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Business Analytics software




IBM Business Analytics
Deepak Advani
VP, Business Analytics Products & Solutions
February 7, 2012




                                              © 2011 IBM Corporation
Imagine if you could…




       … track disease
   outbreaks across country
     borders in real time?




                              © 2009 IBM Corporation
Imagine if you could…




   …catch money laundering
     before it happens?




                             © 2009 IBM Corporation
Imagine if you could…




   … apply social relationships
    of customers to prevent
            churn?




                                  © 2009 IBM Corporation
Imagine if you could…




       …identify at-risk
     students before they
      drop out of school?




                            © 2009 IBM Corporation
Business Analytics software




    Our world is becoming smarter

                              Instrumented


                              Interconnected


                              Intelligent




6                                              © 2011 IBM Corporation
Business Analytics software


With this change comes an                  … Yet organizations are
explosion in information …                 operating with blind spots

                                            Lack of Insight
                                            1 in 3 managers frequently make
                                            critical decisions without the
                                            information they need
                Volume of Digital Data



                                            Inefficient Access
                                            1 in 2 don’t have access to the
                                            information across their organization
                                            needed to do their jobs
                Variety of Information



                                            Inability to Predict
                                            3 in 4 business leaders say more
                                            predictive information would drive better
                                            decisions
             Velocity of Decision Making


                                                                                     © 2011 IBM Corporation
                                                                Source: IBM Institute for Business Value
Opportunity for value creation is significant, and growing


                                   Data AVAILABLE to an
                                        organization
                                                              Missed
                                                                     ity
                                                             opportun

                                                     data an organization can
                                                            PROCESS




     Organizations are able to
                                            Enterprises are “more blind”
    process less and less of the
                                               to new opportunities.
          available data.



8                                                                © 2009 IBM Corporation
Business Analytics software




hanging Business Imperatives
   The Vast Majority of CMOs are Underprepared
                                    Marketing Priority Matrix                                                  1       Data explosion
                Underpreparedness
                Percent of CMOs reporting                                                                      2       Social media
                underprepared
                                                        1                                                      3       Growth of channel and device choices
          70
                                                                           2                                   4       Shifting consumer demographics
                                                                                    3
                                                                                                               5       Financial constraints
                                                       4                                                       6       Decreasing brand loyalty
          60
                                                5                                                              7       Growth market opportunities
                                                                6
                               10               7                   8                     9
                                                                                                               8       ROI accountability
                          11
                                                                                                               9       Customer collaboration and influence
          50                                     12                                                           10       Privacy considerations
                                     13
                                                                                                              11       Global outsourcing
                                                                Factors impacting
                                                                marketing                                     12       Regulatory considerations
          40                                                    Percent of CMOs selecting
                                                                as “Top five factors”                         13       Corporate transparency
               0                    20                     40                  60                                     Mean

       9
    Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=1733; Q8 How prepared are you to
            manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years?
            n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7)
                                                                                                                                                                 © 2011 IBM Corporation
IBM investments in Analytics and Big Data

      More than $14B in Acquisitions
       Since 2005                                               Hadoop
      More than 10,000 Technical
       Professionals
      More than 7,500 Dedicated           Information                          Stream
       Consultants                          Integration                         Computing
      Largest Math Department
       in Private Industry
      More than 27,000 Business
       Partner Certifications
      Source: IBM BAO                                         Data Warehouse




            Analyze            Analyze            Analyze          Discover &         Manage
         Information         Information          Extreme          Experiment          & Plan
        of any Variety        in Motion         Volumes of
10                                              Information                       © 2012 IBM Corporation
Complementary Analytics
                     Traditional Approach                                  New Approach
                     Structured, analytical, logical                 Creative, holistic thought, intuition




                                 Data                                   Hadoop
                              W arehouse                                Streams
       Transaction Data                                                                                 Web Logs


