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Big data it’s impact on the finance function

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An introduction to Big Data for Finance Managers given at the Budgeting Solutions Finance Forum June 2013

Published in: Technology, Economy & Finance
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Big data it’s impact on the finance function

  1. 1. 1 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 responsive, credible, flexible
  2. 2. 2 © msmd advisors Ltd 2013 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?
  3. 3. 3 Information management is about USING information/data – to make a decision © msmd advisors Ltd 2013
  4. 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 4 © msmd advisors Ltd 2013
  5. 5. 5 Finding the right information can be difficult © msmd advisors Ltd 2013
  6. 6. 6 Understanding data © msmd advisors Ltd 2013
  7. 7. 7 Understanding data © msmd advisors Ltd 2013
  8. 8. 8 Understanding data © msmd advisors Ltd 2013
  9. 9. 9 Understanding data © msmd advisors Ltd 2013
  10. 10. 10 Big data and the challenge of decision making – the three Vs Volume Variety Velocity © msmd advisors Ltd 2013
  11. 11. 11 It's all his fault © msmd advisors Ltd 2013
  12. 12. 12Big Data in action © msmd advisors Ltd 2013
  13. 13. 13Big Data in action © msmd advisors Ltd 2013
  14. 14. 14Big Data in action © msmd advisors Ltd 2013
  15. 15. 15Big Data in action © msmd advisors Ltd 2013
  16. 16. 16Big Data in action © msmd advisors Ltd 2013
  17. 17. 17 The fourth V = Visualisation © msmd advisors Ltd 2013
  18. 18. 18 © msmd advisors Ltd 2013 Misconceptions about Big Data
  19. 19. 19 © msmd advisors Ltd 2013 Big Data and finance
  20. 20. 20 So where's the value in Big Data? © msmd advisors Ltd 2013
  21. 21. 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 © msmd advisors Ltd 2013
  22. 22. 22 So how is Big Data used in finance? © msmd advisors Ltd 2013
  23. 23. 23 So how is Big Data used in finance? Source: IBM 2012 © msmd advisors Ltd 2013
  24. 24. 24 © msmd advisors Ltd 2013 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
  25. 25. 25 © msmd advisors Ltd 2013 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
  26. 26. 26 Big data in insurance – the single view and the spy in the car © msmd advisors Ltd 2013
  27. 27. 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... © msmd advisors Ltd 2013
  28. 28. 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 © msmd advisors Ltd 2013
  29. 29. 29 Thank you miked@msmd-advisors.com www.msmd-advisors.com @mikemasseydavis responsive, credible, flexible © msmd advisors Ltd 2013

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