Adam Gartenberg's Blog

Business Analytics and Optimization, IBM and Social Marketing

Live blogging the opening session of IOD EMEA

I arrived at The Hague this morning, and have made my way over to the World Forum center for the inaugural IOD EMEA conference.  I missed the very beginning of the opening session  (and wasn't able to get on the network to truly blog this live), but here are my notes from the IOD EMEA opening session this morning.

Ambuj Goyal:

Do you have an information agenda?

Companies usually have an application agenda, they have a process agenda, but when we ask about information agenda, we get differengt answers.

Want to bring info agenda to higher levels - is info being treated as a strategic asset.

Cash treated that way, HR treated that way. The question is - is information treated as strategic asset.

IOD is unlocking business value of information.  It's everywhere: can we harness it, make it a strategic asset that is managed, trusted, delivered in the right context.

Example - Volkswagon- 70% of people's time is spent looking for information, and only 30% in making intelligent decisions.   We want to flip the ratio.

The information challenge - information intensive business challenges.  Issues raised in CIO survey:
Customer loyalty
Cost efficiencies
Risk & Compliance
Mergers & Acquisitions

Information must become a strategic asset - companies using information effectively deliver 5x more value than other organizations.

Zurich Financial:  Started with simple workflow.  Then took it to process oprimization.  Then Information as an enterprise-wide, strategic asset.  Then optimizing across businesses.

Last few decades have been around application agenda - automating processes like HR, cliams, etc.  Now are moving to next level.  Instead of just automating finance, can I do a better job of managing risk.  Instead of just automated call centers, can I do better customer profitability.  It's all information based.

Our clients are spending 2 times more money into optimization space than automation space.  

When we think about use of information, we think about three tings - data, content to automate a process.  But data doesn't need to be subservient to that process.  Maybe I have info that can be used across diff. parts of the organization.  How do I convert it into a strategic asset.

Once have trusted information, can start doing business optimization.

Let's start to look at the technology.
When look across technology, whether organic or via acquisition - there is no better portfolio in the industry.  When started working in this domain, argument to IBM was well beyond ECM and data.  Wanted to focus on business problem and bring right tools in consistent, open architectual way to deliver value.  

Every tool have is in top of analyst waves or magic quadrants.  Don't want to be in the business if can't be best of breed.  It's not only the breadth of the tools, but the depth needs to excel, too.

Extreme innovation - Working with client with over 20 petabyte of info and want to analyze and deliver value in real time.  Structured and unstructured data.
Extreme transactions - the kind of reliability have in mainframe is being brought to distributed environment.
Extreme real-time - if want to understand patterns of trades in time that trades are happening, these technologies can't be disk based, must be memory based.
Extreme Consumability - Fast-tracking of information.  If create dashboard, click a button that creates star/database schema, that creates data integration, and deploys.  Mashups to create simple dashboards as quickly as possible.  Integrated data management so can create, model, sunset information easily. Business content services so go beyond what could do in ECM.

IBM invests over $1B a year in these technologies to create value for our clients.  

But technology alone is not panacea.  Yes, it's a great starting poitn and solves problems, and when looking for particular problem and tool, we have that. But is also about business processes and needs.

Cognos - enables deeper performaqnce management.  Brings everything to right KPI - Key Performance Indices.  A dashboard to understand what's happening in ECM.  And how as part of IBM, easier to do performance management related to content, data, and business processes in organization.

It's not just about technology - it's about technology,  processes, and people, if want to convert information to true strategic asset.

We deliver an amazing amount of capability through business partners.

Just like the last 2-3 decades have been about application agenda, next 2-3 decades will be on information agenda, and working with IBM and IBM partners, you're in the best hands.

