2011 IBM Corporation

Predictive Analytics on Big Data to

Improve Insight, Decision Making and
Profitability

Vincent Toh Predictive Analytics Solution Architect, IBM SWG, ASEAN
1
st
March 2012
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INSTRUMENTED
INTERCONNECTED
INTELLIGENT
The World is Changing and Becoming More
The resulting explosion of information creates a need for
a new kind of intelligence
to help build a Smarter Planet
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There is an Explosion in Data and Real World Events
4.6 Billon
Mobile Phones
World Wide
1.3 Billion RFID tags in 2005
30 Billion RFID
tags by 2010
2 Billion Internet
users by 2011
Twitter process
7 terabytes of
data every day
Facebook process
10 terabytes of
data every day
World Data Centre for Climate
220 Terabytes of Web data
9 Petabytes of additional data
Capital market
data volumes grew
1,750%, 2003-06
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Information is Exploding
2009
800,000 petabytes
2020
35 zettabytes
as much Data and Content
Over Coming Decade
44x
Of worlds data
is unstructured
80%
Source: IDC, The Digital Universe Decade Are You Ready?, May 2010
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What is BIG DATA?
All kinds of data
Large volumes
Valuable insight, but difficult to extract
Often extremely time sensitive


Existing sources of data continue to grow
New sources of data are now available
detailed customer data
internet sources
instrumentation
Data arrives at an increasing rate

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Optimize capital investments
based on 6 Petabytes of
information
Analyze 100k records/
second to address customer
satisfaction in real time
Analyze telemetry, fuel
consumption, schedule and
weather patterns to optimize
shipping logistics.
Big Data Analytics Already a Reality
Cognos Consumer Insight
Social Media Data
SPSS Modeler in Netezza
Cognos Real-time Monitoring
v10
SPSS for very fast model scoring
Analyze, plan, align with Cognos
v10 on Hadoop and InfoSphere
BigInsights
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Organizations Need Deeper Insights From Their Data
Business leaders frequently make decisions
based on information they dont trust, or
dont have
1 in 3
83%
of CIOs cited Business intelligence and
analytics as part of their visionary plans
to enhance competitiveness
Business leaders say they dont have access
to the information they need to do their jobs
1 in 2
of Customers will look to replace their
current warehouse with a pre-integrated
Warehouse solution in the next 3 years,
only 14% have today
35%
Source (TDWI: Next Generation Data Warehouse Platforms Q4 2009)
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Business Analytics can be applied to all big data problems
Integrated
Enterprise-ready
Open Source Based
Real-time Scoring
Predictive Analytics
Sentiment Analysis
Real-time Monitoring
IBM Business Analytics
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IBM Big Data Platform
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The problem.

Wasting thousands of dollars annually on its direct marketing campaigns by focusing on products rather
than customer knowledge and behavior

Implementing predictive analytics.

Blend customer segment profiles with profitability data to identify and target the most attractive
segments

First Tennessee Bank
Results
3.1% increase in marketing response rate through more accurate targeting of offers to
high-value customer segments
20% reduction in mailing costs and 17% reduction in printing costs due to the ability
to target the most attractive segment for specific offers
600% overall return on its investment through more efficiently allocated marketing
resources
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Predictive
Customer
Analytics
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The problem.

To provide a more systematic, efficient and accurate way to pinpoint fraud

Implementing predictive analytics.

Created a smarter claims processing workflow, which transformed the way Infinitys agents
handle and route claims

Infinity Property & Casualty
Results
Increase of $12 million in subrogation recoveries with success rates in pursuing
fraudulent claims increasing from 50% to 88%
As much as 95% reduction in time required to refer questionable claims for
investigation
400% ROI with six months of implementation
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Predictive
Operational
Analytics
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The problem.

Faced with rising crime, frozen budgets, growing disenchantment among citizens

Implementing predictive analytics.

