Going Beyond Data and Analytics v4

Going
beyond
the data:
Achieving actionable
insights with
data and analytics
KPMG CAPITAL
kpmg.com/kpmgcapital
02 04 06 07 10
Foreword Executive Key findings Data’s value Meeting
summary knocks change
head-on
© 2014 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
14 17 22 25
To better Facing Insights: A Conclusion:
operate or challenges fuel to future Moving
innovate? large and growth to a fully
small embedded
D&A strategy
Foreword
Long before the term ‘big’ was first applied to data,
organizations were struggling to make sense of all the
information they had. Over the past 5 years, that focus on
data has started to shift.
Today, the issue is no longer about owning What is clear is that D&A will define the
the most data but rather about how to gain way businesses and organizations operate
the most insight from it. In short, how to in the future. That is why we created KPMG
turn data into insights, and insights into real Capital: an investment fund that aims to help
business advantage. accelerate innovation in D&A in a way that
will help organizations unlock tangible value.
Data is everywhere, telling us everything.
By investing in cutting-edge technology,
But do companies really know where to
strategic partnerships and acquisitions,
look? The reality is that turning mountains of
KPMG Capital will work to develop D&A
data into valuable, practical and actionable
solutions that help KPMG member firms
business analytics is not nearly as
take new innovations to market faster.
straightforward as people believe.
We hope that the insights captured in this
To gain a more concrete understanding of the
report catalyze business executives to start
opportunities and challenges that data and
rethinking the way they approach their D&A
analytics (D&A) presents, we commissioned
challenges.
FT Remark to survey 144 CFOs and CIOs
from major corporations around the world To learn more about the findings in this
(those with more than US$1 billion in annual report – or to benchmark how your
turnover). All interviews were conducted in organization stacks up against the industry
August 2013, with the responses aggregated leaders – we encourage you to contact
and analyzed for use in this report. your local KPMG member firm or any of the
contacts listed at the back of this report.
This report provides a snapshot of the current
state of D&A in major global organizations.
The findings are compelling: 96 percent of
companies surveyed admitted that they could
do more with big data and make better use
of analytics in their organization. Our report
addresses some of the challenges they face
as they embed D&A within their organizations
and navigate the cultural, managerial and
operational changes that this will require.
Significant questions are emerging. How
will predictive analytics drive future decision
making? What role should social media data
play? What technology will be required to Mark Toon
operationalize D&A within the organization? CEO, KPMG Capital
2 Going beyond the data: Achieving actionable insights with data and analytics
Going beyond the data: achieving actionable insights with data and analytics 3
Executive summary
Many organizations – large and small – have already started to
adapt to a world increasingly driven by D&A.
All but 1 percent of organizations in Yet more still remains to be done. Nearly Few organizations fully understand the
our survey say that D&A is at least all respondents (96 percent) admitted huge potential that resides within their
somewhat important to their business that untapped benefits remain on the data. Fewer still are making the right
strategies. Almost seven in ten table. More than half (56 percent) of changes to their business strategy to
(69 percent) considered it either those respondents told us that those take advantage of that potential.
crucially or very important. And 56 benefits could be significant.
So what is really stopping business
percent of respondents around the
We would agree. Our experience leaders from connecting the dots
world said they changed their business
in the field, combined with the data between data, analytics and business
strategy to meet the challenges of D&A,
in this report, suggests that most growth? In many cases, respondents
most often to increase their capacity to
organizations are currently focused on suggest that they are struggling to lay
analyze big data.
just a fraction of the benefits that D&A the solid foundation needed to become
could unlock. a data-driven organization.
For example, more than four in ten are finding it difficult to make decisions chain and finance. It would also be able
respondents said that their greatest around analyzing data; a similar number to leverage those insights to ensure
challenge was in integrating data said they were unsure what data to that it is selling the right products and
technology into their existing systems collect to support the implementation of services to the right customers.
and business models. The vast majority a D&A strategy across their business.
Those organizations able to connect the
(85 percent) also said they were
The benefits of embedding a D&A dots will be poised to achieve quantum
struggling with implementing the
strategy are immense. Organizations benefits from their D&A. Those that
correct solutions to accurately analyze
with a strong D&A strategy will, for cannot – or those that do nothing – will
and interpret their existing data.
instance, find that they always have a be forever submerged in data, with its
Most organizations are unable to number of scenarios and hypotheses on value untapped.
connect the dots because they do hand that would allow the organization
not fully understand how D&A can to effectively respond to sudden
transform their business, or how to changes of direction. A data-driven
create the right environment for a data- organization would also be highly
driven transformation. More than half of capable of using data to manage its
the organizations we talked to said they exposure to risks in marketing, supply
Going beyond the data: Achieving actionable insights with data and analytics 5
Key findings
1. Sixty-nine percent of interviewees consider D&A to be

