2 CEO Study: Innovation and Differentiation Globalization & technology driving commoditization at increasing rateOperational efficiency is critical, do more with fewer personnel, drive down internal and external costs, provide maximum returnsThe way to prosper is through top-line growth (new revenue streams, new clients, new markets, new channels)The way to growth is through differentiation (create new value for customers, employees, partners, shareholders)The path to differentiation is innovation (seizing the most promising growth opportunities)Globalization & technology have leveled the playing field and are drivingcommoditization at ever increasing rates.Most established companies have focused on operational efficienciesand cost reduction as the fastest way to secure profits — but they are hittingdiminishing returns.The only way to prosper in the future is through top-line growth (new revenuestreams, new clients, new markets, new channels, etc.)And the only way to grow is through differentiation.Differentiation is based on a company’s ability to continuously create new valuefor its stakeholders (clients, employees, partners, shareholders, etc.)Innovation is the path to differentiation and to seizing the most promising growthopportunities. It is the only sustainable advantage that will enable companies toprosper in a world of relentless change and rising global competition.
3 Business Impact Tangible Business Impact Business Impact Enterprises have 14 different customer databases on averageThe cost of a lost or incomplete customer record is $18266% indicate profitability is negatively impacted by bad customer data30% of retail item information is incorrect, leading to 3.5% in lost salesOne Telco Company reports 90% monthly churnAMEX fined $100M due untimely reportingTangibleBusiness ImpactOrganizations need to use information in order to innovate in their businesses. But business leaders face many challenges when they try to leverage enterprise data as a strategic asset. It is not surprising that as globalization and competition has increased that new problems with data volumes and quality have emerged.As organizations try to view their customers and business in a unified way, they are quickly discovering that the individual silos of information that have been created or acquired over the years are now a major obstacle in optimizing their business processes and relationships with customers.Source: Gartner
4 Gartner Perspective – Enterprise Information Management Business Process CompositionIntegrated Composition TechnologiesBusiness Services RepositoryCustomApplicationsPackageApplicationsExternalServicesCustomer DataIntegrationProduct Content &Data ManagementBusiness IntelligenceApplicationsEnterprise ContentManagementData ServicesData MovementData EnrichmentData StewardshipData sourcingData TransformationContent IntegrationData AccessData QualityMetadata Management and Semantic ReconciliationModelsSchemasRepositoriesStandardsBusiness RulesSearchClassificationAcross Transactional, Operational and Analytical SourcesEnterprise Data WarehouseCustomer Master DataProduct Master DataAssetMaster DataExternal Data SourcesKey Point: Gartner recommends an architecture with a unified layer of information integration functions built on a common metadata management foundation.In order to deal with these issues, Gartner recommends this architecture. You’ll notice that there is a separation between the heterogeneous sources of data at the bottom and the applications and processes that run the business. In that gap is a layer that is highlighted green called the data services layer. This layer provides the core functions required to make heterogeneous information trustworthy and to deliver it in line and in context to specific business problems. The key point is that individual application views are not sufficient to provide a complete and accurate view of information, and they cannot provide that information in new contexts, appropriate to the needs of innovation and differentiation.Within this layer, Gartner includes functions like data stewardship, data quality and enrichment, data transformation and movement, and data access. Beneath this layer is a shared layer of metadata management and semantic reconciliation. This layer is required to allow a shared understanding of information across business and IT domains, and across all the different sources in which information is stored.Above the data services layer are a layer of value-added applications, including business intelligence and MDM. The data services feed these applications with the best, most complete information available in the business.See “EIM Reference Architecture – Essential Building Block for Enterprise Information Management”Here is Gartner’s EIM reference model for implementing the Enterprise Information Architecture for a SOA environment. As seen, it depicts an application portfolio (containing custom applications, package applications and external services) and the business process platform (BPP). The BPP includes an integrated set of technologies, a business service repository and the process component content that enables the orchestration of business processes. The EIM reference model delivers information management services through an enabling infrastructure: an integrated set of technologies, services, components and solutions. The enabling EIM infrastructure is a standards-based, open platform consisting of: data services; metadata management and semantic reconciliation; and closed-loop information flows for master data and converged content. Data services (a layer within the enabling EIM infrastructure) format, standardize, distribute and provide access to information across the organization. Metadata management pervades the EIM reference model. To support agility, organizations require closed-loop information flows in which