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IBM SWG Industry Solutions

Welcome to the Smarter Government Briefing Series 2nd Session - Thursday, August 7
Business Intelligence and Performance Management

Speaker: Michael Rochanakij, IBM Software Group, Information Management Consultant, Government Solutions

IBM Softw are Industry IBM Software Industry Solutions Solutions


Delivering Value through:
Inform ation Managem ent

Lotus

Rational

Tivoli

W ebSphere

Industry expertise Client Insight Product Knowledge

Copyright IBM Corporation 2009

2010 IBM Corporation

COMMUNICATIONS

HR

How are we doing?


POLICY

Why?

OPERATIONS FINANCE

What should we be doing?

CUSTOMER SERVICE RESEARCH IT


2010 IBM Corporation

Finance organizations with strong business insight are performing better


Effectiveness Benefits of Business Insight
Effectiveness Against Enterprise Focused Activities
Meas uring / m onitoring bus ines s perform ance

Business Insight Helps the Enterprise Anticipate External Forces


79%

54%

46%
better

Driving enterpris e cos t reduction

71% 53%

34%
better

Providing inputs into enterpris e s trategy

64% 46%

39%
better

39%
better

Supporting / m anaging / m itigating enterpris e ris k

63% 45%

40%
better

Driving integration of inform ation acros s the enterpris e

49% 30%

63%
better
All other enterprises

Finance organizations with strong business insight

N = 1,458 to 1,469 Note: Defined as those enterprises selecting [5] Very Effective or [4] on a 5-point scale where [5] Very Effective and [1] Ineffective Source: IBM Institute for Business Value, The Global CFO Study 2010

N = 1,471 Note: Defined as those enterprises selecting [5] Very Well or [4] on a 5-point scale where [5] Very Well and [1] Very Poorly 2010 IBM Corporation

A collaborative research project between CPA Australia and the University of Technology, Sydney (UTS) Best practice in performance management A survey of 400 medium-to-large organisations in 2008 Aim analyse what systems and practices were helping to drive organisational performance. Compared two groups: the high performance management systems (HPMS) group and the remainder of our sample. Evaluated four broad categories; strategic planning, measurement & Compensation organisational structure and policies, and human resources and organisation values.

2010 IBM Corporation

2010 IBM Corporation

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The Key is Leveraging Information and Analytics


Transformation using Information & Analytics Predict and act Lack of Insight
Volume Velocity

Sense and respond

Inefficient Access

Instinct and intuition

Real-time, fact-driven Everyone Point of impact Optimized

Skilled analytics experts


Variety

Back office

Inability to Predict

Automated

Information Challenges
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Traditional Approach

2010 IBM Corporation

We want to minimise the blind spots

Business Insight
Where exactly is the problem? Why is this happening? What actions are needed? What will happen next? What if these trends continue? What are the risks or opportunities?

Key Business Questions

What happened? How many, how often?

Rear View
Balance sheet, profit and loss, and cash flow statements Program Services and cost variance analysis

Current View
Customer, Services and Segment costs Spend optimization Working capital analysis Segment, customer and channel costs Sales and supply chain effectiveness

Forward-Looking View
Cash forecasting Scenario-based planning and forecasting Strategic investment decision support Volatility and risk-based predictive and behavioral modeling
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Examples of Business Insight

Source: IBM Institute for Business Value, The Global CFO Study 2010

Wouldnt it be nice, if the organisation from the Executive to the coalface could easily access a single source of the truth

Scorecard Scorecard gives gives all all level of city decisionlevel of city decisionmakers makers access access to to critical critical information information and and trends. trends.
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Wouldnt it be nice, if mangers could self service their reporting needs and quickly identify areas of exception

Drill Drill down down capabilities capabilities let officials let officials get get a a see see specific specific views views of of a a mayors mayors key key performance performance indicators. indicators.
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Wouldnt it be nice, if the impact of indicators could be shown, whats lag or leading

Drilling Drilling into into scorecards scorecards shows shows how how one one KPI KPI impacts impacts numerous numerous other other KPIs, KPIs, allowing a clearer allowing a clearer view view of of overall overall impact. impact.
2010 IBM Corporation

.the data is there, but !