crucially or very important to their current growth plans.
2. Fifty-six percent of respondents say they have changed their

business strategy to meet the challenges of big data.
The largest share of respondents (42 percent) consider
3. integrating data technology into existing systems and/or

business models to be the biggest challenge their companies
have faced regarding data capture.
The vast majority of interviewees (85 percent) said that one
4. of their biggest challenges with analytics, specifically, is in

implementing the right solutions to accurately analyze and
interpret data.
Three quarters of respondents (75 percent) expressed

5. some level of difficulty in making decisions around
analyzing data.
Respondents say that the biggest barrier to implementing

6. a D&A strategy across their business is in identifying what
data to collect.
Despite the importance they attach to the use of data
7. and analytics to their current growth strategy, nearly all

respondents (96 percent) agree to varying extents that they
could be better utilizing D&A.
Source: KPMG International D&A survey, August 2013.
Data’s value knocks
Executives are well aware of the value that lies within
Data and analytics really got our
their data but they may not fully comprehend its full attention after the economic
potential. crisis when we had to identify
potential business opportunities
How important is the use of data and analytics to your
in a more uncertain and
company’s current growth strategy? competitive environment. With
data and analytics, we gathered
1% insights on economic conditions,
Overall 26% 43% 17% 13% consumer interest, changing
regulations and financial
conditions.
EMEA 29% 31% 15% 25%
– Survey respondent
3%
Asia-Pacific 21% 51% 21% 5%
Americas 28% 48% 16% 8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Crucially important Very important Important

Somewhat important Not at all important
Note: Graph may not add up to 100% due to rounding. Regional results are provided for illustrative purposes only.
Overall results include data from outside of these regions.
Our survey reveals that an almost unanimous 99 percent of respondents said that
D&A would be at least somewhat important to their current growth strategies.
Almost seven in ten said it would either be crucially or very important. The findings
are consistent across all regions, with respondents from Europe, the Middle East and
Africa (EMEA) somewhat more likely to consider the use of D&A as being crucially
important, and those from Asia-Pacific less likely to do so.
Organizations also reported being more focused on using D&A to analyze their data
Many businesses don’t yet with greater speed (i.e. doing the same things but faster) than as an opportunity to
fully grasp the enormous value expand or sharpen their insights (i.e. doing different things).
of D&A. Almost 80 percent said that analytical speed was a key benefit of using D&A, versus
65 percent that said they expected to be able to identify insights that otherwise
– Eddie Short, EMA Leader for would have been missed, and 59 percent that said they hoped to achieve more
Data & Analytics, KPMG granular insights.
What do you feel are the key benefits of using data and analytics?
EMEA Americas Asia-Pacific Overall
Identifying
insights that
would otherwise 62% 69% 71% 65%
have been missed
Analyzing
with greater
speed
73% 87% 82% 79%
More
sophisticated/
granular insights
38% 77% 76% 59%
Cost savings
due to improved
efficiency
62% 51% 63% 58%
Note: Regional results are provided for illustrative purposes only. Overall results include data from respondents outside of these regions.
KPMG Insight
From ad hoc data to sophisticated business insights
D&A’ s role in the future of business strategy is data can add. For example, KPMG recently
unquestionably huge. The fact is that winning in worked with a car manufacturer whose
today’s markets requires world-class insight and internal data identified four key ‘characteristics’
the capacity to change direction at short notice. believed to be vital to customers. But once
And the only way to achieve that is through social media data was overlaid using a Mass
enterprise-wide D&A enablement. Opinion Business Intelligence (MOBI) platform,
it quickly became clear that only one of their
“In the past, decision making was largely driven
selected characteristics actually mattered
by intuition and experience; whoever had the
to their customers. And, in the process, two
best ‘gut feel’ would win,” noted Jeff Collins,
‘new’ characteristics were identified and
Head of Investments at KPMG Capital. “Today,
validated.
the winners are defined by who has the more
insightful grasp of their data.” Business leaders will also need to focus on
ensuring that they can count on the veracity of
The problem is that, while everyone may
their data. In fact, we believe that, as more and
instinctively know that D&A is going to be
more unstructured and external data becomes
big, most still struggle to do it effectively.
integrated into the organizational analytics,
“Organizations are hitting roadblocks in
confidence in the accuracy of their data - and
determining which data to collect, in asking and
the insights gleaned from the data - will help
answering the right questions and in getting value
ensure smarter business decisions.
from their analytics,” notes Eddie Short, EMA
Leader for Data & Analytics at KPMG. “In China, the rise of D&A is becoming one of
the major strategic tools many Chinese entities
Decisions are further complicated by a rapidly
are looking at to get closer to the customer,”
evolving ecosystem which is disrupting
notes Egidio Zarrella, Partner in KPMG in China.
organizations’ ability to adapt. New technologies
“Many entities are beginning to leverage their
are emerging and new sources of data are being
vast storage of data to give them insights into
uncovered at a breakneck pace. Data sources
the buying patterns of their customers and
such as social media feeds, customer blogs and
provide more targeted services.”
mobile data are all increasing complexity and
creating new opportunities for organizations. However, the fact that just a quarter of
respondents said that D&A was ‘critically’
Those that have taken an early lead in
important to their organizations highlights our
harnessing and exploiting social media data are
concern that businesses don’t fully comprehend
already demonstrating the value that outside
the enormous potential value of D&A.
Meeting change head-on
Most businesses are not sitting idly by as the data revolution sweeps
over. According to our survey, more than half – 56 percent – of
leading multinational companies have changed their business
strategy to meet the challenges of big data. Respondents from the
Americas were 13 percent more likely to say that D&A had forced
changes in their business strategy than those in the EMEA region,
and 5 percent more likely than those in Asia-Pacific.
Has your business strategy changed to exploit the opportunities