retrospective analyses from data warehouses are fed to upstream applications (using publish and subscribe or other data movement technologies within the data service layer) in a continuous flow of actionable information. Through the data services layer, organizations can compare and analyze current transaction events (from master data stores) to similar events using historical and trend data (from the data warehouses), achieving a level of prospective and predictive analysis (what is happening now, and making it happen) for enterprise-wide sense-and-response. Master data stores also support continuous information flows beyond traditional analysis and reporting needs. By following Gartner's reference model, organizations pursue a variety of EIM implementation approaches. Most achieve EIM objectives in stages, choosing to build incrementally. For example, customer-centric companies may use customer data integration solutions to address customer management issues or to comply with specific regulations.Across Structured, Semi-Structured and Unstructured ContentEnterprise Information Management: Getting Value From Information Assets Gartner Business Intelligence Summit 2006 David Newman 6-8 March 2006
5 The Evolution Real-Time Change Data Capture DataMirror LAS Global Name EnrichmentDWLOperational Master Data ManagementAscentialNb:This chart notes both IBM product deliveries (blue text) and IBM acquisitions (black text) over the past several years.It is not an all inclusive listing, and intends only to show the rich set of end-to-end capabilities IBM can deliver.Product deliveries and acquisitions will continue as part of IBM’s strategy to help clients unlock the business value of information for competitive advantage.In some ways, this chart becomes dated as soon as it’s published given the rapid pace of the businessThere are a lot of products on this chart.It’s important to note that client’s don’t likely need all of them for every project. Each has it’s place depending on a particular projects technology needs.A client implementing a new SAP application may only need to leverage the deep compression capabilities of DB2 for disk storage savings.Or a client hoping to improve their loan origination process may only need FileNet P8.All do relate to the same fundamental goal of unlocking the business value of informationMany of the products can work together to meet more sophisticated needs. This is helped by the use of open standards and flexible architectures like SOA.Similarly, in many cases, use of open standards and flexible architectures has helped IBM quickly integrate new capabilities resulting from acquisitions.It is assumed that prior to this chart the general topic of IOD has been discussed.Unlocking the business value of information for competitive advantage has many dimensions when it comes to information management technology.Increasingly, organizations need to move away from point solutions to maximize the value of their information assets.Increasingly, they need to provide unified information across a wide range of application and process needs.Hence, a rich portfolio - of end-to-end capabilities - from data management to business performance management (and everywhere in between) is in order.To meet these needs, you’ve seen IBM deliver a rapid-fire stream of new capabilities since the Information On Demand initiative was unveiled to industry analysts in late 2005 and soon after to clients in early 2006.Our deliveries (as noted in blue) include technology whose origins were in IBM software development labs or perhaps in companies acquired by IBM.By complementing IBM development investments with selected acquisitions (as noted in black), we accelerate our ability to deliver on the needs we see our clients facing.That strategy has served IBM well and will continue into the future.By leveraging open standards and flexible architectures like SOA we’re able to deliver end-to-end capabilities supporting a very wide range of client needs.This approach also allows clients to start small and grow as their needs grow, and their projects progress.Some Acquisition Specific Footnotes for the Sampling of Acquisitions Noted…Ascential – provided information integration and data quality capabilties leading to today’s IBM Information ServerTrigo – provided the basis for WebSphere Product Center offerings, helping clients manage product master dataDWL – provided the basis for WebSphere Customer Center offerings and the newly announces InfoSphere Master Data Management ServerSRD – the basis of our entity analytics offeringsVenetica – providing content integration capabilitiesiPhrase – augmenting our search portfolio, particularly but not exclusively in e-commerce settingsLAS – (Language Analysis Systems) compliments our entity analytic solution to help determine the origin, cultural variations and meanings around namesUnicorn – provided significant metadata management capabilities now part of the IBM Information ServerFileNet – providing significant content management capabilities ranging from repository services to capabilities for content-centric business process managementDataMirror – enabling “changed data capture” capabilities critical to information integration requirements across many applicationsPrinceton Softec – providing a rich set of database management tools, particularly in the area of archive management, complementing our Data Studio strategyCognos – providing business intelligence capabilities and business performance management capabilitiesMatching, Cleansing, Profiling and Unified Metadata integrationSRDTrigoEntity Resolution and AnalysisProduct Information Management
6 The Critical Element is Synergy “When aiming to optimize costs in data management and integration initiatives, it is critical to know what steps to take and where significant savings can be realized while maintaining success in these projects. In most cases, the cost of implementing the steps will be far outweighed by the savings that can be realized.”-- Ted Friedman, Vice President and Distinguished Engineer, Gartner