Volume
988 exabytes: The amount of digital information that will exist in 2010, equal to a stack of books from the sun to Pluto and back
Source: Various IBM and Public Studies

Variety
80% of new data growth is generated largely by email, with increasing contribution by documents, images, and video and audio.

Velocity
real-time information to make key business decisions.

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many organisations are struggling!!!

$5.7M 1 in 3
Business leaders frequently make decisions based on information they dont trust, or dont have Lost time reformatting information between applications

$5.3M
Lost time searching for the right information
Annual cost per 1,000 knowledge workers

?????

1 in 2
Business leaders say they dont have access to the information they need to do their jobs

were data rich but information poor

Sources: IBM: Break Away with Business Analytics and Optimization Study; IDC

2010 IBM Corporation

Theres a need to look at Information as a strategic asset of the organisation and develop an Information Agenda
Establish the to-be vision

1. Define to-be processes

Align people, process, & information

Plan the incremental implementation

4. Prioritize

2. Define to-be supporting infrastructure

Deploy an agile infrastructure

3. Validate through use cases

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Develop an Information Strategy who needs what, when and why Must be closely integrated with the business objectives
Primary Key Business Initiatives

Secondary Key Business Initiatives

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YOU NEED A DASHBOARD AND SCORECARD TO TRACK YOUR KEY METRICS

THAT WAY YOULL HAVE MORE DATA TO IGNORE WHEN YOU BASE YOUR DECISION ON ORGANISATION POLITICS

WILL THE DATA BE ACCURATE

OK , SO LETS PRETEND THAT MATTERS

2010 IBM Corporation

Strong data governance helps top performers move faster and collaborate more easily
Data Governance Levels
14% 42% 32% 3X
Sophisticated Processes and management systems that are strong with some supporting automation in place

Competitive

25% 54% 33%

Defined processes and management systems that are understood and adopted by most people

Rudimentary A few basic processes and the beginnings of a management system

Lower performers (i.e., 4th and 5th quintiles relative to industry peers)

Top performers (i.e., 1st quintile relative to industry peers)

Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at www.ibm.com/gbs/intelligent-enterprise.

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2010 IBM Corporation

IBM and about 50 other leading organisations formed the WW Information Governance Council - it defined 11 Information Governance disciplines
Business Outcomes / Reporting Risk Management & Business Data Transformation Compliance Value to the Business

Enabler s Organizational Structures & Awareness Policy Data Stewardship

Govern s Core Disciplines


Data Quality Management Information Life-Cycle Management Information Security and Privacy

Supporting Technical Disciplines Data Architecture Classification & Audit Information Metadata Logging & Reporting
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Manage Information Quality relentlessly take a TQM approach


1. Lead the effort using a broad, senior group executive sponsorship 2. Formalize management accountabilities for information stewards / custodians 3. Focus on the most important needs of the most important customers. 4. Understand the information process, document it 5. Manage all critical sources of data aim to fix it at the source 6. Measure Information quality do it in business terms. 7. Employ automated controls at many points to detect and fix errors 8. Set and achieve aggressive targets for improvement. 9. Actively manage the needed cultural changes. 10. Establish foundation for continuous improvement.

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Manage the full Lifecycle of Information


The explosive growth of data, compliance requirements and increasingly complex business environments have made information storage management more critical than ever. Governments need to ensure that they are able to maintain control over their ability to store and manage this key business asset, having due regard to privacy concerns. Australia Federal Government Gershon Report 2008

1. Manage Information over its its entire lifecycle Include content TCO - measure it

2. Set the Privacy and Compliance Policies, communicate them , monitor them

Eugnie Blanchard born 16 February 1896 Kama Chinen (born 10 May Okinawa, Japan Gertrude Baines (born 6 1895) April from 1894)
2010 IBM Corporation

How much more can you do ?

2010 IBM Corporation

Top performers are armed with state-of-the-art solutions to support decisions


Above average platforms and toolsets
Business direction
74% 65% 56% 60% 55%

Trusted information

4.4x 2.7x

45%

2.4x

2.5x

2.4x 2.0x
27% 27%

23% 17% 17%

24%

Dashboards and visualization

Analytical and predictive tools

Business rules management


Key:

Content management

Data integration tools

Master data management

Source: Breaking Away with Business Analytics and Optimization: New intelligence meets enterprise operations at www.ibm.com/gbs/intelligent-enterprise.

