responsive, credible, flexible
Big Data, Business Analytics
and Business Intelligence
- It’s impact on the finance function
Mike Davis
Principal Analyst
June 2013
© All images acknowledged
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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 management
accounting as usual)
How do you convey the
importance/relevance
of Big Data to others?
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Information management is about
USING information/data
– to make a decision
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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
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It's all his fault
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Big Data in action
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Big Data in action
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Big Data in action
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Big Data in action
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Big Data in action
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The fourth V = Visualisation
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Misconceptions about Big Data
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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?
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Source: IBM 2012
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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
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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 analysis
80% 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 services
You 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
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responsive, credible, flexible
Thank you
miked@msmd-advisors.com
www.msmd-advisors.com
@mikemasseydavis
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