IS Directors Conference Presentation_Final

Transforming Your Business
with Services and Skills
Bob Hoey
General Manager
ITS and GTS General Business
IS Directors Conference – September 2012
2
© 2012 IBM Corporation
IS Directors Conference – September 2012
CIOs’ perspectives on the vision and priorities of their businesses
CIO Most Important Visionary Plan Elements 1
83%
83%
Analytics and
Business Intelligence
74%
68%
Mobile computing
60%
Cloud computing
33%
58%
Risk management
and compliance
71%
2009
2011
CIO Ranking of Top 5 Priorities 2
Ranking
2012
2011
2010
2009
2008
Analytics and business intelligence
1
5
5
1
1
Mobile computing
2
3
6
12
12
Cloud computing
3
1
2
16
-
Security
10
12
9
8
5
1 Source: 2011 IBM CIO Study
2 Source: Gartner, March 2012
3
© 2012 IBM Corporation
IS Directors Conference – September 2012
Marketplace trends and opportunities for analytics
Analytics is expanding past its historical core and
becoming entrenched in other markets 1
Social
Mobile
The successful combination of analytics will be a key
differentiator for enterprises 1
Analytics
More than 90% of business leaders contend that
information is a strategic asset, yet fewer than 10% will
quantify its economic value (through 2015) 2
Big
Data
Cloud
More than 85% of Fortune 500 companies will fail to
exploit big data effectively for competitive advantage
(through 2015) 1
1 Source: Gartner Press Release, December 2012
2 Source: Gartner, Analytics Predicts 2012 Information Infrastructure and Big Data, November 2011
4
© 2012 IBM Corporation
IS Directors Conference – September 2012
A look at IBM Watson behind the scenes
System Specifications
IBM Technology Depth
2880 Processing Cores
Content
Analytics
90 IBM P750
Servers
Business
Analytics
16 Terabytes Memory
(RAM) – 20TB Disk
Big Data
80 Teraflops (80
trillion operations
per second)
Databases /
Data
Warehouses
Workload Optimized
Systems
In the past 5 years, IBM has spent more than
$14B in analytical acquisitions and $6B in R&D annually
5
© 2012 IBM Corporation
IS Directors Conference – September 2012
IBM Watson and Smarter Analytics have the capability to address
grand business and societal challenges
Watson’s Capabilities
1
2
3
Analysis of
unstructured data
Healthcare
Broad domain of
unstructured data
Prioritized
recommendations and
evidence
Contact
Center
Iterative
Question/Answering
5
Machine
learning
6
Industry Examples
Natural language
understanding
Hypothesis generation
and confidence scoring
4
Best Fit for Watson
High value in decision
support
Leverage scale to
maximize machine
learning and improve
outcomes over time
Financial
Services
Government
© 2012 IBM Corporation
IS Directors Conference – September 2012
Wellpoint uses Watson technologies to improve patient care
Need
Handle unprecedented amount of data for 35 million
members
Provide patients with best-quality healthcare, based on
evidence
Solution
IBM Watson technologies (analytics)
Benefits
Processed 25,000 historical cases and 15,000 existing cases through Watson technologies
Enables deeper diagnosis and treatment assistance for physicians
Allows nurses to work with IT to process treatments faster and more efficiently
Improves clinical outcomes as a result of confidence-based responses
Matches new clinical discoveries and information in content with patient’s information
7
© 2012 IBM Corporation
IS Directors Conference – September 2012
Marketplace trends and opportunities for mobile computing
In 2012, 700 million smartphones and tablets will ship,
exceeding PC shipments by nearly double 1
Mobile device spending will grow four times faster than
PC spending in 2012 1
62% of mobile devices will be used as “bring-your-owndevice” (BYOD) to the enterprise 1
Companies who adopt flexible workplace strategies,
such as mobile computing, experience significant
productivity, security and financial benefits 2
1 Source: IDC, 2012
2 Source: IBM Flexible Workplace Study, 2012
8
© 2012 IBM Corporation
IS Directors Conference – September 2012
Lotte Card uses mobile technologies to deploy an advanced financial
mobile application
Need
Way to manage high demand of mobile applications from
customers and employees
Solution
IBM Worklight
Benefits
Developed an advanced mobile application with more than 100 screens, location-based
features and scannable mobile coupons
Enables better customer and employee user experiences across more mobile devices
Reduces time to market and associated costs
Compatible with Android and iOS devices
Deployment of one of the most advanced financial mobile applications in the region
9
© 2012 IBM Corporation
IS Directors Conference – September 2012