Top performers (i.e., 1st quintile relative to industry peers) Lower performers (i.e., 4th and 5th quintile relative to industry peers) Relative difference of top performers to lower performers

23

2010 IBM Corporation

IBM Government Information Infrastructure Foundation Components

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2010 IBM Corporation

The IBM Information Agenda Tiger Team

2010 IBM Corporation

IBMs Information Agenda Approach


How are we doing?
CAPABILITY MATURITY ASSESSMENT

What should we be doing?


DATA & TECHNOLOGY VISION
BI Program Roadmap and Value Case Target State BI Blueprint Deliverable Roadmap and Value Case Target State BI Blueprint Deliverable Target State BI BIProgram Blueprint Logical Solution Target State View BI Blueprint Enterprise Alignment & Adoption Logical Solution View
Targeting Targeting

How and When should we be doing it?


ROADMAP
BI Program Roadmap and Value Case BI Value Case Program Roadmap and Value Case BI Value Case The projects,BIas viewed by Wave Wave 1 Wave 2 The projects, as viewed by Wave
BI Change Management Mobilization BI Change Management Implementation Enterprise Enterprise Alignment Alignment & & Adoption Adoption Enterprise Enterprise Alignment Alignment & & Adoption Adoption

Wave 3 Wave 3

1 BI Program Office & Center ofWave Competency


BI Change Management Mobilization Data Stewardship BI Program Office & Center of Competency Business Process Improvement (Mobilization and Implementation)

Wave 2
BI Change Management Implementation

Enterprise Alignment & Adoption


Scorecarding Analysis

Business Insight
Monitoring

Business Insight

Dashboarding Monitoring

Scorecarding

Dashboarding

Modeling & Analytics

Analysis Ad Hoc Querying OLAP


Business Performance Analysis Data

Statistical Modeling

Modeling & Analytics

Ad Hoc Querying

Predictive Modeling Statistical Modeling Data Mining Predictive Modeling Research Data Mining

Data Infrastructure

Geographic Data Mapping OLAP

EDW
Data Infrastructure
Geographic Data Mapping

Business Performance Analysis Data

EDW
ETL ETL

Fixed Reporting Profiling Fixed Reporting Profiling

Flexible Reporting Segmentation Flexible Reporting Multidimensional Insight Data Segmentation

Drillable Reporting

Research

Drillable Reporting

Data Stewardship Enterprise Customer Definition Unique Customer ID Business Process Improvement (Mobilization and Implementation) Customer Production Analysis Policy Level Customer Production Analysis Beginning of (Premium/Loss/LAE) Coverage Level (Premium/Loss/LAE) Customer Insight Enterprise Customer Definition Unique Customer ID Customer Insight for Relationship Customer Profile Reporting for Relationship Policyholder Profile Reporting Development Customer Production Analysis Policy Level Customer Production Analysis Beginning of Development Customer Coverage Segmentation (Premium/Loss/LAE) Level (Premium/Loss/LAE) Customer Insight Customer Insight (Demographic/Premium) for Relationship Customer Profile Reporting for Relationship Policyholder Profile Reporting Class Segmentation Development Development Customer Segmentation (Demographic/Premium) Agency Segmentation (Focus Level) Distribution Hierarchy Views Class Segmentation Book of Business Profiling Phase 2 Release Book of Business Profiling Phase 1 Release Agency Insight (Add SQB Data and UW/ARM Roll-Ups) Agency Insight (Agency/LOB Roll-Ups) Agency Segmentation (Focus Level) Distribution Hierarchy Views for Distribution for Distribution Optimization Agency Segmentation (Relationship) Optimization Book of Business Profiling Phase 2 Release Book of Business Profiling Phase 1 Release Agency Insight (Add SQB Data and UW/ARM Roll-Ups) Agency Insight (Agency/LOB Roll-Ups) Agency Production Analysis for Distribution (BOB/SQB/Renewal Analysis) for Distribution Optimization Agency Segmentation (Relationship) Optimization Agency Production Analysis Market Profile Reporting (Footprint Markets) (BOB/SQB/Renewal Analysis) Market Insight & Market Insight & Profiling New Markets for Penetration Growth Growth Market Profile (Footprint Markets) Growth Evaluation (New Reporting Business Analysis) Market Insight & Market Insight & Profiling New Markets for Penetration Growth Standardized Metrics / KPI Definition Standardized KPI Monitoring Phase 1 Growth Growth Evaluation (New Business Analysis) Business Insight Business Insight Standardized Metrics / KPI Definition Business Insight Business Insight Data Data Infrastructure Infrastructure Data Data Infrastructure Infrastructure Standardized KPI Monitoring Phase 1

