Smarter Infrastructure Analytics Strategy and How Maximo

© 2014 IBM Corpora/on

Smarter Infrastructure Analytics Strategy and How Maximo Inventory Insights Extends the Value of Maximo Asset Management

Stan Tims Program Director, IBM Analytics Product Management, C&SI September 24, 2014

[email protected] (512) 585-6924 @StanTims

© 2014 IBM Corporation 2

Agenda

•  Overview of IBM Smarter Infrastructure Business Analytics •  IBM Maximo Inventory Insights •  Additional Information


Smarter Infrastructure Analytics


Three most common types of asset analytics

Time Time Time Today Past Future Future Today Today

Prod

uc,o

n

Past

Descrip,ve Analy,cs

Prescrip,ve Analy,cs

Predic,ve Analy,cs

U,liza,

on

Failu

res

PM Plan B

PM Plan C

Descriptive Prescriptive Predictive Use Prioritize decisions

Use Optimize outcomes within constraints

Use Anticipate outcomes

Process Aggregate applicable values and apply operands to highlight outliers

Process Incorporates pre-determined variables, rules and decision criteria

Process Prioritizes relevant variables to create trends from historical time-series data

Math Standard: addition, subtraction, multiplication, division

Math Linear, quadratic and integer programming

Math Regression, vector, canonical correlation, multidimensional scaling


IBM Smarter Infrastructure offers advanced analytics today

Descriptive Analytics

Prescriptive Analytics

Predictive Analytics

IBM Smarter Infrastructure Analytics Offerings

Maximo Business Intelligence (BI) Packs TRIRIGA Workplace Performance Management (WPM)

Maximo Scheduler Optimization TRIRIGA Real Estate for Environmental Sustainability (TREES)

Maximo Inventory Insights (MII) Predictive Maintenance and Quality (PMQ)

Purpose Provide alerts and diagnostics, and prioritize decisions

Optimize outcomes or prioritizes actions based on rules, budgets and decision priorities

Anticipate issues or exploit opportunities based on time-series data

Typical output KPI’s, metrics, views

Plans, schedules

Trends, patterns

IBM analytics engines

Sample value Reduced time to diagnose and resolve project slips

Maximized project team efficiency, based on skills, distance and priority

Increased asset production due to failure avoidance


Predictive Inventory Optimization

With Maximo Inventory Insights


What it is


To address these challenges, IBM has created Maximo Inventory Insights: a pre-‐configured advanced analy/cs offering for Maximo Asset Management customers.

The product helps organiza/ons to both drama/cally reduce over-‐stocked inventory items, and reduce the risk of running out of stock for cri/cal parts by applying predic/ve analy/cs to an/cipate inventory issues.

Most organiza/ons maintain at least $20M in parts and spares inventory, but have liNle insight into which parts are over-‐stocked and which are under-‐stocked.

Even more challenging, not only do they not know how big the problem is today, but whether the problem will get bigger or smaller in the future.

The system targets key elements of inventory planning, such as re-‐order points, generates recommenda/ons for op/mizing each line item.

Organiza/ons that use Maximo Inventory Insights can take advantage of the power of predic/ve analy/cs and op/miza/on to generate substan/al savings, which can be $300K-‐$400K per year for $20M in inventory.

Unlike other enterprise analy/cs offerings, Inventory Insights generates value within a day, since it extracts the data, profiles the inventory, priori/zes areas of focus, recommends op/miza/ons of ROP’s and applies them to Maximo…all automa/cally.

The offering is delivered as a service (SaaS) so not only requires no addi/onal IT infrastructure, it is offered for a monthly fee based primarily on the value of inventory managed.

Maximo Inventory Insights Descrip,on


How it works


5 key functions: extracts, profiles, prioritizes, recommends, applies

Inventory Insights Data Collector

Customer Maximo Database

Inventory Insights Analytics Engine

Customer Maximo Asset Management Environment

SoftLayer

IBM Maximo Inventory Insights Environment

#2 Profiles Inventory

Customer Inventory Insights Database

#1 Extracts Data

#5 Applies Recommenda,ons

#3 Priori,zes Focus Areas

#4 Recommends ROP Op,miza,ons


What it does


Extracts inventory data from Maximo Asset Management system


Profiles Maximo inventory environment


Prioritizes areas of management focus


Recommends optimal reorder points and identifies financial impact


Applies new reorder points in Maximo Asset Management system


How customers value it


“We really like how simple the offering is to set up and use, but

includes powerful analy;cs under the covers. We also like that the inventory op;miza;on recommenda;ons are generated

automa;cally. This is not just a tool, it’s a solu;on, and SaaS is the perfect delivery model.”

—Glenn Clark, Solutions Director, Certus Solutions

“The informa;on is presented in a coherent and interes;ng manner.”

“I think it looks great.”

—Roger Finigan, Keyera Energy

“The product has very advanced technology, packaged in a simple soEware-‐as-‐a-‐service delivery system. Maximo

Inventory Insights not only generates analy;cs-‐supported recommenda;ons, it provides some good insight on old or

unnecessary inventory.”