and meet the challenges posed by big data over the past 12-24 months?
Americas 38%
42% Asia-Pacific
63%
58%
50%
EMEA
44%
50% Overall
56%
Yes No
Note: Graph may not add up to 100% due to rounding.
Note: Graph may not add up to 100% due to rounding. Regional results are provided for illustrative purposes only. Overall results
include data from respondents outside of these regions.
Of those that have changed their business strategies, the most common change
made by those in the Americas and EMEA was to increase analytics capacity through
the addition of either hardware or personnel. In Asia-Pacific, the focus was on
attaining management buy-in for big data collection and analysis.
If yes, in what capacity has your business strategy changed?
Increasing the
capacity (either
hardware or
personnel) to
analyze big data
42% 52%
Honing the
parameters
21% 32%
for data
collection
47%
27%
49% Americas
31% Asia-Pacific
EMEA
Attaining
management Overall
buy-in for big
data collection
35% Putting insights
and analysis
51% garnered from big
data into practice
18% 31%
in a timely way
36%
25%
39%
29%
More than half (53 percent) of respondents also said they had upgraded their IT
systems in order to better integrate D&A into their business. Fifty-one percent
said they had improved their data collection processes, while a significant share
(45 percent) also said that they had trained management to use data in decision
making – a key aspect of moving towards a more data-driven enterprise. Thirty-nine
percent said they had trained analysts and data scientists.
Have you taken any of the following steps to help integrate data and analytics into your business?
Chart shows 'yes' responses only.
EMEA Americas Asia-Pacific Overall
Upgraded
IT systems 52% 46% 72% 53%
58% 46% 56% 51%
Improved data
collection
processes
40% 40% 59% 45%

Training management
to use data
in decision making
33% 46% 38% 39%

Training for
analysts/data
scientists
44% 30% 41% 38%

Recruitment
of analysts/data
scientists
27% 38% 46% 36%

Redesigned
decision making
processes
31% 28% 51% 34%

Specific focus on
communicating/
visualizing insights
more effectively
23% 28% 33% 28%

