Why care

2013 IBM Corporation

Intrinsic Property of Data it grows

90%
of the worlds data was created in the last two years

80%
of the worlds data today is unstructured

20%
of available data can be processed by traditional systems

1 in 2
business leaders dont have access to data they need

83%
of CIOs cited BI and analytics as part of their visionary plan

5.4X
more likely that top performers use business analytics
2013 IBM Corporation

2 Source: GigaOM, Software Group, IBM Institute for Business Value"

Data is the new Oil

In its raw form, oil has little value. Once processed and refined, it helps power the world.

Big Data has arrived at Seton

Health Care Family, fortunately accompanied by an analytics tool that will help deal with the complexity of more than two million patient contacts a year

At the World Economic Forum

last month in Davos, Switzerland, Big Data was a marquee topic. A report by the forum, Big Data, Big Impact, declared data a new class of economic asset, like currency or gold.

Increasingly, businesses are applying

analytics to social media such as Facebook and Twitter, as well as to product review websites, to try to understand where customers are, what makes them tick and what they want, says Deepak Advani, who heads IBMs predictive analytics group.

Companies are being inundated

with datafrom information on customer-buying habits to supplychain efficiency. But many managers struggle to make sense of the numbers.

now Watson is being put to work digesting millions of pages of research, incorporating the best clinical practices and monitoring the outcomes to assist physicians in treating cancer patients.

Data is the new oil.

Clive Humby
3 3

The Oscar Senti-meter a tool developed by the L.A. Times, IBM and the USC Annenberg Innovation Lab analyzes opinions about the Academy Awards race shared in millions of public messages on Twitter.

2013 IBM Corporation

How did we get here?

2013 IBM Corporation

2013 IBM Corporation

As was true in prior eras, the 4th era may increase ITs share of worldwide GDP to 4% by 2030
Worldwide IT Spend as % of N-GDP
4%

Worldwide IT Spend as % of GDP

3%

2%
3rd era of IT

4th era of IT
2nd era of IT 1st era of IT Personal Computing

1%

Internet Computing

Smarter Planet

0%

Mainframe

UNIX OS DEC PDP-8 minicomputer IBM 7000 mainframes with transistors IBM PC Apple-1 MS Windows 3.0; WW Web

Cloud Computing Mobility eBusiness Apps Netscape IPO

New IT/business architectures Vertical solutions Cross-industry solutions

Learning systems

Advanced robotics
Smart-net

Source: IBM Market Analysis extrapolated from IDC Black Book for IT and IBM Corp Finance for N-GDP, Forrester Research Next Wave of IT Investment is Smart Computing Jan 2010, IBM 6 Research GTO 2011 Frontiers of IT

2013 IBM Corporation

The world is changing and becoming more

2 Billion internet users

7

4.6 Billion mobile phones

2013 IBM Corporation

A growing Interconnected and Instrumented World

30 billion RFID 500+ Million
users posting 55 Million tweets every day tags today (1.3B in 2005)

4.6 billion
camera phones world wide

1.2 Trillion

searches

2012

100s of millions of GPS enabled

devices sold annually

1+ Billion
active users spending 700 Million minutes per month
8

2+ billion 76 million smart

meters in 2009 200M by 2014
people on the Web by end 2011
2013 IBM Corporation

What is it?

2013 IBM Corporation

What is it NOT!

Big Data is Primarily for large datasets

We will have to replace all our old systems in a new world of big data Big Data is only Hadoop

Older transaction data doesnt matter any more

Traditional RDBMS Data Warehouses are a thing of the past Big Data is for the internet savy companies. Tradition business are immune We do not have the need nor the budget nor skills, so we dont need to worry

10
2013 IBM Corporation

The characteristics of big data

Cost efficiently processing the growing Volume

50x

Responding to the increasing Velocity

35 ZB
2020

30 Billion
RFID sensors and counting

Collectively Analyzing the broadening Variety

80% of the
worlds data is unstructured

2010

Establishing the Veracity of big data sources

1 in 3 business leaders dont trust

the information they use to make decisions

11
2013 IBM Corporation

Big Data brings new opportunities

Data Scale

Traditional Data warehouse & Business Intelligence Data in Motion

yr mo wk day hr min sec ms s

Data at Rest

InfoSpher e Big Insights

Streams filters incoming data

Streams reuses in-database Analytics Persistent Data In-Motion Data

Occasional

Frequent

Real-time

Decision Frequency

Source: Global Technology Outlook 2011

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2013 IBM Corporation

Harness the Power of Big Data & Analytics for Improved Business Outcomes in Banking

