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Predictive
Analytics
Analytics/Data/Technology
kpmg.com/uk
Predictive Analytics gives your
organisation the potential to
significantly differentiate itself from
your competitors. It can support in
delivering growth, reducing costs or
significantly increase your knowledge
of your customer base. This is all
without significantly impacting the core
business processes.
Predictive Analytics is the analysis of
past events to enable the prediction of
future events. It allows you to predict,
with certainty how events will impact
your business or how customers are
set to behave.
Predictive Analytics has a variety
of applications which can make a
significant benefit to you organisation.
The output of the analysis is easy
to understand and can be actioned
quickly by business users. We can also
integrate outputs or results into your
underlying systems so that benefits
can be quickly realised.
PredictiveAnalyticscanbe
usedtosolveanarrayof
businessproblems...
“Which
customers will
repeat purchase
from me?”
“Which customers
will leave and
when?”
“Which
customers
will be more
likely to buy a
wide range of
products?”
“Which of my
stores will
succeed?”
“Which customer
segments
will be most
valuable?”
“Which
products
should I stock​?”
“Which
employees are at
risk of leaving my
organisation?”
“Who my top
performing
staff will be?”
“How can we plan
for changes in
both internal or
external factors
e.g. Interest Rate
Movements”
We have a proven Predictive Analytics
process that ensures that Predictive
Analytics can support your business,
easily extracts data from your data
marts to underpin the predictive
models and can integrate seamlessly
with your current technology
architecture thereby minimising
disruption and returning results
quickly and effectively. Whatever your
business problem, KPMG can use
analytics to ensure a better outcome.
Respond Better
Predictive analytics is the
proverbial management Crystal
Ball. It allows managers to see
a number of probable future
outcomes and respond to those.
Better Informed Decisions
It enables better decisions.
Management decision making
is characterised by experience
and intuition. Predictive analytics
supplements those with an
objective, consistent scientific
view. ​
Decisions Made on Data
It links the internal business
with the external environment.
Our approach uses a number of
external data sources to enrich
the insight that we provide.
Collect
data
Define the
business
problem
Build proof
of value
Assess
deployment
options
Implement
analytics
Review and
Refine
HowcanKPMGhelp?
What is the value of predictive analytics
What is the value of predictive analytics
1 4
2 5
3 6
CaseStudy
Contacts
Industry: Retail
Background: The client has a significant
expansion of their retail stores underway.
They had recently opened three stores in
similar locations, one of which was not
achieving its targets. They approached
KPMG to help them understand the
drivers fro store performance.
Key Outcomes: We were able to prove
that store performance could be predicted
and modelled. This was built in to a scoring
engine which the client now uses to score
potential sites for new stores.
Benefits for the client: The outputs of
our initial piece of work gave the client
confidence that there was value in the use
of predictive analytics.
The scoring engine now allows the
client to make better and more informed
decisions about where it places new store
locations.
Industry: Higher Education
Background: Our client, a large northern
university wanted to understand what the
early warning signs were for a student
that may indicate they were going to drop
out. The ideal was that they could then
intervene and avoid the student leaving
the university.
Key Outcomes: Our work identified a
number of factors that were indicators that
a student may be “fading” and the impact
of interventions by student advisors.
Benefits for the client: Our worked
helped the university to not only
understand the benefit of interventions but
also to identify the early warning signs that
may indicate an issue with a student. This
enabled them to put in place a monitoring
system for student advisors to identify
when to intervene
If your wish to speak to us about
Predictive Analytics could benefit your
organisation, please get in touch with the
team or your local KPMG contact
Dave Williams​
T: +44 (0)7342 073 900​
E: dave.williams2@kpmg.co.uk
Russell Ormerod​
T: +44 (0)7827 895 630
E: russell.ormerod@kpmg.co.uk
kpmg.com/app
© 2016 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the United Kingdom.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Designed by CREATE | August 2016 | CRT066323
kpmg.com/socialmedia
www.kpmg.com/uk

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Predictive Analytics

  • 2. Predictive Analytics gives your organisation the potential to significantly differentiate itself from your competitors. It can support in delivering growth, reducing costs or significantly increase your knowledge of your customer base. This is all without significantly impacting the core business processes. Predictive Analytics is the analysis of past events to enable the prediction of future events. It allows you to predict, with certainty how events will impact your business or how customers are set to behave. Predictive Analytics has a variety of applications which can make a significant benefit to you organisation. The output of the analysis is easy to understand and can be actioned quickly by business users. We can also integrate outputs or results into your underlying systems so that benefits can be quickly realised. PredictiveAnalyticscanbe usedtosolveanarrayof businessproblems... “Which customers will repeat purchase from me?” “Which customers will leave and when?” “Which customers will be more likely to buy a wide range of products?” “Which of my stores will succeed?” “Which customer segments will be most valuable?” “Which products should I stock​?” “Which employees are at risk of leaving my organisation?” “Who my top performing staff will be?” “How can we plan for changes in both internal or external factors e.g. Interest Rate Movements”
  • 3. We have a proven Predictive Analytics process that ensures that Predictive Analytics can support your business, easily extracts data from your data marts to underpin the predictive models and can integrate seamlessly with your current technology architecture thereby minimising disruption and returning results quickly and effectively. Whatever your business problem, KPMG can use analytics to ensure a better outcome. Respond Better Predictive analytics is the proverbial management Crystal Ball. It allows managers to see a number of probable future outcomes and respond to those. Better Informed Decisions It enables better decisions. Management decision making is characterised by experience and intuition. Predictive analytics supplements those with an objective, consistent scientific view. ​ Decisions Made on Data It links the internal business with the external environment. Our approach uses a number of external data sources to enrich the insight that we provide. Collect data Define the business problem Build proof of value Assess deployment options Implement analytics Review and Refine HowcanKPMGhelp? What is the value of predictive analytics What is the value of predictive analytics 1 4 2 5 3 6
  • 4. CaseStudy Contacts Industry: Retail Background: The client has a significant expansion of their retail stores underway. They had recently opened three stores in similar locations, one of which was not achieving its targets. They approached KPMG to help them understand the drivers fro store performance. Key Outcomes: We were able to prove that store performance could be predicted and modelled. This was built in to a scoring engine which the client now uses to score potential sites for new stores. Benefits for the client: The outputs of our initial piece of work gave the client confidence that there was value in the use of predictive analytics. The scoring engine now allows the client to make better and more informed decisions about where it places new store locations. Industry: Higher Education Background: Our client, a large northern university wanted to understand what the early warning signs were for a student that may indicate they were going to drop out. The ideal was that they could then intervene and avoid the student leaving the university. Key Outcomes: Our work identified a number of factors that were indicators that a student may be “fading” and the impact of interventions by student advisors. Benefits for the client: Our worked helped the university to not only understand the benefit of interventions but also to identify the early warning signs that may indicate an issue with a student. This enabled them to put in place a monitoring system for student advisors to identify when to intervene If your wish to speak to us about Predictive Analytics could benefit your organisation, please get in touch with the team or your local KPMG contact Dave Williams​ T: +44 (0)7342 073 900​ E: dave.williams2@kpmg.co.uk Russell Ormerod​ T: +44 (0)7827 895 630 E: russell.ormerod@kpmg.co.uk kpmg.com/app © 2016 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the United Kingdom. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Designed by CREATE | August 2016 | CRT066323 kpmg.com/socialmedia www.kpmg.com/uk