IBM Information Management Accelerate information on demand with

IBM Information Management IBM LAUNCHES NEXT GENERATION OF BUSINESS INTELLIGENCE WITH DYNAMIC WAREHOUSING ARMONK, NY, MARCH 13, 2007 – IBM (NYSE: IBM) today unveiled a comprehensive strategy to enable dynamic warehousing, a new generation of business intelligence capabilities that enable organizations to gain real-time insight and value from their business information. Today’s announcement marks an important milestone in IBM’s industry-leading pursuit of the global Information on Demand growth opportunity, which is helping customers transform their businesses by using information as a strategic asset. © 2007 IBM Corporation

IBM Information Management 2 © 2007 IBM Corporation

IBM Information Management Leveraging Information to Create Business Value Insightful, Relevant Information When and Where it’s Needed Information On Demand − Optimize Each Transaction − Call Centers, Field Ops OLAP & Data Mining − Merchandising, Inventory, Operations Query & Reporting − Financials, Sales 3 Help Solve Crimes by Delivering Suspect List to Detectives Arriving at the Crime Scene Optimizing Police Force Deployments Crime Rate Reports © 2007 IBM Corporation

IBM Information Management Dynamic Warehousing A New Approach to Leveraging Information On Demand to Optimize Real-Time Processes Dynamic Warehousing OLAPDynamic & Data Warehousing Mining to Requires: Understand Why and 1. Embedded analytics Recommend Future Actionthat can be leveraged as part of a business process 2. Ability to incorporate knowledge from unstructured information Traditional Data 3. Support for real-time access to aggregated, cleansed information in context Warehousing 4. Complete set of integrated capabilities for Information on Demand Query & Reporting to Understand What Happened 4 © 2007 IBM Corporation

IBM Information Management More Examples of Dynamic Warehousing in Action Enabling Information On Demand for Business Advantage Traditional warehousing Insurance fraud analysis and reporting Reporting on customer issues Historical sales analysis and reporting Crime statistics and reporting 5 Dynamic warehousing Identifying potentially fraudulent claims prior to approval and payment Transforms healthcare Identifying possible related issues, churn risk and crosssell opportunities while engaged with the customer Transforms customer service Discovering relevant customer information to identify cross sell opportunities and improve negotiating position at the point of sale Transforms sales effectiveness Identifying related incidents and potential suspects prior to arriving at the crime scene Transforms crime fighting © 2007 IBM Corporation

IBM Information Management 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 mixed workload environments and the constantly changing needs of different business constituents require more dynamic warehousing capabilities Increasingly 6 © 2007 IBM Corporation

IBM Information Management IBM provides more than just a warehouse DB 2 Warehouse provides extended capabilities and value Embeddable analytics (Inline and as a Service) Beyond traditional structured data Multidimensional analysis Data mining and visualization Generate and leverage knowledge from unstructured information IBM DB 2 Traditional Warehouse warehouse OLTP Unstructured Structured DW DBMS “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 Benefits of a transactional Dedicated edge that challenges the DW DBMSs (such as Teradata)” data server foundation Deep compression warehousing Gartner Data. Reduced Warehouse Magic Quadrant, 2006 Optimized for real-time access, Shared-nothing architecture storage costs High availability and reliability Advanced data partitioning Better disk utilization Scalable, secure and auditable Workload management Query speed improvement 7 © 2007 IBM Corporation

IBM Information Management Dynamic warehousing Extending beyond the warehouse to enable information on demand Information integration Search and text analytics Enterprise data modeling Process management Traditional warehouse Industry perspective Master data management 8 © 2007 IBM Corporation

IBM Information Management How IBM Enables Dynamic Warehousing Integrated offerings to enable information on demand IBM Information integration Server ™ IBM Search Omni. Find and text Analytics analytics Edition IBM Enterprise Rational® data Data modeling Architect IBM Process File. Net BPM Web. Sphere management BPM Traditional IBM DB 2 warehouse Warehouse IBM Industry Data perspective Models IBM Web. Sphere Master data Customer Center management & Product Center SOA Infrastructure IBM Global Services 9 © 2007 IBM Corporation

IBM Information Management Integrated tools for dynamic warehousing Seamless integration of advanced information integration

IBM Information Management Integrated tools for dynamic warehousing Seamless integration of enterprise data modeling

IBM Information Management New Capabilities and Offerings to Enable Dynamic Warehousing Announced Today! § 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 Omni. Find 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 12 © 2007 IBM Corporation

IBM Information Management IBM DB 2 Warehouse software A complete, integrated platform Data mining and visualization In-line analytics Performance optimization Database partitioning Workload control Deep compression Data movement and transformation Administration and control Modeling and design Embedded analytics Database management IBM DB 2 Warehouse 13 © 2007 IBM Corporation