2013 IBM Corporation

Dramatic forces across the industry require new approaches to help maximize profitability and returns

Turbulent Global Economy

Increased Regulations

Competition for Wallet Share

Capital and Liquidity Pressures

Emboldened Customers

Net Margin Pressures

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2013 IBM Corporation

To address these challenges, big data presents a huge opportunity if banks can harness it
Volume Velocity Variety

180

million

trillion

40

million

Loan records analyzed per day

Calculations of securities data in 1 minute

Emails analyzed per month

Analyze more loans for risk and patterns of fraud

say they dont trust Uncover risk and the information Dig deep to discover they identify opportunities customer sentiment use to make faster decisions and attitudes than ever before

Establishing the Veracity of big data sources

15

1 in 3 business leaders dont trust the

information they use to make decisions

2013 IBM Corporation

Is Big Data something new (dont we do it already today)?

Existing methods may be sufficient, but additional insights could be surfaced
Business Insights Customer
(basic) propensity to buy

Customer
(basic) satisfaction level

Untapped Insights
(advanced) across Customers, the Marketplace and Operations

Operations
(historic) failure events

Sales support

Complaints resolution

Issues ticketing

Data

Untapped Data
data entry web forms

IVR

Contact Centre

Full breadth of direct customer interactions Customer interactions with others Economic and environmental monitors Full depth of company processes & systems

data entry

Systems Support

Events & Activities

Direct transactions & customer interactions

Customer interactions with others (3rd party, social)

Economic and environmental monitors

Company processes & systems

16
2013 IBM Corporation

Studies show that two thirds of banks have big data activities underway
Customer-centric analytics is the primary functional domain to leverage big data capabilities

Big Data Activities

Financial Services
2% 16%
Customercentric outcomes Operational optimization

50%
21%

Risk / financial management

New business model Employee collaboration

11%

17

Source: The real world use of Big Data, IBM & University of Oxford
17

2013 IBM Corporation

$GM uses BigInsights as their landing zone to augment their EDW Enterprise Data Warehouse (EDW)

BNP PARIBAS Bank performs social data analytics leveraging BigInsights to enhance their 360o View of the Customer
.

USAA is using BigInsights to run analytics model for their fraud detection at scale

HSBC uses Hadoop-based solution as their landing zone to augment their EDW Enterprise Data Warehouse (EDW)

18
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19
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20
2013 IBM Corporation

Imagine if you had all the answers you need to win

21
2013 IBM Corporation

Top Use Cases for Big Data and Analytics in Banking & Financial Markets

Create a customerfocused enterprise

Optimize Offers & Cross Sell Call Center Efficiency &

Optimize enterprise risk management

Fraud Detection & Investigation Counterparty Credit Risk Security Risk Management

Problem Resolution

Increase flexibility & streamline operations

Data Staging & Management
System Log Analysis System Failure Analysis
22
2013 IBM Corporation

The current state of customer management for most banks

Limits cross-sell success & provides a poor customer experience I have an offer let me find a customer to sell to.
Customer Needs and Segment Strategies
Mass Market | Mass Affluent | Small Business

Deposits

Offer Offer Offer

Offer Offer Offer

Direct mail

Relevance? Awareness? Value? Understanding? Clarity?

Customers Point-of-View
You do not know me or understand my needs. You ask me multiple times about the same thing.

BC

Card

Offer Offer Offer

Offer Offer Offer

Agent, IVR

Most of your suggestions are for products & services that seem irrelevant to me.
Online, email

Mortgage

Offer Offer Offer

Offer Offer Offer

I am not offered solutions based on my multiple relationships.

ATM

Investments

Offer Offer Offer

Offer Offer Offer

Mobile, SMS

When you recognize that I have a need, you send me multiple offers for different products its confusing.

Chat

customer insight is limited to a sub-set of available data limiting the relevance & timeliness of offers to
23

customers
2013 IBM Corporation

Does this sound familiar?

Today we treat Aki like any other customer in her segment but Aki is an individual Bank: Hi <NAME>! Can we interest you in a credit card?

