1. October 1, 2009 Johannesburg, South Africa Business Analytics and Optimisation Shane Radford Global Business Service Associate Partner Business Analytics and Optimisation Lead

2. Why now for Business Analytics? 22

3. A new imperative has emerged for enterprises to aggressively pursue business analytics and optimize their businesses in order to address important and complex business and societal opportunities. Business Analytics and Optimization brings together the comprehensive services and leading edge industry solutions that enable organizations to make and act upon critical decisions. We help our clients realize their strategies through information management, advanced analytics and process management while leveraging the power of smarter technology.

4. Volume of Digital Data Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries. By 2010, the codified information base of the world is expected to double every 11 hours. 44

5. Variety of Information Today, 80% of new data growth is unstructured content, generated largely by email, with increasing contribution by documents, images, and video and audio 38% of email archiving decisions receive input from a C-level executive and 23% from legal/compliance professional 55

6. Velocity of Decision Making 70% of executives believe that poor decision making has had a degrading impact on their companies’ performance Only 9% of CFOs believe they excel at interpreting data for senior management 66

7. What’s happening? Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf IBM report surveyed 225 business leaders worldwide 77 Business leaders regard their experience and intuition as inadequate tools for optimising their enterprises Enterprises are making important decisions without access to the right information It’s not too late to start

8. 1 in 3 business leaders frequently make critical decisions without the information they need 53% don’t have access to the information across their organisation needed to do their jobs Organisations are operating with blind spots Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf Factors supporting major decisions 79 % 52 % 62 % To a little extent To a great extent Analytics Personal Experience Collective Experience 88

9. Organisations need to adopt new ways to improve speed to insight and speed to impact Traditional ApproachNew Approach Instinct and intuitionFact-driven CorrectiveDirective EfficientOptimised Years, months, weeksHours, minutes, seconds Human insightApplied semantics Decision supportAction support 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdfhttp://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf 99

10. What is an Intelligent Enterprise? 10

11. Intelligent Enterprises pursue value along multiple dimensions Profitable Growth Lower Costs Manage Risk Accelerating Performance Outperform Peers Deeper Insight Innovate to lead Competitive differentiation Trusted Information Empowered Workforce Continuous Improvement Operating Effectiveness 11

12. Analytics is the next bow wave of business change Task/Process Automation Business Efficiency Cross- Functional Integration Enterprise integration Aggregation and data warehouse Recording and Reporting Performance measurement Detection, direction & prediction Business process management & Business Intelligence Resource planning (e.g., ERP, CRM) Transactional automation adoption (POS, accounting) Business Analytics and Optimisation * 2009 IT Spending Estimates for Business Optimisation $105bn* Business Optimization Objectives Analytics and Intelligence Objectives Major Eras in Modern Business Automation 12

13. Intelligent Enterprises integrate information into business decisions and insight into operations Heroics Foundational Competitive Differentiating Spreadsheets Extracts Data Warehouses Data Governance Production reporting Contextual Business rules Pattern recognition Process Automation and Workflow Master Data Management Metrics Dashboards/Scorecards Command and control Task automation (eg, ERP) Workgroup Design SOPs Customer and Partner Collaboration Business Process Integration Break-away Intelligent Enterprise 13 Business Optimisation How the business applies information to achieve it’s goals Policies Biz Processes How the business manages information and learns from it Business Analytics BAO Maturity Stage

14. Intelligent Enterprises integrate information into business decisions and insight into operations Business Optimisation Business Analytics How the business applies information to achieve it’s goals Policies Biz Processes How the business manages information and learns from it BAO Maturity Stage Heroics Foundational Competitive Differentiating Spreadsheets Extracts Data Warehouses Data Governance Production reporting Contextual Business rules Pattern recognition Process Automation and Workflow Master Data Management Metrics Dashboards/Scorecards Command and control Task automation (eg, ERP) Workgroup Design SOPs Customer and Partner Collaboration Business Process Integration Break-away Intelligent Enterprise Customer loyalty and event management Risk Management Segment-specific products and pricing Supply chain optimization Data and Analytics simplification Credit Risk assessment Single view of the customer Marketing Dashboard Quality management Brand and reputation analysis 14

15. The intelligent enterprise is… Accelerated Performance Competitive Differentiation Operating Effectiveness Anticipating Precise Aware Questioning Empowering Linked 15

16. Where to start? 16

17. Most organisations focus on individual functions. Over-performers focus on the enterprise level. Source: Business Analytics and Optimization for the Intelligent Enterprise, April 2009. http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf http://www-935.ibm.com/services/us/gbs/bus/pdf/gbe03211-usen-00.pdf 8X Industry out-performers are 8X more likely to pursue BAO at an enterprise level than industry under-performers 50% Roughly half of organizations are pursuing BAO at a functional level (e.g., Finance, Sales, Marketing) 2% 17% Not interested in pursuing BAO at any level Under-performersOver-performers 17

18. Business analytics and optimisation requires a new set of skills Business Analytics and Optimisation Strategy Business Intelligence & Performance Management Advanced Analytics and Optimisation Enterprise Information Management Enterprise Content Management Identify and prioritize opportunities for improvement Change business processes and operations to exploit analytics Implement management systems to maintain control and achieve goals Report outcomes of business processes and programs Automate management dashboards and scorecards Create planning, Budgeting, & Forecasting tools Apply advanced statistical and regression analysis upon historical data for predictive decision- making Integrate optimisation algorithms and technology into operations Ensure robust and trusted data is available when needed and is easy to consume Provide a consolidated and efficient information platform to support optimisation initiatives Manage document & records, including archives Manage structured and unstructured content Manage digital assets & rights Provide efficiency and transparency to complicated workflows 18

19. Conclusion 19 New complexity creates an imperative for change Enterprises must fundamentally change the way they work IBM brings the comprehensive solutions enterprises need The growing velocity of the volume, variety and granularity of information is driving unprecedented complexity. Intelligent enterprises leverage information to reach better, faster decisions, optimal actions, and more predictable outcomes. IBM has created a new GBS service line - Business Analytics and Optimization - to bring together world class capabilities for our clients.