Big data it’s impact on the finance function

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Big Data, Business Analytics and Business Intelligence- It’s impact on the finance function

Mike Davis Principal AnalystJune 2013

© All images acknowledged © msmd advisors Ltd 2013

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2 © msmd advisors Ltd 2013

Running order Why all the fuss about Big Data? (WIIFY)

A simple example of Big Data usage (not finance)

Misconceptions about Big Data by executives (not just finance)

How have Big Data, analytics

and BI helped in finance to date? (its not managementaccounting as usual)

How do you convey the importance/relevance of Big Data to others?

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Information management is aboutUSING information/data – to make a decision

© msmd advisors Ltd 2013

Decision making requires effective information

…That’s delivered:

At the right place – and in context

At the right time – and complete / credible / trusted

To the right person(s) – who have authority to

make decisions


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Finding the right information can be difficult


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Understanding data


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Understanding data


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Understanding data


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Understanding data


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Big data and the challenge of decision making – the three Vs

Volume

Variety

Velocity © msmd advisors Ltd 2013

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It's all his fault


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Big Data in action © msmd advisors Ltd 2013

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The fourth V = Visualisation © msmd advisors Ltd 2013


Misconceptions about Big Data


Big Data and finance

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So where's the value in Big Data?


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So who uses Big Data?

Internet Google, Amazon, eBay, AOL – everything

Mobile Gaming On line betting, multi user games

Marketing Social Network Analysis, Digital Advertising

Telcos Call Routing Management, Subscriber Churn

Retail Tesco – customer segmentation Netflix – everything

Utilities Smart Grid for meters

Banking Fraud detection, Customer segmentation

Insurance Telemetrics on cars


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So how is Big Data used in finance?


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So how is Big Data used in finance?

Source: IBM 2012 © msmd advisors Ltd 2013


So who uses big data in finance?

Monitor customer journeys:

• website clicks

• transaction records

• bankers’ notes

• voice recordings

Make pre-emptive competitive credit offers

Selective BankAmeriDeals cash back offers


So who uses big data in finance? Insurance uses:

• Fraud Detection & Analysis

• Personalised Pricing

• Customer Sentiment Analysis

• Catastrophic Planning

• Call Detail Record

• Loyalty Management

• Social Media Analytics

• Advertising and Campaign Management

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Big data in insurance – the single view and the spy in the car


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Big data in retail - Tesco

Major use of BI and loyalty program

Outsourced to Dunnhumby for analysis80% of customers are Clubcard members

Constantly updating data – every transaction improves data quality

Targeted promotions both direct and sponsored by suppliers (revenue stream)

But Tesco is a financial services company as well...


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WIIFY? - you do not need to be afraid of Big Data in financial servicesYou will not be the first

Big Data brings additional value – not traditional ROI - not traditional management accounting

You have the tools – you may need to bring them together

You have the skills – you may need to bring them together

You need to see your organisation’s information assets as a whole

You do however need the organisation to mature in its understanding of the role and value of information

Big Data should mean BIG opportunities © msmd advisors Ltd 2013

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Thank [email protected]@mikemasseydavis

responsive, credible, flexible


Date post:	24-Dec-2014
Category:	Technology
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Big data it’s impact on the finance function

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