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Outperforming companies are already positioning for growth, concentrating on innovating and expanding. Introducing new services and products. Addressing new regulatory requirements. And moving into new markets.How to do it? By working smarter - implementing dynamic, collaborative or connected working practices enabled by Business Intelligence and Business Analytic technologies.TRANSCRIPT
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CEO Forum: Lead Through CreativityPravin PatelIBM Software Group BA ASEAN
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Uncertainty – The New NormalVelocity and Volatility
“Over 60% of Executives believe that when
the recovery takes hold, the heightened
uncertainty in the business will remain.”
Duke University Business Outlook, September 2009
Sense that volatility, uncertainty and risk are going to be part of the new economic
landscape.
The world has been transformed from a series of loosely connected economies with reasonably predictable flows between them to a complex web of relationships where the global impact of local events is felt almost instantaneously.
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Information is exploding.
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Amount of new information being generated every day, 8x more than the information in all U.S. libraries.
In volume.15 petabytes
More than 200 billion emails are sent every day.
200 billionAmount of digital information that will exist in 2010—equivalent to a stack of books from the sun to Pluto and back.
988 exabytes
By 2010, up to 30 billion RFID tags will be produced globally, embedded into products, pass-ports, buildings—even animals.
30 billionFor every 1,000 knowledge workers it employs, a company loses $5.7 million annually in time wasted reformatting information between applications.
$5.7 million
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Standout organizations capitalize on complexity in three ways
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• “Getting closer to customers” is the single most important theme.• Better understand customer needs through collaboration and info sharing.• Exploit the information explosion to deliver unprecedented customer service.
2010
Capitalizing on Complexity
Key Findings
Rapid escalation of complexity creates need to:
� Embody creative leadership
�Reinvent customer relationships� Build operating dexterity
Business Imperative
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• Who are our customers?
• What’s their buying behavior?
• What are their product/channel/pricing affinities?
• When do customers respond to promotions?
• Which customer group offers the highest total and average revenue and
margin contribution?
• Which customers are most profitable?
Business Driver:Increase Revenue
Customer Analysis: Current State
The need to further understand the behavior,
activities, location, affinities, (and more) of
your customers.
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Customer Analysis: Current State
• What are our best performing channels?
• What is our customer churn?
– Product/service
– Geography
– Channel
– Demographics/psychographics
• What are our most effective promotions/programs?
• When and in what channel do customers respond to promotions?
• What are our service costs per channel? Per customer group?
Increase Revenue
Business Driver:Decrease Costs
� Channel Analysis� Customer Churn Analysis� Marketing Program Analysis� Response Analysis� Cost to Serve Analysis
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Less and less information is being effectively captured, analyzed and made available to the people who need it
59% do not have
access to
information
across the value
chain that would
be most useful to
them
85% of CIOs do not
believe that their
information is well
managed
70% do not get
predictions on
future
opportunities and
problemsSource: Information Management Online
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Customer Information lacking to support consistent & shared view
Source: Business Analytics Product Marketing global survey June 2010 with Marketing Line of Business
0 10 20 30 40 50
No Common Shared Visibility is
Available
Yes through spreadsheets
Yes through manager/analyst
dashboards
Yes through reports
Survey Response %
42% of respondents did not share common view of the customer.
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Many of the key priorities for businesses today are dependent on the ability to deliver timely, trusted information.
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Business challenges
Respond quickly to business
change
Be fast to market
with products
customers want
Improve business processes
Attract and retain new
customers
Expand current
customer
relationships Target markets
more effectively
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CIOs face a range of obstacles to delivering value from business information.
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Information pain points
Redundant data, applications and infrastructure
Information locked in business silos and
applications
No single view of the customer
High cost – up to 40% of IT budget
Can't deliver information users need in real time
Lack of trusted information for decision-making
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Three Questions that Drive Performance
IT
SALES
MARKETING
CUSTOMERSERVICE
HR
OPERATIONS
PRODUCTDEVELOPMENT
FINANCE
Why?How are we doing?
What should
we be doing?
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How Answers are Often Found
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Why?
How are we doing?
What should we be doing?
INTERNAL DATA
EXTERNAL DATA
Why?
