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© 2007 IBM Corporation IBM Information Management Accelerate information on demand with dynamic warehousing March 2007

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© 2007 IBM Corporation

IBM Information Management

Accelerate information on demand with dynamic warehousing

March 2007

© 2007 IBM Corporation

IBM Information Management

IBM LAUNCHES NEXT GENERATION OF BUSINESS INTELLIGENCE WITH DYNAMIC WAREHOUSING

ARMONK, NY, MARCH 13, 2007 – IBM (NYSE: IBM) today unveiled a comprehensive strategy to enable dynamic warehousing, a new generation of business intelligence capabilities that enable organizations to gain real-time insight and value from their business information. Today’s announcement marks an important milestone in IBM’s industry-leading pursuit of the global Information on Demand growth opportunity, which is helping customers transform their businesses by using information as a strategic asset.

IBM Information Management

© 2007 IBM Corporation3

IBM Information Management

© 2007 IBM Corporation4

Leveraging Information to Create Business ValueInsightful, Relevant Information When and Where it’s Needed

OLAP & Data Mining− Merchandising, Inventory,

Operations

Help Solve Crimes by Delivering Suspect List to Detectives Arriving

at the Crime Scene

Optimizing Police Force Deployments

Information On Demand− Optimize Each Transaction− Call Centers, Field Ops

Query & Reporting− Financials, Sales

Crime Rate Reports

IBM Information Management

© 2007 IBM Corporation5

Dynamic WarehousingA New Approach to Leveraging Information

Dynamic Warehousing

Traditional Data Warehousing

OLAP & Data Mining to Understand Why and

Recommend Future Action

Query & Reporting to Understand

What Happened

Information On Demand to Optimize Real-Time Processes

Dynamic Warehousing Requires:

1. Embedded analytics that can be leveraged as part of a business process

2. Ability to incorporate knowledge from unstructured information

3. Support for real-time access to aggregated, cleansed information in context

4. Complete set of integrated capabilities for Information on Demand

IBM Information Management

© 2007 IBM Corporation6

Dynamic warehousing Traditional

warehousing

More Examples of Dynamic Warehousing in ActionEnabling Information On Demand for Business Advantage

Insurance fraudanalysis and reporting

Identifying potentially fraudulent claims prior to approval and payment

Transforms healthcare

Reporting oncustomer issues

Identifying possible related issues, churn risk and cross-sell opportunities while engaged with the customer

Transforms customer service

Historical sales analysis and reporting

Discovering relevant customer information to identify cross sell opportunities and improve negotiating position at the point of sale

Transforms sales effectiveness

Crime statistics and reporting

Identifying related incidents and potential suspects prior to arriving at the crime scene

Transforms crime fighting

IBM Information Management

© 2007 IBM Corporation7

Creates challenges for traditional warehousing Not just for traditional query and reporting purposes anymore

Warehouses must now: Address expanding needs for analytics and information on demand

Leverage ALL types of information, including unstructured

Serve increasing numbers and types of applications and users, with varying service level demands

Increasingly mixed workload environments

and the constantly changing needs of different business constituents

require more dynamic warehousing capabilities

IBM Information Management

© 2007 IBM Corporation8

IBM provides more than just a warehouse DB2 Warehouse provides extended capabilities and value

Embeddable analytics (Inline and as a Service)

Multidimensional analysisData mining and visualization

Beyond traditional structured data

Generate and leverage knowledge from

unstructured information

OLTPBenefits of a transactional data server foundation

Optimized for real-time access,High availability and reliability Scalable, secure and auditable

DWDBMS

Dedicated warehousing

Shared-nothing architecture Advanced data partitioning

Workload management

Deep compression

Reduced storage costsBetter disk utilization

Query speed improvement

“As a direct effect of the mixed workload, with continuous loading and the increase in automated transactions from the

functional analytics in OLTP, the transactional DBMSs have an edge that challenges the DW DBMSs (such as Teradata)”

Gartner Data Warehouse Magic Quadrant, 2006

IBM DB2 WarehouseTraditional warehouse

Da

ta V

olu

me

s

Unstructured

Structured

IBM Information Management

© 2007 IBM Corporation9

Dynamic warehousing Extending beyond the warehouse to enable information on demand

Process management

Enterprisedata modeling

Informationintegration

Search and text analytics

Master data management

Industryperspective

Traditional warehouse

IBM Information Management

© 2007 IBM Corporation10

IBM Global ServicesSOA Infrastructure

Process management

Enterprisedata modeling

How IBM Enables Dynamic WarehousingIntegrated offerings to enable information on demand