7 How are our customers meetings these challenges Unified to common business process & terms. Reduce dev time & costs by 30% & increased adoptionProvided more complete, accurate, timely, portfolio/fund valuations to client facing portalsSynchronized & mastered core product information & introduction£1 million savings per year & increased sales by 3.5%Consolidated billing & metering systems to save £1M per week. Reduced time to deliver by 45%.Mergers and acquisitions SAP consolidationChallenge Understand more about clients before granting loans or processing payments, reduce the time and cost of compliance efforts, and gain business advantage from anti-money laundering (AML) investments Why IBM? IBM leads the industry in multi-cultural name recognition to help improve name matching capabilities and virtually eliminate false positives and negatives Solution A transaction monitoring system that could accurately evaluate name variations across more than 60 countries Key Benefits Recovered 100% of AML initiative through innovative service; reduced number of false positives and negatives by 75%; reduced watch list checks from 8–12 hours to less than 15 minutes “Our AML services not only offset our compliance costs, but also provide us with a competitive advantage in the German financial marketplace.” —Hagen Schaumkell, Director, Transaction Services, WestLB “With IBM Global Name Recognition, we can be very sure that when checking customers, we are doing everything we can to confirm they are not on restricted lists.” –Hagen Schaumkell “We have more time now to put new policies in place and provide employee training without having to increase our staff.” –Hagen Schaumkell With intensifying threat, fraud and regulatory pressures, most financial institutions regard compliance as a costly, but essential initiative. However, WestLB, one of Germany’s leading financial service providers, is changing this view by turning compliance into a competitive advantage. With total assets of billion EUR (383.5 billion USD), WestLB is the central financial organization for savings banks in North Rhine-Westphalia and Brandenburg, Germany. The organization employs 6,000 people and maintains offices in 39 locations worldwide. Blue Cross Blue Shield of Tennessee has been able to provide their clients with online access to reports and analysis of their entire business so that they can easily spot important trends and cost patterns across all of their customers. This has resulted in a 90% improvement in client satisfaction.Reduced risk, meet int’l KYC regulations, improve customer identification levels & satisfactionReal-time single viewinternational name matchingTrusted information crisis across Business Objects, Oracle Warehouse, & SASOptimized traceability & lineage trusted by L.O.B.
8 Leaders Investing to Optimize Information Assets InsightfulComprehensive informationmanagement to drive new meaning from your dataIn ContextReal-time delivery of relevant information when and where it’s neededCompleteRelated information reconciled into a single and holistic viewTrusted information enables innovation. Very simply. If your IT department can deliver accurate and complete information in context for a business user then they will be able to make the right analysis to draw out true business insights. Using bad data as a strategic asset is simply not an option. Having Trusted information is the way to ensure success.IBM clients have told us that they need information to be accurate, complete, in context, and insightful in order for it to be considered “trusted”. Achieving these elusive results across the enterprise requires a different kind of information infrastructure, one that allows information to be integrated and managed holistically.AccurateComplex and disparate data transformed, cleansed and delivered
9 InfoSphere Information Server Full capabilities to deliver Trusted InformationBusiness & IT AlignmentBusiness Analyst lead designFramework for quality & governanceSelf documentation and program designUnified Platform Architected to ScaleCommon Metadata platformE2E lineage and impact traceabilityParallel processing SOA frameworkReal-time capture and changeInfoSphere Information Server was originally introduced in 2006, tying together a set of data integration capabilities acquired from Ascential, CrossAccess, and Unicorn with others developed within IBM – creating a common architecture and shared services for data integrationInfoSphere Information server provides every capability needed to integrate information from across heterogeneous systems, including understanding source data, applying data quality, complex transformation, and a variety of ways to deliver information. Its unique, metadata-driven design helps to align business goals and IT activities, providing a consistent understanding of what things mean, capturing business specifications and using them to automate development tasks, and providing deeper insight into data by tracking its lineage. InfoSphere Information Server has native connectivity to the broadest range of data sources, including databases, applications, files, and more on any platform. It parallel processing foundation allows it to easily scale to meet the needs of even the most demanding environments, working consistently across batch and real-time processing.InfoSphere Information Server improves the productivity of development teams that were working on data integration projects, improves the collaboration across these development teams, and between the developers and the business users who set the requirements, and maximizes reuse within and across project teams, to provide ongoing value.