Aki: Oh, look! More junk mail from the bank

24
24

2013 IBM Corporation 2013 IBM Corporation

By using only our limited segmentation, we treat Aki like anyone else
Aki holds a mortgage and Action a savings account with us Cash Management Acct.
Impact on Retention Likelihood Impact on to respond Customer positively Lifetime Value to action

Set meeting with Private Banking & Wealth Mgt. Advisor for a Portfolio Review

Equity Bank Line / Secured Line-of-Credit Akis current

credit score & profitability her for Preferredqualifies Gold Credit Card a preferred rate
25
25

2013 IBM Corporation 2013 IBM Corporation

Information helps us understand how Aki is different, but do we use it?

Aki holds a mortgage and a savings account with us

Aki has also Last week posted property Aki asked the photos to Call Center Facebook about loan asking friends processing to vote times This week, she checked mortgage rates on the Web Site three times And today shes Akis current tweeted a link credit score & to an article profitability about buying a qualifies her for second home a preferred rate

26
26

2013 IBM Corporation 2013 IBM Corporation

By using all the information we can make our service unique to Aki
Aki holds a Impact on mortgage and Action Retention Aki has also a savings Last week posted property account with Aki asked the photos to us Cash Management Call Acct. Center Facebook about loan asking friends processing to vote times This week, she
Preferred Gold Credit Card

Likelihood Impact on to respond Customer positively Lifetime Value to action

Equity Bank Line / current Akis Secured Line-of-Credit

checked mortgage rates on the Web Site three times

credit score & profitability Mortgagequalifies special rate her for discount 25 basis points a preferred mortgage rate
27
27

And today shes tweeted a link to an article about buying a second home

2013 IBM Corporation 2013 IBM Corporation

Big Data can optimize offers & cross-sell success

Improving outcomes for the customer & the bank I have a customer what do they need most?
Customer Needs and Segment Strategies
Mass Market | Mass Affluent | Small Business

Deposits

Governance, Prioritization & Optimization

Direct mail

The bank knows me & values my relationship.

Brilliant!
BC

Card

They seem to know what I need & when I need it. The bank isnt always selling something. They always get me to the right place & never fail to follow up.

Agent, IVR

Mortgage
Online, email

Investments
Customer Experience & Treatment Strategies

ATM

Integrated Customer Analytics

Mobile, SMS

There is real value to me in getting all my needs met by one bank.

Chat

28

The customer feels that the bank understands & responds to their changing needs The banks KPIs improve: Customer Profitability / Satisfaction & Advocacy / Retention
2013 IBM Corporation

Leveraging Big Data to optimize offers & cross-sell

Analyze information from all customer interactions & data sources
Internal Customer Data
Structured & unstructured Create a customerfocused enterprise

New Capabilities

Transactions
All channels (Web, call-center, branch)

Social
Attitudes, preferences

Correspondence
Emails & chats

Real-time event detection Micro segmentation Score sentiment & satisfaction more accurately Optimize offers & timing Faster & more accurate predictive models
Contact Center
Notes & chats, customer interaction

External Customer Data

Credit bureaus, demographic (purchased data)

Events
Customer behavior triggers

Outcomes
Geospatial
Where is the customer

Pro-active interactions Improved offer acceptance Increased customer satisfaction

29
2013 IBM Corporation

THE BIG DATA PLATFORM ADVANTAGE

30

The warehousing & analytic environment of most banks today

Has a number of limitations
Master Data Management De-duplicated customer information Reference data & cross-system code mappings
Master Data Repository

Analytics and Reporting Zone

Business Results

Warehousing

Batch Reporting Limited Descriptive & Predictive Models

Limited Targeting

EDW
Data Integration Batch (daily) movement Only structured data ODS Granular data Limited history High-concurrency historical queries Limited granularity Expensive to change Connectors

Marts
Repeatable work Analytic sandboxes

Limited, Disjointed Search & Discovery

Mediocre Customer Experience

Data Security & Governance Data lineage & impact analysis Data privacy & security Metadata and Governance Zone
Metadata Repository

How banks are expanding and evolving their environment by leveraging big data capabilities
Master Data Management Ingestion De-duplicated customer information & Real-Time Analytic Zone Reference data & cross-system code mappings Real-time (s) data movement, filtering, and analysis (annotation, Master Data Repository classification, correlation, etc) Structured and unstructured data Connectors Analytics, Analytics Reporting and Reporting & Action Zone Real-time Dashboards & Interactions Batch Reporting Deep Limited Descriptive & Predictive Models
MicroLimited Segment Targeting Targeting