    Internal App Data                                                                                        Social Data
                      Structured
                           Structured                                         Unstructured
                     Repeatable                        Enterprise
                                                                        Unstructured
                                                                              Exploratory
    Mainframe Data
                          Repeatable
                          Linear                       Integration      Exploratory
                                                                              Iterative   Text Data: emails
                                 Linear
              Monthly sales reports                                         Iterative sentiment
                                                                                 Brand
               Profitability analysis                                               Product strategy
       OLTP System Data surveys
                 Customer                                                           Maximum asset utilization images
                                                                                                Sensor data:


          ERP data              Traditional                               New                            RFID
                                 Sources                                 Source
                                                                           s



                                                                                                                © 2012 IBM Corporation
Applications for Big Data Analytics
Smarter Healthcare   Multi-channel     Finance     Log Analysis
                         sales




Homeland Security    Traffic Control   Telecom     Search Quality




  Manufacturing       Trading          Fraud and   Retail: Churn,
                      Analytics           Risk         NBO




   12                                                 © 2012 IBM Corporation
Three key trends are driving this movement:




     The emergence of   The shift of power to   Pressure to do more
         Big Data          the consumer              with less


13                                                       © 2012 IBM Corporation
Big Data Customer Examples

 Big Data for the CMO             Big Data for
                                 Smarter Planet        Big Data for Telco


                Financial                    Modern                    Telco
                Services                     Energy
                  Group




 ”Listen to the voice of        Reduced modeling      Latency reduced from
        clients”                time by 97%              12 hrs to 1 sec


5.8 terabytes of Internet   2.8 petabytes of public   6 billion Call Detail
and Social Media               and private weather    Records per day
                            data
Fix negative opinions and                             Personalized marketing
build on positive ones      Modeling time reduced     to individual customers
                            from weeks to hrs.

                                                                     © 2012 IBM Corporation
Correlate combined risk and
     impending weather threats to
        optimize inventory and      Dynamically updated
        determine supply chain       risk assessment
           recommendations              for assets in
                                       projected path



                                       Real-time projections
                                        of hurricane path




15                                                 © 2012 IBM Corporation
Business Analytics software

                                “The People’s Oscar”? - IBM Big Data Analytics at Work
                                 IBM Infosphere Streams used to process hundreds of tweets per minute in real time
                                 IBM Cognos Consumer Insight implemented on Hadoop cluster provides parallel analysis of
                                  tens of thousands of blogs and tweets for sentiment and emerging topics of discussion
                                 Partnership with LA Times to publish social insights in an interactive graphical environment
                                  for the general public to use
                                 Show case for big data analytics in media and entertainment, with future applications in film
                                  marketing, demand forecasting and release window optimization




  “Celebrities tweet their dismay and
   delight with the nominations”
  “the Twitterverse lit up with
   messages from movie fans excited
   about — and upset about — the
   picks in the best picture, lead actor
   and lead actress categories”
  “You might be surprised about
   which performers and movies got
   the most tweets — and who had
   the most positive buzz”


Powered by




                                                                                                                       © 2010 IBM Corporation
On February 14, 2011, IBM Watson changed history on the TV
 show Jeopardy.




       Word spread virally of the victory with
       Twitter reaching 11.7M, 30,121 blog
                   On the TV show Jeopardy



        mentions, and 15,025 forum posts




17
                                                          © 2012 IBM Corporation
Healthcare industry is beset with some of the most complex information
challenges we collectively face


    Medical information is
    doubling every 5 years,
    much of which is
    unstructured



    81% of physicians
    report spending 5
    hours or less per
    month reading medical
    journals


  “Medicine has become too complex. Only about 20% of the knowledge clinicians
    use today is evidence-base.”     Leading Chief Medical & Scientific Officer

                                                                              © 2012 IBM Corporation
Putting the pieces together at point of impact
     can be life changing




                                                                                                                               Fam toms


                                                                                                                               Med istor y
                                                                                                                                Pat story
                                                                                                                                 Sy m




