimplicityDefined configurations prescribed for reduced complexitySingle telephone number to contact IBM for complete solution support

Flexibility for growthAdd BCUs to address increasing demandsMultiple entry points for varying needsReliable, non-proprietary hardware for reusability

Optimized performancePreconfigured and certified for guaranteedperformanceBased on best practices for reduced risk

Balanced Configuration Unit (BCU)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 IOD Summit 2007


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 IOD Summit 2007


Business Terminology Data Model – Enterprise-wide vocabulary of business concepts that

provide an organization's view of itself and its industry

Enterprise Data Warehouse (EDW) Model– Data model defines how multiple sources of data should be

consolidated into a single logical structure to enable real-time business analytics

Project Views – Logical subset of the EDW designed to solve a business

problem such as Credit Risk; Churn; and Supply Chain

Business Solution Templates (BST)– Collections of related Key Performance Indicators used to

create OLAP cubes and/or Data Marts for Dashboard, Scorecard, Applications or ad-hoc reporting

Business Analyst

Solution Architect

DataModeler

Process Modeler

Project Manager

Enterprise

Data Warehouse

Business

IntelligenceEnterprise

Applications Entity

Analytics

Data Models

Process Models

Service Models

Service Oriented Architecture

Model Management

Model Lifecycle and Governance Methodology

Master Data

Management

IBM Industry Data ModelsReduce Implementation Times & Leverage Industry Best Practices

White Paper on IBM Data Models available

IBM IOD Summit 2007


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

Extended Insight

New Offering!

EnhancedCapabilities!

IBM IOD Summit 2007


IBM Data Warehouse Credentials in China

IBM BI investment in China– Regional Centre of Competency based in Beijing

More than 30 large DB2 data warehouse clients in Telco, Banking, Power, Public

– Largest data warehouse in China

– World’s highest data warehouse

Examples– Life insurer uses IBM data federation technology for real-time access to multiple

source systems to provide up-to-date data for executive dashboard

– Mid-tier bank deploys new reporting and compliance infrastructure within 6 months using IBM banking data model

– Worldwide Banking Group standardises on IBM DW portfolio: DB2, Datastage, pSeries and Data Model - deploys new DW in HK

– Mobile phone operator deploys new IBM DB2 data warehouse with data federation to extend legacy (non-IBM) data warehouse

IBM IOD Summit 2007


IBM Data Warehouse Pedigree

More than 3,000 clients using DB2 for DW using all platforms and most industries

Over 700 clients with terabyte-class data warehouses– Achieved in less than 10 years

Over 400 clients using IBM data models for Financial Services, Insurance, Airlines, Telecommunications and Retail– Not limited to DB2

IBM IOD Summit 2007


DB2 Superiority for Data Warehouse in Banking

17 of top 25 Banking Groups worldwide use a DB2 Data Warehouse– Most use DB2/Unix platform

Example: UBS, 110TB DB2 Data Warehouse– More than 16,000 users; 30,000 tables; and 500-2000

queries/hour

Other DW vendors have smaller share of these leading banks– Many banks have deployed multiple vendor platforms

– When assessing the claims from other vendors, you should distinguish between an implementation that is a strategic deployment for the enterprise, versus a purchase that has been made by an individual department that may be a non-strategic acquisition.

Top 25 Bank Source: Banker Magazine July 2006

Name Country DB2

Citigroup United States HSBC Holdings United Kingdom Bank of America United States JPMorgan Chase United States Mitsubishi Tokyo Financial Group Japan Crédit Agricole Groupe France Royal Bank of Scotland (RBSG) United Kingdom Sumitomo Mitsui Financial Japan Mizuho Financial Group Japan Banco Santander Spain China Construction Bank China HBOS United Kingdom Unicredit ItalyBarclays United Kingdom ABN-Amro Holding Netherlands ICBC China Bank of China China UBS Switzerland Wells Fargo United States Rabobank Netherlands Wachovia United States ING Group Netherlands Deutsche Bank Group Germany BNP Paribas France Credit Mutuel France

IBM IOD Summit 2007


Data Model Experience: Banking Example

IBM FSDM and Banking DW Model– 130+ clients worldwide

– Active User Group• 05/2007 Dallas Financial Services Symposium

Conference

A B N - A M R OA B N - A M R O

IBM IOD Summit 2007


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

IBM IOD Summit 2007


Summary

Dynamic Warehousing is 1. Real-time access – deliver in context

2. Analytics – as part of a business process

3. Unstructured information – extracted knowledge

4. Extended infrastructure – tightly integrated

Delivered using DB2 Data Warehouse Edition (DWE) and IBM Balanced Warehouse technologies

“IBM is delivering capabilities that extend beyond traditional business intelligence and data warehousing techniques to allow

organizations of all sizes to streamline business processes, transform customer service, increase employee productivity,

reduce business risks and generate new revenue opportunities.”- Enterprise Networks & Servers

“IBM has significantly improved the packaging, pricing, scalability,

professional services, and channel partner programs for its data warehousing and master data

management solutions.“ -Information Week

“IBM is looking like IBM – prodigious and resourceful.” TDWI

IBM IOD Summit 2007


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accelerate business advantage with dynamic data … business advantage with dynamic data warehousing...

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