© 2007 IBM Corporation IBM Information Management Accelerate information on demand with dynamic warehousing April 2007

IBM Information Management © 2007 IBM Corporation 1 Leveraging Information to Create Business Value Insightful, Relevant Information When and Where it’s Needed OLAP & Data Mining − Merchandising, Inventory, Operations Help Solve Crimes by Delivering Suspect List to Detectives Arriving at the Crime Scene Optimizing Police Force Deployments Information On Demand − Optimize Each Transaction − Call Centers, Field Ops Query & Reporting − Financials, Sales Crime Rate Reports

IBM Information Management © 2007 IBM Corporation 2 Dynamic Warehousing A New Approach to Leveraging Information Dynamic Warehousing Traditional Data Warehousing OLAP & Data Mining to Understand Why and Recommend Future Action Query & Reporting to Understand What Happened Information On Demand to Optimize Real-Time Processes Dynamic Warehousing Requires: 1. Real-time access – in context 2. Analytics – as part of a business process 3. Unstructured information – extracted knowledge 4. Extended infrastructure – tightly integrated

IBM Information Management © 2007 IBM Corporation 3 Dynamic warehousing Traditional warehousing More Examples of Dynamic Warehousing in Action Enabling Information On Demand for Business Advantage Insurance fraud analysis and reporting Identifying potentially fraudulent claims prior to approval and payment Transforms healthcare Reporting on customer issues Identifying possible related issues, churn risk and cross- sell opportunities while engaged with the customer Transforms customer service Historical sales analysis and reporting Discovering relevant customer information to identify cross sell opportunities and improve negotiating position at the point of sale Transforms sales effectiveness

IBM Information Management © 2007 IBM Corporation 4 Why is it a challenge for organizations to leverage information effectively? Information distributed in silos across the organization Not accurate Not complete Not trusted Not timely Volume and variety of information increasing Velocity of business driving real-time requirements Increased need to aggregate and analyze information dynamically

IBM Information Management © 2007 IBM Corporation 5 Creates challenges for traditional warehousing Not just for traditional query and reporting purposes anymore Warehouses must now:  Address expanding needs for analytics and information on demand  Leverage ALL types of information, including unstructured  Serve increasing numbers and types of applications and users, with varying service level demands Increasingly mixed workload environments and the constantly changing needs of different business constituents require more dynamic warehousing capabilities

IBM Information Management © 2007 IBM Corporation 6 IBM provides more than just a warehouse DB2 Warehouse provides extended capabilities and value Embeddable analytics (Inline and as a Service) Multidimensional analysis Data mining and visualization Beyond traditional structured data Generate and leverage knowledge from unstructured information OLTP Benefits of a transactional data server foundation Optimized for real-time access, High availability and reliability Scalable, secure and auditable DW DBMS Dedicated warehousing Shared-nothing architecture Advanced data partitioning Workload management Deep compression Reduced storage costs Better disk utilization Query speed improvement IBM DB2 Warehouse Traditional warehouse Unstructured Structured “As a direct effect of the mixed workload, with continuous loading and the increase in automated transactions from the functional analytics in OLTP, the transactional DBMSs have an edge that challenges the DW DBMSs (such as Teradata)” Gartner Data Warehouse Magic Quadrant, 2006

IBM Information Management © 2007 IBM Corporation 7 Dynamic warehousing Extending beyond the warehouse to enable information on demand Process management Enterprise data modeling Information integration Search and text analytics Master data management Industry perspective Dynamic Warehouse

IBM Information Management © 2007 IBM Corporation 8 IBM Global Services How IBM Enables Dynamic Warehousing Integrated offerings to enable information on demand SOA Infrastructure Process Mgmt FileNet BPM WebSphere BPM Information Integration Information Server MDM WS Customer Center WS Product Center IBM DB2 Warehouse Industry Perspective IBM industry data models Enterprise Data Modeling Rational® Data Architect Search & Text Analytics OmniFind™ Analytics Edition

IBM Information Management © 2007 IBM Corporation 9 New Capabilities and Offerings to Enable Dynamic Warehousing Announced March 13, 2007  IBM Balanced Warehouse TM Solutions –Multiple classes of offerings  New and Enhanced Packaging Offerings –Advanced Edition, Enhanced Base Edition  New SMB Offerings –Available from partners  Embedded Analytics –Extended insight capabilities with integrated tooling  New Offering for Unstructured Analytics –IBM OmniFind Analytics Edition  Seamless Integration of Information Server & RDA –Integrated tooling  New and Enhanced Industry Data Models –New Health Plan and enhanced Insurance data model  New Features for Warehousing on System z –Query & reporting feature enhancement and performance improvements  New Services Offerings –GBS strategic planning & design and GTS implementation assistance

IBM Information Management © 2007 IBM Corporation 10 Challenge  Integrate disparate data sources to support more accurate store and product performance analysis  Speed responsiveness to changing business conditions and better understand store and product performance information Key to success  An integrated end-to-end retail warehousing solution with pre-existing industry models and embedded analytics that could generate insight into all aspects of the core business Business Advantage through Information on Demand Faster access to information improves business performance Company profile  A leading specialty retailer of children’s clothing Business benefits  Drastically reduced model development time and decreased query time from days to just seconds, helping speed responsiveness to variable business conditions  Ability to address customer needs and behavior analyses, fraud detection, and store location and merchandising optimization through a single platform

IBM Information Management © 2007 IBM Corporation 11 Challenge  Consolidate claims transactions— from several thousand providers with structured and unstructured data distributed across multiple systems—into a single data warehouse instance  Develop a centralized view of medical provider information— including unstructured data—to improve terms negotiation leverage Key to success  In-context delivery of knowledge from structured and unstructured information distributed across the organization and beyond Company profile  An independent, not-for-profit health benefits company serving more than five million people Business benefits  Single view into all “revenue” for a provider across multiple programs, identification of provider requests for new facilities and access to existing contracts during negotiations  Categorization and understanding of customer service issues and access to provider demographic and service offerings for improved support Business Advantage through Information on Demand Visibility into relevant information improves customer service and sales