Business Results

Warehousing

Right-Time Customer Interaction

EDW
High-concurrency historical queries Limited granularity Expensive to change Analytic Appliances

Data Integration

ODS

Batch (daily) movement Granular Landing & Historical Zone Only structured data data Limited Structured and unstructured data history Full granular history (> PB) volumes
Historical Repository

Marts

Cheap to change Repeatable work Deep analytics Analytic sandboxes

Limited, Extensive, Disjointed Contiguous Search & Discovery

Personal Mediocre Customer Experience

Quickly Finding Answers

Data Security & Governance Data lineage & impact analysis Data privacy & security Metadata and Governance Zone
Metadata Repository

IBM provides the complete platform to support this evolution

Master Data Management Ingestion De-duplicated customer information & Real-Time Reference dataStream & cross-system code mappings Computing Analytic Zone
Master Data Repository

Analytics and Reporting Zone

Business Results
BI / Reporting

Warehousing

Systems Management
Batch Reporting Limited Descriptive Application & Predictive Development Models

Exploration / Visualization

Analytic Applications

DataEDW Warehouse High-concurrency

Data Integration Landing Batch (daily) movement & Historical Only structuredHadoop data Zone ODS Granular data Limited history historical queries Limited granularity Expensive to change

Limited Targeting
Functional App

Connectors

System

Marts
Appliances Analytic Repeatable work Analytic sandboxes

Limited, Disjointed Visualization Search & Discovery & Discovery

Mediocre Customer Experience

Predictive Analytics

Industry App

Content Analytics

Data Security & Governance Data lineage & impact analysis Information Integration & Governance Data privacy & security Metadata and Governance Zone
Metadata Repository

IBM provides the complete platform to support this evolution

Master Data Management Ingestion De-duplicated customer information & Real-Time Reference dataStream & cross-system code mappings Computing Analytic Zone
Master Data Repository

Analytics and Reporting Zone

Business Results
BI / Reporting

Warehousing IBM Big

Data Batch Platform

Reporting Limited Descriptive Application & Predictive Development Models

Systems Management

Exploration / Visualization

Analytic Applications

DataEDW Warehouse High-concurrency

Data Integration Landing Batch (daily) movement & Historical Only structuredHadoop data Zone ODS Granular data Limited history

Limited Targeting
Functional App

Connectors

historical queries Limited granularity Accelerators Expensive to change

System

Marts
Appliances Analytic Repeatable work Analytic sandboxes

Limited, Disjointed Visualization Search & Discovery & Discovery

Mediocre Customer Experience

Predictive Analytics

Industry App

Content Analytics

Data Security & Governance Data lineage & impact analysis Information Integration & Governance Data privacy & security Metadata and Governance Zone
Metadata Repository

The Platform Advantage

The platform enables starting small and growing without throwing away work Shared components and integration between systems lowers deployment cost, time and risk Analytic Applications
BI / Exploration / Functional Industry Predictive Content BI / Reporting Visualization App App Analytics Analytics Reporting

IBM Big Data Platform

Visualization & Discovery Application Development Systems Management

Key points of leverage

Accelerators built across multiple components to address common use cases Pre-built integrations between the components using open connectors Common analytic engines across components (i.e. text analytics) Common metadata, integration design and governance across components

Accelerators Hadoop System Stream Computing Data Warehouse

Information Integration & Governance

35

Products within the IBM Big Data Platform give direct entry points to addressing the challenges
Summary of challenges Analytic Applications
BI / Exploration / Functional Industry Predictive Content Reporting Visualization App App Analytics Analytics

1. Reduce latency to seconds from days

InfoSphere Streams

1. Feedback from actions taken have too much latency 2. The full measure of customer response is unavailable 3. Inability for LOB to model and test new ideas quickly enough 4. Little of the already collected data is actually utilized to inform the offer
36