—Jason Sadovia, Principal Consultant, On Tracks Consulting

“It looks good. It’s straighIorward. It’s

simple.”

“If we can have the system make changes en masse, that saves us a lot of

;me and effort.”

—Gord Prince, Mosaic

Customer and partner feedback…


Value justification for Maximo Inventory Insights

•  Assumptions •  $20M USD inventory value •  100,000 unique parts •  5 possible users

•  Benefits •  For items trending to over-stock

• 5% reduction in inventory x 15% holding costs = $150,000/year

•  For items trending to under-stock • 1% increase in asset production due to ensuring in-stock parts and avoiding asset downtime • $100,000/year asset production value x 150 assets x 1% annual improvement = $150,000/year

•  Cost (List Price) •  Up to $100M USD inventory band plus 5 authorized users

• $3,500 USD/month + $500/month x 12 months = $48,000/year •  No incremental headcount – system is fully automatic after 15-minute setup

•  Net Benefit •  $150,000 + $150,000 - $48,000 = $252,000/year •  $48,000 12-month commitment / $25,000 monthly benefit = 1.9 months payback


Pricing and packaging


Pricing and Packaging

Packaging… •  Based primarily on inventory value •  Per-user access •  SaaS: includes customer support

Pricing… •  Inventory Value:

•  Up to $100M inventory value: $3,500/ month •  $100M - $500M inventory value: $7,500/month •  Over $500M inventory value: $15,000/month

•  Users: •  $100/user/month, authorized

•  12-month initial commitment

Available from… •  IBM Sales •  IBM Service Engage •  Business Partners

Supports… •  Maximo Asset Management 7.1.x and 7.5.x •  MAM browsers and operational environments


Services partners and GBS provide…


All Maximo BP’s can sell the offering. Early input by…

Possible services from partners and GBS for Maximo Inventory Insights Data health check How complete is the data?

Which data should customer maintain and standardize?

Data cleansing services Standardize terminology Complete values for lead times, quantities, reorder points

Inventory management best practices

How to evaluate and manage excess parts How to determine appropriate safety stock levels How to evaluate inventory management success and report on it

Complex analytics implementations

Integrate data warehouse or SAP data with a custom SPSS model Incorporate RFID and “mobile inventory” into decisions


Common Questions


Common Questions

•  Technology •  What’s in the “black box”?

•  Data •  What data is required?

•  Functionality •  Can it work with other Maximo data, or with non-Maximo data?

•  Security •  How well-protected is the data?

•  Direction •  What do you have planned?


Directions


2014 -‐ 2015 Smarter Infrastructure Predic7ve Analy7cs Roadmap – 9.12.14 Q3 2014 Q2 2014 2015+

Maximo Inventory Insights Applica,on

• Predic/ve trend charts • Data health reports phase 1 • UI layout improvements phase 1 • Rollovers updates

Inventory Analy,cs Wiki • Videos, white papers

Maximo Inventory Insights PlaPorm

• E-‐commerce • Data collector automa/on


• Lead /me op/miza/on • Safety stock op/miza/on support • UI layout improvements phase 2 • Under-‐stock value es/mator


• Mongo db upgrade • Data collector improvements

Smarter Infrastructure Predic,ve Analy,cs Applica,ons

• TRIRIGA Real Estate TBD • TRIRIGA Projects - Maximo work order data health - Maximo work order priority op/miza/on - MII /me-‐series factors - Mul/-‐currency control

Smarter Infrastructure Predic,ve Analy,cs PlaPorm

• SAP data integra/on • Cognos support • Maximo SaaS integra/on

Q4 2014


• Localiza/on of primary languages

Inventory Analy,cs Wiki • Product blogs, technical FAQs


• FISMA support • Data health reports phase 2 • UI layout improvements phase 3 • Seasonality factors

Smarter Infrastructure Predic,ve Analy,cs Mobile Applica,ons

• Maximo Anywhere support • Mobile Inventory support

Inventory Analy,cs Wiki • Best prac/ces blogs

Smarter Infrastructure Wiki • Product, best prac/ces blogs


How to learn more


Possible next steps

•  Detailed presentation •  By IBM experts in inventory and asset analytics •  Per your convenience

•  Demonstration •  Through Service Engage •  On your own, or in conjunction with IBM sellers

•  Technical evaluation •  Discussion with one of our technical experts •  Topics of your choosing: algorithms, security, performance, etc.

