1. Unlocking the Business Value of Information for Competitive Advantage
Information On Demand
Unlocking the Business Value of Information for Competitive Advantage

2. Competitive Advantage Faster Processing, Reduced Costs
New Initiatives Increasingly Focus on Optimization Organizations Striving for Competitive Advantage
Business Optimization Growth
is 2 Times Faster than
Business Automation
Competitive Advantage
Business
Optimization
Information
Agenda
Customer
Profitability
Dynamic Demand
Planning
Financial
Risk Insight
$594B
5.1% CGR
Business
Automation
Application
Agenda
For the past two decades, companies have primarily focused their IT investments on automating their business processes with the objectives of driving faster processing and reduced costs
This has been driven by an “application agenda” to implement ERP and Financial applications, supply chain management solutions and call center and CRM applications
However, these types of investments are no longer creating a sustainable competitive advantage for organizations
As a result, over the past few years, we’ve seen new initiatives increasingly focused on optimizing their business to drive a more sustainable competitive advantage in the market place
This means moving from just leveraging ERP and financial applications to providing increased financial risk insight for better business decisions…moving from just managing your supply chain, to enabling more dynamic demand planning…and moving from just managing your call center and customer relationships to providing increased insight to improve customer service a drive greater profitability from your customers
These new initiatives are all dependent on information, and having an information agenda in place
5.1% CGR
$594B
Call Center
Operations
Supply Chain
Management
IT Spending Estimate*
2008
ERP &
Financials
Faster Processing, Reduced Costs
Includes Hardware, Software and Services. Does not include Networking, Printer, or Standalone Printer or PC Markets. CGRs 2006 –
Opportunity estimates based on analysis done by the IBM Market Intelligence Department. IBM Market Intelligence data is provided for illustrative purposes and is not intended to be a guarantee of market opportunity.
IBM Confidential 2

3. Focusing on Optimization at BCBS TN
Provider Satisfaction Improves to Over
90%
Competitive Advantage
Business
Optimization
Information
Agenda
Understanding
Providers Improves
Negotiations
Nearly 3 Million
Members
…insufficient understanding of customer issues
630,000 Healthcare Providers
…multiple healthcare programs
…no single view of all provider claims and activity
Customer insight for better service
Business
Automation
Application
Agenda
Employee Portal
Call Center Application
BCBS TN is a great example of this years ago, BCBS TN was focused on deploying call center applications to handle customer calls and building portals to provide their employees with a place to access relevant information
They have spent the past 2 years optimizing customer service and sales by generating and delivering insights on prior issues directly to call center agents while they are engaged with customers and providing sales increased knowledge of providers, including an understanding of the total business they do with any individual provider to improve their negotiating position when renewing contracts
Initial Focus on Automating Processes
Deploys call center applications to handle calls for different healthcare provider programs
Develops intranet portal for delivering information to employees
Optimizing Customer Service & Sales
Generate insights on issues and deliver directly to call center agents while talking to customers
Provide sales increased knowledge of providers, including an understanding of the total business they do with any individual provider to improve their negotiating position when renewing contracts
Faster Processing, Reduced Costs
IBM Confidential 3

4. Key Challenge is Unlocking the Value of Information
47% of users
don’t have
confidence
in their information
Organizations need information to optimize their businesses, but continue to struggle with how leverage all of the information they have
Information remains locked in various silos across the organization
The volume of information and the variety of different information types an organization has to deal with growing exponentially
The velocity of business in today’s market is driving more real-time requirements for accessing and using information
Some recent surveys point out just how bad this problem has become
Almost 50% of users claimed they don’t have confidence in their information (AIIM 2007 Survey) – hidden fact is that this number is higher than it was in the 2006 survey, indicating that this problem is getting worse, not better
Even more staggering is the fact that almost 60% of managers claim they miss Information they should have used when making a business decision, and…
Over 40% of managers claim they use the wrong information at least once a week (Accenture survey)
59% of managers
miss
information
they should have used
42% of managers
use wrong
information
at least once a week
AIIM & Accenture Surveys, 2007
IBM Confidential

