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- 1. CEO Forum: Lead Through Creativity Pravin Patel IBM Software Group BA ASEAN 1
- 2. Uncertainty – The New Normal Velocity and Volatility The world has been transformed from a “Over 60% of Executives believe that when series of loosely connected economies with reasonably predictable flows the recovery takes hold, the heightened between them to a complex web of uncertainty in the business will remain.” relationships where the global impact of local events is felt almost Duke University Business Outlook, September instantaneously. 2009 Sense that volatility, uncertainty and risk are going to be part of the new economic landscape. 2 CEO Forum: Lead Through Creativity
- 3. Information is exploding. In volume. 15 petabytes 200 billion 988 exabytes Amount of new information being More than 200 billion emails Amount of digital information that will generated every day, 8x more than the are sent every day. exist in 2010—equivalent to a stack information in all U.S. libraries. of books from the sun to Pluto and back. 30 billion $5.7 million By 2010, up to 30 billion RFID tags For every 1,000 knowledge workers it will be produced globally, embedded employs, a company loses $5.7 million into products, pass-ports, buildings— annually in time wasted reformatting even animals. information between applications. 3 3 3 CEO Forum: Lead Through Creativity
- 4. Standout organizations capitalize on complexity in three ways 2010 Capitalizing on Complexity Key Findings Rapid escalation of complexity creates need to: Embody creative leadership Reinvent customer relationships Build operating dexterity Business Imperative • “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. 4 4 CEO Forum: Lead Through Creativity
- 5. Customer Analysis: Current State Business Driver: The need to further understand the behavior, Increase Revenue activities, location, affinities, (and more) of your customers. • 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? 5 CEO Forum: Lead Through Creativity
- 6. Customer Analysis: Current State Increase Revenue Channel Analysis Business Driver: Customer Churn Analysis Decrease Costs Marketing Program Analysis Response Analysis Cost to Serve Analysis • 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? 6 CEO Forum: Lead Through Creativity
- 7. Less and less information is being effectively captured, analyzed and made available to the people who need it 85% of CIOs do not believe that their information is well managed 59% do not have access to information across the value 70% do not get chain that would predictions on be most useful to future them opportunities and problems Source: Information Management Online 7 CEO Forum: Lead Through Creativity
- 8. Customer Information lacking to support consistent & shared view 42% of respondents did not share common view of the customer. Yes through reports Yes through manager/analyst dashboards Survey Response % Yes through spreadsheets No Common Shared Visibility is Available 0 10 20 30 40 50 Source: Business Analytics Product Marketing global survey June 2010 with Marketing Line of Business 8 CEO Forum: Lead Through Creativity
- 9. Many of the key priorities for businesses today are dependent on the ability to deliver timely, trusted information. Business challenges Improve business processes Respond quickly to business change Attract and retain new Be fast to market customers with products customers want Expand current customer relationships Target markets more effectively 9 9 CEO Forum: Lead Through Creativity
- 10. CIOs face a range of obstacles to delivering value from business information. Information pain points Redundant data, applications and Information locked in No single view infrastructure business silos and of the customer applications Lack of trusted information for decision-making High cost – up to 40% of IT budget Can't deliver information users need in real time 10 10 CEO Forum: Lead Through Creativity
- 11. Three Questions that Drive Performance FINANCE MARKETING PRODUCT DEVELOPMENT How are we doing? Why? What should we be doing? SALES OPERATIONS CUSTOMER HR SERVICE IT 11 CEO Forum: Lead Through Creativity 11
- 12. How Answers are Often Found INTERNAL DATA HR How are we doing? How are we doing? CRM ERP Why? Why? CEO FINANCE EXTERNAL DATA RETAIL What should What should we be doing? TBS/DLB we be doing? AC NEILSON 12 12 CEO Forum: Lead Through Creativity
- 13. IBM Information On Demand solutions offer end-to-end information infrastructure capabilities for executing your information agenda. Financial Workforce Dynamic Risk Insight Customer & Product Optimization Supply Chain Multi-Channel Profitability Business Optimization Marketing Better Business Outcomes Plan, understand and optimize business performance End-to-End Establish and maintain an accurate, trusted view of Capabilities information Flexible Architecture for Leveraging Existing Investments Other Manage information over Information its lifetime and as part of Sources processes 13 CEO Forum: Lead Through Creativity
- 14. Delivering business objectives with IBM Business Analytics How are we doing? Why? What should we be doing? COMPLETE MANAGEMENT VIEW OF THE BUSINESS Advanced Scorecarding Reporting Predictive Planning, Budgeting & Dashboarding & Analysis Analytics & Forecasting ONE PLATFORM ALL DATA SOURCES OPS PLM SALES WMS SCM CRM ERP 14 CEO Forum: Lead Through Creativity
- 15. IBM Cognos Analytic Applications Common Decision-Making Model Open, Enterprise Platform Source System Seamless Business Intelligence Analytics Drill Through Packaged Reporting & Analysis What’s Included? Financial Analytics Sales Analytics Ledger Pipeline Performance Generated Data Repository Payables Sales force Performance Over 43,000 Objects including Receivables Sales Segmentation 250+ Dimensions Cash Management Customer Relations 850+ Metrics Customer/Vendor Risk Pricing and Program Analytics 230+ Defined Calculations 1000+ Report Permutations Workforce Analytics Procurement Analytics Talent Development Spend Analysis Adaptive Framework Talent Management Vendor Analysis Unlimited Extensions Delivered ERP extraction Talent Retention Contract Management Unlimited Data Sources Workforce Strength Operational Efficiency Compensation 15 CEO Forum: Lead Through Creativity
- 16. The Final Step in the Customer Insight Continuum 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 16 16 CEO Forum: Lead Through Creativity
- 17. Information led business optimization applies extensive capabilities across the organisation to turn raw data and information into decision-driving wisdom. How can we achieve the best outcome including Stochastic Optimization the effects of variability? Degree of impact on organisation performance Prescriptive Optimization How can we achieve the best outcome? Predictive modeling What will happen next if ? Forecasting What if these trends continue? Predictive Simulation What could happen…. ? Alerts What actions are needed? Query/drill down What exactly is the problem? Descriptive Ad hoc reporting How many, how often, where? Standard Reporting What happened? Degree of Implementation Complexity Adopted from: Competing on Analytics, Davenport and Harris, 2007 17 CEO Forum: Lead Through Creativity
- 18. ASEAN Clients in 2009 18 CEO Forum: Lead Through Creativity
- 19. ASEAN Clients 1H 2010 19 CEO Forum: Lead Through Creativity
- 20. How Do you Get Started………… Industry out-performers are 8 times more likely to pursue Information Agenda information-led transformation BAO Strategy Services at an enterprise level than industry under-performers Plan an information agenda Apply business Establish a analytics to flexible optimize information decisions platform BI/Performance Management; IOD Software & Solutions Advanced Analytic & Information Infrastructure Optimization Services 20 CEO Forum: Lead Through Creativity
- 21. Drive Smarter Business Outcomes With IBM Business Analytics 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” 21 21 CEO Forum: Lead Through Creativity
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