•  Trial •  Through Service Engage: www.ibmserviceengage.com/inventory-insights •  IBM Sales or partner can follow up to assist


The benefits of a Maximo Inventory Insights Trial

•  Easy setup •  Request a Trial, get a link, download the file, extract and setup •  Setup can take only 30 minutes

• Likely requires dba or systems admin, however, to authorize data collector access

•  Uses customer’s actual data •  A very fast, easy proof-of-concept •  All inventory data will be analyzed •  Data is secure on Softlayer servers

•  Provides clear value in less than a day •  Users will receive summary of inventory profile, priorities and recommendations •  Users will receive specific recommendations on up to 50 items, for each of up to 5 sites •  The system will help identify incomplete and incorrect data •  Customer organization will have access to it for 30 days

•  Straightforward conversion to production use •  No need to install any other software •  Prior analyzed data completely available, with all details and functionality applied


Additional information for Maximo Inventory Insights

•  Announcement of IBM Maximo Inventory Insights • http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=AN&subtype=CA&htmlfid=897/ENUSC14-014&appname=USN#214-110

•  Maximo Inventory Insights on www.ibm.com

• http://www-03.ibm.com/software/products/en/maximo-inventory-insights

•  Maximo Inventory Insights on Service Engage • https://ibmserviceengage.com/inventory-insights

•  White Paper •  “Descriptive, predictive, prescriptive: Transforming facilities and asset management with

analytics” • http://www.ibm.com/common/ssi/cgi-bin/ssialias?subtype=WH&infotype=SA&appname=SWGE_TI_EA_USEN&htmlfid=TIW14162USEN&attachment=TIW14162USEN.PDF

•  Maximo Inventory Insights blog • http://www.servicemanagement360.com/2014/04/07/parts-parts-maybe


Summary


IBM Maximo Inventory Insights Pre-configured inventory decision support system,

delivered as a service

§  Pre-built analytics model to predict over-stock and out-of-stock conditions and provide optimal re-order management"

§  Pre-integrated software agent automatically acquires necessary data from Maximo database and delivers it to the analytics engine"

§  Provides insights on “stagnant” inventory"

§  Delivered as a service (SaaS)"

Reduces inventory holding costs by 10% in first year

Increases asset availability and utilization by avoiding parts outages

Automatically generates optimal stock re-order points


IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion.

Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.

The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.

Performance is based on measurements and projec/ons using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considera/ons such as the amount of mul/programming in the user’s job stream, the I/O configura/on, the storage configura/on, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

© 2014 IBM Corpora/on

Questions?


Additional Information


IBM Maximo Business Intelligence (BI) Packs Utilizes the power of Cognos to gain operational insight

on Maximo data

§  Multiple phase delivery starting now with availability to run on Maximo 7.5.0.3 and Cognos 10.1.1"

§  Provides workspaces and metrics for Work Orders, Assets, Asset Failure and Supply Chain!

§  Easy access via the ISM Library!

§  No additional charge for Maximo customers"

Targets Power Users and their skill set providing a very effective combination in analyzing Maximo data

Built on industry-leading Cognos business intelligence software

No Maximo code or database modifications are required to utilize this functionality


IBM TRIRIGA Workplace Performance Management (WPM) Descriptive analytics suite to manage facilities, real

estate and projects

§  Pre-configured and role-specific dashboards"

§  Plan-vs-actual comparisons"

§  Over 300 metrics, KPI’s, variables, views and dimensions"

§  Optional extensions to TRIRIGA Operations, Real Estate, Project and Facility Management offerings"

Increase facility and real estate utilization

Reduce project over-runs and decrease project slips through function-specific metrics

Improve budgeting, forecasting, buy-vs-rent and expand-vs-consolidate decisions


IBM Maximo Scheduler Optimization Prescribes lowest-cost, highest-utilization schedules for

work forces, automatically

§  Descriptive analytics compares the target, scheduled and actual utilization and cost of schedules"

§  Pre-configured schedule-specific rules engine accounts for skills, location, travel time, priorities"

§  Drag-and-drop team assignments accelerates schedule optimization"

§  Schedule compliance metric"

Increases work team utilization and lowers travel cost

Increases service level and degree of regulatory compliance

Reduces duplicate work and decreases service delays through automatic re-optimization for emergency situations


IBM TRIRIGA TREES Tracks energy usage and highlights high-ROI energy

savings projects

§  Pre-built dashboards with descriptive analytics metrics and KPI’s for energy consumption!

§  Scenario modeling to modify resource-intensive assets, facilities and processes"

§  Automated carbon accounting and reporting"

§  Optimization analytics for comparing investment options!

Identifies optimal energy-savings projects, per organizational financial and compliance goals

Increases overall return on capital required for energy management

Integrates with TRIRIGA suite to drive operational actions and capital planning for projects


IBM Predictive Maintenance and Quality (PMQ) Automate execution based on insights from operational data to

increase predictability of outcomes !§  Big Data, Predictive Analytics software and services

with a pre-built solution framework "§  Analyzes structured, unstructured and streaming

information to determine asset performance"§  Predicts asset failure to optimize quality and supply

chain processes for asset management"§  Integrates data and predictive insights with Maximo to

proactively enable corrective actions!

Reduces repeat repairs by up to 50%

Reduces overall accident rates by 20% or more

Reduces utility network incidents by up to 41%

Documents

Smarter Infrastructure Analytics Strategy and How Maximo