How are we doing?
What should we be doing?
ERP
HR
RETAIL
AC NEILSON
TBS/DLB
CRM
CEO FINANCE
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Manage information over its lifetime and as part of
processes
Better Business
Outcomes
Business Optimization
Flexible Architecture for Leveraging Existing Investments
Other
Information
Sources
Establish and maintain an accurate, trusted view of
information
Plan, understand and optimize business performance
End-to-End
Capabilities
IBM Information On Demand solutions offer end-to-end information infrastructure capabilities for executing your information agenda.
Customer & Product
Profitability
Workforce
Optimization
Dynamic
Supply ChainMulti-Channel
Marketing
Financial
Risk Insight
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Delivering business objectives with IBM Business Analytics
ONE PLATFORM ALL DATA SOURCES
COMPLETE MANAGEMENT VIEW OF THE BUSINESS
Scorecarding& DashboardingScorecarding
& DashboardingPlanning, Budgeting
& ForecastingPlanning, Budgeting
& Forecasting
How are we doing? Why? What should webe doing?
OPSOPS PLMPLM SALESSALES WMSWMS SCMSCM CRMCRM ERPERP
Reporting& AnalysisReporting& Analysis
Advanced PredictiveAnalytics
Advanced PredictiveAnalytics
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Over 43,000 Objects including
� 250+ Dimensions
� 850+ Metrics
� 230+ Defined Calculations
Adaptive Framework
� Unlimited Extensions
� Delivered ERP extraction
� Unlimited Data Sources
Generated Data Repository
1000+ Report Permutations
Financial Analytics� Ledger
� Payables
� Receivables
� Cash Management
� Customer/Vendor Risk
Workforce Analytics� Talent Development
� Talent Management
� Talent Retention
� Workforce Strength
� Compensation
Procurement Analytics� Spend Analysis
� Vendor Analysis
� Contract Management
� Operational Efficiency
Sales Analytics� Pipeline Performance
� Sales force Performance
� Sales Segmentation
� Customer Relations
� Pricing and Program Analytics
What’s Included?
Open, Enterprise PlatformCommon Decision-Making Model
Seamless Business Intelligence
Source System
Packaged Reporting & AnalysisAnalytics Drill Through
IBM Cognos Analytic Applications
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What is likely to happen?
There are times when only predictive analytics can deliver the kinds of insights needed to answer key customer-related questions:
� How do I reduce churn and retain my most loyal customers to maximize profitability?
� Which factors are most likely to drive customers to choose my product vs. the competitor’s?
� Which offers will my customers most likely respond to?
� Which channels are most effective for my different customer segments?
Predictive Analytics - IBM SPSS Customer Intimacy
Flu/OJ Beer/Nappy’s
The Final Step in the Customer Insight Continuum
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Information led business optimization applies extensive capabilities across the organisation to turn raw data and information into decision-driving wisdom.
Degree of Implementation Complexity
Degree of impact on organisation performance
Standard Reporting
Ad hoc reporting
Query/drill down
Alerts
Simulation
Forecasting
Predictive modeling
Optimization
What exactly is the problem?
What will happen next if ?
What if these trends continue?
What could happen…. ?
What actions are needed?
How many, how often, where?
What happened?
Stochastic Optimization
Adopted from: Competing on Analytics, Davenport and Harris, 2007
Descriptive
Prescriptive
Predictive
How can we achieve the best outcome?
How can we achieve the best outcome including the effects of variability?
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ASEAN Clients in 2009
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ASEAN Clients 1H 2010
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IOD Software & Solutions Information Infrastructure
BI/Performance Management; Advanced Analytic & Optimization Services
Information AgendaBAO Strategy Services
Apply business analytics to optimize decisions
Establish a flexible
information platform
Plan an information agenda
Industry out-performers are 8 times more likely to pursue information-led transformation at an enterprise level than industry under-performers
How Do you Get Started…………
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Call To Action
Leverage Information for Smarter Business Outcomes
Create Your Information Agenda Now
Let IBM Help Accelerate Your Journey with a 1 Day “Discovery Workshop”
Drive Smarter Business Outcomes With IBM Business Analytics
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