                                                                                                                                   Fin ions
                                                                                                                                   .H
                                                                                                                                   . Hi
                                                                            difficulty swallowing




                                                                                                                                    ica
  Patient
 Symptoms
   Family
Medications
 Findings




                                                                                                                                      p
                                                      Symptoms
                                                                                fever                      Diagnosis Models




                                                                                                                                       din
                                                                                                                                                    Confidence




                                                                                                                                        t
                                                                              dry mouth




                                                                                                                                          gs
                                                                               thirst

  History
  History
                                                                              anorexia
     A AA medications were levothyroxine,
       Her urine dipstick was complains of
         58-year-old woman presented forher
           58-year-old woman positive to                                    frequent urination                Renal Failure
      hydroxychloroquine, pravastatin, and
        primary care anorexia, dry mouth,
          dizziness, physician after several                                  dizziness
       leukocyte esterase and nitrites. The                                   no abdominal pain
     dayshistory was notable for cutaneous
     Her increased thirst, andgiven amouth,
            of dizziness,patient frequent
                     alendronate. dry
                           anorexia,                                          no back pain                               UTI
        Herincreased thirst,also hadoral and
             familyShefo ciprofloxacin for a
                    history included a fever.
         prescription had and frequent
        urination.                                                            no cough
       lupus, hyperlipidemia, osteoporosis,
     She reported no pain mother, fever
     bladder cancer in her in 3 had a later,
        urination. She had also daysGraves'
      frequent tract infection. her abdomen,
        urinary urinary tract infections, a left                              no diarrhea
                                                                                                                   Diabetes
         and reported for two sisters, andand
         back,disease in weakness
      oophorectomy thatafood would “get
                and no cough, or diarrhea.
           patient reported benign cyst,                                        Oral cancer
                                                   History
                                                                                 Bladder cancer
                                                   Family


     stuck” when she was onediagnosed a
       hemochromatosis in swallowing. She
                                    sister, and
      dizziness. Her supine blood pressure
      primary hypothyroidism,                                                   Hemochromatosis                   Influenza
      idiopathic thrombocytopenic purpura
        was 120/80 mm Hg, and abdomen,
         reported noyear earlier pulse was
                        pain in her                                             Purpura
            back, orin oneand no cough,
                      flank sister
                           88.                                                  Graves’ Disease
                                                                                                              Hypokalemia
                                                                               (Thyroid Autoimmune)
          shortness of breath, diarrhea, or
                                                                                cutaneous lupus
                         dysuria
                                                      Findings Medications History
                                                   Patient




                                                                                osteoporosis
                                                                                hyperlipidemia                 Esophagitis
                                                                                frequent UTI
                                                                                hypothyroidism
                                                                                                            • Extract Symptoms from record
                                                                                     Alendronate           Most Confident Diagnosis: UTI to handle
                                                                                                           • Most Confident Diagnosis: text
                                                                                                             Use paraphrasings mined from Influenza
                                                                                                                                         Diabetes
                                                                                                                                         Esophagitis
                                                                                     pravastatin           ••• Extract Medications and variants
                                                                                                             • Extract Patient History
                                                                                                                Identify negative Symptoms
                                                                                                                 Extract Family
                                                                                                                alternate phrasings
                                                                                     levothyroxine         • • Use database Taxonomies to generalize medical
                                                                                                             • Reason with mined relations to explain away
                                                                                                                 Use Medical of drug side-effects
                                                                                                                Perform broad search for possible diagnoses
                                                                                      hydroxychloroquine   • • Together, multiple is consistent w/best the models
                                                                                                                symptoms (thirst diagnoses may UTI) explain
                                                                                                                Score Confidence granularity used by
                                                                                                                 conditions to the in each diagnosis based on
                                                                                 urine dipstick:               symptomsso far
                                                                                                                evidence
                                                                                 leukocyte esterase        • Extract Findings: Confirms that UTI was present
                                                                                 supine 120/80 mm HG
                                                                                  heart rate: 88 bpm
                                                                                 urine culture: E. Coli