5. Business Optimization
How Do You Unlock the Business Value of Information for Competitive Advantage?
Business Optimization ?
So, customers need the ability to unlock the business value of information across their organization and start using that information more effectively as a competitive advantage…but they struggle with how to actually do this
When we ask customers what their application agenda is, we get clear answers about the different ERP, financial, supply chain management, and CRM applications they are deploying. However, when we ask customers about their information agenda, we get more varied, less confident answers.
Automation
IBM Confidential

6. Business Optimization
Information On Demand Unlocking the Business Value of Information for Competitive Advantage
Financial
Risk Insight
Workforce
Optimization
Dynamic
Supply Chain
Better Business
Outcomes
Customer & Product
Profitability
Multi-Channel
Marketing
Business Optimization
Plan, understand and optimize business performance
End-to-End
Capabilities
Plan, understand and optimize business performance
Establish and maintain an accurate, trusted view of information
Flexible Architecture for Leveraging Existing Investments
Establish and maintain an accurate, trusted view of information
We believe that there are 4 key things that organizations require to unlock the business value of information for competitive advantage…and this is what Information On Demand is focused on.
Organizations need the ability to manage data and content over its lifecycle to reduce the costs associated with managing information, provide controlled accessibility, and address retention and compliance requirements
They must also be able to use data and content as part of the individual business processes and applications across the enterprise, optimizing the performance of applications and improving decision making…these first two requirements are addressed by data and content management capabilities.
Organizations then need to establish an accurate, trusted view of information across these different processes and applications to drive more consistent information across the enterprise and support analytic and other requirements to use information coming from different sources, whether it’s delivering a single view of customers, products, revenue, etc…and they need a “flexible” architecture that can leverage all of their existing investments…accurate, trusted information is established through information integration, data warehousing and master data management.
These first components had really been what our IOD story was addressing until recently…with the acquisition of Cognos, we are now providing our customers with the ability to leverage that trusted information to build their plans, understand how their business is performing, and focus on optimizing performance across the enterprise…and this is accomplished through business intelligence and performance management
These are the main capabilities required by organizations to unlock the business value of their information and the components that can enable organizations to make that happen, but the ultimate object our clients have is to drive better business outcomes. And that’s what we are focused on with all of these components…helping our clients improve customer and product profitability, provide increased financial risk insight for better business decisions, optimize the workforce and control labor costs, enable more dynamic supply chain management, and support multi-channel, event driven marketing initiatives.
And IBM provides the most complete, end-to-end capabilities for Information On Demand, with every component focused on helping customers optimize their business.
Other
Information
Sources
Manage data and content over its lifetime
Use data and content as part of business processes
Manage data and content over its lifetime and as part of processes
IBM Confidential

7. Information On Demand Unlocking the Business Value of Information for Competitive Advantage
People, Processes & Applications
Establish and maintain an accurate, trusted view of information
Plan, understand and optimize business performance
So, these are the key things that companies need to do to leverage their information, and what Information On Demand is focused on.
Manage data and content over its lifetime
Use data and content as part of business processes
IBM Confidential

8. Information On Demand Part of a Broader Technology Ecosystem
People
Collaboration
Messaging
Portals
Processes &
Applications
SOA
Message Bus
BPM
But we recognize that companies need more than just software to leverage their information. Information On Demand is about providing a comprehensive vision for unlocking the business value of information for competitive advantage by enabling organizations to establish and leverage trusted information to optimize business performance. And IBM’s commitment to the cross-company Information On Demand initiative has resulted in a comprehensive portfolio of software, services, hardware and industry-specific solutions to turn Information On Demand vision into reality for organizations of any size.
This includes infrastructure required for information, such as storage and servers, strategy and implementation services to provide the know how and assistance to required to take advantage of the technologies, and partnerships to integrate these capabilities into third party applications and your environment. IBM even provides a set of industry models, blueprints and frameworks to help address industry specific business needs.
Systems & Development
Systems Management & Development Tools
IBM Confidential