{End of Ambuj's kenyote}

Now - two customers practicing this already.  Sorry - I missed the last names.
Jackie - UK Government in Dept. of Worker Pensions.  Project Manager working on IT solution for identity management.  Spent 18 months on this particular project.
Largest deparment in UK government.  115k staff and primary function is to support people out of work or to support people who can't work through benefit provision.  Split into three client based group.  
Information is key.  When get info from customer, need to assess their entitlement.
Volume of data - at end state will have 100M documents linked to ___M customers.  Built and testing solution to integrate with existing CRM system for end users..  Due to go live Oct. of this year.
Optimized and automated lot of processes, and what trying to achieve now is maximizing use of info that have not only in pension services but share across DWP.
Built on SOA as true shared service, and designed it so that can work with other client groups.  Have other groups set to start piloting shortly after first group goes live.
Led by business and their need to have info quickly and to deal with some of the most vulnerable people in society and in time of deep need - trying to put food on the table.
Are now integrating with CRM system.
Benefits - A lot fo potential for financial benefits, but key benefit is for customer service.  Today, dealing with paper can take up to 5 days to get from postal office to agent's desk, and then agent needs a day or two to assess and send payment.  Will now have same day response.  Creating workflow so agent prompted for same day. Documentation will appear electronically instantly rather than up to 5 days to get out of remote store.  52M paper files from remote storage, and retrieve 60M each year in addition to creating 30M new files each year.  Can't get at or use info when in transit.  Now will know where info is and have access much more quickly.  Shared info across client groups, and know that information is consistent, have a single source, etc.
Optimizing information is about ensuring we can prioritize customers in most need to get to the top of the list for processing, and share info across department.
Use same information that know is from reliable source and is accurate.  Gives financial benefits as it reduces # of people chasing files, delay in finding files, risk of papers getting lost or damaged while in transit.
What's next - Allow people to deal with the dept. any way they want (person, online, SMS maybe, etc.), and tie info together so when change address once, can share that across all depts. so don't need to change address with multiple departments (and that they see as one entity as the gov't.)  Also, see potential for self-service

Marcus - Fiducia
IT provider for over 800 banks in Germany.  Cooperative banks - special banks in Germany that are owned by their members.  Challenge is to provide IT for them.  Some with less than 10k customers, and some with 500k customers.
Business challenges - Increasing revenues, decreasing costs.  Have to offer right product mix, industrialize processes, but still have to react to changing customer needs.
Tried to give banks not only react to data and to manage customer relationship, to monitor it, but wanted to support sales process and allow them to act on data and provide optimized information, such as market potential that could influence sales planning.  Which customers are likely to buy a product.
Have to provide them with information to help them run their business.
Have external data so bank can see what their market share is and what they should use to fix overall target for revenue or volume for each product.  Can also use for distributed bank target across the organization - who has to carry which load of the target.
Benefits - If bank has overall CRM strategy, can gain 20-30% in revenues.  One of solutions is product scorecard - use data mining tool to find customers that don't have a particular product but have a similar profile to others that do own that product.  Increase response rate up to 8% and success rate up more than 300%.
Are building up overall BI infrastructure, based on data warehouse built on DB2.   Offered high flexibility to intregrate with existing solutions.  Also very short time to go live.

What have you learned?
Marcus - Not only learn about the past, but can proactively use it to generate business.  And it's not just IT - it's still the user that you enable to have more business, because he's the key factor.  It's not just for IT but to make sure you're enabling and motivating the user to use the information.
Jackie - Key lesson is to work with the business.  WHen first started 18 months started out as an IT enabler project, but now the realities was there was a split between thte business and IT side.  Went and integrated with the business.  The business doesn't know what they don't know, so do need expertise from IBM to understand how the business makes use of information and how could make a better use of information.

What's the business challenge?
Marcus - To build up integrated, flexible and standardized solutions.  Big range of customers, but showed that can have standardized solution based on one BI infrastructure, and flexibility for customers moving functionality and integrating data, and with standardization - still a big topic, getting data in and taking out for optimization purposes.
Jackie - give info extendable from CIO to 115k users.  Moving forwards it will be culture change - removing paper from user's desk is huge culture change, and think that will be biggest challenge.

{End of customer panel}

Both trying really hard to make seamless for the end user and customer.  They do the thinking, integration, and end users run the business.