PHS Group uses mobile technologies to support green initiatives and
increase productivity
Need
Update paper-based dispatch and billing systems to
optimize productivity and further environmental initiatives
Increase competitive advantage and market perception by
using latest innovations in mobile technology
Solution
IBM End User Services – Mobile Enterprise Services
Benefits
Improved productivity by 5% with using a paper-less, digital assistant devices that dispatch
work orders and transmit billing information
Furthered the company’s environmentally sustainable principle of meeting customers’ needs
without harming the environment or prejudicing future generations’ abilities
Streamlined operations and speed cash collections rates
10
© 2012 IBM Corporation
IS Directors Conference – September 2012
Marketplace trends and opportunities for cloud computing
Cloud offers an opportunity to make IT more
adaptable, connected and efficient, with
substantial cost benefits 1
63% of companies are already using or expect
to use cloud in 2012 (up from 49% in 2011) 2
IDC notes companies are shifting their budget
allocation from traditional IT to cloud (2011)
1 Source: IBV Analysis, The Power of Cloud, 2012
2 Source: Information Week, Outlook 2012
11
© 2012 IBM Corporation
IS Directors Conference – September 2012
Cloud helps reduce growing server management and administration
costs through automation and standardization
$247 B est.
$217 B
$100 B
63%
$175 B
11%
12%
11%
8%
29%
$130 B
46%
1996
New server
spending
43%
2001
16%
20%
22%
33%
51%
2006
66%
2011
Server management and
administration costs
69%
2013
Power and
cooling costs
Source: IBM Investor Day, 2012
12
© 2012 IBM Corporation
IS Directors Conference – September 2012
2012 French Open uses IBM SmartCloud to meet high internet demand
Need
Meet 100X increase in internet
demand during tournament
Provide a better experience for fan
audience
Solution
IBM SmartCloud
Analytic-based services
Benefits
Prevented website crashing by scaling the cloud to meet spikes in demand
Provided tennis fans with analysis of players’ scores and statistics through a user-friendly
interface (IBM SlamTracker technology)
Enabled real-time access through internet, mobile/smartphones, tablets and television
Addressed consistently increasing web-traffic (330 million views in 2011)
13
© 2012 IBM Corporation
IS Directors Conference – September 2012
Marketplace trends and opportunities for security
Through 2016, the financial impact of
cybercrime will grow 10% each year, due to the
continuing discovery of new vulnerabilities 1
Security risks are inherent in each trend and
capabilities must expand to protect data, mobile
devices, cloud and other areas
As companies increase innovation, IT leaders
have an opportunity to define and address their
security risks associated with these trends
1 Source:
14
Gartner Press Release, December 2011
© 2012 IBM Corporation
IS Directors Conference – September 2012
Security review and improvement program at a large Swiss bank
Need
Security status report for board of directors
Inefficient external review produced long and useless list of small findings
CIO requested an independent evaluation of the bank's information
security
Solution
IBM Professional Security Services
Benefits
Prioritized list of well-explained findings affecting information security
Provided a list of recommendations on how to approach the gaps in security
Gave a board-level presentation addressing technical and non-technical issues
Input for the launch of a two-year security program to improve information security
Coaching support for the execution of the information security improvement program
15
© 2012 IBM Corporation
IS Directors Conference – September 2012
IBM has taken advantage of these market trends for an internal
transformation
Data Centers
155 to 9
~$1.75 Billion
Cloud Provisioning
5 days to 1 hour
(since 2012)
(from 1997 – 2007)
(since 2012)
Servers Virtualized
Datacenter Cost
Avoidance
Non-traditional Offices
~$43 Million
(since 2012)
6,500+
(since 2012)
IT Savings
50% of IBMers
(since 2009)
Reduced Floor Space
225,000 to 151,000
(since 2009)
Applications
16,000 to 4,500
(since of 2012)
Intrusion Prevention
System Devices
100
(since 2012)
Power Saved Annually
~30,000 Mw
(since 2009)
CPU Utilization
Increase
<10% to 60%
CIOs
128 to
1
(since 2012)
(since 2012)
Source: IBM internal estimates
16
© 2012 IBM Corporation
IS Directors Conference – September 2012
You can start today
Identify the needs of your business
Determine how you want to measure your success
Look for opportunities to improve efficiency and create investment opportunities
Engage with IBM for help
17
© 2012 IBM Corporation