Cognos and SPSS: Putting Business Analytics to Work Simon Ng Senior Client Technical Professional, Business Analytics, IBM HK

Business Analytics and Optimization is the next big investment area for companies – similar to ERP or CRM in the past 3 Transactional Automation 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

IDC Business Analytics Software Market 4 Business Analytics Software Performance Management Tools and Applications Analytic Applications Business Intelligence Tools Query, Reporting and Analysis Includes dashboards, production reporting, OLAP, ad-hoc query Query, Reporting and Analysis Includes dashboards, production reporting, OLAP, ad-hoc query $6.5B 4.2% 6.9% Advanced Analytics Includes Data Mining and Statistics Advanced Analytics Includes Data Mining and Statistics $1.6B 5.2% 7.1% $8.1B 4.4% 6.9% Analytic Spatial Info Mgmt Tools $0.7B 4.0% 6.5% Financial Performance & Strategy Mgmt Analytics Budgeting, planning, consolidation, profitability mgmt/ ABC, scorecards Financial Performance & Strategy Mgmt Analytics Budgeting, planning, consolidation, profitability mgmt/ ABC, scorecards $2.3B 5.1% 8.1% CRM Analytics Sales, customer service, contact center, web site analytics, marketing, price optimization CRM Analytics Sales, customer service, contact center, web site analytics, marketing, price optimization $1.9B 4.5% 9.6% Workforce Analytics $0.23B 6.1% 7.8% Production Planning $1.2B 1.1% 4.3% Services Operations Analytics Operational analytics in financial services, education, government, healthcare, etc. Services Operations Analytics Operational analytics in financial services, education, government, healthcare, etc. $1.4B 2.1% 5.1% Supply Chain Analytics Related to procurement, logistics, inventory, manufacturing Supply Chain Analytics Related to procurement, logistics, inventory, manufacturing $1.6B 1.8% 5.1% ’09 Market Estimate, projected growth, 5 yr CAGR Data Warehouse Platform DW management and DW generation (ETL+ portions of Data Quality) Data Warehouse Platform DW management and DW generation (ETL+ portions of Data Quality) $7.5B 4.1% 7.9% $25.1B 3.9% 7.2% Source: IDC Worldwide Business Analytics Software Forecast and, July 2009 $8.7B 3.3% 7%

IBM Investing in Business Analytics 5 Over $12B in software investments since 2005 A top IBM Corporate Growth Priority for 2010 Extensive internal deployment of Analytics to Improve IBM Business Performance New division for Business Analytics Over 4,000 dedicated BAO consultants Creation of 6 BAO Analytic Solution Centers Strong linkage to Large Math Department focused on Computational Mathematics and real world applications “IBM, not SAP or Oracle, is now the industry's premo analytics solution/platform vendor…”

6 Autonomic Operations Developer Productivity Deep Compression pureXML pureScale Pervasive Content Stream Computing Content Analytics Advanced Case Management Workload Optimized Systems Social Analytics/Consumer Insight Decision Management $14B+ in Acquisitions Since ,000+ Technical Professionals 7,500+ Dedicated Consultants Largest Math Department in Private Industry 27,000+ Business Partner Certifications 8 Analytics Solutions Centers Optimized hardware and software offerings 100 analytics-based research assets; almost 300 researchers Significant marketing investment worldwide through Smarter Planet IBM is Helping Clients Maximize Results with Innovation That Matters

BAO Gives Businesses an Entirely New Way to Compete But Most Have Yet to Take BAO the Full Distance and need a Journey Partner Business operations maturity Information and analytics maturity How the business applies information to achieve its goals Policies Business Processes Organization How the business manages information and learns from it Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations available in late 2009 at 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 Predictions, contextual business rules and patterns Breakaway Prescriptive, real-time, pattern-based strategies with situational context Ad hoc Foundational Competitive Differentiating

8 Open Heterogeneous Leverage, IBM Compelling Industry Recognized Leadership in each Category Packaged, prescriptive solutions Graduate from Entry Points without the need to re-tool/ re-vendor Optimized Delivery including Virtualization, Appliances, SAAS/Cloud (consider how to further leverage Z Series which has the multi-tenancy, scale, and Green IT positive footprint for Enterprise 2.0) Prescriptive Whole Information Stack - Traditionally or Virtually Portals Dashboards BI/PM Capabilities Enterprise Content Management Enterprise Search Metadata Management/Dimensionality Master Data Management ETL/Data Warehouse/Data Movement /Data Quality Database On-Demand Web Platform

