IBM Information Management Notes to presenter This deck

IBM Information Management Notes to presenter: § This deck includes the base slides for a 60 minute presentation of our dynamic warehousing story – it is designed to introduce our dynamic warehousing message to customers, along with some of the new offerings related to this announcement, including the IBM Balanced Warehouse, and highlight some of the key differentiators of our DB 2 Warehouse platform § There is typically not enough time to go through all of the components of DB 2 Warehouse, but slides have been included in the backup section to review the rest of the components (along with two additional customer stories and some extra slides that didn't make the cut) – these could be used if you have extra time, or if you want to pull together a follow on presentation that goes into more detail. § The main presentation has completely scripted speaker notes (only some of the back up slides have speaker notes) – there are several build slides, so be sure to view it in presentation mode and page down or click when you see the [click for transition] cues in the speaker notes. § DELETE THIS SLIDE PRIOR TO YOUR PRESENTATION 0 © 2007 IBM Corporation

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

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 2 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 OLAP & Data Mining to Dynamic Understand Why and Warehousing Recommend Future Action Dynamic Warehousing Requires: 1. Real-time access – in context Traditional Data 2. Analytics – as part of a business process Warehousing 3. Unstructured information – extracted knowledge Query & Reporting 4. Extended infrastructure – tightly integrated to Understand What Happened 3 © 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 Dynamic Warehouse Industry perspective Master data management 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 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 © 2007 IBM Corporation

IBM Information Management Why is it a challenge for organizations to leverage information effectively? Information distributed in silos across the organization Volume and variety of information increasing Velocity of business driving real-time requirements Not accurate Not complete Not trusted Not timely Increased need to aggregate and analyze information dynamically 6 © 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 7 © 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 8 © 2007 IBM Corporation

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

IBM Information Management Warehousing strategic pillars Guiding principles for innovation Simplicity Easy to deploy and integrate Easy to use Easy to manage Easy to start and grow as needed 10 Reliability & Performance Extended Insight Reliable access to information Highly available Real-time performance Maximized resource efficiency Beyond traditional capabilities Further leverage information Extended business insight Support broader usage © 2007 IBM Corporation

IBM Information Management IBM DB 2 Warehouse software A complete, integrated platform Data mining and visualization In-line analytics Performance optimization Data partitioning Workload control Deep compression Data movement and transformation Administration and control Modeling and design Embedded analytics Database management IBM DB 2 Warehouse 11 © 2007 IBM Corporation

IBM Information Management Introducing IBM Balanced Warehouse. TM A fast track to warehousing Balanced Configuration Unit (BCU) Simplicity Preconfigured, pretested allocation of software, storage and hardware to support a specified combination of function and scale § Predefined configurations for reduced complexity § One number to contact for complete solution support SIMPLE FLEXIBLE OPTIMIZED Balanced Warehouse Flexibility for growth § 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 § Based on best practices for reduced risk Better than an appliance 12 © 2007 IBM Corporation

IBM Information Management Embedded mining with integrated tools Simplicity Extended Insight Seamless integration of analytics capabilities Drag-and-drop interface Seamlessly add specific analytics and mining operations into a data flow and specify the attributes in the pane below Filter required data directly in the warehouse Get the subset of products that you are interested in performing market basket analysis on. Integrated data movement and transformation capabilities allow you to do to this in line within mining processes. 13 © 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 14 © 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 15 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 Integrated tools for dynamic warehousing Simplicity Seamless integration of advanced information

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

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 18 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 19 © 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 20 © 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. ” 21 © 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 22 © 2007 IBM Corporation

IBM Information Management Backup Charts © 2007 IBM Corporation

IBM Information Management 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 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 24 © 2007 IBM Corporation

IBM Information Management Reliability & Performance Data Partitioning § Partition a database within a single server or across a cluster of servers – Scale to support very large data sets – Minimize impact of complex workloads – Provide increased parallelism for administration tasks 25 © 2007 IBM Corporation

