Cognos and SPSS Putting Business Analytics to Work

Cognos and SPSS: Putting Business Analytics to Work Simon Ng Senior Client Technical Professional, Business Analytics, IBM HK

Business Analytics and Optimization is the next big investment area for companies – similar to ERP or CRM in the past Transactional Automation Resource Planning • Task / Process Automation • Recording & Reporting • Business Efficiency • Aggregation and Data Warehousing $566 B 3% CGR* Business Process Management • Cross-functional Integration • Performance Measurement Business Analytics & Optimization • Enterprise Integration • Detection, Direction & Prediction $105 B 8% CGR* Source: IBM Analysis on addressable market opportunity based on GMV 1 H 09 data; includes addressable Hardware, Software and Services opportunity. CGRs 2009 -2012 3

IDC Business Analytics Software Market ’ 09 Market Estimate, projected 08 -09 growth, 5 yr CAGR 08 -13 Business Analytics Software $25. 1 B 3. 9% 7. 2% Performance Management Tools and Applications Analytic Applications Business Intelligence Tools $8. 7 B 3. 3% 7% Financial Performance & Strategy Mgmt Analytics Budgeting, planning, consolidation, profitability mgmt/ ABC, scorecards $8. 1 B 4. 4% 6. 9% CRM Analytics Sales, customer service, contact center, web site analytics, marketing, price optimization Supply Chain Analytics Services Operations Analytics Related to procurement, logistics, inventory, manufacturing Operational analytics in financial services, education, government, healthcare, etc. 1. 8% 5. 1% Production Planning $1. 2 B 1. 1% 4. 3% Includes dashboards, production reporting, OLAP, ad-hoc query $1. 9 B 4. 5% 9. 6% $2. 3 B 5. 1% 8. 1% $1. 6 B Query, Reporting and Analysis $6. 5 B 4. 2% 6. 9% Advanced Analytics Includes Data Mining and Statistics $1. 6 B 5. 2% 7. 1% $1. 4 B 2. 1% 5. 1% Workforce Analytics Analytic Spatial Info Mgmt Tools $0. 23 B 6. 1% 7. 8% Data Warehouse Platform DW management and DW generation (ETL+ portions of Data Quality) $7. 5 B 4. 1% 7. 9% Source: IDC Worldwide Business Analytics Software 2008 -2012 Forecast and, July 2009 $0. 7 B 4. 0% 6. 5%

IBM Investing in Business Analytics • Over $12 B in software investments since 2005 • A top IBM Corporate Growth Priority for 2010 • Extensive internal deployment of Analytics to Improve IBM Business Performance • New division for Business Analytics • Over 4, 000 dedicated BAO consultants • Creation of 6 BAO Analytic Solution Centers • Strong linkage to Large Math Department focused on Computational Mathematics and real world applications “IBM, not SAP or Oracle, is now the industry's premo analytics solution/platform vendor…” 5

IBM is Helping Clients Maximize Results with Innovation That Matters • $14 B+ in Acquisitions Since 2005 • 10, 000+ Technical Professionals • 7, 500+ Dedicated Consultants Social Analytics/Consumer Insight • Largest Math Department in Private Industry Workload Optimized Systems • 27, 000+ Business Partner Certifications Advanced Case Management Content Analytics • 8 Analytics Solutions Centers Decision Management • Optimized hardware and software offerings • 100 analytics-based research assets; almost 300 researchers • Significant marketing investment worldwide through Smarter Planet Pervasive Content pure. Scale pure. XML Deep Compression Developer Productivity Autonomic Operations 2005 6 Stream Computing 2011

BAO Gives Businesses an Entirely New Way to Compete But Most Have Yet to Take BAO the Full Distance and need a Journey Partner Breakaway Prescriptive, real-time, pattern-based strategies with situational context Business process integration (e. g. , CRM) and collaboration How the business applies information to achieve its goals Policies • Business Processes • Organization • Business operations maturity Differentiating Process automation and workflow Competitive Task integration (e. g. , ERP) Foundational Command control Ad hoc Data warehouses, governance and production reporting Master data management, dashboards and scorecards Spreadsheets and extracts Information and analytics maturity How the business manages information and learns from it Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations available in late 2009 at www. ibm. com/gbs/intelligent-enterprise Predictions, contextual business rules and patterns

