finance & advanced analytics - interim managers belgium trifinance
DESCRIPTION
Axis where finance needs to step up and use advanced analytic to be a business partnerTRANSCRIPT
Event for Interim Managers
TRIFINANCE BELGIUM29 APRIL 2014
Jean-Marie Bequevort
Over 40% of the companies that were at the top of the Fortune 500 in 2000 were no longer there in 2010 (Brian Solis, Future of business)
Business landscape
Technology everywhere
Digital behaviour
Explosion of data
Speed of action
New business models
Constant flow of changes ...
Big data: a simple concept …
Big Data
Velocity
VarietyVolume
… with large impact
Ability to analyze how things interact in extremely large data sets, with the goal to provide management with a clear problem diagnostic, facilitate the detection of opportunities and make sure organisations are fit for today’s business landscape
So what?
Who cares?
Why you?
Upgrade finance to next impact level
1
2
3
Business partnering
Process improvement
Risk management
Typical questions
• Which are the best prospects to focus on? • How do we best spend our marketing €?• Why are sales reps successful?
• How much time do we lose on low value-added tasks?
• Should we harmonize and centralize tasks?• Which bottlenecks cause which delays?
• Are we sure there is no fraud?• What are the leading attributes for project
failures?• Do we always comply to our policies?
3 areas of clear quick wins
Business partnering: connect with growth
Micro-market opportunities(Distribution coverage)
Optimize product mix(Retail shops)
o Find statistically relevant combinations of products in very large data sets
o Detect patterns of buying behaviour in your client data
o Experiment, measure and learn ... at scale (marketing campaigns)
o Use open data to see how your business will fit in the future
o Map the markets to detect micro-opportunities of growth based on key attributes (age, gender, income, etc.)
o Use interactive visuals to engage the front-line team to action
X-ray your processes (Financial close, P2P, trading,...)
…and focus on the real issues
Discover: what is happening?Conform: does this conform/comply to what should be happening?Enhance: show throughput time, effectiveness, rework, bottlenecks, dead ends, etc.
o Look for behavioural patterns and root-causes by drilling down into variants
o Use these detailed insights to optimize efficiency, effectiveness, agility and compliance
o Identify best practices and drive harmonization across processes
Process improvement: mine for agility
Fraud detection(Claims request in insurance)
Audit & compliance(Purchase orders authorisation)
o Find claim patterns in the claim history, client and policy data that would indicate possible fraud
o Identify potential key attributes leading to fraud exposure using large scale network analytics
o Run models periodically on those risk attributes on all data, not just samples
o Find irregularities in approval flow
Risk management: control beyond limits
Accelerate the pace of adoption
Educate Explore Engage Execute
Gather knowledge and
observe the market
Develop a roadmap based on
business needs/challenges
Pilot big data initiatives to
validate value
Deploy more initiatives and
continue to extend advanced
analytics
~24% of respondents
~47% of respondents
~22% of respondents
~7% of respondents
Finance should play a leading role in any “big data” mindset transformation
Source : Survey from IBM Institute for Business Value and the Saïd Business School at the University of Oxford