Recruitment of
enterprise solution
architect
Outside consultants/
vendors hired
25% 26% 41% 28%
KPMG Insight
Bringing data to the boardroom
It is widely anticipated that big data will impact business imperative, and not a pure IT
every industry and every business sector. play. Altering business strategies, training
management and adding capacity are all critical
What the survey results make clear is that
to success in the field.
organizations – particularly outside of the US –
must move quickly to make the necessary “One of the biggest challenges, in our
changes to capitalize on the advantages experience, is that most business executives
presented in the new marketplace. have a far-too-limited view of data and what they
can ask analytics to do,” notes Mark Toon, CEO
“Many Asian companies like their Western
of KPMG Capital. “It’s no longer just about data
counterparts are recognizing the need for greater
management business or technology; it’s about
insight, and D&A is one of the key strategic ways
being able to easily tap the data at your disposal
for them to get there. They are looking to go
to learn new things and gain greater insight about
beyond simply collecting data to develop a wider
your business. And by doing so, driving improved
understanding of the power of analytics,” says
business performance.”
Mohneesh Paranjpe, Global D&A director, KPMG
in Singapore. “However, with organizations This has led to significant shifts in the core
in countries such as China making significant competencies being demanded in the
investments in their D&A strategy, the ability for boardroom. “We’re starting to see a new breed
these organizations to gain actionable insights of business leader emerge, who understands
from their vast quantities of data is likely to the business and how data and analytics can be
increase significantly in the near future.” pulled together to solve very complex business
problems,” adds Brad Fisher, D&A leader for
The results suggest that organizations are
KPMG in the US.
recognizing D&A for what it is: a strategic
To better operate or innovate?
What has your business use of data Where are organizations currently applying all of
and analytics focused on?
their analytical capacity and capability? According
2% to our survey, organizations are fairly split between
operational improvements and innovation. About a third
of respondents said they are focusing their D&A on
operational improvements, a third said innovation and
another third said some combination of both.
30% 37%
Respondents from the EMEA region were about a third more likely to say they are
focusing on operational improvements (such as process or performance efficiencies)
than innovation, while respondents from the Americas were more likely to focus on
innovation than operational improvements.
Respondents were also most likely to say that the primary focus of their internal D&A
activity was going towards cost cutting. In fact, almost three quarters (72 percent) of
32% respondents said their D&A capabilities were being applied towards operating costs,
while only about a third (35 percent) said they were looking to improve opportunity
development.
A combination of innovation and operation
Innovations (e.g. identifying new business In what areas has your business used data and analytics to improve
opportunities or customer retention) internal operations?
Operational improvements (e.g. process or
performance efficiencies)
Other/None

72% Operating costs
54% Resource management
49% Cross-departmental communication
47% Clarity in systems and processes
43% Overall best practices
35% Opportunity development

Not surprisingly, respondents also suggested that they had been most effective at
integrating D&A into the operations side of their businesses. Respondents gave
themselves an aggregate ranking of 4.72 out of 6 in effectively integrating D&A
into operations, versus a 4.33 in regulatory, compliance and legal or a 4.18 in their
effectiveness at integrating D&A into their human resource practices.
How effectively do you feel you have integrated data and analytics into the following areas of your business?
(Rated on a scale of 1 to 6, where 6 is very effective)
Operations
4.72
Customer service
4.65
Research &
development 4.65
IT
4.65
Sales & marketing
4.49
Finance
4.47
Regulatory,
compliance, and/or 4.33
legal
Human resources 4.18
0 1 2 3 4 5 6
Least effective Very effective
KPMG Insight
Creating an analytical workforce
How best to put D&A to work within a business As such, one of the most underestimated
is a huge consideration for most organizations. challenges facing many organizations is how
to move from ‘gut feel’ decision making to a
“D&A can offer both top and bottom-line
data-driven culture. This requires a pervasive
growth, but this requires organizations to have
shift in mind-set that can often be accelerated
a clear line-of-sight from the data through to the
by adopting a collaborative federated model that
value drivers of organizational performance,”
cuts across silos.
notes Eddie Short, EMA Leader for Data &
Analytics at KPMG. “I think many organizations “The real market leaders here use analytics
are still focused on how they can achieve the in their day-to-day operations in areas such as
piece that is driven by business case value, HR, where organizations are applying analytics
rather than applying their analytics towards to help evaluate applicants’ resumes against
more strategic, ‘blue sky’ opportunities.” outputs from the interview process,” explains
Mohneesh Paranjpe, Global D&A Director,
The fact that respondents in the US (where
KPMG in Singapore. “The best organizations
D&A is seen to be more mature) are more
are creating combined teams of functional and
focused on innovation shows that – as growth
analytical professionals as a way to truly embed
returns – organizations will increasingly verge
analytics-thinking into key business functions.”
towards using D&A to drive new business
opportunities rather than cost cutting. As is often the case, the key question to ask
is what you are trying to achieve from your
Organizational culture is one area that will
D&A. “Zeroing in on the business problems
require particular attention if businesses hope
and identifying key hypotheses may not be the
to move towards a data-driven operating model.
easiest thing to achieve up front, but it is far more
“Executives need to find ways to encourage efficient and effective in the longer term,” notes
their workforce to be more analytical in Anthony Coops, Partner, KPMG in Australia.
their decision making,” notes Brad Fisher, “Throwing all available data into a pot and hoping
D&A leader for KPMG in the US. “From for a tasty stew of insights will rarely – if ever –
there, organizations should quickly start to deliver meaningful results.”
see analytics driving their overall people
performance, their operational performance,
their customer performance and their selling
performance.”
Facing challenges large and small
According to our survey, What are the biggest challenges your company has faced
regarding data capture specifically?
many organizations
are grappling with the
challenges related to D&A. Biggest challenges
For example, 42 percent
of respondents said that
the biggest challenge they
face regarding data capture
specifically is in integrating
data technology into their
existing systems and
business models. More
%
than a quarter (26 percent) Integrating data technology into
existing systems/business models
said that they are facing
challenges identifying what
data to collect.
%
Capacity to capture all data
from all areas of the business
Identifying what data to collect
Respondents also seem uncertain as to how to best proceed with their analytics.
Eighty five percent of respondents said that they are facing significant challenges in
implementing the correct solutions to accurately analyze and interpret their data. An
almost equal number (79 percent) said that they have problems identifying the right
risk indicators or parameters for their program.
What are the biggest challenges your company has faced regarding data analytics specifically?
Implementing the
right solutions to
accurately analyze
and interpret
the data
1 Rank
Reacting in a timely fashion