9 Best in Class – Performance Management  Enterprise Planning – combining the best of Cognos Planning and TM1 to achieve high user and high model/ data scale - Driver and Action Based Pervasive Planning  Real-Time Metric Management  Enterprise Consolidation  GRC solutions to drive accountability-based platform with Scorecards/Dashboards, Financial Controls in Consolidation and Planning, Records Management  Enterprise Ready, Simplicity, Ease-of-use, “owned by the business”

10 Enterprise Capture the Hearts and minds of the Next Generation Knowledge Worker  Current Generation: Linking information to make the decision makers more effective  Next Generation: Linking the decision makers to make the enterprise more effective Surround data with metadata to create an information network Surround people with metadata to create a decision- making network Enterprise spending on Web 2.0 expected to grow 43% to 4.6B in 5 years - Forrester Research  Search and Social Networking convergence with Performance Management  Collaborative Decision Making and Decision Capture  Collaborative Tagging (Folksonomy), Touch and TelePresence

11 Analytics Landscape & IBM’s Software Footprint in These Areas Degree of Complexity Competitive Advantage 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 Based on: 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?

12 IBM BA Broad and Complete Portfolio

IBM BAO - Leadership Portfolio Data Integration CPM Data Mining Warehousing BI

14 BAO SIMPLIFICATION AND INTEGRATION Business Analytics Drivers Finance Supply Chain Human Capital Customer Industry Specific A N A L Y T I C A R E A S Globally Integrated, Market Leading Capabilities Financial Performance & Strategy Management Predictive and Advanced Analytics Governance Risk and Compliance Analytic Applications Business Intelligence Business Users Evolving Role centric capabilities are giving way to different styles of interaction driven by business need Information Growth Worldwide volume of digital data was 800,000 petabytes in 2009, 1.2 million petabytes in 2010, 35 million petabytes by 2020 Business Pace Accelerating Today’s online business cycles are 3-7 times shorter Changing Workforce Volume of Digital Data Speed of Business

15 BAO SIMPLIFICATION AND INTEGRATION Strategic Focus on Business Intelligence Finance Supply Chain Human Capital Customer Industry Specific A N A L Y T I C A R E A S Globally Integrated, Market Leading Capabilities Financial Performance & Strategy Management Predictive and Advanced Analytics Governance Risk and Compliance Analytic Applications Business Intelligence Continued investment to Address Key Business Problems:  Business users want to explore data, but User Interfaces are too complex  Reporting on corporate history is insufficient to ensure good business decisions  Data Volumes and User Counts are growing but IT budgets are not  Business Intelligence needs to be available pervasively, not isolated in BI applications

16 BAO SIMPLIFICATION AND INTEGRATION Strategic Focus on Finance and Risk Supply Chain Human Capital Customer Industry Specific A N A L Y T I C A R E A S Globally Integrated, Market Leading Capabilities IBM’s offerings provides a set of pre-integrated solutions, built on our highly scalable platform to:  Plan, forecast and control enterprise resources;  Measure, analyze and optimize performance;  Identify and manage key business risks across the enterprise;  Report to external stakeholders with confidence Enterprise Governance Risk and Compliance Financial Performance & Strategy Management AND Business Intelligence Predictive Analytics Enterprise Information Management Finance Predictive and Advanced Analytics Business Analytics Solutions Business Intelligence Financial Performance & Strategy Management Governance Risk and Compliance

17 BAO SIMPLIFICATION AND INTEGRATION Finance Supply Chain Human Capital Customer Industry Specific A N A L Y T I C A R E A S Globally Integrated, Market Leading Capabilities Predictive and Advanced Analytics Governance Risk and Compliance Analytic Applications Business Intelligence Financial Performance & Strategy Management Investment areas:  User-centered innovation to support individual insight and collective agility  Drive pervasive reach deeper and across functional domains  Unify processes to drive speed and confidence  Ensure continuous relevance with information integration and governance Strategic Focus in Financial Performance & Strategy Management

