Big data it’s impact on the finance function
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Transcript of 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
responsive, credible, flexible
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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 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
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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 © 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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Big Data in action © msmd advisors Ltd 2013
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Big Data in action © msmd advisors Ltd 2013
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Big Data in action © msmd advisors Ltd 2013
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Big Data in action © msmd advisors Ltd 2013
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The fourth V = Visualisation © msmd advisors Ltd 2013
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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?
Source: IBM 2012 © msmd advisors Ltd 2013
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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 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