19                                                                                                                                                  © 2012 IBM Corporation
Cancer is an insidious disease and the second highest
cause of death

       1 in 3                                    1.5M+
 individuals will die                    were diagnosed
    from cancer                         with cancer in the
                                            US in 2011

           X



      50 yr.+                                 $263.8B
the time current cancer               overall costs of cancer
 treatments have been                    in the US in 2010
around (chemotherapy,
   radiotherapy, etc.)                       $$$$$$$$$$$$
                                             $$$$$$$$$$$$
                                             $$$$$$$$$$$$
                                             $$$$$$$$$$$$

      Source: American Cancer Society, National Health Institute
20                                                                 © 2012 IBM Corporation
From battling humans on Jeopardy! to changing the way the world
thinks, acts, and operates


         Healthcare                            Financial Services
         Diagnostic/treatment                  Investment and retirement
         assistance, evidenced-based           planning, institutional trading
         insights, collaborative medicine      and decision support


         Contact Center                        Government
         Call center and tech support          Public safety, improved
         services, enterprise knowledge        information sharing, security,
         management, consumer insight          fraud and abuse prevention




             IBM Watson has the capabilities to address grand
                   business and societal challenges
                                                                        © 2012 IBM Corporation
Business Analytics software




                              ibm.com/bigdata




22                                              © 2011 IBM Corporation

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Big data ibm keynote d advani presentation

