Description of the new strategy at Danish Tax and Customs, SKAT - "A Data Driven Tax with the Customer in Focus", resulting in a new target architecture for big data, BI and analytics that has been used in a number of cases and projects since 2015

1. Data Driven
Tax Administration
Søren Ilsøe Overgaard
Technology, Data & Security
CTO / CDO / CISO, Senior Vice President
SKAT, Danish Tax and Customs Administration

2. 16-11-2016 2
SKAT – consolidation of DK tax and customs
Employees:
12.000  6.000
Annual revenue:
1.000 billion DKK
State
Tax
Regional
Tax
Communal
Tax
VAT
Real Estate
Valuation
Customs
Vehicle
Registration
Debt
Collection
IT investment:
0,6  1,5 billion DKK
2005 2020Danish Tax & Customs

3. 16-11-2016 3
Danish Tax & Customs – how did it go?
Customers
one size fits all
>
>
>
IT
requirements
Customer satisfaction
69% (2006)
59% (2013)
Project fail
EFI: 800 MDKK
?
Business
distance to customers
distance to data
> > >
Vendors
200+ systems
development
New challenges
sharing economy, open transactions, disruption

4. 16-11-2016 4
Danish Tax & Customs – a new strategy
2000s – shared functionality
service-oriented landscape
> legacy / waterfall <
2015 – shared data
business specific it solutions
> transformation / agile <
UCCICEEFI CAPTIA
“A Data and Analytics Driven Tax
with the Customer in Focus”

5. 16-11-2016 5
Danish Tax & Customs – a new target architecture
SKAT IT
System Sources
Direct
Data Sources
Business
Operations
Business
Development
Data
Clients
Private
Public
Capabilities
Business
Intelligence
Advanced
Analytics
Databank
Process
Automation
Data
Export
Ad hoc
Queries
Cross-Public
Distribution
External
Subscribers
Big Data
Platform
DW
classic
EIM
Ana-
lytical
tools
BI
tools
Data
Sources
Cross-Public
Cooperation
“A Data and Analytics Driven Tax
with the Customer in Focus”
new tech
exisiting tech

6. Business Targets:
Satisfaction
Tax gap
Claims
Resources
Cases:
KPI Dashboard
Management reports
Internal evalutations
Top 25% performers
Production reports
16-11-2016 6
Danish Tax & Customs – data-driven productivity

7. 16-11-2016 7
Danish Tax & Customs – data-driven insight
Cases:
Call center >< skat.dk  identifying reasons to peaks in customer calls
Self-assesment forecast engine  auto-reminder to change your tax
Segmentation analysis  customer insight
Entrepreneur intro-meetings  effect evaluation
Customer journeys  service process improvements
Process monitoring  ensure correct processing
Data quality/data governance  ensure data ownership, correct data
Satisfaction rising 2014-2015: 59%  65%

8. 16-11-2016 8
Danish Tax & Customs – data-driven detection
Cases:
Negative VAT model  50% to 85% hit rate
Annual statement detection  600 MDKK
Money transfer project via BI  1.700 MDKK
Tax Havens project via analytics  200 MDKK
#PanamaPapers via big data  fast identification
Customs  machine learning to score risk on shipments to DK
Payments  flow monitoring, automated fraud detection
Potential revenue: > 2-3 billion DKK
Investment in new tech and projects: 20-40 MDKK
ROI: 50x-150x

9. 16-11-2016 9
Danish Tax & Customs – some good advice
- Focus on business needs and targets before buying new technology
- Secure programme steering and stakeholder involvement
- Involve data department in the idea phase
- Prototype before you scale to large projects
- Beware of the new legislation on use of personal data