ibm cloud forum april - blue insight final


Breakthrough Cloud Environments for Business Analytics

Paul Scorza VP, Business Analytics, Finance, Global Finance & Tech Support Transformation Exec.


Agenda:

Business Analytics

Business Analytics at IBM: Then and Now…

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

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

Keys to a successful BACC


Focuses on developing new insights and understanding of current business performance

Leverages extensive use of data, quantitative analysis, predictive modeling to drive decision making

Includes skills, technologies and processes for continuous analysis of past business performance to gain insight and data-driven planning

What is Business Analytics?Business Analytics represents the combination of skills, technologies and processes to deliver data-driven business performance

Intelligent profitable growth

Efficiency and cost take-out

Proactive risk

management

Risk and Fraud Analytics

Advanced Customer

Insight

Analytics and Data

Optimization

Intelligent profitable growth

Efficiency and cost take-out

Proactive risk

management


Advanced Customer

Insight

Analytics and Data

Optimization

Analytics

Environment


Advanced Customer

Insight

Analytics and Data

Optimization

Data & Tools


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

PrescriptiveAnalytics

PredictiveAnalytics

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


Business analytics trends are driving Business Analytics Competency Centers (BACC) and Cloud delivery models

BA remains top CIO priority

BA investment set to grow despite economic climate

IT budgets will come under increased scrutiny, especially if the economic down turn continues

But expect leaner and meaner BI practices Move from a piece meal departmental deployment to across the wider

enterprise Do more sophisticated types of BI with less money and IT staff

BA goes mainstream Mission Critical

Continued transition towards operational BA Enabling more users, increases deployment

Self-sufficiency - shifting power to the users

Competency center deployments will rise

Attaining level of BA maturity is key to success

BA standardization A way of reducing costs and maximizing the potential of existing skill sets and technologies

Shift towards pervasive BI

Competency center

* Ovum – BI –PM user trends to look for in 2009 by Madan Sheina & Helena Schwenk


Business analytics at IBM: Then and Now…


Historically, our “functionally fragmented’ Business Analytics (BA) environment created a number of challenges for business and technical leadership …..

Segmented investments in BA tooling and infrastructure

Silo’d metric development

Lack of tooling standardization

Limited visibility

Organizational reluctance to a

centralized service

Data Mart/ Warehouse

Senior Executives

Sales & Marketing

HR

Product Development

Fulfillment

Finance


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

Senior Executives

Sales & Marketing

HR

Product Development

Fulfillment

Finance

Business Analytics Center of Competency

(BACC)

Deliver

common and

centralized defined BA

services

Align solution pattern with

adopter usage pattern

Maintain solution

autonomy

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.


IBM created a BACC to provide Analytics Common Services to accelerate delivery and yield economies of scale

Cognos (BA)

SPSS (Prediction)

DataStage (ETL)

Marts / Cubes

Business Domain

IT Transformation Executive (TE)

• Analytics tool delivery in the Cloud - ETL

- Business Intelligence - Predictive analytics - Warehousing• Standard boarding

services• Architecture standards

& governance• Solution consulting• Defined operation

levels• Education consulting

BACC

• Solution Architecture• Project Management• Data extract• Data modeling• Intelligent analytics

Business Domain

+ =

Requirements Solution Design Components Solutions


The BACC is comprised of centralized and decentralized components

Centralized BACC

Common ProcessesCommon Processes

Shared ServicesShared Services

Adopter BI Teams

Project Management Project Management

Resource ResourceAdviseAdvise

Unit or Functional Level

BusinessStrategy

Alignment

Best Practices& StandardsManagement

Communication& Evangelism

CommunityServices

EnterpriseTechnical

Architecture

Advise & Consult

Support

ITGovernanceAlignment

DataGovernanceAlignment

Education

BACC

DecentralizedCentralized

Infrastructure /

Services Org

BACC owns the definition of the consumable central service to end users


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.


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


What exactly is Blue Insight?Transformational technology delivery matched with process and solution delivery model changes

Common BA “appliance like” service for delivering

Business Intelligence to IBM(Infrastructure)

• Common extensible infrastructure ( HW & SW) – zLinux for scale

• Common operational support

• Common management of Cognos 8 BI licensing and Level 3 support

• Transformational technology delivery matched with process and solution delivery model changes

Common service definition and boarding process(Common Processes)

• Defined BA tooling service scope (Reports, Adhoc, cubing, pervasive, etc.)

• Defined standard security and LDAP management

• Common operational processes

Business analytics experts to assist adopters

(People)

• Business Analytics Center of Competence (BACC)• Consultants available to assist in solution definition and consumption

of service


Why Blue Insight?