18 BAO SIMPLIFICATION AND INTEGRATION Business Analytics Solutions Finance Supply Chain Human Capital Customer Industry Specific A N A L Y T I C A R E A S Globally Integrated, Market Leading Capabilities Financial Performance & Strategy Management Predictive and Advanced Analytics Governance Risk and Compliance Business Analytics Solutions Business Intelligence

19 BAO SIMPLIFICATION AND INTEGRATION Strategic Focus on Predictive and Advanced Analytics Finance Supply Chain Human Capital Customer Industry Specific A N A L Y T I C A R E A S Globally Integrated, Market Leading Capabilities Predictive and Advanced Analytics Financial Performance & Strategy Management Governance Risk and Compliance Business Analytics Solutions Business Intelligence Full breadth of predictive analytics Data collection, statistics, data mining, predictive modeling, deployment services… Putting Prediction in the Hands of the Business User Decision Management Integration with Cognos Platform and products Massively scalable analytics Extending Built-in Domain Expertise and Configurability with Industry solutions 17 domain packs (including Insurance and Marketing…) Built in Solutions for Sales and HR Deployment Flexibility

20 StrategicTacticalOperational YearsMonthsWeeksDaysHoursNow Improve policy makers’ decisions with Forecasts and Optimization Help individual contributors take the Next Best Action Define the Strategy Run the Business Time to Business Impact Improve senior management visibility with Key Performance Predictors How Predictive Analytics Provides Value: Harmonizing Decisions Across the Enterprise

21 BAO SIMPLIFICATION AND INTEGRATION Strategic Focus on Customer Supply Chain Human Capital Industry Specific A N A L Y T I C A R E A S Globally Integrated, Market Leading Capabilities Finance Customer IBM’s Customer Care & Insight offerings address understanding customer patterns through analytics, identifying target customers and linking the findings with the business processes as actions to provide better customer value and/or prevent fraud and risks Customer Information Optimization: Customer Insight Optimization: Multi-Channel Customer Experience Optimization: Campaign & Promotion Management: Threat & Fraud Management: Financial Performance & Strategy Management Predictive and Advanced Analytics Governance Risk and Compliance Business Analytics Solutions Business Intelligence

22 Enhance Your Reputation Understand your customer needs to target new offers and products more cost-effectively through different social media channels Create Relationships. Build Advocacy. Improve Loyalty. Evaluate your corporate reputation and make evidence-based messaging decisions that target the right stakeholders at the right time Improve your customer experience Respond more quickly with accurate, timely and relevant insight into customer requests to ensure a consistent brand experience across all channels Grow Your Business We provide analytics that listen, measure and analyze social media performance to more effectively: Predictive & Customer Analytics

23 Product Capabilities BLOGS DISCUSSION FORUMS TWITTER NEWSGROUPS FACEBOOK Source Areas  Dimensional Analysis  Filtering  Voice  Keyword Search  Dimensional Navigation  Drill Through to Content  Relevant Topics  Associated Themes  Ranking and Volume  Relationship Tables  Relationship Matrix  Relationship Graph COMPREHENSIVE ANALYSIS SENTIMENT EVOLVING TOPICS AFFINITY ANALYTICS Business Drivers Customer Care Corporate Reputation Campaign Effectiveness Competitive Analysis Product Insight MULTILINGUAL IBM Cognos Consumer Insight

Advanced analytics extending from the domain of science & engineering to the world of business 24 Fueled by the availability of data, computational power and the need to make better choices IBM is positioned for leadership in the new era of data-driven business management IBM's advanced analytics capability is a marketplace differentiator Our collaboration with clients is enabling discovery in new areas Significant research opportunity remains Models Analytics Data Insight Business Benefit

25 Synergy across IBM Software to Deliver Strategic Solutions Collaboration for decision making Business Optimization and process Information Agenda Governance and Regulatory Compliance Standardization / TCO Workload Optimized Systems Strategic Initiatives that Drive Synergy Requirements Trusted Information Trusted information (data lineage, business glossary) Advanced analytics – in database mining Streams and Entity Analytics Workload optimized systems (i.e. IBM Smart Analytics System) Collaboration Collaborative decision-making partnership Increased user adoption Business Integration & SOA Security & System Management ing Rules Development & Project Management Tools ECM Cognos Content Analytics Governance & Compliance Content management Business Analytics Business Intelligence Financial Performance Management Information Applications Predictive Analytics

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