Customer Prospect Identification & Profiling Customer Production Analysis Additional Coverage Level (Premium/Loss/LAE) Customer Prospect Identification & Profiling Customer Persistency Analysis Customer Production Analysis Additional Targeting Coverage Customers for Relationship Level (Premium/Loss/LAE) Deepening Customer Persistency Analysis Targeting Prospects to Acquire Targeting Customers for Relationship Deepening Agency Prospect Identification & Profiling Targeting Prospects to Acquire Targeting Agencies to Grow Share With Prospect Identification Targeting Agency Agencies to Serve & Retain & Profiling Targeting Agencies to Grow Share With Agency Segmentation (Value-Based) Targeting with Agencies to Serve & Retain Agency Dashboard Business Alerts Agency Segmentation (Value-Based) Targeting Existing Markets for Growth Agency Dashboard with Business Alerts Targeting Markets for Penetration Targeting Existing Markets for Growth Targeting Markets for Penetration Standardized KPI Monitoring Phase 2

Standardized KPI Monitoring Phase 2 Sunset Existing Legacy/BI Applications Phase 2 Data Warehouse Phase 4 Release (Add Customer Sunset Prospects/Agency Prospects) Existing Legacy/BI Applications Phase 2 Enhancement of existing Data Warehouse Phase 4 Release (Add function Customer New Prospects/Agency Prospects) capability

Data Quality Processes Data Quality Staging Processes Metadata Staging

Market Insight and Growth Market Insight and Growth


ETL ETL

Customer Insight for Multidimensional Insight Data Relationship Development Customer Insight for Relationship Development
Landing Zone Landing Zone Data Sources

Agency Insight for Distribution Optimization Agency Insight for Distribution Optimization
Data Validation Data Validation Data Edits Data Edits Copyright IBM Corporation 2007
Copyright IBM Corporation 2007

Data Quality Assets Metadata Data Quality Assets

Data Warehouse Phase 2 Release Establish BI Environments (Add SQB) Data Warehouse Phase 1 Release Data Warehouse Phase 3 Release (Add (Agency/Policy/Premium/Loss) Customer Data Dimension/Distribution Hierarchy) Warehouse Phase 2 Release Establish BI Environments (Add SQB) Sunset Existing Legacy/BI ApplicationsSubmission-Quote Data Extraction Phase 1 Data Warehouse Phase 3 Release (Add Data Warehouse Phase 1 Release (Agency/Policy/Premium/Loss) Customer Dimension/Distribution Hierarchy) Sunset Existing Legacy/BI ApplicationsSubmission-Quote Data Extraction Phase 1 Insurance Company - Business Intelligence Roadmap and Value Case

Enhancement of existing function


Copyright IBM Corporation 2007 New capability

Insurance Company - Business Intelligence Roadmap and Value Case

Copyright IBM Corporation 2007

15

Sources Insurance Company - Business Intelligence Roadmap and Value Case | MarchData 14, 2007
15 Insurance Company - Business Intelligence Roadmap and Value Case | March 14, 2007

ORGANIZATIONAL PRIORITY ASSESSMENT

BUSINESS CASE

GOVERNANCE BLUEPRINT
BI Program Roadmap and Value Case Target State BI Blueprint Deliverable

Target State BI Blueprint Business Inform Final Scope TargetServices State BIThat Blueprint Business Services That Inform Final Scope Enterprise
Strategy & Planning

