Business Entry Point: Information Single Source of Information about Customers and Products

1. Business Entry Point: InformationSingle Source of Information about Customers and Products Jim Lyon Business Information Services Technical Sales Leader North East Europe

2. Information as a ServiceDelivering the Business Value of Information

3. Innovation Requires a Business Centric View of SOA Drive Innovation Priorities Through People, Process, and Information Extend the Ability to Collaborate Inside & Outside Deliver Trusted Information in Business Context Business Model & Process Innovation

4. Volkswagen “Today, 70% of the time of our people is spent in searching for information and only 30% in making intelligent decisions. We want to flip the ratio, providing 70% of time for intelligent, analytical decision making and only 30% administrative work.”Dr. Martin Hofmann Exec. Director, Group Supply StrategyVolkswagen AG Result: 20% increase in procurement productivity

5. The Information ChallengeInformation is in Silos… Trusted Information is Not Available Today’s business challenges mandate a fresh approach to managing information. Managing information in silos has become obsolete. Globalization, M&As Risk & Compliance, Eroding Customer Loyalty, Supply Chain Complexity, Industry Transformations, Cost Cutting… Multiple Versions of the Truth Inaccurate, Untimely Inconsistent Incomplete, Inaccessible Out of Context… Information Must Become a Strategic Asset 5X More Valuecreation by organizations effective at using Information as an Asset 70% of people’s timecan be spent searching for relevant information 60%+of CEOs:Need to do a better job leveraging information Sources: IBM Attributes & Capabilities Study, 2005; Client Interviews 2004; IBM CFO Study, 2006

6. Information Becomes a Strategic AssetSeparating Information & Process Enables Enterprise-wide Re-use Business required an integrated view of customer information across multiple business units within the bank after mergerCustomer information stored across disparate environments - IBM ImagePlus, FileNet Image Services, Mobius…. Key to Success • Separation of Information & Process, Federation of Unstructured Information Result • 50X increase in requests for content shows customers are being served better • $2.3 million savings in 2 years; 64% ROI • $1M savings for each new business unit needing a common view of the client

7. Information Becomes a Strategic AssetUnified View of Customer Information Builds Customer Service Rapid growth into new markets emphasizes need for seamless customer service across business and households27 million business and residential connections for local telephone, long distance, wireless, Internet, data, satellite TV & other services Key to Success • Integrated customer information provides single service point across 4 separate billing systems and multiple customer systems Result • Unified view of customers improves call center service and productivity • Streamlined marketing campaigns based on offering bundles • Phased implementation strategy enables rapid focus business community • Services Orientation allows reuse of composite information updates

8. Critical Business Initiatives Depend on Information Information Intense Business Problems • Master Data Management • Single view of the customer and product • Gain control of disparate silos • Business Analysis and Discovery • Deeper insight into buying behavior • Efficient, consumer driven supply chain • Business Transformation • Partner collaboration • Real time information based decision • Worker Productivity • Information accessible to every user when and where they need it… both structured and unstructured • Risk & Compliance • Loss and Fraud prevention • Government regulations and taxes

9. How do I deliver business flexibility ? Change And Improvement Have Been Daunting Can Information Become a Service?

10. Service Oriented ArchitectureInformation as a Service is Key You will waste your investment in SOA unless you have enterprise information that SOA can exploit. Gartner, March 2005

11. Information as a ServiceMoving From a Project-Based to a Flexible Architecture Master Data, Analysis, Discovery, Industry Models Extracted or Real-time Standards-based e.g., XQuery, JCR, JDBC, Web Services...

12. Information as a ServiceMoving From a Project-Based to a Flexible Architecture • Deliver Information in Business Context In-context, In Line Effectively Governed • Integrate Information Structured / Unstructured Timely & Accurate Manage Complexity Open Standards Flexible Infrastructure

13. Information as a Service Key to Service Oriented Architecture IBM Information Management SoftwareUnparalleled Breadth and Depth • Deliver Information in Business Context Industry Models Master Data Management Entity Analytics Discovery Services 500+ Clients • Integrate Information WebSphere Information Server DB2 Viper 5,000+ Clients Share Leaders

14. Master Data Management System New Applications What is Master Data Management? MasterData Existing Applications • Decouples master information from individual applications • Becomes a central, application independent resource • Simplifies ongoing integration tasks and new app development • Ensure consistent master information across transactional and analytical systems • Addresses key issues such as data quality and consistency proactively rather than “after the fact” in the data warehouse Existing Applications MasterData Existing Applications Historical /AnalyticalSystems MasterData

15. Master Data Management Approach v. the Application Suite Approach Application suite vendors build a series of hard-coded processes within inflexible applications for each process performed by the organization. Data is locked within each application and process. Only offline views are available across silos. Data Management New Account Opening App Function App Function App Function Customer Account Customer Product Service Account/Product App Function App Function Account Customer Product Customer Product Enterprise “View” offline only New Product Launch App Function App Function Customer Product Product Product Customer self-service App Function App Function Customer Product Customer Customer Account

16. Account Product Customer Enterprise Master Data Management Approach v. the Application Suite Approach MDM liberates the data from the application and the process and exposes it as a set of consumable, reusable services. The benefit is shared, complete, and accurate master data. Data Management New Account Opening App Function App Function App Function Customer Account Customer Product Service Account/Product App Function App Function Account Customer Product Customer Product MDM systems become common process nexus New Product Launch App Function App Function Customer Product Product Product Customer self-service App Function App Function Customer Product Customer Customer Account