Prescriptive Whole Information Stack - Traditionally or Virtually • • • 8 Open Heterogeneous Leverage, IBM Compelling Industry Recognized Leadership in each Category Packaged, prescriptive solutions Graduate from Entry Points without the need to re-tool/ re-vendor Optimized Delivery including Virtualization, Appliances, SAAS/Cloud (consider how to further leverage Z Series which has the multitenancy, scale, and Green IT positive footprint for Enterprise 2. 0) Portals Dashboards BI/PM Capabilities Enterprise Content Management and Enterprise Search On-Dem orm atf Web Pl Metadata Management/Dimensionality Master Data Management ETL/Data Warehouse/Data Movement /Data Quality Database

Best in Class – Performance Management Enterprise Planning – combining the best of Cognos Planning and TM 1 to achieve high user and high model/ data scale - Driver and Action Based Pervasive Planning Real-Time Metric Management Enterprise Consolidation GRC solutions to drive accountability-based platform with Scorecards/Dashboards, Financial Controls in Consolidation and Planning, Records Management Enterprise Ready, Simplicity, Ease-of-use, “owned by the business” 9

Enterprise 2. 0 - Capture the Hearts and minds of the Next Generation Knowledge Worker 10 Search and Social Networking convergence with Performance Management Collaborative Decision Making and Decision Capture Collaborative Tagging (Folksonomy), Touch and Tele. Presence Current Generation: Linking information to make the decision makers more effective Surround data with metadata to create an information network Next Generation: Linking the decision makers to make the enterprise more effective Surround people with metadata to create a decisionmaking network Enterprise spending on Web 2. 0 expected to grow 43% to 4. 6 B in 5 years - Forrester Research

Competitive Advantage Analytics Landscape & IBM’s Software Footprint in These Areas Stochastic Optimization How can we achieve the best outcome Prescriptive including the effects of variability? Optimization How can we achieve the best outcome? Predictive modeling What will happen next if ? Forecasting What if these trends continue? Simulation What could happen…. ? Alerts What actions are needed? Query/drill down What exactly is the problem? Ad hoc reporting How many, how often, where? Standard Reporting What happened? Predictive Descriptive Degree of Complexity Based on: Competing on Analytics, Davenport and Harris, 2007 11

IBM BA Broad and Complete Portfolio 12

IBM BAO - Leadership Portfolio BI Warehousing CPM Data Mining Data Integration

Business Analytics Drivers Information Growth Worldwide volume of digital data was 800, 000 petabytes in 2009, 1. 2 million petabytes in 2010, 35 million petabytes by 2020 Volume of Digital Data Industry Specific Business Users Evolving Role centric capabilities are giving way to different styles of interaction driven by business need Customer Changing Workforce Business Pace Accelerating Human Capital Today’s online business cycles are 3 -7 times shorter Supply Chain Speed of Business Intelligence 14 Predictive and Advanced Analytics Financial Performance & Strategy Management Governance Risk and Compliance BAO SIMPLIFICATION AND INTEGRATION Analytic Applications Globally Integrated, Market Leading Capabilities ANALYTIC AREAS Finance

Strategic Focus on Business Intelligence Industry Specific Finance Customer Human Capital Supply Chain Business Intelligence 15 Predictive and Advanced Analytics Financial Performance & Strategy Management Governance Risk and Compliance BAO SIMPLIFICATION AND INTEGRATION Analytic Applications Globally Integrated, Market Leading Capabilities ANALYTIC AREAS Continued investment to Address Key Business Problems: Business users want to explore data , but User Interfaces are too complex Reporting on corporate history is insufficient to ensure good business decisions Data Volumes and User Counts are growing but IT budgets are not Business Intelligence needs to be available pervasively, not isolated in BI applications

Strategic Focus on Finance and Risk Plan, forecast and control enterprise resources; Measure, analyze and optimize performance; Identify and manage key business risks across the enterprise; Report to external stakeholders with confidence Business Intelligence 16 Predictive and Advanced Analytics Financial Performance & Strategy Management Industry Specific Financial Performance & Strategy Management Finance Enterprise Governance Risk and Compliance Customer AND • Business Intelligence • Predictive Analytics • Enterprise Information Management Governance Risk and Compliance BAO SIMPLIFICATION AND INTEGRATION Business Analytics Solutions Human Capital Supply Chain Globally Integrated, Market Leading Capabilities ANALYTIC AREAS IBM’s offerings provides a set of pre-integrated solutions, built on our highly scalable platform to:

Strategic Focus in Financial Performance & Strategy Management Investment areas: User-centered innovation to support individual insight and collective agility Drive pervasive reach deeper and across functional domains Unify processes to drive speed and confidence Ensure continuous relevance with information integration and governance Industry Specific Finance Customer Human Capital Supply Chain Business Intelligence 17 17 Predictive and Advanced Analytics Financial Performance & Strategy Management Governance Risk and Compliance BAO SIMPLIFICATION AND INTEGRATION Analytic Applications Globally Integrated, Market Leading Capabilities ANALYTIC AREAS Meet Financial Governance Integrate Challenge Risk Manageme nt Pervasive Practice Drive Performance