Informationintegration

Search and text analytics

Master data management

IBM FileNet BPMWebSphere BPM

IBM Rational®

Data Architect

IBM InformationServer

IBM WebSphereCustomer Center& Product Center

IndustryperspectiveIBM IndustryData Models

IBMDB2 Warehouse

Traditional warehouse

IBM OmniFind™

Analytics Edition

IBM Information Management

© 2007 IBM Corporation11

Integrated tools for dynamic warehousing Seamless integration of advanced information integration

IBM Information Server

IBM Information Management

© 2007 IBM Corporation12

Integrated tools for dynamic warehousingSeamless integration of enterprise data modeling

Data Architect

IBM Information Management

© 2007 IBM Corporation13

New Capabilities and Offerings to Enable Dynamic WarehousingAnnounced Today!

IBM Balanced WarehouseTM Solutions– Multiple classes of offerings

New and Enhanced Packaging Offerings– Advanced Edition, Enhanced Base Edition

New SMB Offerings– Available from partners

Embedded Analytics– Extended insight capabilities with integrated tooling

New Offering for Unstructured Analytics– IBM OmniFind Analytics Edition

Seamless Integration of Information Server & RDA– Integrated tooling

New and Enhanced Industry Data Models– New Health Plan and enhanced Insurance data model

New Features for Warehousing on System z– Query & reporting feature enhancement and performance improvements

New Services Offerings– GBS strategic planning & design and GTS implementation assistance

IBM Information Management

© 2007 IBM Corporation14

IBM DB2 Warehouse software A complete, integrated platform

Mo

del

ing

an

d d

esig

n

Ad

min

istr

atio

n a

nd

co

ntr

ol

Data movement and transformation

Database management

Performance optimization

Workloadcontrol

Database partitioning

Deepcompression

Embedded analytics

Data mining and visualization

In-line analytics

IBM DB2 Warehouse

IBM Information Management

© 2007 IBM Corporation15

Introducing IBM Balanced WarehouseTM

A fast track to warehousing

Simplicity Predefined configurations for reduced

complexity One number to contact for complete

solution support

Flexibility for growth Add BCUs to address increasing demands

Multiple on-ramps for different needs

Reliable, nonproprietary hardware for reusability

Optimized performance Preconfigured and certified for guaranteed

performance

Based on best practices for reduced risk

Balanced Configuration Unit (BCU)

Preconfigured, pretested allocation of software, storage and hardware to support a specified combination of function and scale

Better than an appliance

Balanced Warehouse

IBM DB2® Warehouse

SIMPLEFLEXIBLE

OPTIMIZED

IBM Information Management

© 2007 IBM Corporation16

Introducing IBM Balanced Warehouse SolutionsFlexibility to Meet Customer Specific Needs

High End Hardware & Storage

Unlimited, Modular Scalability

4TB and up

Large Enterprise Data Warehouses

E-ClassIBM Balanced WarehouseTM

Modular Scalability

1TB to 5TB

Departmental Data Marts and Small to Mid-Size Data Warehouses

D-ClassIBM Balanced WarehouseTM

Mid-Range Hardware & Storage

New Offering!

IBM Information Management

© 2007 IBM Corporation17

Announcing IBM DB2 Warehouse 9.1.2 OfferingsFlexibility to Meet Customer Specific Needs

Database Partitioning

Data Movement & Transformation

Modeling & Design Tools

Administration & Control Tools

Unlimited Warehouse Size

Departmental Data Marts, Basic Reporting Data Warehouses and

SAP Business Warehouses

Enterprise Base Edition

Unlimited Warehouse Size

Enterprise Warehousing Solutions Requiring Advanced Business Insight and Optimization through Analytics

Enterprise Edition

Database Partitioning

Data Movement & Transformation

Modeling & Design Tools

Administration & Control Tools

Data Movement & Transformation

Modeling & Design Tools

Administration & Control Tools

Limited to 2 TB

Smaller Warehousing Applications and Data Marts that Require High

Performance Characteristics

Advanced Edition

Database Partitioning

Workload Control

Deep Compression

Workload Control

Deep Compression

Data Mining & Visualization

In-line Analytics

New Offering!

EnhancedCapabilities!