Stops the proliferation of siloed analytics installations

- Without centralization and oversight an estimated 35-50 independent installations would occur across IBM within 36 months @ a cost of ~$30M

Commoditize tools and the operations service levels

Delivers operational excellence for a well defined service

Provides central “Always on” analytics platform on a scalable zLinux environment

BACC drives the BA strategy for IBM internally

Maximizes leveraging scarce Cognos skills by centralizing some into the BACC

Promote sharing and education to grow teams with common analytics skills

Proliferation of Cognos installations Standardized operations

Analytics skills are scarcePlatform and organizational structure


IBM’s Blue Insight Analytics Cloud leverages standardization and centralization for process and IT delivery efficiencies

In the spotlight Our commitment to informed decision making led us to consider private cloud delivery of Cognos via System z, which is the enabling foundation

that makes possible +$25M savings over 5 years.

- IBM CIO Office

Blue Insight enables IBM to deliver business analytics with greater efficiency across the enterprise

• Establishes a corporate strategy for service delivery of BA

• Reduces the time and cost to deliver BI to new divisions and departments

• Maintains current departmental business processes, corporate security and compliance

• Maximizes departmental budgets by subscribing to standard services

• Private cloud solution implementation offers economies of scale and flexibility

Customer results:

• Consolidating +40 multi-product, departmental BI deployments to Cognos 8 BI on System z

• Deploying a private cloud to support +200,000 named users across our global workforce

• Realizing value from +100 data sources across IBM

Learn More http://www.ibm.com/systems/z/solutions/cloud/smart.html


IBM WW Blue Insight Deployment Scope and Penetration

Service delivery scope is business domain agnostic…

Adopters cover all Geographies and business process areas User groups range from 50 K to < 50 users

Sales CommissionsSales ManagementSales OperationsSupply chain – Fulfillment, ProcurementFinance – Expense, RevenueBrand/Unit reportingChannel reporting – Direct, Business Partner, Web

Blue Insight user support2009: 72K users (exceeded 2009 objective of 55k)2010 objective: 120K users (currently 160K users have boarded)2011 projection: 200K users (expected to hit steady state)


Smart Analytics Cloud

IBM Smart Business - services with industry

leading hardware & software

A private cloud computing solution for business

analytics

A services solution for delivering business analytics to the entire

organization

Defined as … To create… That delivers …

A hosted analytics platform offering exists called the Smart Analytics Cloud (A private cloud optimized for analytic services in large enterprises)

Open, enterprise-class BI platform

Web OfficeSearchMobile

Cognos 8 BAA broad range of BI capabilities

IBM System zCentralize, Virtualize & Simplify the BI

infrastructure

IBM software

IBM hardware

Create awareness of BA and understand the needs for a BA strategy across the organization

Complete a readiness assessment to define the

IBM Services

Deploy Cognos 8 BA for Linux on System z as a private cloud

Provide the skills for the on going management & expansion of their BA private cloud deployment

scope and priorities for the solution


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


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 / DashboardsHarvest IP from solutions

Dynamic

160K


Business case : $25M over 5 years

Cloud enablers of business case

VIRTUALIZATION +STANDARDIZATION AUTOMATION+

Increased Flexibility

= Reduced Cost Increased

Flexibility

Z10 Infrastructure Common service definition

Web 2.0 Boarding application

Shared peripheral infrastructure

Common security Automated choreography & administration

Shared middleware Common promotion process

Predictive infrastructure planning

Shared Cognos V8 Common operations process

Fully automated provisioning

60% SavingsHW ConsolidationsSW Costs3rd Party vendor savings

35% SavingsOperations efficiencyDevelopment efficiencyImproved time to value

5% SavingsAdopter administration

- Future focus

• Achieved 2010 hard savings of over $5M and booked $5M of hard savings in 2011• IBM is delivering BI centrally for <20% of the cost of decentralized solution installation• True value is in a BI strategy that provisions standard tooling freeing the business to innovate.

Cloud attributes


BACC Business analytics success and maturity breed growth…

Common Compute Platform – System Z (Compute/ Network/ Storage)

Information preparation and

Warehousing

Business Analytics Center of Competence (BACC)

IBM Information Server and Warehouse

Business Intelligence

BACC Cognos

Predictive Analytics

BACCSPSS

W3 Portal Services

BACCBlue Insight Extension

BACC will extend standard services for Data preparation, predictive analytics and portal integration services…

Information Management Lifecycle

Future Current


Keys to a successful BACC


What’s needed for a successful centralized business analytics center of competency ?

Executive sponsorship of the CIO:– Extensive socialization of the notion of centralized services as being self service and necessary

for enterprise efficiency without sacrificing business agility

– Governance of licensing and infrastructure delivery of BI solutions

Know where BI investments are being made throughout the enterprise: “Follow the money”

– Control points in procurement and infrastructure delivery for new BI solutions

– Inventory and review planned investments in BI enterprise wide

Not all services for a particular business segment need to be controlled by the organization

– Cloud approach provides the tenant with central tools NOT central solutions

– Perception by adopters needs to be a ‘”self service” model, with extended services available

Positive business case:– Centralized service needs to produce real savings

– Conservative projection of 20-30% savings (IBM achieved > 50%)

ibm cloud forum april - blue insight final

Documents

business analytics trends

business insight

advanced analytics

analytics common services

ba tooling

operational ba

staff ba

successful bacc