  • 1. Business Analytics software IBM Business Analytics Deepak Advani VP, Business Analytics Products & Solutions February 7, 2012 © 2011 IBM Corporation
  • 2. Imagine if you could… … track disease outbreaks across country borders in real time? © 2009 IBM Corporation
  • 3. Imagine if you could… …catch money laundering before it happens? © 2009 IBM Corporation
  • 4. Imagine if you could… … apply social relationships of customers to prevent churn? © 2009 IBM Corporation
  • 5. Imagine if you could… …identify at-risk students before they drop out of school? © 2009 IBM Corporation
  • 6. Business Analytics software Our world is becoming smarter Instrumented Interconnected Intelligent 6 © 2011 IBM Corporation
  • 7. Business Analytics software With this change comes an … Yet organizations are explosion in information … operating with blind spots Lack of Insight 1 in 3 managers frequently make critical decisions without the information they need Volume of Digital Data Inefficient Access 1 in 2 don’t have access to the information across their organization needed to do their jobs Variety of Information Inability to Predict 3 in 4 business leaders say more predictive information would drive better decisions Velocity of Decision Making © 2011 IBM Corporation Source: IBM Institute for Business Value
  • 8. Opportunity for value creation is significant, and growing Data AVAILABLE to an organization Missed ity opportun data an organization can PROCESS Organizations are able to Enterprises are “more blind” process less and less of the to new opportunities. available data. 8 © 2009 IBM Corporation
  • 9. Business Analytics software hanging Business Imperatives The Vast Majority of CMOs are Underprepared Marketing Priority Matrix 1 Data explosion Underpreparedness Percent of CMOs reporting 2 Social media underprepared 1 3 Growth of channel and device choices 70 2 4 Shifting consumer demographics 3 5 Financial constraints 4 6 Decreasing brand loyalty 60 5 7 Growth market opportunities 6 10 7 8 9 8 ROI accountability 11 9 Customer collaboration and influence 50 12 10 Privacy considerations 13 11 Global outsourcing Factors impacting marketing 12 Regulatory considerations 40 Percent of CMOs selecting as “Top five factors” 13 Corporate transparency 0 20 40 60 Mean 9 Source: Q7 Which of the following market factors will have the most impact on your marketing organization over the next 3 to 5 years? n1=1733; Q8 How prepared are you to manage the impact of the top 5 market factors that will have the most impact on your marketing organization over the next 3 to 5 years? n2=149 to 1141 (n2 = number of respondents who selected the factor as important in Q7) © 2011 IBM Corporation
  • 10. IBM investments in Analytics and Big Data  More than $14B in Acquisitions Since 2005 Hadoop  More than 10,000 Technical Professionals  More than 7,500 Dedicated Information Stream Consultants Integration Computing  Largest Math Department in Private Industry  More than 27,000 Business Partner Certifications Source: IBM BAO Data Warehouse Analyze Analyze Analyze Discover & Manage Information Information Extreme Experiment & Plan of any Variety in Motion Volumes of 10 Information © 2012 IBM Corporation
  • 11. Complementary Analytics Traditional Approach New Approach Structured, analytical, logical Creative, holistic thought, intuition Data Hadoop W arehouse Streams Transaction Data Web Logs Internal App Data Social Data Structured Structured Unstructured Repeatable Enterprise Unstructured Exploratory Mainframe Data Repeatable Linear Integration Exploratory Iterative Text Data: emails Linear Monthly sales reports Iterative sentiment Brand Profitability analysis Product strategy OLTP System Data surveys Customer Maximum asset utilization images Sensor data: ERP data Traditional New RFID Sources Source s © 2012 IBM Corporation
  • 12. Applications for Big Data Analytics Smarter Healthcare Multi-channel Finance Log Analysis sales Homeland Security Traffic Control Telecom Search Quality Manufacturing Trading Fraud and Retail: Churn, Analytics Risk NBO 12 © 2012 IBM Corporation
  • 13. Three key trends are driving this movement: The emergence of The shift of power to Pressure to do more Big Data the consumer with less 13 © 2012 IBM Corporation
  • 14. Big Data Customer Examples Big Data for the CMO Big Data for Smarter Planet Big Data for Telco Financial Modern Telco Services Energy Group ”Listen to the voice of Reduced modeling Latency reduced from clients” time by 97% 12 hrs to 1 sec 5.8 terabytes of Internet 2.8 petabytes of public 6 billion Call Detail and Social Media and private weather Records per day data Fix negative opinions and Personalized marketing build on positive ones Modeling time reduced to individual customers from weeks to hrs. © 2012 IBM Corporation
  • 15. Correlate combined risk and impending weather threats to optimize inventory and Dynamically updated determine supply chain risk assessment recommendations for assets in projected path Real-time projections of hurricane path 15 © 2012 IBM Corporation