to insights as they arise
3
2 Rank
Identifying the
right risk indicators/
risk parameters
Rank
More than half of all respondents (54 percent) also said that one of their biggest
barriers to implementing a D&A strategy across the enterprise is an inability to
identify what data to collect, followed closely by a lack of capacity to capture and
analyze all the data from all areas of the business.
What do you perceive to be the biggest barriers to implementing a data and

analytics strategy across the business?
Identifying what
data to collect
1 Rank
Implementing the
right solution to
accurately analyze and
3
2 Rank
Capacity to
capture and
analyze all
data from all
areas of the
business
interpret the data
Rank
Three quarters (75 percent) of respondents also expressed some level of difficulty
Making decisions sometimes in making decisions around analyzing data. Many seem unwilling to make major
becomes difficult because investment, or transformation decisions while the function is still rapidly evolving.
technology keeps changing.
There is always better technology
Given the rapid pace at which technology and analytics develops, how
and analytics to identify growth difficult is it for your company to make decisions around analyzing data?
prospects in the market.
2%
– Survey respondent
21%
26%
Americas Asia-Pacific
60% 12% 63% 16%
2%
27%
Very difficult
45% Difficult
EMEA
Somewhat difficult
Not at all difficult
26%
Note: Regional results are provided for illustrative purposes only. Overall results include data from respondents
outside of these regions.
KPMG Insight
Operationalizing D&A
The fact that business leaders express This isn’t really a technology play at all, the
uncertainty about their D&A capabilities is accent has to move to the I.”
encouraging. What it means is that they are
Traditional process-driven enterprise resource
starting to ask the right questions and think
planning (ERP) systems, for example, are great
more strategically about the enterprise value
at driving automation but poor at delivering
of D&A.
flexibility. Cloud-based systems, on the other
But challenges remain. “Most organizations still hand, are often difficult to tailor to the specific
suffer from very siloed data management and needs of the business.
systems, which means that few really have a
“The challenge is to leverage your internal data
true enterprise-view of their data that joins in the
and your ‘big data’ by using analytics to drive
middle to enable really effective analytics,” says
the systems,” adds Short. “But the reality is
Eddie Short, EMA Leader for Data & Analytics
that operationalizing D&A does not necessarily
at KPMG. “If you are going to use D&A to drive
mean new systems and tools; rather it is about
enterprise performance, you need to be able to
blending old-school business intelligence with
have that line-of-sight, no matter where in the
new-world big data and analytics to drive both
organization – or outside of the organization –
your legacy and your emerging IT strategies.”
the necessary data resides.”
Visualizations will also be key to embedding
But operationalizing D&A will not be simple. In
D&A into the organization. “Visualizations are
part, this is due to the rise of predictive analytics
not just cool ways to communicate a complex
and the influence of social media, which add
idea, they also serve a key role in distributing
further complexity to the volume of data that is
and demonstrating insights, allowing
now at their fingertips.
interactivity and – importantly – helping to
Again, the cautionary reminder to organizations explain options and quantify impacts in order to
is the need to recognize that D&A is not all identify and capture actionable insights,” adds
about IT. As Short notes, “The problem with IT Anthony Coops, Partner, KPMG in Australia.
is that the accent is still on the T.
Insights: A fuel to future growth
It is evident from the survey that many executives

