oracle big data action plan for finance professionals

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Big Data Action Plan


Big Data Action Plan for Finance Professionals

Rich ClaytonVice PresidentBusiness Analytics Product Group


What’s the Big Deal with Big Data?

US HEALTH CARE

$300 B

“In a big data world, a competitor that fails to sufficiently develop its capabilities will be left behind.”

Increase industry value per year by

McKinsey Global Institute

US RETAIL

60+%

Increase net margin by

MANUFACTURING

–50%

Decrease development

assembly costs by

GLOBAL PERSONAL LOCATION DATA

$100 B

Increase service provider revenue by

EUROPE PUBLIC SECTOR ADMIN

€250 B

Increase industry value per year by


90%Of the World’s Data

2 YearsHas Been Created in the Last

The World is Making a Digital Copy of Itself


22×2011-2016

12.5Billion2020

1.3BillionToday

Smart Device Growth Data Production Increase


Thoughts Things Processes

Datafication of Everything


Use Data

12%

Executives who feel they understand the impact data

will have on their organizations

Produce Data

Big Problem with Big Data


MACHINES METHODS

Implications of New Data

METRICS


MYTH #1 Big Data is for Big Companies

MYTH #2 Big Data is not for Finance

MYTH #3 Big Data is an Unproven Technology

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 12

Small to Medium Businesses Are Taking Action

Gathering Knowledge;

31%

Developing Strategy; 27%

Piloting; 31%

Deployed; 11%

• Enhance customer experience• Improve process efficiency• Define new products/business

models

Source: Gartner, Big Data Primer for SMBs


“Big Data can offer accountants and finance professionals the possibility of reinvention, the chance to take a more strategic, ‘future-facing’ role in organizations.”


HR Professionals Looking to Big Data toModernize Recruiting and Talent Management

• Data discovery allows exploration of diverse data sets• Companies can improve relationship with workforce

through an understanding of data patterns

Big Data is the New Signal for Finance

Not Just for Data Scientists….


Potential Benefits of Big Data for Finance

Identifying Accounting Irregularies

Identifying Bad Credit Risks

Determining Financing Amounts for Customers

Measuring Risk

Budgeting/Forecasting/Planning

1 2 3 4 5

3.08

3.19

3.19

3.55

3.55

Source: TATA Consultancy Services, “The Emerging Big Returns on Big Data,” 2013 Global Trend Study

Moderate Benefits Very High BenefitsNo Benefits


By 2015, organizations that build a modern information management system will outperform their peers financially by 20 percent

Mark Beyer, Gartner


Big data has already improved overall performance by 26%

Big data will further improve overall performance by 41% by 2015

Impact of Big Data on Operational Performance

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Average CEO/President CFO/Treasuer CIO/CTO

2012 2015

Source: Economist Intelligence Unit, .”The Deciding Factor: Big Data and Decision Making“


Where is the greatest opportunity for Big Data in your company? (choose 3 answers)

GO TO M.POLLEV.COM ON YOUR SMARTPHONE


Impact on Society


Finding Solutions to Breast CancerAnswering New Questions; Basis for Personalized Medicine

“Researchers have been able to integrate clinical and genomic information on 140 breast cancer patients.


Preventing Brain Damage from Concussions


Changing the Fan Experience

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |26

Nate Silver

Source: nyt.com

And Polling Processes….


How well prepared is your organization to harness power of new data sources?



Big Data Action Plan for Finance and AccountingProfessionals

All TasksTasks

Add Tasks

High Priority

Search

More Data in Decisions

New Analytic Methods

Analytic Culture


Social Media / Sensors

Unstructured data

External sources

1ConsiderMore Data

in Decisions

1


695,000 Status updates

510,040 Comments 2,000,000

Search Queries

204,166,667 Emails

571NewWebsites

Data Variety Creates Biggest Opportunity


88% of data is left on the cutting room floor

Forrester Research


More Data into Decisions

• New relationships• Behavior patterns• Predictive outcomes

BIG DATA YOUR DATA

ERP HCM

CRMSentiment data

Images

Web logs

Documents

Locationdata

Sensor data


Untapped Insights from Unstructured Enterprise DataExample for Procurement and Spend

Parts Catalogues

Customer Call Center Data

Customer Geocodes

Supply Chain Data

Inventory Data

Customer Surveys

Warranty Data

Supplier Costs


What are the top obstacles for putting more data indecisions?



