IBM announces the creation of a new consulting organization dedicated to the market for advanced business analytics and business optimization.
has announced the creation of a new consulting organization dedicated to the
market for advanced business analytics and business optimization.
At an event held at the IBM
T.J. Watson Research
Center here, IBM
announced the creation of its new IBM
Business Analytics and Optimization Services line. The new organization will
draw on the company's deep expertise in vertical industries, research,
mathematics and information management to help clients improve the speed and
quality of business decisions while better understanding the consequences and
business outcomes of those decisions.
Frank Kern, senior vice president of IBM's
Global Business Services, said this marks the first launch of a new service
line by IBM Global Business Services since
it was formed in 2002 following the acquisition of PricewaterhouseCoopers
Consulting. The new service also will draw on IBM's
vast Information Management portfolio, including technologies from the recent
acquisitions of Cognos and iLog, as well as the expertise of the only research
department in private industry dedicated to mathematics and business analytics.
"Our clients understand they're operating in a competitive environment
where more than ever before, in addition to being fast, they have to be right.
That requires something beyond the traditional notion of 'sense and
respond,'" said Frank Kern, senior vice president of IBM
Global Business Services. "That drives the need to speed business
decisions, understand the consequences of any decision and predict outcomes
with more certainty-in short, moving to a new level of enterprise
The new consulting service will have access to 4,000 consultants and will
build on and extend IBM's Smarter Planet
initiative, Kern said. He noted that the new technological world is becoming
more instrumented, interconnected and intelligent. "This is an
instrumented world we live in, and it's interconnected." he said.
Moreover, "Our clients have to become more predictive," Kern said.
"If we had systems with better financial predictive capability, what would
the world look like today? And you can apply those same questions to financial,
security, health care, telecommunications, energy, water and other systems.
Predictive analytics capability can be very powerful."
Working with more than 4,000 consultants dedicated to this effort will be
experts from IBM Research's world-renowned
laboratories, with more than 200 mathematicians and advanced analytics experts.
The company also made significant investments in services research for the past
10 years to build technologies and intellectual property that optimize new
services offerings-all culminating in this new consulting practice in support
of IBM's Smarter Planet strategy, which
recognizes the need for improved business insight.
"We've been incubating this for a bit," said Fred Balboni, IBM's
Global Business Analytics Optimization leader and head of the new IBM
Business Analytics and Optimization service line.
Balboni is the former leader of IBM's
retail industry consulting practice. An expert in data-intensive industries and
consultative capabilities, Balboni leads a core team of analytics experts
within each industry IBM serves and will
address five core areas, including strategy, business intelligence and business
performance management, advance analytics and optimization, enterprise information
management, and content management.
The Business Analytics and Optimization service line rounds out IBM
Global Business Services' established lines of business, including Application
Innovation Services, Customer Relationship Management, Financial Management,
Human Capital Management, Strategy & Change, and Supply Chain Management.
Moreover, the new service line has identified "three big plays"
that it will go after: analytics and data optimization, risk and fraud
analysis, and advanced customer insight, Balboni said.
A survey of business executives published in a study by IBM's
Institute for Business Value and released April 14 reveals that one in two
business leaders say they don't have access to the information in their
organization they need to do their job. With organizations facing unprecedented
scrutiny, pressure and ever-shrinking margins for error, leaders are looking
for new ways to inject certainty and predictability into their decision making.
The survey also showed that eight out of 10 business leaders make major
decisions with missing or untrusted information, IBM
The growing market for a more sophisticated way to use information, extract
insight, and optimize business processes, models and individual business
decisions has been demonstrated by IBM
through a number of pilot initiatives leading to the formation of the new
Business Analytics and Optimization service line.
One such pilot, the IBM
Center for Business Optimization
(CBO), was formed five years ago inside Global Business Services. Last year,
the CBO engaged with more than 200 clients to use advanced analytics to solve
complex business problems, IBM said. A
related capability housed in IBM Research,
On Demand Innovation Services, has completed another 1,000 client engagements
during the past six years.
IBM worked with The Sentinel Group, which
provides health care fraud detection and investigation services to payers
throughout the United States,
to enhance the fraud and abuse detection capabilities of their investigators.
Through advanced analytics, IBM transformed
what was once a manual process for identifying potential fraud to a data-driven
process that helped the company identify over $45 million in fraudulent claims
since 2005, the company said.