IBM Big Data Platform

Visualization & Discovery Application Development

Enterprise Marketing Management

2. Allow LOB to selfprovision multiple sources of data from a single go-to data hub
InfoSphere BigInsights

Accelerators Hadoop System Stream Computing Data Warehouse

3. Provide computing power to test new ideas quickly

PureData for Analytics

Information Integration & Governance

4. Provide analytics against both structured and unstructured data

InfoSphere BigInsights & InfoSphere Streams

HOW TO GET STARTED

Expand with the Big Data Platform for future needs

38

1 Unlock Big Data

Customer Need

Understand existing data sources Expose the data within existing content management and file systems for new uses, without copying the data to a central location Search and navigate big data from federated sources
Value Statement

Get up and running quickly and discover and retrieve relevant big data Use big data sources in new information-centric applications
Customer examples

Proctor and Gamble Connect employees with a 360 view of big data sources
Get started with: IBM Vivisimo Velocity
39

2 Analyze Raw Data

Customer Need
Ingest data as-is into Hadoop and derive insight from it Process large volumes of diverse data within Hadoop Combine insights with the data warehouse Low-cost ad-hoc analysis with Hadoop to test new hypothesis

Value Statement
Gain new insights from a variety and combination of data sources Overcome the prohibitively high cost of converting unstructured data sources to a structured format Extend the value of the data warehouse by bringing in new types of data and driving new types of analysis Experiment with analysis of different data combinations to modify the analytic models in the data warehouse

Customer examples
Financial Services Regulatory Org managed additional data types and integrated with their existing data warehouse

Get started with: InfoSphere BigInsights

40

3 Simplify your Warehouse

Customer Need
Business users are hampered by the poor performance of analytics of a general-purpose enterprise warehouse queries take hours to run Enterprise data warehouse is encumbered by too much data for too many purposes Need to ingest huge volumes of structured data and run multiple concurrent deep analytic queries against it IT needs to reduce the cost of maintaining the data warehouse

Value Statement
Speed 10-100x faster performance on deep analytic queries Simplicity minimal administration and tuning of the appliance Up and running quickly

Customer examples
Catalina Marketing executing 10x the amount of predictive workloads with the same staff

Get started with: IBM Netezza

41

4 Reduce costs with Hadoop

Customer Need
Reduce the overall cost to maintain data in the warehouse often its seldom used and kept just in case Lower costs as data grows within the data warehouse Reduce expensive infrastructure used for processing and transformations

Value Statement
Support existing and new workloads on the most cost effective alternative, while preserving existing access and queries Lower storage costs Reduce processing costs by pushing processing onto commodity hardware and the parallel processing of Hadoop

Customer examples
Financial Services Firm move processing of applications and reports to Hadoop Hbase while preserving existing queries

Get started with: IBM InfoSphere BigInsights

42

5 Analyze Streaming Data

Customer Need

Harness and process streaming data sources Select valuable data and insights to be stored for further processing Streaming Data Quickly process and analyze perishable Sources data, and take timely action
Value Statement

Streams Computing

Significantly reduced processing time and cost process and then store whats valuable React in real-time to capture opportunities before they expire
Customer examples

ACTION

Ufone Telco Call Detail Record (CDR) analytics for customer churn prevention
Get started with: InfoSphere Streams

43

The Big Data and Analytics journey

Typical Big Data and Analytics Adoption Path
Educate
Focused on knowledge gathering and market observations

Explore
Developing strategy and roadmap based on business needs and challenges

Engage
Piloting Big Data and Analytics initiatives to validate value and requirements

Execute
Deployed two or more Big Data and Analytics initiatives and continuing to apply advanced analytics

Join the business community Big Data and Analytics case studies, whitepapers and IBM Institute for Business Value reports IBM Briefings, Solution Centers

IBM Readiness Assessments for Big Data and Analytics

Solution Design and Proof of Concept -Validate business value for business use cases -Demonstrate Big Data and Analytics capabilities to execute business use cases

Enterprisewide Big Data and Analytics initiatives

-Incremental value across multiple use cases -Leverage investment from re-using the same Big Data and Analytics platform -Enterprise data platform to optimize business outcomes

Self-paced learning, exploration with downloads and test environment

BigDatauniversity.com, YouTube Big Data Channel

Join the technical community

Moving Forward

IBM can assist in choosing the right path to deliver rapid and measurable business results

A workshop to help identify and prioritize potential use cases

A Client Value Engagement to help determine potential business impact

A pilot to Defining the demonstrate new components required as part of the solution capabilities that could be delivered to the architecture organization

46 46

2013 IBM Corporation