Information Management Information On Demand Unlocking the

® Information Management Information On Demand Unlocking the Business Value of Information for Competitive Advantage © 2007 IBM Corporation

Information Management New Initiatives Increasingly Focus on Optimization Organizations Striving for Competitive Advantage Business Optimization Growth is 2 Times Faster than Business Automation Business Optimization $594 B 5. 1% CGR $594 B IT Spending Estimate* 2008 Information Agenda Competitive Advantage Customer Profitability Dynamic Demand Planning Financial Risk Insight Business Automation Application Agenda ERP & Financi als Supply Chain Manageme nt Call Center Operation s Faster Processing, Reduced Costs Includes Hardware, Software and Services. Does not include Networking, Printer, or Standalone Printer or PC Markets. CGRs 2006 – 20011. Opportunity estimates based on analysis done by the IBM Market Intelligence Department. IBM Market Intelligence data is provided for illustrative purposes and is not intended to be a guarantee of market opportunity. 2

Information Management Focusing on Optimization at BCBS TN Provider Satisfaction Improves to Over 90% Competitive Advantage Nearly 3 Million Members …insufficient understanding of customer issues 630, 000 Healthcare Providers …multiple healthcare programs …no single view of all provider claims and activity Business Optimization Information Agenda Understanding Providers Improves Negotiations Customer insight for better service Business Automation Application Agenda Call Center Application Employee Portal Faster Processing, Reduced Costs 3

Information Management Key Challenge is Unlocking the Value of Information 47% of users don’t have confidence 59% of managers miss information 42% of managers use wrong information in their information they should have used at least once a week AIIM & Accenture Surveys, 2007 4

Information Management How Do You Unlock the Business Value of Information for Competitive Advantage? Business Optimization Automation 5

Information Management Information On Demand Unlocking the Business Value of Information for Competitive Advantage Financial Workforce Dynamic Optimization Supply Chain Multi-Channel Customer & Product Risk Insight Marketing Profitability Business Optimization Plan, understand and optimize business performance End-to-End Capabilities Establish and maintain an accurate, trusted view of for Leveraging Existing Flexible Architectureinformation Investments Other Information Sources Manage data and content over its lifetime Better Business Outcomes Use data and content as part of business processes Establish and maintain an accurate, trusted view of information Manage data and content over its lifetime and as part of processes 6

Information Management Information On Demand Unlocking the Business Value of Information for Competitive Advantage People, Processes & Applications Establish and maintain an accurate, trusted view of information Plan, understand optimize business performance Manage data and content over its lifetime Use data and content as part of business processes 7

Information Management Information On Demand Part of a Broader Technology Ecosystem Processes & Applications SOA Message Bus BPM People Collaboration Messaging Portals Systems & Development Systems Management & Development Tools 8

Information Management Information On Demand A Comprehensive Approach People, Processes & Applications Strategy & Implementation Know How & Experience Strategic Consulting Implementation Services Business Partners & Solutions Applications & Tools Skills & Expertise Industry Solutions Infrastructure Storage & Servers 9

Information Management Organizations Need an Information Agenda An approach for unlocking the business value of information Strategy Information Infrastructure Creating a vision to guide decisions and address business objectives Identifying technology components and capabilities to support enterprise requirements Implementing policies to manage and control definitions and use of information Establishing a plan that delivers both short and long-term returns on investment Information Governance Roadmap 10

® Information Management Cognos and Performance Management © 2007 IBM Corporation

Information Management Business Intelligence & Performance Management A complete platform to. Plan Issues Future optimize performance Resolve Issues Explore and Understand understand Identify Issues and plan, for the Financial Management Revenue Expense Plan shows Cost of Scorecard or Report is updated to adjust Sold shows dashboard is fuel Goods for rising costs…provides Profit is below plan due to increase in fuel understanding of costs impact to other expenses and profit Asset Management 12

Information Management Performance Management is Relevant Across the Enterprise Finance Sales Operations How are we doing? Scorecards and Dashboards Why? Marketing Reporting & Analytics What should we be doing? Planning, Forecasting and Budgeting Customer Service IT/Systems Human Resources 13

Information Management The Performance Management Journey Customer Phases Departmental BI Applications Enterprise BI Capabilities Independent Planning Coordinated Decision Making What Do Companies Need To Support their Performance Management Journey? 14

