This document summarizes a presentation about big data, business analytics, and how finance professionals can exploit these tools. The presenter has global experience working with major corporations. They discuss key concepts like understanding big data, exploring business analytics, and how finance can use these tools. Finance needs to build analytical capabilities and get value from both internal and external data sources. Business analytics can help make sense of large and complex data. The roles of finance professionals are expanding from traditional financial analysis to providing insights using a variety of analytical tools and techniques.

1. Big Data, Business Analytics
& Finance Professionals
The platform for effective finance
transformation
A CPD event for CIMA & ICAP in Pakistan
Aubrey Joachim FCMA; CGMA
CIMA Global President 09/10
Karachi – September 2015

2. My background
• Global work experience with major multi-national
corporations – UK & US and major Australian public utility
• Past global President of the Chartered Institute of
Management Accountants (CIMA) UK
• Management trainer / Presenter across Australia, New
Zealand, South East Asia, South Asia, Middle East,
Africa, US and UK
• Specialise in Strategy, Performance Management, Risk
Management, Big Data & Analytics
• Coach and mentor in finance transformation

3. Key messages today
• Understanding and appreciating ‘Big Data’
• Exploring the concepts of business analytics
• How finance can exploit big data and analytics
• Finance transformation

4. Coming to grips with
BIG DATA

5. The proliferation of data in today’s
world is a huge opportunity that
organisations must exploit.
The volumes of data accumulation on
the planet is exponential!
Data is doubling in less than a year!!

6. The average large business has in
excess of 200 terabytes of data.
1 terabyte = 1012 bytes
ie. 1 trillion bytes or 1000 gigabytes
80% of data is unstructured

7. Characteristics of Big Data

8. However, most importantly …….
V E R A C I T Y

9. What should organisations do with big
data?
Combine internal structured data with unstructured
consumer, supplier data etc. to get a full picture.
Big data platform paired with sentiment and
predictive analytics.
Co-relate customer inquiries and sales records with
social media etc. to gain more relevant insights.
Data as a source of revenue.

10. Business
Data
Big Data
Large volumes
of complex data
Strategic;
a core competence
even a new
Business Model
Amex
Experian
Yahoo
Improve performance;
Cost & efficiency
Reduce Risk
Increase revenues
NI Ambulance
BT
Tesco
Marriott
Different businesses different positions

11. More Votes More clicks to sales Profitable growth
Big data translates to big business

12. Marketing analytics:
Data from multiple customer touch points over time.
Track where they come from, where they are going,
keep them engaged. Generate quality leads, up-sell
to them. Lower campaign costs.
Cost analytics:
Identify and track key cost drivers and how these
can be optimised for products and customers.
Top line and bottom line benefits from
exploiting big data

13. “Finance need to build
analytical capability to
succeed"
“All functions needed to
increase analytical capability”
“Be clear on the questions
we’re trying to answer”
“Get basics in place, mine what
we already have”
What should shape an organisation’s big
data strategy?

14. Data Analysis Insight
Business
Opportunities
Big Data….
Its just a way of doing business
In today’s world …….

15. Business Analytics
Making sense of Big Data

16. Lots of
data
No data
Decision
Analytics Judgement
The data dilemma ……… analytics the
answer

17. Many sources of organisational data

18. Reading patterns from data ……
searching for hidden meaning

19. FINANCIAL
DATA
PRODUCT
DATA
CUSTOMER
DATA
$$$
Deriving tangible value from data

20. The many sources of analytics
Given the abundance of data available to
organisations, the sources of data analytics are many.
They could be classified under a number of specific
areas:
• Financial
• Marketing
• Customer
• Supplier
• Assets
• Demographics
FINANCIAL
DATA
PRODUCT
DATA
CUSTOMER
DATA
$$$

21. From number crunching to
analytics

22. The outcome of business analytics
WISDOM
KNOWLEDGE
INFORMATION
DATA

23. The transition from data to wisdom
WISDOM
KNOWLEDGE
INFORMATION
DATA
SYSTEMS &
PROCESSES,
TECHNOLOGY
HUMAN LEARNING,
TOOLS & TECHNIQUES

24. WISDOM
KNOWLEDGE
INFORMATION
DATA
DATA CAPTURE
& ANALYSIS
MANAGEMENT REPORTING
& DECISION MAKING
The transition from data to wisdom

25. WISDOM
KNOWLEDGE
INFORMATION
DATA
APPLICATION OF
MANAGEMENT ACCOUNTING
AND ANALYTICAL
TOOLS & TECHNIQUES
The role of management accounting in
analytics

26. Key questions addressed by analytics
PAST
What
Happened?
(Reporting)
How / Why
things happened
(Modeling / Var)
PRESENT
What is
happening now
(Alerts)
Next Best
Action?
(Recommend)
FUTURE
What will
happen?
(Extrapolation)
Best / Worst
that can happen
(Predict/Optimiz
/ stimulate
INFORM-
ATION
INSIGHT

28. Analytics must provide a future view!

29. Big Data & BA
The platform for finance
transformation

30. 68% felt Finance should set the
agenda
88% believe Big Data and Analytics
will be a competitive advantage.
The role of finance ….. research shows

31.  BI Strategy
 Business Case
 Implementation
 Data Quality
 Reporting
 Performance Management
 Analytics
 Business partnering http://www.cgma.org/resources
Big data, analytics and finance professionals

32. Financial data – one view among many

33. Providing better understanding of
financial results

34. Providing better predictive financial
insight

35. Big Data
Business Intelligence
Financial
Accounting
Financial Data Structured Data Unstructured Data
Financial reporting
Driver based forecasting
Predictive analytics
Financial modelling
Data mining
Providing better financial insight

36. Intangibles are key to business value ‐ Data, often
non financial, is needed to manage intangibles
A survey of 300 senior executives suggested that 68%
of the value of a business is due to non financial assets:
Source: CGMA report; Rebooting Business

37. Source -
Application of analytics in financial
management

38. • IT
• Software
• Digital space
•Social media
• Kaizen
• 6 Sigma
• Lean
• BPI
• Change Mgt
• Fin Management / Ratios
• ABC/ABM / Rolling Forecasts/ EVA / Costing / TOC
Finance professional today are moving out of their traditional finance
roles and financial views alone and becoming analytical
How MA tools & techniques can help

39. What are business leaders expecting
from their finance people?

40. Employers want accountants who can
contribute more to decision making:
Use technical
accounting skills
In a business context
to bring insight
To
influence
people
And lead
the
organisation

41. The role of management accountants in
the context of BD & A:

42. Decision making is key to superior organisational performance
Analytics must improve business
performance

43. Analytics in the age of transient
advantage
Today many organisations find themselves as high-
velocity industries, needing launch new initiatives
again and again.
Speed in decision making is paramount. Fast and
roughly right decision making must replace
deliberations that are slow but marginally more
precise.
Big data and analytics plays a major role.

44. ANALYTICS
Analytics speeds up the decision making
process

45. New skills and competencies for
finance to deliver increased value
For finance to transform and add value to their organisations,
they need to become business partners and develop:
• Excellent analytical skills using not just financial analysis but
also customer and market analysis, statistical and also
sophisticated modelling techniques
• Use of multi-disciplinary team approach to inform key
decision making as well as the ability to integrate inputs from
diverse non-financial sources
• Strong commercial acumen characterised by strong product,
process and market knowledge

46. CIMA thought Leadership ……

47. CIMA thought Leadership ……

48. Questions
And
Discussion