IBM Information Management

© 2007 IBM Corporation18

Introducing New Offerings for the SMB MarketAvailable from IBM Business Partners

Provide broader access to IBM’s leading DB2 Warehouse technology

Simplified, affordable warehousing solutions that can be more easily leveraged by smaller organizations

Data Movement & Transformation

Modeling & Design Tools

Administration & Control Tools

Database Partitioning

Limited to 400 GB

Entry-point for Smaller Warehousing Applications and Data Marts

Starter Edition

Data Movement & Transformation

Modeling & Design Tools

Administration & Control Tools

Limited to 1 TB

Departmental Data Marts and Smaller Data Warehouses

Intermediate Edition

Includes Warehouse Tools(Starter or Intermediate Edition)

Scales to 1 TB

Out of the Box Warehousing Solution for SMB Customers(includes out-of-the-box BI tools)

C-ClassIBM Balanced WarehouseTM

30 Partners Already Signed Up!

IBM Information Management

© 2007 IBM Corporation19

Out-of-the-box visualization tools

Can be embedded directly into applications and Web pages

Deliver inline visualization and analyticsEmbedded analytics capabilities

Extended Insight

Simplicity

IBM Information Management

© 2007 IBM Corporation20

Banking(Banking Data Warehouse)

Financial Markets(Financial Markets Data Warehouse)

Claims

Medical management

Provider and network

Sales, marketing and membership

Financials

Profitability

Relationship marketing

Risk management

Asset and liability management

Compliance

Risk management

Asset and liability management

Compliance

Health Plan(Health Plan Data Warehouse)

Customer centricity

Claims

Intermediary performance

Compliance

Risk management

Retail (Retail Data Warehouse)

Customer centricity

Merchandising management

Store operations and product management

Supply chain management

Compliance

Telco(Telecommunications Data Warehouse)

Churn management

Relationship management and segmentation

Sales and marketing

Service quality and product lifecycle

Usage profile

Insurance(Insurance Information Warehouse)

Industry data models Leverage industry best practices for faster time to market

Extended Insight

New Offering!

EnhancedCapabilities!

Over 400 Customers!

IBM Information Management

© 2007 IBM Corporation21

Growing demand for real-time query and reporting of operational data

Leveraging the traditional strengths of IBM System z™ servers—performance, availability, scalability and security—along with existing IT investments and skills

Structured query language (SQL) enhancements for improved query and reporting

New graphical analytics and reporting tools for System z servers, including interactive visual dashboards

Improved performance and scalability for query and reporting functions

Significant CPU time reduction for data copies and table/index management

Additional 10 percent to 15 percent improvement in virtual storage

New features for warehousing on IBM System z servers IBM DB2 z/OS is growing as a platform for warehousing

New Features!

Mission-critical data warehousing

IBM Information Management

© 2007 IBM Corporation22

Information on Demand Data Warehouse Services Helping customers design solutions to drive fast, informed

strategic business decisions

Information on Demand Integration Services Helping customers provide quicker access to all available

information in the enterprise for more informed strategic business decisions

Services offeringsGet started more quickly and leverage best practices

IBM Global Technology Services Faster implementation with less risk

A single, trusted source for reliable data

Better-informed decision making

Enhanced performance, availability and scalability of the warehouse environment

Optimization of existing data assets

IBM Information Management

© 2007 IBM Corporation23

Min

ing

engin

e

Category Item

[Call Taker] James [Date] 2002/08/30[Duration] 10 min.[CustomerID] ADC00123

[type] complaint[issue] denied claim[service] prescription[resolution] add’l info

Extractedmetadata

Search, visualization and interactive mining

Call Taker: James Date: Aug. 30, 2002Duration: 10 min.CustomerID: ADC00123

D: Complained about rejected claim for antibiotics; form req’d more information

Unstructured data

Structured Data

Original Data

Rich analysis interface for combining structured and unstructured data Combines search, text analytics and data visualization

Unstructured analytics framework Analysis tools

Introducing IBM OmniFind Analytics Edition

Linguisticanalysis

Extended Insight

IBM Information Management

© 2007 IBM Corporation24

Not-for-profit organization

Independent licensee of the BlueCross BlueShield Association

Leading health care provider in Tennessee

Employs more than 4,300 people

Provides benefits to more than 15,000 companies

Serving more than 5 million people

Pay more than 65 million claims and $16.4 billion in health care benefits in a year