BI Program Roadmap and Value Case Target State BI Blueprint Deliverable

Change Management
Informed Decision Making Collaborative Execution

Alignment & Adoption Enterprise Alignment & Adoption BI Governance


Program Steering Standards & Guiding Principles Demand Management BI

Strategic Goal Setting

Insight-Driven Planning

Strategy & Planning


Strategic Goal Setting Insight-Driven Planning

Change Management

Business Insight
Performance Dashboards
LOB Scorecards Regional Scorecards

Informed Decision Making

Collaborative Execution

Metrics Scorecards
Enterprise Scorecard Service Area Scorecards KPI Monitoring

Business Insight
LOB Scorecards

Business Alerts

Executive Info Services

Governance Performance Analysis


Premium Analysis Loss Analysis LAE Analysis Commissions Analysis Premium Analysis Recovery Analysis Sales Profitability Analysis Overall

Metrics Scorecards
Enterprise Scorecard Service Area Scorecards

Performance Dashboards Trend Analysis


Accident Year Basis Analysis KPI Monitoring Business Alerts Actuarial Analytics Customer Risk Analytics Info Services Business Modeling & Analytics Price Modeling Enterprise Risk Analytics Actuarial Analytics Customer Risk Analytics Predictive Underwriting Analytics Predictive Executive

Value Assessment Program Steering Project Approval/Prioritization Standards & Guiding Principles Demand Management Value Assessment Project Approval/Prioritization

Business Regional Scorecards


Calendar Year Basis Analysis

Underwriting Year Basis Analysis

Perf Analysis Perf Analysis Performance Analysis LAE Analysis Commissions Analysis Recovery Analysis Sales Perf Analysis Profitability Analysis Overall Perf Analysis Calendar Year Basis Analysis

Business Trend Analysis


Underwriting Year Basis Analysis Accident Year Basis Analysis

Claims Analytics Business Modeling & Analytics Price Modeling Enterprise Risk Analytics Predictive Underwriting Analytics Predictive Claims Analytics

BI Program Management
Program Communication

Resource Forecasting/Deployment BI Program Management Project Methodology/Oversight Budget & Planning Issue/Risk Management Program Communication

Data Infrastructure

Budget & Planning

Data Infrastructure

Change Control Resource Forecasting/Deployment Project Methodology/Oversight Issue/Risk Management Change Control

Market Insight and Growth MarketMarket Research Insight and Growth


Loss Analysis Market Risk Analytics Market Potential Analytics

MicroSegmentation

Customer Insight for Relationship Development Customer Research Insight for Customer Relationship Development
Predictive Modeling LTV / CLV Modeling Share-of-Wallet Modeling

MicroSegmentation

Agency Insight for Distribution Optimization Agency Research Insight for Agency Distribution Optimization
Predictive Modeling LTV / CLV Modeling Share-of-Book Modeling Agencies to MicroServe & Retain. Segmentation

Market Targeting Market Research


Markets to Penetrate Markets to Expand/Grow Markets to Market Harvest Risk Analytics Markets to Market Exit Potential Analytics

Customer Targeting Customer Research


Prospects Microto Customers to Customers to / CLV Predictive LTV Acquire With Segmentation Serve & Retain. Modeling Grow Share Modeling Share-of-Wallet Modeling Agencies to Acquire

Agency Targeting Agency Research


Agencies to Predictive Sever Modeling

Agencies to LTV / CLV Grow Share With Modeling

Share-of-Book Modeling

Learning & Competency Development


Competency Profiles Training & Skill Development

Market Analysis Market Targeting


Current Penetration Analysis Cross Sell New Business Markets to/ Up Sell Markets to Analysis Analysis Penetrate Expand/Grow Competitor Markets to Analysis Harvest Markets to Exit Customer Satisfaction Analysis

Customer Analysis Customer Targeting

Customer Customer Prospects to Customers to Customers to Persistency Analysis Profitability Analysis Acquire Serve & Retain. Grow Share With

Submission-QuoteBind Analysis

Book of Business Renewal Agencies Agencies to Analysis Analysis to Acquire Serve & Retain.