Data Discovery

Predictive Analytics

Machine Learning

1Develop

New AnalyticMethods

2


Amazing Volume of Data @ High Speeds

300Sensors

3,000Data pointsper second

1GBRaw dataevery sailing day

Mast Strain

Hull Stability

Sail Tension

Wind Speed

Sail Strength

Hull Pitch

Amazing Volumes of Data in Real-Time


Finance’s Opportunity is to Make Big Data small

HOW TO SEPARATE THE SIGNAL FROM THE NOISE?


BUSINESS INTELLIGENCE

DATA DISCOVERY

Data Discovery Provides Fast Insights to New Data

Determine value of data to business

Incorporate new data into

enterprise model

UNKNOWNQUESTIONS

KNOWNQUESTIONS

DATAVALUE

UNKNOWN

DATAVALUE

KNOWN


• 20% increase in volumes, 30% increase in profit

• Quickly explore across 50 diverse sources

• Saved 1.5 years and $4M implementation costs

• 2013 Gartner BI Excellence Award

Maximize sales of seed and crop protection products

Finding New Patterns in Agriculture


Driving Growth Through Predictions

Anticipate Behavior and Forecast Business

Adoption is Low

70% Predictive Analytics

Is Critical 8%Use Predictive

Extensively


Open Source Technology Lowers CostsR Statistical Programming Language

Open source language and environment

Used for statistical computing and graphics

Strength in easily producing publication-quality plots

Highly extensible with open source community R packages


• Potential loss: millions of dollars• 100 TB compressed data

• 10 billion records/day

• Data volumes double annually• Shortened turnaround by 4 hours

Managing Risk in Real-Time

Turkcell

Preventing Fraud in Prepaid Calling cards


“The sophisticated analytics solutions that statisticians and scientists devise must be embedded into frontline tools so simple and engaging that employees will be eager to use them daily.”

McKinsey


$132MIncremental

Revenue in 2012Increase in

Conversions

30%Increase in Satisfaction

30%

Big Data Farm

MachineLearning Algorithms

Machine Learning Case Study: Dell

Offline Customer Data

Social Media

Website


Invest in analytic competencies

Form a center of excellence

Learn to tell visual stories with data

1Extend

Your AnalyticCulture

3


Get Ahead in the War for Analytic Talent

1.5 million more data-savvy managersneeded to take full advantageof big data in the United States

In which of the following areas do you think your direct reports most need to improve your skills and capabilities?

Change Mgt.TechnologyLeadershipAnalytical

Communications

21%

24%

24%

29%

33%


Constellation of Data Science Programs

Wide range of MBA, MS and Certificate programs available.


DATA CLUBHouse Rules

The first rule of data club:You don’t admit to being in data club

The second rule of data club:You don’t admit to being in data club

The third rule of data club:no spreadsheets

The final rule of data club:SELECT DISTINCT = Poor data knowledge


CapabilityGAP Analysis of our skills and capabilityTraining focussed on the right areas Partnering with business and 3rd party consultant

OrganisationWorking with existing headcount and no new hiresEstablish clear data ownership with the businessClear roles and responsibilities across the organisation

ProcessDefining how we operateTesting with the business and refining to suit the culture Being agile and meeting the business needs

Competency building


The accountants and finance professionals who succeed in the future will form a bridge between data science and data art, combining analytical skills and sophisticated models developed by statisticians with the skills of data art and ‘storytelling’.


Sexy Dashboards Must Have Clear Purpose


Telling Stories with Data

turn it upside down

learn todistill

thinkinfographic

Source: Bloomberg BusinessWeek


All TasksTasks

Add Tasks

High Priority

Search

More Data in Decisions

New Analytic Methods

Analytic Culture

Big Data Action Plan for Finance and AccountingProfessionals

Count what is countable, measure what is measurable, and what is not measurable, make measurable.

oracle big data action plan for finance professionals

Data & Analytics