1. Copyright 2008 IDC. Reproduction is forbidden unless authorized. All rights reserved. Global Business Optimization Trends Alan Tsao Research Manager IDC Taiwan

2. © 2008 IDC Responding to the Economic Meltdown

3. © 2008 IDC The Changing Enterprise

4. © 2008 IDC Cost of non-productive hours Task Hours per week Annual cost per worker Search, but not find3.7$5,974 Re-create content that can't be found2.5$4,037 Reformat data from multiple sources3.7$5,974 Publish via multiple applications2.1$3,391 Unravel version control issues1.2$1,938 Translate from one language to another0.5$807 Source: Information Worker Productivity Studies, IDC, Oct., 2008

5. © 2008 IDC Business Optimization  Business Optimization is –Manufacturing/Management/Business Process enhancement or improvement  Business Optimization may consist of –New Technology –New Process –New People(Brain)  It’s about –“Efficiency” –“Speed” –“Standardization”

6. © 2008 IDC Business Process Improvement  Business process simplification:  Focus on customer-facing processes:  Increased automation for cost reduction:..there is pressure to streamline and automate and deliver more efficient care within the hospital. Senior Director of IT - $1B Medical Center.We have a customer satisfaction initiative. We are enhancing our legacy CRM applications to better align with what we have on the supply chain side.. Senior Director, IT - $5B Mfg Co..We have a high need to simplify our business processes. We.ve been trying to find the balance between simplicity for the end users with a very complex back end.. Senior Director of IT - $2.5B Insurance Co.

7. © 2008 IDC Intelligent Process Automation (IPA) For Business Optimization Intelligent process automation is the convergence of business intelligence and business process deployment software. Intelligent process automation software automates repeatable, operational decisions within business process sets in response to events where analytics drive the workflow.  Automating repeatable, operational decisions  In response to events  Analytics drive the workflow

8. © 2008 IDC Demands on IT Research financial securities Find correlations in published research and patient records between diseases and life styles Predict customer churn Conduct market research Trend analysis across data and content Conduct competitive intelligence Crime investigation and prevention Healthcare patient record access and mgmt. Analyze surveys Improve online self help, increase online sales Monitor blogs and news feeds for brand and product reviews and opinions Manage product quality problems and warranty process Publish or receive personalized news, monetize with targeted ads. Explore new areas for innovation Populate CRM application with content from email tools Unite access to information in a single point of access Support better decision making Conduct eDiscovery

9. © 2008 IDC The IT Dilemma  Complex demands compete for tools and attention.  More information to store, more applications require more servers  Support required for multiple devices for each worker  Security must be extended beyond the firewall  Sophisticated, impatient users deploy their own software and services.  Suppliers and partners to integrate with  Competing protocols, standards  Limited budgets  ROI is difficult to prove

10. © 2008 IDC IT for Business Optimization: The Concept of “Platform” Collaboration and Productivity Globalization Innovation Penetration

11. © 2008 IDC 11 Advanced Customer Care and Retention New technology is transforming the way Customer Care can be provisioned. New ways to apply customer analytics, virtual call centers, multiple modes of communication, Web 2.0 and virtual worlds are changing how companies reach their customers. This allows focus on both retention and acquisition using what IDC calls Advanced Customer Care and Retention (ACCR) tools. 11

12. © 2008 IDC New Media Agencies Enterprise Search Data Mining The Many Components of ACCR 12 CRM Customer Analytics Sales Force Management Contact Center Management Customer Database Management

13. © 2008 IDC ACCR Integrates Process and Technology Consumer Apps / Blogs CRM Enterprise Search Wiki Blogs Web self- service Facebook Myspace Contact Center Ideasourcing Social Customer Service SFA Predictive selling Brand Monitoring / Building Search Engine Optmisation Knowledge Base IP Contact Center Remote Diagnostics/ Control Live Chat Customer Analytics Customers as advocates Connecting Sharing Collaborating Building relationships/trust Publishing/authoring Innovating/designing

14. © 2008 IDC Innovation IBM’s Innovation Jam brought together more than 150,000 people from 104 countries and 67 companies. As a result, 10 new IBM businesses were launched with seed investment totaling $100 million.

15. © 2008 IDC Collaboration

16. © 2008 IDC Transformation of Development and Delivery: Reversing Course

17. © 2008 IDC Globalization

18. © 2008 IDC Changing Enterprise Sourcing Strategies

19. © 2008 IDC Getting Started with Business Optimization  Find a business champion who will support a project for process monitoring and improvement  Identify a specific repeatable, operational decision with significant cost or revenue impact to the business  Gain support and participation of relevant business and technology stakeholders  Set out business objectives and assign key performance indicators (KPI.s) to measure progress to these objectives  Establish system (process and data) requirements, assessing the impact on existing applications  Build or buy a solution that applies event processing, monitoring and analysis to the decision process  Measure and evaluate improvement, then refine  Bring-in technology and build “Platforms” for your business!