IBM Information Management Introducing IBM Balanced Warehouse. TM A fast track to warehousing Balanced Warehouse IBM DB 2® SIMPLE Warehouse FLEXIBLE OPTIMIZED Simplicity § Predefined configurations for reduced complexity. Configuration Unit (BCU) Balanced § One number to contact for complete Preconfigured, solution supportpretested allocation of software, storage and hardware to support a specified Flexibility for combination ofgrowth function and scale § Add BCUs to address increasing demands § Multiple on-ramps for different needs § Reliable, nonproprietary hardware for reusability Optimized performance § Preconfigured and certified for guaranteed performance Better than an appliance 14 § Based on best practices for reduced risk © 2007 IBM Corporation

IBM Information Management Introducing IBM Balanced Warehouse Solutions Flexibility to Meet Customer Specific Needs D-Class IBM Balanced Warehouse. TM Departmental Data Marts and Small to Mid-Size Data Warehouses E-Class IBM Balanced Warehouse. TM Large Enterprise Data Warehouses 1 TB to 5 TB 4 TB and up Modular Scalability Unlimited, Modular Scalability Mid-Range Hardware & Storage High End Hardware & Storage New Offering! 15 © 2007 IBM Corporation

IBM Information Management Announcing IBM DB 2 Warehouse 9. 1. 2 Offerings Flexibility to Meet Customer Specific Needs Advanced Edition Enterprise Base Edition Smaller Warehousing Applications and Data Marts that Require High Performance Characteristics Enterprise Warehousing Solutions Requiring Advanced Business Insight and Optimization through Analytics Departmental Data Marts, Basic Reporting Data Warehouses and SAP Business Warehouses Limited to 2 TB Unlimited Warehouse Size Administration & Control Tools Modeling & Design Tools Data Movement & Transformation Database Partitioning Workload Control Deep Compression Enhanced Capabilities! Data Mining & Visualization New Offering! 16 In-line Analytics © 2007 IBM Corporation

IBM Information Management Introducing New Offerings for the SMB Market Available from IBM Business Partners § Provide broader access to IBM’s leading DB 2 Warehouse technology § Simplified, affordable warehousing solutions that can be more easily leveraged by smaller organizations C-Class Starter Edition IBM Balanced Warehouse. TM Entry-point for Smaller Warehousing Applications and Data Marts Out of the Box Warehousing Solution for SMB Customers Intermediate Edition 30 Partners Already Signed Up! (includes out-of-the-box BI tools) Departmental Data Marts and Smaller Data Warehouses Limited to 400 GB Scales to 1 TB Limited to 1 TB Administration & Control Tools Includes Warehouse Tools Administration & Control Tools (Starter or Intermediate Edition) Modeling & Design Tools Data Movement & Transformation Database Partitioning 17 © 2007 IBM Corporation

IBM Information Management Deliver inline visualization and analytics Simplicity Extended Insight Embedded analytics capabilities Can be embedded directly into applications and Web pages Out-of-the-box visualization tools 18 © 2007 IBM Corporation

IBM Information Management Industry data models Leverage industry best practices for faster time to market Banking Financial Markets Health Plan (Banking Data Warehouse) (Financial Markets Data Warehouse) (Health Plan Data Warehouse) § Profitability § Risk management § Claims § Relationship marketing § Asset and liability management § Medical management § Risk management § Asset and liability management § Compliance Extended Insight New Offering! § Provider and network § Sales, marketing and membership § Financials Insurance Retail Telco (Insurance Information Warehouse) (Retail Data Warehouse) (Telecommunications Data Warehouse) § Customer centricity § Churn management § Merchandising management § Relationship management and segmentation § Claims Enhanced Capabilities! § Intermediary performance § Compliance § Risk management 19 Over 400 Customers! § Store operations and product management § Supply chain management § Compliance § Sales and marketing § Service quality and product lifecycle § Usage profile © 2007 IBM Corporation

IBM Information Management New features for warehousing on IBM System z servers IBM DB 2 z/OS is growing as a platform for warehousing § Growing demand for real-time query and reporting of operational data § Leveraging the traditional strengths of IBM System z™ servers— performance, availability, scalability and security—along with existing IT investments and skills New Features! § Structured query language (SQL) enhancements for improved query and reporting § New graphical analytics and reporting tools for System z servers, including interactive visual dashboards § Improved performance and scalability for query and reporting functions § Significant CPU time reduction for data copies and table/index management § Additional 10 percent to 15 percent improvement in virtual storage Mission-critical data warehousing 20 © 2007 IBM Corporation

IBM Information Management Services offerings Get started more quickly and leverage best practices Information on Demand Data Warehouse Services § Helping customers design solutions to drive fast, informed strategic business decisions Information on Demand Integration Services § Helping customers provide quicker access to all available information in the enterprise for more informed strategic business decisions IBM Global Technology Services § Faster implementation with less risk § A single, trusted source for reliable data § Better-informed decision making § Enhanced performance, availability and scalability of the warehouse environment § Optimization of existing data assets 21 © 2007 IBM Corporation

IBM Information Management Extended Insight Introducing IBM Omni. Find Analytics Edition § Rich analysis interface for combining structured and unstructured data § Combines search, text analytics and data visualization Unstructured analytics framework Original Data Category Structured Data Call Taker: James Date: Aug. 30, 2002 Duration: 10 min. Customer. ID: ADC 00123 [Call Taker] James [Date] 2002/08/30 [Duration] 10 min. [Customer. ID] ADC 00123 D: Complained about rejected claim for antibiotics; form req’d more information [type] complaint [issue] denied claim [service] prescription [resolution] add’l info Unstructured data 22 Extracted metadata Linguistic analysis Analysis tools Item Search, visualization and interactive mining ng e i in in M ng e © 2007 IBM Corporation

