Professional Documents
Culture Documents
www.kpmg.com/nl
Big Data & Analytics: turning conceptual thinking into powerful results © 2013 KPMG N.V. 2
Introduction
Just twenty years ago nobody
dared to dream about being digitally
“Big Data & Analytics is
inter-connected. Now on the other about so much more
hand, and looking twenty years into
the future, we can see that digital than technology,
natives will be naturally immersed
in data and information. Every day,
resulting in business
the world creates the enormous ownership rather than
amount of 2.5 quintillion bytes of
data. Estimates say that 90 percent IT ownership”.
of the data in the world today has
been created in the last two years
alone. As a consequence, Big Data insights from large amounts of data
& Analytics is likely to become (obtained from within and outside
a key component of competition, the organisation) with the aim of
underpinning new waves of creating additional value. Big Data
productivity growth, innovation, & Analytics contributes to changes lead of the KPMG Data & Analytics, Figure 1
and consumer surplus by 2020, in information and how this acknowledges that IT is not the Function within the company of respondents
as pinpointed by our study ‘Six information is used to create value natural habitat for the analysis and
converging technology trends for customers and society. The use of Big Data & Analytics: “Big
Chief financial officer (CFO)
(2013)’. 1 study reveals that finance functions Data & Analytics is about so much 5%
predominantly take the lead in this more than technology, resulting in Finance director
15%
In April 2013, KPMG Advisory field, with the IT function involved business ownership rather than
34% Controller (Concern-, Group-)
conducted research involving the to a lesser extent. Sander Klous, IT ownership”.
finance departments of 170 Dutch 7% Director accounting,
companies, to which one third of reporting & control
respondents were in the Chief The findings of this study are illustrated in three Manager operafons & finance
13%
financial officer position, as sections, namely: Board member (eg. CEO, COO)
illustrated in Figure 1. The main • Big Data & Analytics awareness, 24%
objective of this research was to Other (eg. Strategic advisor
find out how financial experts • Big Data & Analytics as a competitive driver Manager business development)
perceive Big Data & Analytics in • Big Data & Analytics: a hot topic on the CFO agenda.
terms of the potential to gain
Currently, only one quarter use see the urgency of using the strategic
Big Data & Analytics to improve
management information value of Big Data & Analytics in their Figure 3
(Figure 3).
organisation.” Are you using Big Data & Analytics to complete your management information?
No 76%
Figure 4
Are there plans to enrich your management information using Big Data & Analytics?
No 46%
Although Big Data & Analytics is a Figure 5 For instance, respondent organisations that do not possess in-house
well-known term, awareness of its How important do you think it is that Big Data & technical expertise do not see the urgency of Big Data & Analytics, nor do
importance seems to be hampered Analytics should be as part of your strategy? they have the capacity to implement this technology in their business
by uncertainty on the impact of this strategy. Other challenges mentioned by our respondents include not
concept. Although almost 40% Very unimportant 2% having sufficiently relevant data, having insufficient data or poor quality
perceive Big Data & Analytics as data (Figure 7).
Unimportant
an important strategic topic, 8%
Very important 2%
Respondents see broad No budget available 20%
opportunities for Big Data & 0% 10% 20% 30% 40% 50% 60%
Other 13%
Other 8%
0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60%
Big Data & Analytics: turning conceptual thinking into powerful results © 2013 KPMG N.V. 6
Furthermore, 82% (Figure 11) of parameters results in enhanced decision-making is essential in Figure 11
respondents believe that Big Data insights into what is actually order not to lose competitiveness. Do you believe that you will gain insights by combining internal
sources of information with external sources?
& Analytics will result in more happening in the business. Big Data & Analytics enables more
valuable business insights. accurate forecasts and budgets,
Additionally, Big Data & Analytics- thus radically changing the way Yes 82%
Business increasingly requires the driven reporting can supply these the finance function operates.