Predict future crime hot spots and deploy resources proactively


Memphis Police Department
Results
15% reduction in violent crime and a 30% reduction in serious crime overall, including a
36.8% reduction in crime in one targeted area
4x increase in the share of cases solved in the MPDs Felony Assault Unit (FAU), from
16% to nearly 70%
Overall improvement in the ability to allocate police resource in a budget-constrained
fiscal environment
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Predictive
Risk & Threat
Analytics
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Telecommunications
CDR processing
Churn prediction
Geomapping / marketing
Network monitoring

What can you do with big data Analytics?
Utilities
Weather impact on power generation
Transmission monitoring
Smart grid management
Retail
360 View of the Customer
Click-stream analysis
Real-time promotions
Law Enforcement
Real-time multimodal surveillance
Situational awareness
Cyber security detection
Financial Services
Fraud detection
Risk management
360 View of the Customer
IT
Transition log analysis for
multiple systems
Cybersecurity
Health & Life Sciences
Epidemic early warning
ICU monitoring
Healthcare monitoring
Transportation
Weather and traffic
impact on logistics and
fuel consumption
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Applications for BIG Data Analytics are Endless
Neonatal Care Trading Advantage
Law Enforcement Radio Astronomy
Environment
Telecom
Manufacturing Traffic Control Fraud Prevention
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A semiconductor wafer manufacturer
The Challenge:
produces 50,000+ semiconductor wafers/month
working to incredibly precise specifications on the scale of 0.25 microns to 0.14 microns
manually compiled data from many sources, which provided inaccurate information, slowed
production and left expensive machinery idle.
It needed real-time monitoring and sophisticated analytics in producing higher-quality wafers,
faster

The Solution:
IBM Cognos

Business Intelligence
IBM InfoSphere

IBM Netezza 1000
IBM SPSS

IBM Tivoli

Monitoring

The Benefits:
Expected to generate USD27 million over a period of three years ~ ROI of 344 %
Increased wafer fabrication yields and minimized defects by providing near real-time
information on wafer fabrication and testing
Optimized use of valuable manufacturing equipment by removing expensive, inefficient delays
that leave machines idle


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Because of (Netezzas) in-database technology, we believe we'll be able to do
600 predictive models per year (10X as many as before) with the same staff.
- Eric Williams,
CIO & Executive VP
The Challenge:
Collected POS data from 35,000+ retail stores
450 millions records daily transactions
Better targeted marketing campaigns
The Solution:
Use IBM Netezza EDW as Data Storage
Use IBM SPSS to analyze past purchase behavior and provide deep insight into shopper
specific buying behavior
The Benefits:
Scans data at 675 million rows per second, equivalent to more than 163 TB/hour
Process 70 times more queries on 5 times the amount of data ~100,000 SQL queries/
day
Decreased analytics processing from half a day to 60 seconds over 99%
reduction.
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The Challenge:
Identify at risk mid-sized customers
Reduce customer churn
Slow and cumbersome processing of massive transaction data

The Solution
IBM Netezza
IBM SPSS

The Benefits:
60 % improvement in revenue retention rates
Realizing millions of dollars in annualized revenue protection
Fewer client services managers are needed for the same level of risk coverage



By enabling our client services managers to prioritize their proactive outbound calls basically, a
health check on the customer we can cover more risk with our existing Client Services team . Its
been a very successful business model for us and has helped us
organize our resources better.
Trent Taylor, Director Customer Intelligence, XO Comm.
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IBM Smartphone Event Application
Question:

Which option below is one of the three pillars of Predictive Analytics on Big Data?

a) Customer Analytics
b) Financial Analytics
c) Sentiment Analytics
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Answer..
Question:

Which option below is one of the three pillars of Predictive Analytics on Big Data?

a) Customer Analytics
b) Financial Analytics
c) Sentiment Analytics

Answer is ( a )

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Vietnam contact:

Business Analytics

o Quc Hng
Sales Manager - Business
Analytics
Software Group - IBM
Vietnam

Mobile: +84 986 988 741
Email: hungdq@vn.ibm.com

Information
Management
Cao Thi Phuong Lien
Sales Manager - Information
Management
Software Group - IBM
Vietnam

Mobile: 84-912 31 52 59
Email: lienctp@vn.ibm.com