recognize that they are only just starting their D&A
journey. Seventy-one percent said they plan to spend
more than 5 percent of their sales on D&A over the next
two years, up from the 69 percent that said they spent a
similar amount over the past year.
Some respondents are anticipating significant investment ahead. Fourteen percent

said that they would likely spend more than 20 percent of their sales on D&A
investments over the next two years, versus 12 percent that reported similar spend
over the past year.
What percentage of sales do you plan to spend on data and analytics

and/or IT in the next two years?
Over 40% 1%
21-40% 14%
Percentage of sales
11-20% 27%
6-10% 30%
1-5% 14%
0% 14%
0% 5% 10% 15% 20% 25% 30%
Note: Regional results are provided for illustrative purposes only. Overall results include data from respondents
outside of these regions.
With many opportunities yet to be realized, nearly all respondents (96 percent)
admit that they could be better using their existing D&A capabilities within their
organizations. Those respondents from Asia-Pacific seemed to believe they had the
most to gain from D&A; almost eight in 10 respondents from the region said they
could benefit ‘more’ (versus just ‘somewhat’) from better using D&A, whereas only
47 percent of American respondents and 42 percent of EMEA respondents were as
optimistic.
From your perspective, how much more benefit do you feel your organization could reap from
better utilizing D&A?
2%
Americas 47% 51%
Asia-Pacific 79% 18% 3%
EMEA 42% 49% 9%
Overall 56% 40% 4%
0% 20% 40% 60% 80% 100%

We could benefit more from better utilizing data and analytics
We could benefit somewhat from better utilizing data and analytics
We could not benefit more from better utilizing data and analytics
Many companies are looking to invest in predictive propensity models and technologies to
gain greater customer loyalty and enhance cross-selling different goods and services.
A number of the largest Chinese financial institutions have started to set up D&A
departments which are focused on a more customer centric business model. China is a
nation of vast data which many entities are looking to harness to get better strategic insight.
– Egidio Zarrella, Partner
KPMG in China
Going beyond the data: achieving actionable insights with data and analytics 23
KPMG Insight
Moving to predictive analytics
It takes a lot of foresight to see beyond today’s or knowing to a high degree of confidence
problems to tomorrow’s opportunities. what impact a marketing campaign will have
on sales, organizations can now harness their
And it’s not about how much you are willing to
data to make accurate predictions based on
invest in a D&A capability; it’s about how you
sound analytics,” notes Jeff Collins, Head of
use the tools, data and insight you already have.
Investments at KPMG Capital.
The truth is that most business leaders are not
For many, gaining this level of vision requires
yet able to visualize or contextualize what D&A
business leaders to take a step back to pause and
can deliver.
clearly consider what they hope to achieve from
“It’s not easy for many of today’s business their D&A strategies. “Predicative analytics has
leaders to fully realize the quantum shift become a ‘must-have’ capability for many industry
that smart data and analytics will have on sectors, yet most organizations are still focusing
organizational performance,” adds David Stone, 80 percent of their effort analyzing the outputs
Managing Director with KPMG in the US. and only 20 percent of their effort into analyzing
“It’s like asking the Wright brothers how they the inputs,” says Eddie Short, EMA Leader for
planned to land their airplane on an aircraft Data & Analytics at KPMG. “Predictive systems
carrier when they were still just struggling to fly come when we focus 80 percent of our efforts on
an extra foot.” the data input and start using probability-based
modelling rather than traditional ‘rule-based’
Predictive analytics is one such area. Indeed,
systems to analyze the potential.”
by identifying hitherto unknown patterns in
complex data sets, organizations can not only Only then can they start to find answers to the
start to see true causes and effects, they can tough questions around data, new business
then use this insight to predict outcomes based models and innovation. And only then can they
on certain initial conditions. “Whether it’s start to really unlock tangible business value
predicting the volume of customers who will from their mountains of data.
switch to a competitor in a given timeframe,
Conclusion: Moving to a fully
embedded D&A strategy
Given these compelling findings and insights, many
executives are keen to understand what a ‘fully embedded’
D&A strategy would look like for their business.
For one, organizations with a strong insights to ensure that it is selling the can close the gap in order to meet or
D&A strategy will find that – while right products and services to the right exceed upcoming financial goals.
they have clearly stated goals and a customers.
In other words, a fully embedded D&A
strategic vision – there is no longer a
The achievement of risk and strategy would mean that businesses
‘one-size-fits-all’ approach to strategy
performance objectives would and employees look first to data to
execution. Instead, the business would
become inextricably linked to the guide their actions; that business
always have a number of scenarios and
proper exploitation of D&A. Marketing decisions are made based on deeper
hypotheses on hand that would allow
would still focus on the needs of insight and keener analysis; that
them to effectively respond to sudden
the customer, but would do so with opportunities are naturally identified and
changes of direction.
sharper insight into how their activities properly exploited through predictive
Furthermore, a data-driven organization would impact top and bottom-line analytics; and that business flexibility
would be highly capable of using data performance. And finance would no and responsiveness is enabled and
to manage its exposure to risks in longer focus on analyzing why forecasts enhanced.
marketing, supply chain and finance. were missed and instead focus on
And it would be able to leverage those providing insight on where the business
Contact us
KPMG Capital: Global Data & Analytics

