© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Trusted Analytics at a global furniture retailer

prof. dr. Sander Klous

—

Berlin, 20 October 2016

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Why do

particles

have mass?

Professor @ UvA in Big Data

Head of Data & Analytics in NL

Member of Global D&A Leadership team

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Extreme Expectations

3

> Link zu Youtube

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Expectations and behavior

—Meet or exceed expectations

—Know what is expected

—Analyze and understand behavior

—Measure behavior

4

Measuring behavior We cannot directly measure behavior

We can collect data associated with behavior (proxies)

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Location analytics

Tipping points …

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Breakage

7

Card age

Fra

ctio

n s

pe

nt

Customers spent the majority

of their money in the first few

weeks

Customers spent around

95 percent of all money loaded

Hundreds

of customer

categories!

Flows of money

move back and forth

between legal

entities as

customers use their

store cards in

different places

Europe/US Asia

Analyze and understand behavior Combining insights

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Maturity

9

Industrialization

Organizational

implementation

Primary business

functions aligned

Supply / demand

process

Capability planning

Recruitment and

partnering

Implementation

Business value

generation

Integration into

production

environment

Alignment with data

initiatives

Privacy and security

Central, distributed or

external?

Incubation

Organized as a

startup

Failure is

acceptable

Efficiency ist not

(very) important

Training and

knowledge

development

Initial technical

platform setup

What efforts do we

need?

Inspiration

What is your current

status?

What decisions are

suboptimal?

How can they be

improved?

Experiment selection

Current focus of most

organizations

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Global solutions / Blueprint & Reference Implementation

KREO[1]

Facts2Value

Location

Analytics

NL &

Other Tax Intelligence

Solutions

Konduct

P3BIO

Portfolio Intelligence

(iRADAR)

Enterprise Asset

Analytics

Astrus

Bottlenose

Strategic Transformation

Assessment

Customer

Compass

Know what is expected

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Modelling &

learning

Presenting /

Dashboarding

Validation of individual

decisions

Automated decision

making process

Provide feedback for

(non-)supervised learning

Agile

Issue 1 Issue 2

Answer

Decision

Answer

Decision

ESKAPADE

Decision support

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Becoming data driven

Analytics

Operating

Model

Organization &

Governance

Services &

processes

Technology Partner

eco-system

Performance

Management

People & Skills

1. Organization & governance

— Scalable organization of multidisciplinary data teams,

aligned with related domains

— Roles and responsibilities of data-related business and IT functions

— Data management and reporting governance

— Data privacy, -security and -quality management

2. Services & processes

— Agile processes to grow from idea to provisioning

— Continual model validation and improvement processes

— Structured ideation and prioritization of

business use cases

3. Technology

— Process and governance supporting tools

— Architecture and life-cycle management tools

— Collaboration and planning tools

4. Partner eco-system

— Collaborative approach to partners

— Evolution to incentive based contracts

— Sourcing of external models, algorithms and data sources

— Longer term / optional: Joint ventures

with market partners (SPVs)

5. Performance

— Support investment decisions using

transparent reporting of effectiveness

— Continual improvement through KPI- based measurement framework

— Drive innovation through employee rewards

and incentives

6. People & skills

— Skills & capability planning for data scientists

and business analysts

— Training programs and analytical capability development

— Agile skills and culture

— Platform & deployment management skills

Meeting or exceeding expectations

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

Agile organizations

> Spotify 1 of 2

> Spotify 2 of 2

> ING

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services.

What’s new? Trusted eco-systems and edge analytics

> Art of gears

The Internet of Things: Traffic lights or round-abouts?

Why do flagship brands not enforce patents?

Why does KPMG open source its global blueprint?

Platform democracy: Facebook vs. Diaspora

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent

firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to

obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such

authority to obligate or bind any member firm. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or

entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate

as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without

appropriate professional advice after a thorough examination of the particular situation.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

kpmg.com/socialmedia kpmg.com/app

kpmg.com/data kpmg.com/trust