9. Information On Demand A Comprehensive Approach
People, Processes & Applications
Business Partners
& Solutions
Applications & Tools
Skills & Expertise
Industry Solutions
Strategy &
Implementation
Know How & Experience
Strategic Consulting
Implementation Services
But we recognize that companies need more than just software to leverage their information. Information On Demand is about providing a comprehensive vision for unlocking the business value of information for competitive advantage by enabling organizations to establish and leverage trusted information to optimize business performance. And IBM’s commitment to the cross-company Information On Demand initiative has resulted in a comprehensive portfolio of software, services, hardware and industry-specific solutions to turn Information On Demand vision into reality for organizations of any size.
This includes infrastructure required for information, such as storage and servers, strategy and implementation services to provide the know how and assistance to required to take advantage of the technologies, and partnerships to integrate these capabilities into third party applications and your environment. IBM even provides a set of industry models, blueprints and frameworks to help address industry specific business needs.
Infrastructure
Storage & Servers
IBM Confidential

10. Organizations Need an Information Agenda An approach for unlocking the business value of information
Strategy
Creating a vision to guide decisions and address business objectives
Information Infrastructure
Identifying technology components and capabilities to support enterprise requirements
And we want to help organizations establish an information agenda to support these initiatives and get more value out of their information related investments. An effective Information Agenda provides a guiding mechanism for an organization to gain a future perspective to information requirements across heterogeneous informational systems (IBM and non-IBM). It establishes the enterprise information infrastructure that supports tactical decisions and transforms organization towards optimized business performance.
An information agenda establishes corporate information vision tied to business initiatives and strategies, helps identify technology needed to establish a common framework, delivers a roadmap for implementing short and long term projects within context of strategy, and helps organizations develop and implement cross line of business policies and procedures for managing and protecting information…
All efforts in conjunction with each other result in a systematic methodology to ensure the strategic use of information resulting in business optimization.
What is it? An Information Agenda is the strategic vision and roadmap for organizations to:
Identify and prioritize projects that deliver a return
Identify what data and content is important to the organization
Identify how and when it should be made available
Determine what capabilities are required to support and access it and
Determine what management processes and governance practices are required to sustain the plan.
Align the use of information to match the organizations business strategy
Create and deploy an information infrastructure that meets immediate needs and future needs
Implementing policies to manage and control definitions and use of information
Information Governance
Establishing a plan that delivers both short and long-term
returns on investment
Roadmap
IBM Confidential

11. Cognos and Performance Management

12. Scorecard or dashboard shows Profit is below plan
Business Intelligence & Performance Management A complete platform to plan, understand and optimize performance
Resolve Issues and Plan for the Future
Identify Issues
Explore and Understand Issues
Financial Management
Revenue
Expense
Report shows Cost of Goods Sold is rising due to increase in fuel costs
Plan is updated to adjust for rising fuel costs…provides understanding of impact to other expenses and profit
Scorecard or dashboard shows Profit is below plan
Cognos wasn’t just one of the leading BI vendors in the market place…they were a thought leader around performance management. They recognized early on that while there were independent markets forming around business intelligence and financial or corporate performance management, customers really needed an integrated set of capabilities to understand, plan and manage the overall performance of their enterprises.
Thus, Cognos focused on this higher level thought around performance management and answering the three key questions every organization must address when it comes to their finances, their assets, their revenue and their expenses.
First, the must answer the question, “How are we doing?” – this requires measuring and monitoring tools like scorecards and dashboards to help managers identify potential issues…in this example, a manager may see that profit is falling below plan
Next, they’ll want to know “Why?” – this requires the ability to explore and understand issues through reporting and analytics…in this example, a report may show that the cost of goods sold is rising due to increasing fuel costs
MOST BI SOLUTIONS STOP SHORT HERE – they only provide the ability to find out what is going on, but don’t help you do anything about it!
3) Cognos also helps customers figure out “What should we do?” – this requires planning, budgeting and forecasting capabilities to help resolve issues and plan for the future…in this example, the plan can be updated to adjust for the rising fuel costs, but before putting the new plan into effect, you can run what-if scenarios to see the impact on other parts of the plan, including expenses and profit, to determine if this is a change you even should be making
Ultimately, it’s about providing end-to-end capabilities to not just understand how your business is doing, but to enable people to do something about it. And Cognos provides a complete, unified platform that delivers all of the business intelligence and performance management capabilities required by an organization…
Asset Management
IBM Confidential