Agency Analysis Agency Targeting

Sales Forecasting Agencies to Analysis Sever

Agencies to Grow Share With

Learning & Competency Development


Competency Profiles Training & Skill Development

Market Segmentation Market Analysis


Class Affluence Market Potential Current Penetration Cross Sell / Up Sell New Business Segmentation Analysis Segmentation Analysis Segmentation Analysis Competitor Analysis

Demographic Psychographic Value-Based Customer Customer Segmentation Segmentation Segmentation Satisfaction Analysis Persistency Analysis

Customer Segmentation Customer Analysis


Customer Profitability Analysis

Performance Relationship Submission-QuoteSegmentation Segmentation Bind Analysis

Agency Segmentation Agency Analysis


Book Firmagraphic of Business Segmentation Analysis

Value-Based Renewal Sales Forecasting Segmentation Analysis Analysis

Market Profiling Market Segmentation


Profiles of Footprint Markets Profiles ofClass Competitor Profiles Market Affluence Market Potential New Markets by Market Detail Views Segmentation Segmentation Segmentation

Data Stewardship
Data Definitions Data Standards

CustomerCustomer Profiling Segmentation


Unique Customer Customer Demographic Business Identification Household View Holding View Segmentation Customer Psychographic Profile Reporting Segmentation Customer Value-Based Detail Views Segmentation Unique Agency Identification

Agency Profiling Agency Segmentation


Agency Agency Performance Distribution Relationship Agency Firmagraphic Holding View Hierarchy View Profile Reporting Detail Views Segmentation Segmentation Segmentation Value-Based Segmentation

Data Stewardship Data Security/Privacy Policies


Data Definitions Data Transformation Rules Data Quality Policies Data Standards Data Security/Privacy Policies Data Transformation Rules Data Quality Policies

Data Acquisition
Source Data Preference Data Field Data

Profiles of Vendor Footprint Markets Data Third Party Field Data Primary Research Data

Profiles of New Markets

Market Profiling Data Quality & Integrity

Competitor Profiles Market by MarketBI Metadata Detail Views Management Balance & Controls Data Validation Data Quality & Integrity BI Metadata Management Balance & Controls Data Validation

Unique Customer Customer Business Data Household View Data Identification Holding View Extraction Transformation Data Loading Data Synchronization Data Extraction Data Loading

Customer Profiling Data Integration

Customer Profile Reporting

Customer Staging Detail Views Areas

Data Repositories

Unique Agency Data Identification Warehouses Data

Agency Distribution Agency Holding View Collaboration Hierarchy View Profile Delivery Reporting Services Investigative Services Embedded Services Collaboration Investigative Services

Agency Profiling Data Delivery

Agency Detail Views

Primary Research Data Source Data Preference Data

Data Data Acquisition Vendor Data Third Party Data

Data Integration
Data Transformation Data Synchronization

Metadata Data Stores

Marts Data Repositories Staging Areas Metadata Data Stores Data Warehouses Data Marts

Data Delivery
Delivery Services Embedded Services

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Insurance Company - Business Intelligence Roadmap and Value Case | March 14, 2007

Copyright IBM Corporation 2007

13

Insurance Company - Business Intelligence Roadmap and Value Case | March 14, 2007

Copyright IBM Corporation 2007

2010 IBM Corporation

Heres an offer from us to facilitate a fast start with an IBM Information Agenda Workshop
Roadmap Workshop
1 Day workshop to help frame an Information Agenda Roadmap using a proven five-step approach:

5-Step Approach
1. Identify and Document the Opportunities to increase Business Value 2. Conduct an Information Capability Maturity Assessment 3. Align Business Vision with Technology Requirements 4. Identify Opportunities for Improvement People, Processes and Technology 5. Deliver a Roadmap of activities based on priority

2010 IBM Corporation

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IBM SWG Industry Solutions

Q and A
IB M S o ft w a r e In d Solutions u s t r y S o lu t io n s IBM Software Industry
D e liv e rin g V a lu e th ro u g h :
In fo rm a tio n M anagem ent

L o tu s

R a tio n a l

T iv o li

W eb Sp h ere

In d u s try e x p e rtis e C lie n t In s ig h t P ro d u c t K n o w le d g e


Copyright IBM Corporation 2009

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