IBM Information Management

© 2007 IBM Corporation25

Information Challenges

Different applications used to support different health care programs

Provider information distributed across systems

Critical knowledge buried in unstructured information

Several thousand providers involved in multiple health care programs

Mission:Build a Provider Information Warehouse to deliver a

Single View of the Provider

IBM Information Management

© 2007 IBM Corporation26

Key Business Goals

Improve Customer Service

Improve Negotiating Position and Sales Effectiveness

Better understanding of:– Previous healthcare provider issues

– Particular business of the healthcare provider

Better understanding of:– All the business they are doing with the provider

– Current and planned business focus of the provider

– Terms of different existing agreements

IBM Information Management

© 2007 IBM Corporation27

Information Challenge AddressedInformation Needed

Addressing Information Needs to Improve Business

Total provider revenueNumber & types of claims

Stored across different systems for each healthcare program

Types of services providedGeographies serviced

Could only look to historic claims – knowledge is buried in web subscription services & government web sites

Terms of current agreements

Providers have different agreements for different plans, with different terms, which are all buried in the contracts

Customer service concerns

Could only determine number of complaints – information about actual concerns buried in free form description fields in call center systems & customer surveys

IBM Information Management

© 2007 IBM Corporation28

Tapping into Unstructured Information

There is useful information embedded in unstructured content

Example: Customer Service Call Records

• Issue Types• Issues• Conditions• Resolutions• Products/Services• Company Specific Interests

IBM Information Management

© 2007 IBM Corporation29

Barriers to Overcome

Cannot be easily consumed or made actionable in high volumes

Why?

• Requires interpretation to extract usable knowledge• Cannot be automatically calculated or graphed• Cannot be part of computational transactions• Does not lend itself to easy automatic classification• Contains multiple facts, or data points

IBM Information Management

© 2007 IBM Corporation30

Provider Information Solution

CustomerService

ClaimsProcessing

Contracts Subscript Svcs(Provider

Demographics)

TN.gov(Provider Svc &Facility Apps)

Provider Information Warehouse(DB2 Warehouse)

Unstructured Information Processing(OmniFind)

Unstructured Information Processing(OmniFind)

Information Integration(Information Server)

Information Integration(Information Server)

Search Index(OmniFind)

Data & Content

BusinessContext

InsightfulRelationships

AnnotatorsAnnotators

AnnotatorsUIMA

(WebSphere Portal)(WebSphere Portal)

IBM Information Management

© 2007 IBM Corporation31

Solution Outcome

Ability to identify issues and issue types in call center notes

Sample Issue Types

• Request• Denied Claim• Late Payment• Poor Service

Sample Issues

• Additional Information Required• Incorrect Submission• Refile

IBM Information Management

© 2007 IBM Corporation32

Additional Benefits

Customer Service

Claims Processing

Gained insight into trends, underlying issues, bottlenecks

Analyze customer satisfaction feedback to understand results more quickly

Detect errors during claims processing

Detect possible fraud

Identified opportunities to improve processes

IBM Information Management

© 2007 IBM Corporation33

IBM Information Management

© 2007 IBM Corporation34

Challenge Needed more information to better

understand customer issues

Lack of complete information hindering sales negotiations

Providers involved in multiple health care programs with structured and unstructured information distributed across systems

Key to success In-context delivery of knowledge

from structured and unstructured information distributed across the organization and beyond

Company profile An independent, not-for-profit health

benefits company serving more than five million people

Business benefits Single view into all “revenue” for a

provider across multiple programs, identification of provider requests for new facilities and access to existing contracts during negotiations

Categorization and understanding of prior issues and access to demographic and service offerings for improved support

Business Advantage through Information on DemandRelevant information on demand improves customer service and sales

IBM Information Management

© 2007 IBM Corporation35

IBM is the leading provider of data warehousingIndustry leaders use DB2 for warehousing

11 of the top 12 banks

7 of the top 8 auto manufacturers

5 of the top 6 insurance companies

4 of the top 6 general merchandisers

4 of the top 5 specialty retailers

3 of the top 4 food and drug stores

IBM is ranked as a leader in Gartner’s “Magic Quadrant for Data Warehouse Database Management Systems 2006.”

IBM Information Management

© 2007 IBM Corporation36

IBM enables dynamic warehousingDelivering greater value from information

More dynamic and balanced approach to warehousing is key

Broad set of capabilities beyond the warehouse required

IBM provides the most comprehensive platform to address these needs

© 2007 IBM Corporation

IBM Information Management

Thank You

IBM Information Management

© 2007 IBM Corporation38

Copyright information© Copyright IBM Corporation 2007

IBM CorporationSoftware GroupRoute 100Somers, NY 10589 U.S.A.

Produced in the United States of America03-07All Rights Reserved.

DB2, IBM, the IBM logo, OmniFind, Rational and System z are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries or both.

Other company, product and service names may be trademarks or registered trademarks or service marks of others.The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software.