There is increased attention on data-driven management and turning data into knowledge, actions and value.
There is increased attention on data-driven management and turning data into knowledge, actions and value. Up until now, focus has primarily been on getting insight from data and looking into "what happened?" However, organisations are increasingly aiming at using more advanced algorithms to also predict "what will happen?" in the future based on not only structured data, but also unstructured data from inside and outside the organisation. This characterises a move from traditional Business Intelligence to Advanced Analytics.
KPMG has strong experience with supporting organisations with their Advanced Analytics projects. This includes helping management teams understand the potential business value and supporting the critical operational and business transformation necessary to derive real value from these advanced analytics initiatives. Historically, organisations have been relatively good at gaining insights from their data, but fewer organisations feel they are gaining real value from these insights (see figure below). As an example, 81% of organisations asked in a global KPMG survey say they have improved their understanding of customers, but only 41% of these say they have used that understanding (insight) to create tailored offers to prospective customers (value).
Advanced analytics is different from traditional Business Intelligence, as you need a diverse set of competencies. We have had the technology to do advanced analytics for many years now, but only relatively few organisations have exploited the potential. This is rooted in several reasons, and both high entry cost and lack of necessary competencies have been part of these reasons.
Another reason has been the complexity of gathering and mixing sufficient amount of data to make predictive models sufficiently efficient.
Finally, the challenge of deriving real value from analytics, operationalising the outcome and transforming your business to reap the benefits can be a challenging task.
There are several reasons why Advanced Analytics gets much more attention now, and among these reasons are:
To establish successful advanced analytics projects, you need to combine different competencies (see figure below):
Based on broad experience working with advanced statistical models, deep domain knowledge in most industries and extensive knowledge around Information Management, KPMG can support your organisation in building capabilities and delivering advanced analytics projects.
One of our core solution focus areas is based on Microsoft's Advanced Analytical solutions ranging from on-premise solutions to cloud solutions, focusing on Machine Learning, R technology and more. An advantage of using the Microsoft technology platform is the ability to start up Advanced Analytical projects very quickly with limited upfront investments ensuring you can understand the potential value to be gained from your advanced analytics projects before making any large investments.
Key to any Advanced Analytics project is the purpose. Advanced analytics can be used for many purposes from sales forecasting to pricing to predictive maintenance (see figure below).
Let KPMG inspire you in terms of how you can use Advanced Analytics, and how you can kick-start your journey.
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