From Data to Insight to Value -KPMG

© 2016 KPMG Oy Ab, a Finnish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.1

Microsoft Data Driven seminar

May 3rd 2016

Harri Wihuri, Partner. KPMG

Jan Nyström, Senior Manager, KPMG

© 2016 KPMG Oy Ab, a Finnish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a

Swiss entity. All rights reserved. 2

Introduction

Harri Wihuri

■ Harri is leading KPMG´s Management Consultancy focusing on

Technology Enablement, Transformation Programs and Program

evaluations.

■ Harri has 20+ years experience of Program Lead and Transformation

Programs. In KPMG Harri has mainly focused on Program Assurance

and PMO Service engagements as well as client responsibilities to

clients like Nokia, Nordea and government organizations like Finnish

MoD and SITRA

Jan Nyström

■ Jan has 15+ years experience in data & analytics, business intelligence,

software solutions and business consulting in the Nordic services &

commercial market. He has extensive experience of analytical advisory

projects around business process development, big data and predictive

analytics.

■ His special areas of knowledge are evaluation, design and

implementation statistical analysis methods to improve productivity,

increase revenue and drive value.


KPMG – A Global Network of Professional Firms

Focus on Audit, Tax andAdvisory services

Our aim is to turn knowledge into value for the benefit of our clients, our people and our communities.

€€€ Turnover

in financial year 2015:

USD 24.4 billion 174,000 people globally

More than 900 professionals

in 23 offices

Turnover

in financial year 2015:

107 million euros

Audit AdvisoryTax

10,03

5,319,10

Turnover by function(USD billion)

We operate in 155 countries

KPMG Advisory services include Management Consulting, Governance, Financial Risk Management and Restructuring

44,000 people globally


Data & Analytics is a strategic focus area for KPMG

KPMG Capitals

investments:

Strategic alliances

4,500 people globally

Dedicated local teams focusing on

Technology enablement, Data &

Analytics, Big data and Business

Intelligence

KPMG Insights LabsFrankfurt

London

Hong Kong

New York

Services:

- Assessments & Assurance

- Opportunity management

- Business and operating models

- Change management

- Organisational design

- Technology enablement

- Cyber security

Hands-on analytics

- Analytics modeling

- Visualisation


An enterprise hybrid cloud offering combining Microsoft’s wide portfolio of cloud products and KPMG´s extensive data & analytics transformation experience

KPMG's D&A strategy approach is powered by Microsoft's technology

Data & Analytics, Value

Management, Risk and

Transformation

People

Process

=

Enterprise Cloud

Products Suite

Infrastructure

Platform

SoftwareCloud, Office 365

Technology

+Enterprise Solutions

…from Data to

Insights to Value


Data is opening up new business opportunities and deconstructing our legacy businesses


Demography

Me

ga

tre

nd

s &

Ga

me

Ch

an

ge

rs

Environment

Technology

Social values,

behaviour & ethics

Value chain

Customers

Products & brands

Markets

Technology

Governance

Talent

1

2

3

4

5

6

7

Disruptive changes fuelled by data, technology and analytics!

They will also impact your business

20% of all market leaders, will lose their number 1

position by 2017, to a company started after year 2000,

due to a lack of digital business model

25% of the total workforce, employed in the private sector,

will over the coming decade see their employer change

their business model - or disappear as a business!

50% of companies have experienced new competitors

enter the market, enabled by technology

70% of shoppers have stopped buying goods or services

from a company after experiencing poor customer

service

64% have made future purchases from a company’s

competitors after experiencing poor customer service.

81% are willing to pay more for a better customer

experience

- Gartner

- Gartner

- Gartner

- CX Index Report


Data is driving new business opportunities and ways of engaging

+

Product App Cloud

+

+ +

No longer just a football – IT

product to improve personal

physical health

No longer just a toothbrush –

IT product to improve personal

dental health


Data is deconstructing your legacy business

Source: KPMG International survey: Going Beyond the Data: turning insights into value 2015

Scale or fail

Data and Analytics offers tremendous opportunities for both newcomers and incumbents.

In the digital domain, a new proposition can quickly be scaled up based on superb algorithms and best in class customer experiences.

Companies that cannot keep up risk being thrown out of business


How Data is Disrupting the Banking Industry

Then:

Big, multinational bank

Small, regional banks

Now: Personal loan

Discover

Home Lending

Remittances

Investments

Invoice factoring

Payroll

Auto

Student loans

Small business

loans


The next big Battleground for data

Fleet management Auto service provider connectivity

All data-driven

…Own … Or loanA connected car Self-driving spot-rental

VS.