17. The customer data problem Customer Call Center WirelessSelf-service Distributor • Today most companies have multiple repositories for customer data • Inaccurate and incomplete view of the customer relationship • Inability to understand the value of the customer • Difficult to determine the correct product offer based on inaccurate customer data • Inefficient customer service IVRSelf-service Web Self-Service Real TimeAnalytics DataWarehouse ERP NewSystem Financials Billing Product

18. Customer Call Center WirelessSelf-service Distributor IVRSelf-service Web Self-Service DataWarehouse Real TimeAnalytics ERP NewSystem Financials Billing Product Customer Data Integration • Customer Data Integration (CDI) manages the complete master record for operational customer • Capable of being the system of record – full transaction processing and business logic capabilities • Provides accurate and complete customer data to all operational business processes that require customer data • Improved and differentiated customer service • Increased revenue via improved cross-selling and event management • Ability to persist ‘new’ customer data such as privacy preferences, events, and multi-channel interactions • Regulatory compliance

19. UCCnet Flyers, Inserts, Catalogs TRANSORA Email,eCommerce WWRE Other Data Pools Info-Stations, Kiosks Portal Shelf Tags, Signage EDI Point of Sale Trading Partner Direct RFID Images, Docs Excel Document Management Systems ERP & CRM Systems Legacy Systems Current Processes – EDI, paper, spreadsheets, phone, fax, email CPFR Promo- tions Mgmt Merchan dise Planning Pricing Optimize Mark down Optimize New Product intro Return to Vendor Product sourcing End of life New Item Form Promotion Mgrs Price Update Logistics Vendor Managers Category Managers IT Contracts Authorize /Reject Regional Managers Brand Managers Category Managers Customer Support

20. Website &eCommerce UCCnet TRANSORA Sales Brochures WWRE Product Specs Other Data Pools Shelf Tags & Signage Portal Kiosks & Info-Stations EDI RFID Trading Parnter Direct Content Leverage Global Data Synchronization Images, Docs Excel Document Management Systems ERP & CRM Systems Legacy Systems T H E G O L D E N S O U R C E O F P R O D U C T I N F O R M A T I O N 5) Exchanging and synchronizing this information externally with business partners 4) Workflow and solutions for supporting multi-department and multi-enterprise business processes 6) Leveraging this information via many internal and external electronic and human touch points CPFR Promotions Mgmt Returns Pricing Optimization End of Life New Product Intro 1) A flexible, scalable repository managing and linking product, location, trading partner, organization, and terms of trade information 2) Tools for modeling, managing, capturing and creating this information with high user productivity and high information quality Browser-based Multi-enterprise Product Unlimited Attributes Standards-based Multiple Categorizations Security and Audit 3) Integrating and synchronizing this information internally with legacy systems, enterprise applications, repositories and masters I n t e g r a t e – T r a n s f o r m – H a r m o n i z e

21. Service Enabling Existing Systems creates the requirement for a Customer(Party)/Product Hub • A service-oriented architecture necessitates that: • Central concepts in your business process must have their own component for management of that data and function – product, billing, AND customer • Business process enabling your existing systems that are product and account centric creates product and account centric processes • It is prohibitively difficult to virtually assemble customer data from product systems; there is also no clear place to store new customer data such as privacy/preferences, relationships and roles, among others • Service enablement requires a separate customer master administration system – a CDI hub

22. Why IBM?Delivering the Business Value of Information Expertise in Aligning Business and IT • Consultants, architects and IT specialists • Dozens of business solutions • Unique intellectual property and methods Skills Thriving Ecosystem of Partners • Applications, Tools, Skills Partners • Extensive Industry Experience • Thousands of clients worldwide Know-how & bestpractices Unmatched Breadth and Depth of Products • Data, Content, Integration, Analysis, Master Data… • Leadership in open standards • Leadership in innovation – research investment & patents Infrastructure

23. Delivering Value… Industry by IndustryLeveraging the Strength of IBM & Business Partners for Products and Expertise Finance / Banking / Insurance • Banking & Insurance Data Warehouses • Basel II Risk & Compliance • New Business Processing • Customer Privacy Mgmt. • Marketing Insights • Consolidated Risk Mgmt. Insurance • Insurance Information Warehouse • New Business Processing • Customer Privacy Mgmt. • Marketing Insight • Consolidated Risk Mgmt. Healthcare • New Business Processing • Customer Privacy Mgmt. • Marketing Insight • Information Based Medicine Government / Public Sector • Compliance for Government • Social Services/Case Mgmt. • Crime Information Warehouse Automotive • Product Information Mgmt. (After Mkt.) • Automotive Dealer Collaboration • Advanced Early Warning Telecommunications • Telco Data Warehouse • New Business Processing • Customer Privacy Management • Marketing Insight Retail, CPG • New Product Introduction • New Customer Introduction • Global Data Synchronization • Retail Business Intelligence • New Business Processing • Customer Privacy Mgmt. • Marketing Insight • Consolidated Risk Mgmt. Cross Industry • RFID / EPC Information Services • Archiving & eDiscovery • eStatements & Report Management • eForms Automation • Federated Records Management • Regulated Document Management and many more…

24. Information as a ServiceDelivering the Business Value of Information • Visit our Web page www.ibm.com/informationondemand • Take our online self-assessment • Take advantage of our Fast Start Services Offerings