Information Management Customers need accurate, trusted information For better decisions, faster People, Processes, Applications 15

Information Management New Offerings and Solutions Announced 4 New Pre-Integrated Software Offerings Data Warehousing Data Integration & Quality Actionable Dashboards Process Management 2 New Pre-Integrated Systems Offerings 10 New & Enhanced Industry Solutions 3 New Implementation Services Offerings 16

Information Management New Pre-Integrated Software Offerings § Data Warehousing 4 BI pre-integrated with the data warehouse for easier deployment, reduced TCO and faster query times 4 Cognos 8 BI Starter Kit included with Warehouse § 5 user licenses for reporting & dashboarding 4 Info. Sphere Warehouse included with Cognos 8 BI 4 New Pre-Integrated Software Offerings § Non-production license § Data Integration & Quality 4 Improved BI through more accurate, integrated information and data lineage to track basis for business decisions 4 Information Server pre-integrated with Cognos 8 BI § Data quality, ETL & Metadata Management Data Warehousing Data Integration & Quality Actionable Dashboards Process Management End-to-end Capabilities Easier Deployment Lower TCO 17

Information Management New Pre-Integrated Software Offerings § Actionable Dashboards 4 Enable users to seamlessly take action while reviewing key business metrics 4 Cognos 8 BI Starter Kit & Cognos “Builder” included with IBM Dashboard Accelerator § 5 user licenses for reporting & dashboarding 4 Dashboard Accelerator Starter Kit included with Cognos 8 BI § 20 user licenses § Process Management 4 Leverage BI for better decision making and optimized processes 4 Pre-built integration templates for IBM File. Net BPM § Include BI content as part of a process 4 Events engine to initiate processes in IBM File. Net P 8 BPM or WPS based on IBM Cognos 8 scorecard thresholds, including predicted violations 4 New Pre-Integrated Software Offerings Data Warehousing Data Integration & Quality Actionable Dashboards Process Management End-to-end Capabilities Easier Deployment Lower TCO 18

Information Management New Pre-Integrated Systems Offerings § Balanced Warehouse 4 New C 4000 Balanced Warehouse provides “appliance like” offering for the mid-market § Includes Cognos 8 BI § IBM Compliance Warehouse 4 Automatically identify, classify and aggregate content and process information that must be retained for compliance 4 Leverages IBM Cognos for reporting, analytics and monitoring compliance related content and processes 2 New Pre-Integrated Systems Offerings Balanced Warehouse IBM Compliance Warehouse End-to-end Capabilities Easier Deployment Lower TCO 19

Information Management New Implementation Services Offerings § IOD Infrastructure Acceleration 4 Quicker, more effective deployment of warehousing environments for faster return on BI investments § Storage Optimization 4 Design, deployment and operation of more efficient storage infrastructure to improve utilization and reduce overall costs § Data Mobility 4 Establish a simple and unified approach to managing and moving data on-line without impacting performance 3 New Implementation Services Offerings IOD Infrastructure Acceleration Storage Optimization Data Mobility End-to-end Capabilities Easier Deployment Lower TCO 20

Information Management New & Enhanced Industry Solutions § Financial Services 4 Financial Risk Insight for Banking 4 Risk Adjusted Profitability for Banking § Retail 4 Store Operations & Planning for Retail Integration Framework § Public/Government 4 Municipal Scorecard 4 Crime Management and Insight 10 New & Enhanced Industry Solutions § Healthcare & Life Sciences 4 Health Analytics 4 Life Sciences Promotional Spending and Compliance § Industrial 4 Manufacturing Sales and Operations Planning § Horizontal 4 Financial Planning 4 Workforce Analytics End-to-end Capabilities Easier Deployment Lower TCO 21

Information Management Information On Demand from IBM Unlocking the Business Value of Information for Competitive Advantage “…there's no more extensive information management portfolio available, period…” Establish and maintain an accurate, trusted view of information § End-to-end capabilities 2008 Editor’s Choice Awards Intelligent Enterprise Magazine understand Plan, optimize business performance § Deep industry expertise § Open standards, SOA § Industry solutions § Flexible architecture for heterogeneous environments § Extensive partner network Manage data and content over its lifetime Use data and content as part of business processes 22