Business Analytics Solutions Industry Specific Customer Human Capital Supply Chain Business Intelligence 18 Predictive and Advanced Analytics Financial Performance & Strategy Management Governance Risk and Compliance BAO SIMPLIFICATION AND INTEGRATION Business Analytics Solutions Globally Integrated, Market Leading Capabilities ANALYTIC AREAS Finance

Strategic Focus on Predictive and Advanced Analytics • Full breadth of predictive analytics • • Data collection, statistics, data mining, predictive modeling, deployment services… Industry Specific Putting Prediction in the Hands of the Business User Decision Management • Massively scalable analytics Integration with Cognos Platform and products Finance Extending Built-in Domain Expertise and Configurability Customer with Industry solutions • • • 17 domain packs (including Insurance and Marketing…) Built in Solutions for Sales and HR Deployment Flexibility Human Capital Supply Chain Business Intelligence 19 Predictive and Advanced Analytics Financial Performance & Strategy Management Governance Risk and Compliance BAO SIMPLIFICATION AND INTEGRATION Business Analytics Solutions Globally Integrated, Market Leading Capabilities ANALYTIC AREAS • • •

How Predictive Analytics Provides Value: Harmonizing Decisions Across the Enterprise Define the Strategy Years Months Run the Busines Weeks Days Hours Now Time to Business Impact Improve senior management visibility with Key Performance Predictors Strategic 20 Improve policy makers’ decisions with Forecasts and Optimization Tactical Help individual contributors take the Next Best Action Operational

Strategic Focus on Customer Industry Specific Threat & Fraud Management: Campaign & Promotion Management: Finance Multi-Channel Customer Experience Optimization: Customer Insight Optimization: Human Capital Customer Information Optimization: Supply Chain Business Intelligence 21 Predictive and Advanced Analytics Financial Performance & Strategy Management Governance Risk and Compliance BAO SIMPLIFICATION AND INTEGRATION Business Analytics Solutions Globally Integrated, Market Leading Capabilities ANALYTIC AREAS IBM’s Customer Care & Insight offerings address understanding customer patterns through analytics, identifying target customers and linking the findings with the business processes as actions to provide better customer value and/or prevent fraud and risks

Predictive & Customer Analytics We provide analytics that listen, measure and analyze social media performance to more effectively: Grow Your Business Enhance Your Reputation Improve your customer experience Understand your customer needs to target new offers and products more cost-effectively through different social media channels Evaluate your corporate reputation and make evidence-based messaging decisions that target the right stakeholders at the right time Respond more quickly with accurate, timely and relevant insight into customer requests to ensure a consistent brand experience across all channels Create Relationships. Build Advocacy. Improve Loyalty. 22

IBM Cognos Consumer Insight Business Drivers Competitive Analysis Corporate Reputation Campaign Effectiveness Source Areas FACEBOOK BLOGS DISCUSSION FORUMS TWITTER NEWSGROUPS MULTILINGUAL 23 Customer Care Product Insight Product Capabilities COMPREHENSIVE ANALYSIS Keyword Search Dimensional Navigation Drill Through to Content AFFINITY ANALYTICS Relationship Tables Relationship Matrix Relationship Graph SENTIMENT Dimensional Analysis Filtering Voice EVOLVING TOPICS Relevant Topics Associated Themes Ranking and Volume

Business Benefit Advanced analytics extending from the domain of science & engineering to the world of business • Fueled by the availability of data, computational power and the need to make better choices Analytics • IBM is positioned for leadership in the new era of data-driven business management Data • IBM's advanced analytics capability is a marketplace differentiator • Our collaboration with clients is enabling discovery in new areas Models • Significant research opportunity remains Insight 24

Synergy across IBM Software to Deliver Strategic Solutions Collaboration • Collaborative decision-making Strategic Initiatives that Drive Synergy Requirements • Collaboration for decision making • Business Optimization and process • Information Agenda • Governance and Regulatory Compliance partnership • Increased user adoption Trusted Information ECM • Trusted information (data lineage, business glossary) • Advanced analytics – in database mining • Streams and Entity Analytics • Workload optimized systems (i. e. IBM Smart Analytics System) • Cognos Content Analytics • Governance & Compliance • Content management Business Analytics • Business Intelligence • Financial Performance Management • Information Applications • Predictive Analytics Business Integration & SOA Development & Project Management Tools • Standardization / TCO • Workload Optimized Systems 25 25 Security & System Management Rules ing

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