Organisations in China are looking to significantly invest in data and analytics (D&A) in order to match e-commerce and technology companies that are successfully capitalising on their existing customer data.
According to a recent survey by KPMG, 99 percent of multinationals consider D&A to be important to their business.
The report, titled – Going Beyond the Data: Achieving Actionable Insights from Data and Analytics – is based on interviews with 144 CFOs and CIOs from multinational companies with annual revenues of USD1 billion or more.
The report finds that 72 percent of ASPAC (including China) respondents have upgraded their IT systems, while 79 percent said they could benefit from better use of D&A.
Egidio Zarrella, Clients & Innovation Partner, KPMG China, says: “The rise of consumerism in China, the exponential growth of e-commerce and broad take-up of mobile technologies has given many Chinese entities the ability to obtain rich data on their customers. The rise of D&A is becoming one of the major strategic tools many Chinese entities are looking at to get closer to the customer.”
“Many technology entities are beginning to leverage their vast storage of data to give them insights into the buying patterns of their customers and provide more targeted services. A number of the largest Chinese financial institutions have also started to set up D&A departments which are focused on more customer centric business models,” he adds.
The survey finds that 51 percent of ASPAC (including China) respondents indicated the importance of D&A for their company’s growth strategy. Meanwhile, 71 percent said the use of D&A helps to identify insights that would have otherwise been missed; 82 percent said D&A helps to analyse information with greater speed, while 63 percent indicated higher cost savings due to improved efficiencies.
Almost eight in 10 respondents from ASPAC 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.
“We live in an increasingly data-driven world where D&A has the potential to revolutionize the way we conduct and manage business operations across the entire enterprise,” says Mark Toon, CEO of KPMG Capital.
KPMG International recently launched KPMG Capital, an investment entity to help support technology partnerships and accelerate D&A innovation.
Zarrella concludes: “Companies in China are realizing the value of information and that, if used correctly, analysis of this information can be a real differentiator. They have typically tended to assess historical patterns, however we increasingly see predictive analysis being used in order to determine consumer spending patterns and to have an integrated customer view for cross-selling across all channels. We will leverage off KPMG Capital to address the demand for D&A in China.”
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KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 155 countries and have 155,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG China has 16 offices, including KPMG Advisory (China) Limited, in Beijing, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Xiamen, Hong Kong and Macau, with around 9,000 professionals.
KPMG China refers to the member firms of KPMG International in Mainland China, Hong Kong SAR and Macau SAR.