IBM Debuts New Predictive Analytics Software, Services
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IBM (NYSE: IBM) has announced new consulting services and software that take the power of predictive analytics to new levels for C-suite decision makers.
The new analytic offerings address the emerging opportunities of Big Data to manage financial operations, decrease fraud and nurture next-generation customer relationships. Based on experiences drawn from more than 20,000 analytics engagements, the new solutions combine innovations developed by IBM Research with new predictive technologies from dozens of companies IBM has acquired.
IBM hopes to broaden the group of clients - specifically C-suite leaders - who can adopt analytics, extending IBM's position in the strategic market for business analytics. IDC estimates enterprises will invest more than $120 billion by 2015 to capture the business impact of analytics, across hardware, software and services.
"These new capabilities target the agendas of global business leaders operating in a world of accelerating complexity, unpredictability and massively available information," said Bridget van Kralingen, senior vice president of IBM Global Business Services, in a statement. "By integrating analytics into business processes and converting new insights into action, IBM is helping organizations transform big data from a threat into an opportunity, one that will be their most valuable natural resource."
In short, IBM has expanded its multi-billion dollar investment in business analytics to address three vital client issues - fraud detection, financial operations and customer service - and help organizations increase revenues.
The IBM Smarter Analytics Signature Solutions include the IBM Smarter Analytics Signature Solution - Anti-fraud, Waste & Abuse. Each year, health care fraud tops $250 billion, according to the FBI. Tax fraud costs billions more. IBM's adaptive systems learn from the latest data, helping to protect against emerging fraud. The solution embeds advanced algorithms directly into business processes, providing government agencies and insurers with the ability to detect fraud in real time - before funds are paid out. Using IBM's sophisticated analytics, the solution recommends the most effective remedy for each case, optimizing an organization's finite resources. For example, the system might recommend that a simple letter requesting payment be sent to resolve one case, while recommending that a full investigation be opened in another case.
The solution will help clients replicate success stories like Infinity Insurance. One of the nation's leading "nonstandard" insurance providers, specializing in covering higher-risk drivers. The company is applying IBM analytics to more than 25,000 automobile claims processed monthly in order to identify patterns in historic data. In the first three months, Infinity reduced the time needed to identify fraudulent claims from 14 days to 24 hours.
The second of the three new offerings is IBM Smarter Analytics Signature Solution - Next Best Action. IBM officials said all organizations understand the value of collecting customer data, but many struggle to extract new insight and use it to create more meaningful relationships. IBM's solution helps organizations gain a comprehensive view of a customer, derived from traditional enterprise data and customer sentiment gleaned from social networks, logged customer service interactions and web click stream data. Then, real-time analytics predicts customer behavior and preferences to inform decisions on the next best action on behalf of that customer.
These capabilities bring together marketing and customer service functions and have helped companies like Sprint, which is using IBM analytics to determine the most effective offers for existing and new customers, the company said.
The final new offering is IBM Smarter Analytics Signature Solution - CFO Performance Insight. Financial information is growing at an astounding rate of 70 percent each year, according to IBM research. The industry's data sets have to be collected and cross-referenced against analyst reports, economic market data, financial reports, news stories, board notes and company balance sheets. IBM's capabilities provide increased insight, visibility and control over financial performance with predictive capabilities applied to key metrics and data on past performance, the company said. The predictive analytics, combined with what-if analysis, and traditional business intelligence in an executive-style dashboard, guides users with root-cause analyses. Organizations can uncover relationships among performance metrics, anticipate performance gaps and assess alternatives with scenario planning.
For more, read the eWeek article: IBM Launches New Predictive Analytics Software and Services.