  • 16. Business Analytics software “The People’s Oscar”? - IBM Big Data Analytics at Work  IBM Infosphere Streams used to process hundreds of tweets per minute in real time  IBM Cognos Consumer Insight implemented on Hadoop cluster provides parallel analysis of tens of thousands of blogs and tweets for sentiment and emerging topics of discussion  Partnership with LA Times to publish social insights in an interactive graphical environment for the general public to use  Show case for big data analytics in media and entertainment, with future applications in film marketing, demand forecasting and release window optimization  “Celebrities tweet their dismay and delight with the nominations”  “the Twitterverse lit up with messages from movie fans excited about — and upset about — the picks in the best picture, lead actor and lead actress categories”  “You might be surprised about which performers and movies got the most tweets — and who had the most positive buzz” Powered by © 2010 IBM Corporation
  • 17. On February 14, 2011, IBM Watson changed history on the TV show Jeopardy. Word spread virally of the victory with Twitter reaching 11.7M, 30,121 blog On the TV show Jeopardy mentions, and 15,025 forum posts 17 © 2012 IBM Corporation
  • 18. Healthcare industry is beset with some of the most complex information challenges we collectively face Medical information is doubling every 5 years, much of which is unstructured 81% of physicians report spending 5 hours or less per month reading medical journals “Medicine has become too complex. Only about 20% of the knowledge clinicians use today is evidence-base.” Leading Chief Medical & Scientific Officer © 2012 IBM Corporation
  • 19. Putting the pieces together at point of impact can be life changing Fam toms Med istor y Pat story Sy m Fin ions .H . Hi difficulty swallowing ica Patient Symptoms Family Medications Findings p Symptoms fever Diagnosis Models din Confidence t dry mouth gs thirst History History anorexia A AA medications were levothyroxine, Her urine dipstick was complains of 58-year-old woman presented forher 58-year-old woman positive to frequent urination Renal Failure hydroxychloroquine, pravastatin, and primary care anorexia, dry mouth, dizziness, physician after several dizziness leukocyte esterase and nitrites. The no abdominal pain dayshistory was notable for cutaneous Her increased thirst, andgiven amouth, of dizziness,patient frequent alendronate. dry anorexia, no back pain UTI Herincreased thirst,also hadoral and familyShefo ciprofloxacin for a history included a fever. prescription had and frequent urination. no cough lupus, hyperlipidemia, osteoporosis, She reported no pain mother, fever bladder cancer in her in 3 had a later, urination. She had also daysGraves' frequent tract infection. her abdomen, urinary urinary tract infections, a left no diarrhea Diabetes and reported for two sisters, andand back,disease in weakness oophorectomy thatafood would “get and no cough, or diarrhea. patient reported benign cyst, Oral cancer History Bladder cancer Family stuck” when she was onediagnosed a hemochromatosis in swallowing. She sister, and dizziness. Her supine blood pressure primary hypothyroidism, Hemochromatosis Influenza idiopathic thrombocytopenic purpura was 120/80 mm Hg, and abdomen, reported noyear earlier pulse was pain in her Purpura back, orin oneand no cough, flank sister 88. Graves’ Disease Hypokalemia (Thyroid Autoimmune) shortness of breath, diarrhea, or cutaneous lupus dysuria Findings Medications History Patient osteoporosis hyperlipidemia Esophagitis frequent UTI hypothyroidism • Extract Symptoms from record Alendronate Most Confident Diagnosis: UTI to handle • Most Confident Diagnosis: text Use paraphrasings mined from Influenza Diabetes Esophagitis pravastatin ••• Extract Medications and variants • Extract Patient History Identify negative Symptoms Extract Family alternate phrasings levothyroxine • • Use database Taxonomies to generalize medical • Reason with mined relations to explain away Use Medical of drug side-effects Perform broad search for possible diagnoses hydroxychloroquine • • Together, multiple is consistent w/best the models symptoms (thirst diagnoses may UTI) explain Score Confidence granularity used by conditions to the in each diagnosis based on urine dipstick: symptomsso far evidence leukocyte esterase • Extract Findings: Confirms that UTI was present supine 120/80 mm HG heart rate: 88 bpm urine culture: E. Coli 19 © 2012 IBM Corporation
  • 20. Cancer is an insidious disease and the second highest cause of death 1 in 3 1.5M+ individuals will die were diagnosed from cancer with cancer in the US in 2011 X 50 yr.+ $263.8B the time current cancer overall costs of cancer treatments have been in the US in 2010 around (chemotherapy, radiotherapy, etc.) $$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$ $$$$$$$$$$$$ Source: American Cancer Society, National Health Institute 20 © 2012 IBM Corporation
  • 21. From battling humans on Jeopardy! to changing the way the world thinks, acts, and operates Healthcare Financial Services Diagnostic/treatment Investment and retirement assistance, evidenced-based planning, institutional trading insights, collaborative medicine and decision support Contact Center Government Call center and tech support Public safety, improved services, enterprise knowledge information sharing, security, management, consumer insight fraud and abuse prevention IBM Watson has the capabilities to address grand business and societal challenges © 2012 IBM Corporation
  • 22. Business Analytics software ibm.com/bigdata 22 © 2011 IBM Corporation