finance & advanced analytics - interim managers belgium trifinance

Event for Interim Managers

TRIFINANCE BELGIUM29 APRIL 2014

Jean-Marie Bequevort

Over 40% of the companies that were at the top of the Fortune 500 in 2000 were no longer there in 2010 (Brian Solis, Future of business)

Business landscape

Technology everywhere

Digital behaviour

Explosion of data

Speed of action

New business models

Constant flow of changes ...

Big data: a simple concept …

Big Data

Velocity

VarietyVolume

… with large impact

Ability to analyze how things interact in extremely large data sets, with the goal to provide management with a clear problem diagnostic, facilitate the detection of opportunities and make sure organisations are fit for today’s business landscape

So what?

Who cares?

Why you?

Upgrade finance to next impact level

1

2

3

Business partnering

Process improvement

Risk management

Typical questions

• Which are the best prospects to focus on? • How do we best spend our marketing €?• Why are sales reps successful?

• How much time do we lose on low value-added tasks?

• Should we harmonize and centralize tasks?• Which bottlenecks cause which delays?

• Are we sure there is no fraud?• What are the leading attributes for project

failures?• Do we always comply to our policies?

3 areas of clear quick wins

Business partnering: connect with growth

Micro-market opportunities(Distribution coverage)

Optimize product mix(Retail shops)

o Find statistically relevant combinations of products in very large data sets

o Detect patterns of buying behaviour in your client data

o Experiment, measure and learn ... at scale (marketing campaigns)

o Use open data to see how your business will fit in the future

o Map the markets to detect micro-opportunities of growth based on key attributes (age, gender, income, etc.)

o Use interactive visuals to engage the front-line team to action

X-ray your processes (Financial close, P2P, trading,...)

…and focus on the real issues

Discover: what is happening?Conform: does this conform/comply to what should be happening?Enhance: show throughput time, effectiveness, rework, bottlenecks, dead ends, etc.

o Look for behavioural patterns and root-causes by drilling down into variants

o Use these detailed insights to optimize efficiency, effectiveness, agility and compliance

o Identify best practices and drive harmonization across processes

Process improvement: mine for agility

Fraud detection(Claims request in insurance)

Audit & compliance(Purchase orders authorisation)

o Find claim patterns in the claim history, client and policy data that would indicate possible fraud

o Identify potential key attributes leading to fraud exposure using large scale network analytics

o Run models periodically on those risk attributes on all data, not just samples

o Find irregularities in approval flow

Risk management: control beyond limits

Accelerate the pace of adoption

Educate Explore Engage Execute

Gather knowledge and

observe the market

Develop a roadmap based on

business needs/challenges

Pilot big data initiatives to

validate value

Deploy more initiatives and

continue to extend advanced

analytics

~24% of respondents

~47% of respondents

~22% of respondents

~7% of respondents

Finance should play a leading role in any “big data” mindset transformation

Source : Survey from IBM Institute for Business Value and the Saïd Business School at the University of Oxford

Jean-Marie.Bequevort@trifinance.be @Bequevort

Everyone starts to have faith in technology … Let’s stay in touch