Regional contacts:
Mark Toon
Chief Executive Officer Eddie Short
KPMG Capital EMA Leader, Data & Analytics
E: mtoon@kpmg.com Partner, KPMG in the UK
E: eddie.short@kpmg.co.uk
Jeff Collins
Head of Investments Brad Fisher
KPMG Capital US leader, Data & Analytics
E: jwcollins@kpmg.com Partner, KPMG in the US
E: bfisher@kpmg.com
Egidio Zarrella
Partner, KPMG in China
E: egidio.zarrella@kpmg.com
Mohneesh Paranjpe
Global Data & Analytics Director
KPMG in Singapore
E: mparanjpe@kpmg.com.sg
Anthony Coops
Partner, KPMG in Australia
E: acoops@kpmg.com.au
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Designed by Evalueserve. Publication name: Going beyond the data: achieving actionable insights with data and analytics
Publication number: 130755. Publication date: January 2014

Going Beyond Data and Analytics v4

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Going

1. Sixty-nine percent of interviewees consider D&A to be

2. Fifty-six percent of respondents say they have changed their

The largest share of respondents (42 percent) consider

3. integrating data technology into existing systems and/or

The vast majority of interviewees (85 percent) said that one

4. of their biggest challenges with analytics, specifically, is in

Three quarters of respondents (75 percent) expressed

Respondents say that the biggest barrier to implementing

Despite the importance they attach to the use of data

7. and analytics to their current growth strategy, nearly all

Asia-Pacific 21% 51% 21% 5%

Americas 28% 48% 16% 8%

Crucially important Very important Important

Source: KPMG International D&A survey, August 2013.

Has your business strategy changed to exploit the opportunities

If yes, in what capacity has your business strategy changed?

EMEA Americas Asia-Pacific Overall

40% 40% 59% 45%

33% 46% 38% 39%

44% 30% 41% 38%

27% 38% 46% 36%

31% 28% 51% 34%

23% 28% 33% 28%

Source: KPMG International D&A survey, August 2013.

54% Resource management

49% Cross-departmental communication

47% Clarity in systems and processes

43% Overall best practices

35% Opportunity development

Human resources 4.18

Source: KPMG International D&A survey, August 2013.

Identifying what data to collect

Source: KPMG International D&A survey, August 2013.

Reacting in a timely fashion

Source: KPMG International D&A survey, August 2013.

What do you perceive to be the biggest barriers to implementing a data and

Source: KPMG International D&A survey, August 2013.

60% 12% 63% 16%

Not at all difficult

It is evident from the survey that many executives

Some respondents are anticipating significant investment ahead. Fourteen percent

What percentage of sales do you plan to spend on data and analytics

0% 5% 10% 15% 20% 25% 30%

Americas 47% 51%

Asia-Pacific 79% 18% 3%

EMEA 42% 49% 9%

Overall 56% 40% 4%

0% 20% 40% 60% 80% 100%

KPMG Capital: Global Data & Analytics

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