Driver assist Control via mobile

Connected car management Driver tracking / performanceDriver safety Real-time insurance


Examples of other data driven scenarios

Fraud detection

Credit risk management

Customer Acquisition

Cross-sell and upsell

Loyalty programs

Marketing mix optimization

These are only a few examples – only limit is the imagination

Lifetime customer value

Personalized offers

Product recommendation

Pay for performance

Operational efficiency

Smart buildings

Predictive maintenance

Supply chain management


Data is driving insights, but getting to value is difficult. What is the role of the board?


Going Beyond the Data – Driving Value from Insights

Source: KPMG International survey: Going Beyond the Data: turning insights into value 2015. Answered by 830 senior executives across 15 countries

Data & Analytics has entered

mainstream by turning DATA

into INSIGHTS

… but big challenges still remain

While striding towards maturity,

many companies are only getting

INSIGHTS, but missing the VALUE


So what now – why does this concern the Board?

Boards must broaden their insights into the disruptive influences

of their industry and the technology and data that drive it, enabling

them to inspire the business to continually renew and think

differently. Look to other industries and start-ups

Boards must invest in the future. Data quality and skills are top

challenges for companies. The must be a desire to invest in D&A

and improving data (at the very least, understanding which data is

critical to the business and why)

The board needs to acknowledge the need for a more

experimentation and risk, starting from the top. Making mistakes

and learning from them can be the difference between success

and failure

1

2

3

The fastest growing board priorities are:

• Delivering business intelligence / analytics

• Better engagement with customers/prospects

• Reputation management via social media technology

Source: KPMG & Harvey Nash, CIO Survey 2015

Only 14% think they have all the talent and capabilities they

need to fully leverage Data & Analytics

Source: KPMG International survey: Going Beyond the Data: turning

insights into value 2015

When asked how failure is assessed and dealt with at board

level, only 8% say they take chances and welcome failure

However 55% say they learn from failure and try harder or

smarter next time

Source: Radical Innovation and Growth – Global Board Survey

2016, Deloitte and Board Network


Getting to value requires leadership, investment and a few key focus areas


Key takeaways 15

I get it – data is great – what do I need to do to get VALUE from it?

Source: KPMG International survey: Going Beyond the Data: turning insights into value 2015. Answered by 830 senior executives across 15 countries

1

ADDRESS THE BUSINESS ISSUES YOU ARE FACING

Most clients we work with do not ask for a D&A solution, they

ask for a solution to a specific business problem.

Understanding your biggest issues will direct you to where you

can best focus your D&A capabilities.

2

UNDERSTAND YOUR DATA

Analyze your data and across silos to map back to the issues

and challenges the business is addressing. Focusing on single

data sources no longer work. D&A is a team game!

3

GO BEYOND POINT SOLUTIONS

Transcend individual projects towards an overarching

enterprise-wide data-driven culture that underpins investment

decisions.

4

DEFINE WHAT VALUE YOU ARE LOOKING FOR

What is it you want to achieve? Is it reduced cost? Better

management of risk? Improved customer experience? The

reality is that ‘value’ differs depending on the issue you are

dealing with and its relative importance to the business.

5

FOCUS ON CUSTOMERS

Ask yourself how to use new forms of data and algorithms to

automate decision making in order to bring greater customer

service and expand your capacity to transact profitably with

customers.

6

REMEMBER IT IS A JOURNEY

Don’t do D&A just for the sake of doing it. Prioritize your

insights and understand their potential value (in terms of not

only the ‘size of the prize’, but also in terms of speed and

complexity).

7

MEASURE YOUR SUCCESS

Use your successes and evidence of the value created to fund

more projects and share your expertise and knowledge across

the organization.

8

FAIL BUT FAIL FAST

Experimentation is in the nature of transformative analytics.

Allow fast failure by creating a culture that support agility and

experimentation.


1. ADDRESS THE BUSINESS ISSUES YOU ARE FACING

In 2013:Staggering 96% also admitted

they were not using D&A effectively. Today: D&A is enjoying widespread adoption across the

enterprise, and is acknowledged as a game changer.

Areas of use TODAY

Companies do not ask for a D&A solution, they ask for a solution to a specific business problem.

