from data to insight to value -kpmg
TRANSCRIPT
© 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.
© 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.3
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
© 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.4
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
© 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.5
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
© 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.6
Data is opening up new business opportunities and deconstructing our legacy businesses
© 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.7
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
© 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.8
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
© 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.9
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
© 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.10
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
© 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.11
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
© 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.12
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
© 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.13
Data is driving insights, but getting to value is difficult. What is the role of the board?
© 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.14
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
© 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.15
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
© 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.16
Getting to value requires leadership, investment and a few key focus areas
© 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.17
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.
© 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.18
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
© 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.19
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
© 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.20
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
© 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.21
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
© 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.22
What were the key takeaways and did we achieve our aim of the presentation?
© 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.23
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
Jan Nyström
Data & Analytics, KPMG Advisory Services,
Mobile+358 40 750 2168