13. Performance Management is Relevant Across the Enterprise
Finance
Sales
Operations
How are we doing?
Scorecards and Dashboards
Why?
Reporting & Analytics
Marketing
And Performance Management is relevant in every functional area of an organization in every industry. Whether it’s a top down corporate performance management initiative or a department-led operational performance initiative, every part of the organization needs scorecards and dashboards to know how they are doing, reporting and analytics to understand why, and planning, forecasting and budgeting to figure out what they should be doing?
What should we be doing?
Planning, Forecasting and Budgeting
Customer Service
Human Resources
IT/Systems
IBM Confidential

14. The Performance Management Journey Customer Phases
Departmental BI Applications
Enterprise BI Capabilities
Independent Planning
Coordinated Decision Making
Addressing end-to-end performance management is typically a journey that customers take…and Cognos has been focused on helping customers accelerate that journey
Companies usually start off implementing different BI tools in different departments, and one of the first major challenges they face is providing enterprise wide BI capabilities
This can be difficult with many BI solutions because most vendors provide a “suite” approach, where they have different products to address the different requirements we just talked about…for example, one product for reporting, one for dashboarding, and a different one for analytics, and typically an entirely different environment for planning
Cognos made a major investment four years ago to help customers take this step in the journey by rebuilding their entire stack as a single, integrated platform for all capabilities, making it easier for organizations to leverage all of the different capabilities across the organization
The next step for most organizations is to move from making independent decisions, without regard to how those decisions may impact other parts of the organization, to supporting one of the key objectives of most CEOs, which is to drive greater strategic alignment across the organization…this requires more coordinated decision making
This is really the higher level objective - driving the overall performance of the enterprise…which is why over the past 18 months, you’ve seen Cognos stop talking about just BI, but focus on overall Performance Management
And Cognos provides integrated planning capabilities and enables companies to share definitions, assumptions and metrics across different plans so that you can see the impact of changes you make on your plan to the plans of other parts of the organization and the impact on the enterprise’s performance as a whole
So, what do companies most need to support their performance management journey?
What Do Companies Need To Support their Performance Management Journey?
IBM Confidential

15. People, Processes, Applications
Customers need accurate, trusted information For better decisions, faster
People, Processes, Applications
Well, business intelligence is important to applications…and as a result, many companies are looking at how to integrate these capabilities into their applications
However, every company has multiple applications that need to take advantage of these capabilities…even companies that consider themselves an “SAP shop” continue to have non-SAP applications
For this reason, when Cognos re-built their platform, they based it on a Services Oriented Architecture, so that customers could easily integrate their BI functionality into multiple applications across the enterprise, and continue to provide common, consistent business intelligence across those applications
So, while BI is important to applications, the EFFECTIVENESS of BI DEPENDS on having accurate, trusted information upon which to base your business decisions
This is why the marriage of Cognos and IBM is such a great fit for customers…because it helps customers make better decisions, faster, through delivering business intelligence capabilities with accurate, trusted information, while leveraging SOA to ensure that these capabilities can be leveraged across the organization by ALL people, processes and applications
IBM Confidential