18%
finance function to incorporate broader insights and help discover No
non-financial data in their reporting, trends and knowledge which Respondents see a shift in the role 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
broadening the scope of information could not be discovered before. of the CFO and the finance function.
that has to be analysed; and to Increased quality and accuracy in The new finance expert thinks
provide broader insights for reporting will directly impact on differently, acts faster, and is not
decision-making. Reporting on organisational budgeting and a scorekeeper who tracks past Figuur 12
both financial and non-financial forecasting activities. Timely performances. The new finance IT will facilitate the technology and finance will analyse the data
expert uses real-time information
to give the business new and
Strongly disagree 1%
undiscovered insights that serve
as the foundation of value creation. Disagree 13%
The benefits discussed are
renowned, though these do not Neutral 17%
function require organisational 0% 10% 20% 30% 40% 50% 60% 70% 80%
change, cross-departmental
collaboration, legal considerations,
and development of specific
analytical capabilities.
The broader scope and data input & Analytics. Laws and regulations
The broader data scope needed in also challenge an organisation to on data privacy are often complex
Big Data & Analytics and the use reconsider their data governance and not transparent and failure to
of multiple internal and external models as data governance comply may severely damage
data sources increase the challenge becomes more complex. reputations. Organisations should
of guaranteeing data reliability, Legal and ethical boundaries are therefore thoroughly consider the
consistency and completeness. often underestimated in Big Data ethical impact on society.
Big Data & Analytics: turning conceptual thinking into powerful results © 2013 KPMG N.V. 9
Conclusions
Converting data into valuable Having said that, many
knowledge for the business will organisations lack the capabilities to
continue to be a key feature of act. More than one third of the
any finance function that has the respondents currently do not
ambition of being a value creator. believe that they have the right
Big Data & Analytics, if used capabilities in-house to analyse
properly, can serve as a valuable Big Data & Analytics.
means to transform finance
experts from scorekeepers to Therefore Big Data & Analytics will
value creators. Respondents to this require finance function members
study seemed to be aware of the to develop advanced analytical
potential. They were able to look capabilities to provide insights that
beyond the hype and indicated that impact on the organisations broader
the need for business insights has context. That may be quite a
risen much faster than finance challenge but also offers rewarding
departments’ ability to produce potential: organisations which
them. Big Data & Analytics can benefit from Big Data & Analytics
provide a tremendous boost in will have a competitive edge
this respect. Nearly half of the when it comes to better and
respondents expect the finance faster business decisions.
function to become the
orchestrator of internal and
external data analysis within
the next two years.
Big Data & Analytics: turning conceptual thinking into powerful results © 2013 KPMG N.V. 10
purposes – all at the right time and services including finance transfor
in the right situation.To help clients mation, controls optimisation,
gain that clarity, we use our industry regulatory compliance, policies
understanding to identify the right and procedures, shared services,
data and apply the right analytics to inter-company assistance, chart of
give organisations actionable insights. accounts assistance and more.
We believe that success isn’t just We can help our firms’ clients to
about having the right technology; align their finance organisations with
it’s about having the right people the strategies and needs of their
who can use that technology to businesses to realise and sustain
create actionable insights. That’s value over the long term. KPMG’s
why our approach melds the deep capabilities in the core drivers
technical depth of data scientists of change — process, organisation,
with the operational and industry information technology and risk and
insights of business people. control — can help organisations
transform their finance capabilities
Across industries, geographies to drive business value across the
and functions, our Data & Analytics enterprise while seeking to ensure
services are geared towards making the integrity of the processes and
Contact
Sander Klous
Senior manager and team leader
KPMG Data & Analytics
E: klous.sander@kpmg.nl
www.kpmg.com/nl
© 2013 KPMG Advisory N.V., registered with the trade register in the Netherlands under number
33263682, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of
independent member firms affiliated with KPMG International Co-operative (‘KPMG International’), a
Swiss entity. All rights reserved. Printed in the Netherlands. The KPMG name, logo and ‘cutting through
complexity’ are registered trademarks of KPMG International.