10 InfoSphere Information Server IBM InfoSphere MDM Server Mastering Key Operational Information domains: Customer, Account, Product, LocationEvent based with SOA Library with 800 pre packaged business servicesMaximize time to value based on deployment type and style: registry, transactional, coexistenceSingle ‘golden source’ of customer recordIBM InfoSphere MDM ServerSOA Business ServicesBatch Data IntegrationUser InterfacesAs companies focus on their information, it quickly becomes clear that key entities of data like customer, supplier, product, location, and account are found across nearly all systems. Managing this information in a coordinated fashion becomes extremely challenging. Master Data Management, or MDM, helps to address this problem by managing these key entities outside of any individual application and ensuring it is synchronized across all systems at all times. InfoSphere MDM Server provides an operational data hub for all domains of master data, including party, product, account, and location. It centralizes and synchronizes this data across heterogeneous systems through a library of over 800 pre-packaged business services. InfoSphere MDM Server also provides direct user interfaces for managing and governing master data, or data can be offloaded to data warehouses and other repositories through batch data integration. InfoSphere MDM Server provides a scalable foundation that is capable of dealing with the millions of records typical in large organizations, but can be configured to allow you to start small, with a simple registry-style approach for quick value realization.PartyAccountProductLocation
11 InfoSphere MDM Server for PIM InfoSphere Information ServerInfoSphereMDMServerImprove design / copy collaboration, global product introduction, POS price changes, & management across Information domains: Product, Suppliers, LocationsUnified framework to aggregate and syndicate information across a multi-channel organizationFoundation for RFID / traceability of; products, parts, incoming / outgoing, discrete, perishables, prescription etc.IBM InfoSphere MDM Server for PIMFlexible Data ModelAggregate & Syndicate DataUser InterfacesAlongside InfoSphere MDM Server is MDM Server for Product Information Management, which provides specialized management of master product information. InfoSphere MDM Server for PIM provides a more collaborative approach to creating and managing the complex attribution of detailed product data. It helps to maintain a single view of product information catalog which can be shared throughout an organization as well as with external parties via the Web. Product attributes required in operational systems can be shared with InfoSphere MDM Server for synchronization across the enterprise.ProductSuppliersLocations
12 InfoSphere Information Server Performance Management InfoSphere WarehouseInfoSphere Information ServerInfoSphereMDMServerInfoSphereMDM ServerFor PIMStorage OptimizationIncrease warehouse capacityPerformance ManagementIdentifies usage patterns and trendsReal-time and decision support warehousingEmbedded analytics changing the game from historical to predictive analysisEmbedded data retention and governancePerformance managed balanced warehouse applianceInfoSphere WarehouseReliable Real-Time DeliveryFor organizations who are building a data warehouse, integration is not the only requirement. You also need a solid foundation for housing and managing the information over time. InfoSphere Warehouse provides that unified, powerful foundation for your data warehouse. Based on IBM’s leading DB2 database, InfoSphere Warehouse has all of the base capabilities required for data warehousing, along with advanced partitioning, data mining, retention, and performance & workload management features. These features ensure fast, constantly optimized access to information, while reducing storage requirements. In addition, new cubing features allow data cubes to be created without creating a separate data mart, working seamlessly with Cognos and other BI & reporting tools. InfoSphere warehouse is the only warehouse database on the market that is optimized for both transactional and analytical access to information, improving the utility of your information. And InfoSphere Warehouse allows you to start small, but grow as big as you need to.ManageAnalyzeWorkload ManagementOptimizes workloads and prioritiesData Retentionbased on usage patterns and data governance
13 InfoSphere Information Server IBM Industry ModelsInfoSphere Information ServerInfoSphereMDMServerInfoSphereMDM ServerFor PIMInfoSphereWarehouse20-year blue print IP model based on 500+ implementations used by the fortune 250 to SMBDesigned from business contextual best practices and regulatory requirements down not architecture upA key accelerator for business unit or enterprise standardization, process optimization, and SOACan de-risk (re)engineering initiatives by 3 to 18 monthsTo help organizations achieve results faster, IBM has packaged up the knowledge from years of experience in working on information projects within specific industries – into the IBM Industry Models. These models provide a complete fully attributed enterprise data model along with Business Solution Templates that outline the key performance indicators, metrics, and compliance