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 © msmd advisors Ltd 2013 1 1 1

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? 2 © msmd advisors Ltd 2013 2

Information management is about USING information/data – to make a decision © msmd advisors Ltd 2013 3 3

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 © msmd advisors Ltd 2013 4 4

Finding the right information can be difficult © msmd advisors Ltd 2013 5 5

Understanding data © msmd advisors Ltd 2013 6 6

Understanding data © msmd advisors Ltd 2013 7 7

Understanding data © msmd advisors Ltd 2013 8 8

Understanding data © msmd advisors Ltd 2013 9 9

Volume Variety Velocity Big data and the challenge of decision making – the three Vs Volume Variety Velocity © msmd advisors Ltd 2013 10 10

It's all his fault © msmd advisors Ltd 2013 11 11

Big Data in action © msmd advisors Ltd 2013 12 12

Big Data in action © msmd advisors Ltd 2013 13 13

Big Data in action © msmd advisors Ltd 2013 14 14

Big Data in action © msmd advisors Ltd 2013 15 15

Big Data in action © msmd advisors Ltd 2013 16 16

The fourth V = Visualisation © msmd advisors Ltd 2013 17 17

Misconceptions about Big Data 18 © msmd advisors Ltd 2013 18

Big Data and finance © msmd advisors Ltd 2013 19 19 Gartner, worldwide big data IT spending will grow from $27 billion in 2012 to $55 billion in 2016.   19 © msmd advisors Ltd 2013 19

So where's the value in Big Data? © msmd advisors Ltd 2013 20 20

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 © msmd advisors Ltd 2013 21 21

So how is Big Data used in finance? © msmd advisors Ltd 2013 22 22

So how is Big Data used in finance? Source: IBM 2012 © msmd advisors Ltd 2013 23 23

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 © msmd advisors Ltd 2013 24 24

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 © msmd advisors Ltd 2013 25 25

Big data in insurance – the single view and the spy in the car Saw a wicked car © msmd advisors Ltd 2013 26 26

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... © msmd advisors Ltd 2013 27 27

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 © msmd advisors Ltd 2013 28 28

responsive, credible, flexible Thank you miked@msmd-advisors.com www.msmd-advisors.com @mikemasseydavis © msmd advisors Ltd 2013 29 29 29