16. New Offerings and Solutions Announced
4 New Pre-Integrated Software Offerings
2 New Pre-Integrated Systems Offerings
10 New & Enhanced Industry Solutions
Data Warehousing
Data Integration & Quality
Actionable Dashboards
Process Management
3 New Implementation Services Offerings

17. New Pre-Integrated Software Offerings
Data Warehousing
BI pre-integrated with the data warehouse for easier deployment, reduced TCO and faster query times
Cognos 8 BI Starter Kit included with Warehouse
5 user licenses for reporting & dashboarding
InfoSphere Warehouse included with Cognos 8 BI
Non-production license
Data Integration & Quality
Improved BI through more accurate, integrated information and data lineage to track basis for business decisions
Information Server pre-integrated with Cognos 8 BI
Data quality, ETL & Metadata Management
4 New Pre-Integrated Software Offerings
Data Warehousing
Data Integration & Quality
Actionable Dashboards
Process Management
End-to-end Capabilities
Easier Deployment
Lower TCO

18. New Pre-Integrated Software Offerings
Actionable Dashboards
Enable users to seamlessly take action while reviewing key business metrics
Cognos 8 BI Starter Kit & Cognos “Builder” included with IBM Dashboard Accelerator
5 user licenses for reporting & dashboarding
Dashboard Accelerator Starter Kit included with Cognos 8 BI
20 user licenses
Process Management
Leverage BI for better decision making and optimized processes
Pre-built integration templates for IBM FileNet BPM
Include BI content as part of a process
Events engine to initiate processes in IBM FileNet P8 BPM or WPS based on IBM Cognos 8 scorecard thresholds, including predicted violations
4 New Pre-Integrated Software Offerings
Data Warehousing
Data Integration & Quality
Actionable Dashboards
Process Management
End-to-end Capabilities
Easier Deployment
Lower TCO

19. New Pre-Integrated Systems Offerings
Balanced Warehouse
New C4000 Balanced Warehouse provides “appliance like” offering for the mid-market
Includes Cognos 8 BI
IBM Compliance Warehouse
Automatically identify, classify and aggregate content and process information that must be retained for compliance
Leverages IBM Cognos for reporting, analytics and monitoring compliance related content and processes
2 New Pre-Integrated Systems Offerings
Balanced Warehouse
IBM Compliance Warehouse
End-to-end Capabilities
Easier Deployment
Lower TCO

20. New Implementation Services Offerings
IOD Infrastructure Acceleration
Quicker, more effective deployment of warehousing environments for faster return on BI investments
Storage Optimization
Design, deployment and operation of more efficient storage infrastructure to improve utilization and reduce overall costs
Data Mobility
Establish a simple and unified approach to managing and moving data on-line without impacting performance
3 New Implementation Services Offerings
IOD Infrastructure Acceleration
Storage Optimization
Data Mobility
End-to-end Capabilities
Easier Deployment
Lower TCO

21. New & Enhanced Industry Solutions
Financial Services
Financial Risk Insight for Banking
Risk Adjusted Profitability for Banking
Retail
Store Operations & Planning for Retail Integration Framework
Public/Government
Municipal Scorecard
Crime Management and Insight
Healthcare & Life Sciences
Health Analytics
Life Sciences Promotional Spending and Compliance
Industrial
Manufacturing Sales and Operations Planning
Horizontal
Financial Planning
Workforce Analytics
10 New & Enhanced Industry Solutions
End-to-end Capabilities
Easier Deployment
Lower TCO

22. Information On Demand from IBM Unlocking the Business Value of Information for Competitive Advantage
“…there's no more extensive information management portfolio available, period…”
2008 Editor’s Choice Awards
Intelligent Enterprise Magazine
Establish and maintain an accurate, trusted view of information
Plan, understand and optimize business performance
End-to-end capabilities
Open standards, SOA
Flexible architecture for heterogeneous environments
Deep industry expertise
Industry solutions
Extensive partner network
Manage data and content over its lifetime
Use data and content as part of business processes
IBM Confidential