Understanding your biggest issues will direct you to where you can best focus your D&A capabilities

We suggest

Focus on key business

problems in your organisation

and start with the low hanging

fruits you can solve with D&A

We help in:

Identifying & transforming

business problems into

analytical opportunities


2. UNDERSTAND YOUR DATA

COLLECT & COMBINE SMARTLY

Combine across different

dimensions:

Vertical, Horizontal, Functional,

Intenal, External etcBecomes more accurate and

extensive with integrated data !

Data from

public transport

Location data from

telecom providers

Public Weather

Forecast

Social Data on

Events nearby

Travel App

3. GO BEYOND POINT SOLUTIONS

“D&A means combining the right tools, capabilities, algorithms and technology to

analyze multiple sources of information in near-real-time. Without that,

organizations may never be able to reach a stage of maturity where they can

conduct more advanced activities such as predictive analytics, pattern recognition,

anomaly detection and so on.” - Nadia Zahawi, Director, Global Data & Analytics

Analyzing a single source of data will

seldom drive real value; it takes multiple

streams of data to get real insight,”

Nova Spivack, CEO, Bottlenose.

… and that the benefits come from using the data across silos – D&A is a team game!

We suggest

Understand your data – start

where quality and availability

is high and work across silos.

Embrace an enterprise wide

data-driven culture

We help in:

Assessing data quality,

processes, tools , skillsets

gaps and help prioritizing

opportunities


4. DEFINE WHAT BUSINESS VALUE YOU ARE LOOKING FOR

Survey

Adoption is widespread!! However, most

organizations continue to struggle with

fundamental building blocks required

to move from data to insights, such as

improving the reliability and accessibility

of data. 50% are still experiencing

difficulties evaluating the quality and

reliability of their data.

Are the necessary building blocks in place to

turn insight into value?

What is it you want to achieve? Is it reduced cost? Better

management of risk? Improved customer experience? The reality

is that ‘value’ differs depending on the issue you are dealing with

and its relative importance to the business

We suggest

Determine the value you are

looking for. Make sure that data

can support it and that data

quality is high. Put data quality

and availability front and center,

by establishing data governance

and ownership across the

enterprise

We help in:

Defining and building Data And

Analytics related core processes

and operating models


5. FOCUS ON CUSTOMERS

6. REMEMBER IT IS A JOURNEY

Ask yourself how to use new forms of data and

algorithms to automate decision making in order to

bring greater customer service and expand your

capacity to transact profitably with customers

8. FAIL BUT FAIL FAST

7. MEASURE YOUR SUCCESS

Insight is nothing more than information until

you use it to actually change something !

Follow up on initiatives!

Set goals, evaluate and iterate!

You cannot change what you cannot measure

■ Create a platform of skillsets and tools that is

flexible enough to enable you to grow

■ Have a vision and a goal to know where you are

going but leave room for how you are going there

■ Consider speed and complexity while creating

your path to success

■ Be agile - don’t try to do everything at once

Build the capabilities for the future

Experimentation is in the nature of transformative

analytics. Allow fast failure by creating a culture

that supports agility and experimentation.

We suggest

Focus on customers and

and understand where you

are going and how to get

there, by measuring

progress and securing

continuous involvement

We help in:

Defining a D&A business

model and aligning people,

processes and measurement

with the model


What were the key takeaways and did we achieve our aim of the presentation?


Summary

Your key takeaways

Acknowledge, embrace and exploit data as one of your most important assets

Get the basics right – garbage in, garbage out

Get inspired, take chances and invest

Have a clear plan of attack and measure your progress and success, but don’t be afraid to experiment

Did we achieve it?

Offer a view on where future value can be

derived and how others are engaging

Open the eyes to the possibilities and the fact that

you need to act now and keep acting

Inspire, inform and challenge your current focus

and expertise as board members

Offer you guidance as to how to get started or

continue your efforts in driving VALUE from DATA

DATA INSIGHTS VALUE

Requires an idea, data

and the right people

Requires business transformation

and a clear goal

And if you are to remember just

ONE thing from today …

© 2016 KPMG P/S, a Danish limited liability partnership and a member firm of the

KPMG network of independent member firms affiliated with KPMG International

Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG

International.

Thank You!

Harri Wihuri

Technology Enablement, KPMG Advisory Services

Mobile+358 40 594 1191

[email protected]

Jan Nyström

Data & Analytics, KPMG Advisory Services,

Mobile+358 40 750 2168

[email protected]

From Data to Insight to Value -KPMG

Data & Analytics

Transcript of From Data to Insight to Value -KPMG