IBM Information Management 23 § Not-for-profit organization § Independent licensee of the Blue. Cross Blue. Shield Association § Leading health care provider in Tennessee § Employs more than 4, 300 people § Provides benefits to more than 15, 000 companies § Serving more than 5 million people § Pay more than 65 million claims and $16. 4 billion in health care benefits in a year © 2007 IBM Corporation

IBM Information Management Information Challenges Several thousand providers involved in multiple health care programs Different applications used to support different health care programs Provider information distributed across systems Critical knowledge buried in unstructured information Mission: Build a Provider Information Warehouse to deliver a Single View of the Provider 24 © 2007 IBM Corporation

IBM Information Management Key Business Goals § Improve Customer Service Better understanding of: – Previous healthcare provider issues – Particular business of the healthcare provider § Improve Negotiating Position and Sales Effectiveness Better understanding of: – All the business they are doing with the provider – Current and planned business focus of the provider – Terms of different existing agreements 25 © 2007 IBM Corporation

IBM Information Management Addressing Information Needs to Improve Business Information Needed Total provider revenue Number & types of claims Stored across different systems for each healthcare program Types of services provided Geographies serviced Could only look to historic claims – knowledge is buried in web subscription services & government web sites Terms of current agreements Providers have different agreements for different plans, with different terms, which are all buried in the contracts Customer service concerns 26 Information Challenge Addressed Could only determine number of complaints – information about actual concerns buried in free form description fields in call center systems & customer surveys © 2007 IBM Corporation

IBM Information Management Tapping into Unstructured Information § There is useful information embedded in unstructured content Example: Customer Service Call Records • • • 27 Issue Types Issues Conditions Resolutions Products/Services Company Specific Interests © 2007 IBM Corporation

IBM Information Management Barriers to Overcome § Cannot be easily consumed or made actionable in high volumes Why? • • • 28 Requires interpretation to extract usable knowledge Cannot be automatically calculated or graphed Cannot be part of computational transactions Does not lend itself to easy automatic classification Contains multiple facts, or data points © 2007 IBM Corporation

IBM Information Management Provider Information Solution (Web. Sphere Portal) Business Context Data & Content Provider Information Warehouse Search Index (DB 2 Warehouse) (Omni. Find) Information Integration Unstructured Information Processing (Information Server) (Omni. Find) Claims Processing 29 Insightful Relationships Customer Service Contracts Subscript Svcs (Provider Demographics) UIMA Annotators TN. gov (Provider Svc & Facility Apps) © 2007 IBM Corporation

IBM Information Management Solution Outcome § Ability to identify issues and issue types in call center notes Sample Issue Types • • Request Denied Claim Late Payment Poor Service Sample Issues • Additional Information Required • Incorrect Submission • Refile 30 © 2007 IBM Corporation

IBM Information Management Additional Benefits § Customer Service üGained insight into trends, underlying issues, bottlenecks üAnalyze customer satisfaction feedback to understand results more quickly § Claims Processing üDetect errors during claims processing üDetect possible fraud üIdentified opportunities to improve processes 31 © 2007 IBM Corporation

IBM Information Management 32 © 2007 IBM Corporation

IBM Information Management Business Advantage through Information on Demand Relevant information on demand improves customer service and sales Challenge § Needed more information to better understand customer issues § Lack of complete information hindering sales negotiations § Providers involved in multiple health care programs with structured and unstructured information distributed across systems Key to success § In-context delivery of knowledge from structured and unstructured information distributed across the organization and beyond 33 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 prior issues and access to demographic and service offerings for improved support © 2007 IBM Corporation

IBM Information Management IBM is the leading provider of data warehousing Industry leaders use DB 2 for warehousing 11 of the top 12 banks 7 of the top 8 auto manufacturers 5 of the top 6 insurance companies 4 of the top 6 general merchandisers 4 of the top 5 specialty retailers 3 of the top 4 food and drug stores IBM is ranked as a leader in Gartner’s “Magic Quadrant for Data Warehouse Database Management Systems 2006. ” 34 © 2007 IBM Corporation

IBM Information Management IBM enables dynamic warehousing Delivering greater value from information § More dynamic and balanced approach to warehousing is key § Broad set of capabilities beyond the warehouse required § IBM provides the most comprehensive platform to address these needs 35 © 2007 IBM Corporation

IBM Information Management Thank You © 2007 IBM Corporation

IBM Information Management Copyright information © Copyright IBM Corporation 2007 IBM Corporation Software Group Route 100 Somers, NY 10589 U. S. A. Produced in the United States of America 03 -07 All Rights Reserved. DB 2, IBM, the IBM logo, Omni. Find, Rational and System z are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries or both. Other company, product and service names may be trademarks or registered trademarks or service marks of others. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. 37 © 2007 IBM Corporation