concerns for each industry. IBM provides these industry models for six industries – Banking, Financial Markets, Health Plan, Insurance, Retail, and Telecommunications. The models act as key accelerators for migration and integration projects, providing a proven industry-specific template to map into. They can be loaded directly into InfoSphere Information Server, providing target data structures and pre-built business glossaries to accelerate development efforts. In addition, the Business Solution Templates provide template for reports and data cubes within Cognos 8 BI. By using the IBM Industry Models, organizations can dramatically accelerate their projects and reduce risk, and also overcome traditional organizational issues typically faced when integrating information by providing a proven, neutral base model.IBM Industry Models deliver industry expertise and regulatory best practices in a form useable by both business and IT communities. Expressed in business terms, the models help business and IT to collaboratively scope their requirements, thereby enabling IT to implement projects faster. The result is faster time to value, fulfilled expectations and reduced project risk. The data models include interrelated business glossaries, enterprise data warehouse and reporting requirements models. The service models are used to implement a Service Oriented Architecture that supports the development of new SOA-based applications and the delivery of the process models within an SOA implementation. The data models can be leveraged with InfoSphere Information Server, InfoSphere Warehouse and InfoSphere MDM Server. The Process and Service models can be used within an SOA-built on IBM WebSphere or third party SOA providers, and can be leveraged by InfoSphere Information Server and InfoSphere MDM Server.IBM Banking Industry Models (AKA IBM Information FrameWork)A set of data, process and services models specifically for the banking industry (Retail, Card Services, Financial, Commercial) and focus on solving issues in risk, regulatory compliance, payments, customer centricity and more. The data models are called the IBM Banking Data Warehouse (BDW).IBM Financial Markets Industry ModelsA set of data, process and services models for the financial markets industry (Brokerage and Treasury services) and focus on solving issues in risk, regulatory compliance, KYC, financial management and more. The data models are called the IBM Financial Markets Data Warehouse (FMDW).IBM Healthcare Industry ModelsA set of data models for the health plan industry (AKA Healthcare Payers) and solve issues in claims management, disbursement analysis, medical utilization, member & provider management and more. The data models are called the IBM Health Plan Data Model (HPDM).IBM Insurance Industry Models (AKA Insurance Application Architecture (IAA)A set of data, process and services models for the insurance industry (Property and Casualty, Life and Pensions, Personal or Commercial, Group or Individual Health) and focus on solving issues in risk, regulatory compliance, claims, customer centricity and more. The data models are called the IBM Insurance Information Warehouse (IIW).IBM Retail Industry ModelsA set of data models specifically for the retail (direct, in-direct, drug stores), consumer products manufacturers, and distribution companies and focus on solving issues in customer segmentation, product management, merchandising, supply chain, store operations & more. The data models are called the IBM Retail Data Warehouse (RDW).IBM Telecommunications Industry ModelsA set of data models specifically for telecommunications (Local exchange carriers, Cell phone, Long distance carriers) and focus on solving issues in network/wireless/wireline usage, customer churn, campaign performance, and more. These models are also appropriate for Internet Service Providers and Cable operators. The data models for Telco are called the IBM Telco Data Warehouse (TDW).
14 InfoSphere and CognosInfoSphere provides the foundation of trusted information for business intelligence & performance managementTrustedInformationTrusted information to make accurate decisionsCommon business vocabulary and metrics traceabilityAction the combine the value decision and predictive analyticsImprove Information : Fidelity , Trust , Agility, Business ResultsThe InfoSphere Software portfolio also has a strong affinity with the Cognos portfolio. Business Intelligence and Performance Management require complete and accurate information in order to be effective. InfoSphere provides this trusted information to Cognos. Because of this affinity, IBM has invested to make the technologies work very effectively together. Today, there are many areas where the technologies are integrated, including business and technical metadata, data quality, data transformation, and change data capture. Over time, IBM is further investing in these synergies to ensure that customers who use the portfolios together will get the maximum return on their investment.
15 Our Investments realized as YOUR benefit Business As Usual:Projects 10x as long with individual toolingUnified Platform Benefits:Decreased risk by %Improved business alignment %Improve time to value by %Reduce project staffing by %Source: Customer Case Studies, Industry Analyst Reports