2. Breakthrough Cloud Environments for Business Analytics Paul Scorza VP, Business Analytics, Finance, Global Finance & Tech Support Transformation Exec.

5. Business insight and market differentiation are a by product of leveraging advanced analytics 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? Standard Reporting Ad hoc reporting Query/drill down Alerts Simulation Forecasting Predictive modeling Optimization Stochastic Optimization Descriptive Prescriptive Analytics Predictive Analytics How can we achieve the best outcome? How can we achieve the best outcome including the effects of variability? low high Complexity low high Business Advantage Competitive Breakaway Differentiating Adapted from Competing on Analytics , 2007 Foundational

7. Business analytics at IBM: Then and Now…

8. Historically, our “functionally fragmented’ Business Analytics (BA) environment created a number of challenges for business and technical leadership ….. Data Mart/ Warehouse Sales & Marketing HR Segmented investments in BA tooling and infrastructure Silo’d metric development Lack of tooling standardization Limited visibility Organizational reluctance to a centralized service Senior Executives Product Development Fulfillment Finance

9. Today our Business Analytics (BA) environment is centralized with a common infrastructure and standardized processes … providing numerous advantages for the business Cloud Administrators BA Administrators Report Authors Blue Insight Sales & Marketing HR Business Analytics Center of Competency (BACC) Blue Insight is the world's largest private cloud environment for business analytics which delivers a centralized hosting and support environment for Cognos 8 BI applications. Business Analytics Center of Competence (BACC)- manages the Blue Insight environments and provides guidance to adopters to efficiently deliver business analytics solutions enterprise wide. Senior Executives Product Development Fulfillment Finance Deliver common and centralized defined BA services Align solution pattern with adopter usage pattern Maintain solution autonomy

11. The BACC is comprised of centralized and decentralized components Centralized BACC Common Processes Shared Services Adopter BI Teams Project Management Resource Advise Unit or Functional Level Decentralized Centralized BACC Governance Infrastructure / Services Org BACC owns the definition of the consumable central service to end users Business Strategy Alignment Best Practices & Standards Management Communication & Evangelism Community Services Enterprise Technical Architecture Advise & Consult Support IT Governance Alignment Data Governance Alignment Education BACC

12. CIO Dashboard – Establish top to bottom management system ensuring alignment to the CIO priorities and performance objectives – Provide drill down capability to meet the needs of each direct line organization – Drive fundamental change towards a balanced dashboard between run and transform – Enable optimization, streamlining and automation of CIO operations – Ensure clear outcomes and targets for CIO organization – make visible baseline and target measurements – Provide reference point to drive Business Analytics maturity across IBM and showcase Cognos" Supporting strategic and operational agenda of the CIO: through instrumentation, priority setting, communication , target definition, progress measurement/transparency and business analytics.

13. Blue Insight: What is it, why it works and who uses it at IBM

19. IBM’s Business Analytics Center of Competence (BACC): Where it is going and how it has paid off..

20. Our Transformation and Deployment Plans for Blue Insight are multi-year and multi-faceted, focused on expanding the IT Service and maturing business processes # of Analytics Consumers 66K 300K Simplified Shared Consolidate (2009) Virtualize (2010) Automate (2011) Established executive stewardship of BA Globally Formed a dedicated cross-functional BACC Converged / centralized BA infrastructure Leveraged existing trusted data sources Defined & Standardized boarding processes & services Extended Common Boarding Processes Completed Analytics Maturity Assessment Extend shared SaaS model for defined services - Predictive Analytics (SPSS) Integrate boarding automation Complete boarding adopters & sunsets Automate Boarding and Planning Process Adopter Self Definition Automated Evaluation of Infrastructure & Service Impacts Automated evaluation of infrastructure impacts Automated communications of status, audit reporting & billing Blue Insight Growth (2011+) Identify growth areas for standardization of services Data Tools – ILOG Jrules ™ Notes integration Portals / Dashboards Harvest IP from solutions Dynamic 160K

22. BACC Business analytics success and maturity breed growth… Common Compute Platform – System Z (Compute/ Network/ Storage) BACC will extend standard services for Data preparation, predictive analytics and portal integration services… Information Management Lifecycle Future Current W3 Portal Services BACC Blue Insight Extension Predictive Analytics BACC SPSS Business Intelligence BACC Cognos Information preparation and Warehousing Business Analytics Center of Competence (BACC) IBM Information Server and Warehouse

23. Keys to a successful BACC