IBM Information Management Reliability & Performance Workload Control Complex Strategic Queries Short Tactical Queries Streaming Updates and Batch ETL “Query Traffic Corp” • Control the flow of queries • Prioritize queued queries • Automatically put larger queries on hold (can be canceled or scheduled to run during off peak hours) • Cancel runaway queries • Queries submitted by certain users can be given higher execution priority “Accountant” • Keep a lid on “cost” • Real-time & historical query-execution stats • Reports on: • which data is being accessed most frequently • which data is NOT being accessed • users or groups generating most workload 26 © 2007 IBM Corporation

IBM Information Management Reliability & Performance Deep Compression § NULL and Default Value Compression – No disk storage consumed for NULL column values, zero length data in variable length columns and system default values 3 x 2 x better § Multidimensional Clustering – Significant index compression can be achieved through block indexes – One key per thousands of records (vs one key per record with traditional indexes) § Database Backup Compression – Smaller backup images; compress index and long tablespaces § Data Row Compression § Dictionary based - symbol table for compressing/decompressing data records 27 © 2007 IBM Corporation

IBM Information Management Performance Improvements with Compression Reliability & Performance Reduced storage costs –

IBM Information Management Simplicity Embedded Data Movement and Transformation § Design – Logical ER design with Rational Data Architect plug-in – Physical Design • Reverse engineer existing systems • Deploy data partitioning § Extract, Load & Transform – JDBC interface for non DB 2 sources – SQL based data transformations § Scripting – Develop Data flows / data-mining flows, Datastage jobs, Run. Stat, Reorg – E-mail notification § Cube & MQT Definition § Data Mining – Data normalization/ internal database execution § Debugging and Testing – Offline testing 29 © 2007 IBM Corporation

IBM Information Management Simplicity Warehousing Made Simple Common Eclipse Based Design Studio for All Administration Control Flow SQL Generated From Data Flow Data Warehouse Project Enterprise Schema 30 Data Flow © 2007 IBM Corporation

IBM Information Management Extended Insight Data Mining Enhancing Business Insight with Predictive Analytics Business Analyst DB 2 Warehouse Extracted Information Assimilated Information Data Selected Warehouse Data Select Transform Mine Assimilate Statistician & Data Mining Workbench 31 § “Easy Mining” algorithms – Associations • Which item affinities (“rules”) are in my data? • [Beer => Diapers] …single transaction – Sequences • Which sequential patterns are in my data? • [Love] => [Marriage] => [Baby Products] …sequential transactions – Clustering • Which interesting groups are in my data? • …customer profiles, store profiles – Classification • How to predict categorical values in my data? • …will the patient be cured, harmed, or unaffected by this treatment? – Prediction • How to predict numerical values in my data? • …how likely a customer will respond to the promotion • …how much will each customer spend this year? § Score data directly in DB 2, scalable and real time © 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! 32 © 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! 33 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 34 © 2007 IBM Corporation

IBM Information Management What is the value of information? Information availability is key to addressing business challenges Business challenge Impact of information availability Optimize business processes § Ability to make better decisions, faster Improve customer service § A more holistic and accurate picture of customers and their needs Increase employee productivity § Less time wasted searching for answers Reduce risks and address regulatory compliance § Greater transparency provides ability to avoid risks and detect potential threats More than 60% of CEOs need to do a better job leveraging information 35 70% of employee time spent searching for relevant information © 2007 IBM Corporation

IBM Information Management The need for information on demand Complexity demands a more dynamic and architected approach Applications People and processes Applications Open standards Flexible architecture Warehouses Transactions 36 Transactions Documents © 2007 IBM Corporation

IBM Information Management Information on Demand is needed Where can business insights provide the most value? Who is using business intelligence tools today? Who can get most value out of business insights? 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 IT 37 Power Business (Analysts) (Managers) Casual Extended (Front Line) IT Power Business Casual Extended (Analysts) (Managers) (Front Line) © 2007 IBM Corporation

IBM Information Management Business Advantage through Information on Demand Faster access to information improves business performance Challenge Company profile § Integrate disparate data sources to support more accurate store and product performance analysis § A leading specialty retailer of children’s clothing § Speed responsiveness to changing business conditions and better understand store and product performance information Business benefits 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 38 § 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 © 2007 IBM Corporation

IBM Information Management Business Advantage through Information on Demand Visibility into relevant information improves customer service and sales 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 39 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 © 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. 40 © 2007 IBM Corporation