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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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2. 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
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3. Information management is about USING information/data – to make a decision
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4. 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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5. Finding the right information can be difficult
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6. Understanding data
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7. Understanding data
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8. Understanding data
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9. Understanding data
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10. Volume Variety Velocity
Big data and the challenge of decision making – the three Vs
Volume
Variety
Velocity
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11. It's all his fault
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12. Big Data in action
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13. Big Data in action
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14. Big Data in action
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15. Big Data in action
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16. Big Data in action
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17. The fourth V = Visualisation
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18. Misconceptions about Big Data18
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19. 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   19
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20. So where's the value in Big Data?
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21. 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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22. So how is Big Data used in finance?
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23. So how is Big Data used in finance?
Source: IBM 2012
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24. 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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25. 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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26. Big data in insurance – the single view and the spy in the car
Saw a wicked car
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27. 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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28. 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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29. responsive, credible, flexible
Thank you
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