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1 Cover Title: DATA NATION 2013 Subhead: THE ENTERPRISE DATA LEADRSHIP FORUM Subtitle: CUSTOMER FORESIGHT & GROWTH: BIG DATA & ANALYTICS IN 2014 Logos: Chief Nation (top left) and IMGroup and SAS (bottom left) Header: DATA NATION DATA NATION CUSTOMER FORESIGHT & GROWTH: BIG DATA & ANALYTICS IN 2014 Footer: 1

2 CONTENTS EXECUTIVE SUMMARY The Importance of Data Management 3 Developing Big Data Strategies 4 Barriers to Big Data Analytics 5 The Value of Good Data Insights 6 Unified Enterprise Data Management Platforms 7 Data Governance, Security & Latency 8 Sponsor Profile: IMGROUP 9 Sponsor Profile: SAS 10 This report is based on the survey responses of the guests who attended the Data Nation networking event at the Paramount Members Club in central London on 10 September Some of the highlights from the report include: The Importance of Data Management Although banks are besieged by myriad regulations, they prioritise customer-facing activities. Developing Big Data Strategies Two-thirds of banks have decided to adopt big data and are at varying stages of doing so. Barriers to Big Data Analytics Many people remain uncertain about how to use big data and therefore find it hard to gain clarity on how they could demonstrate a return on investment. The Value of Good Data Insights Deriving value from data is frustrating ; banks continue to resort to using spreadsheets and manual processes. Enterprise Data Management Most banks have no centralised enterprise data platform, making it difficult to deliver reports and dashboards across disparate applications. Data Governance, Security & Latency Most banks are frustrated at their own lack of standards for data quality and data ownership. Copyright Notice The Data Nation 2013 report is published by Riversix Limited. Reproduction of any material from this report, in whole or in part, is strictly forbidden without the prior consent of the publisher. Chief Nation and DATA NATION are copyrights of Riversix Limited. 2

3 THE IMPORTANCE OF DATA MANAGEMENT THE IMPORTANCE OF DATA MANAGEMENT Trading Risk management Customer service & channels Compliance & regulatory reporting Payments & settlement Capital adequacy calculation & mgmt (0 = lowest priority, 100 = highest priority) Trading and risk management are naturally the highest priorities for data management, both representing the twin fundamentals for the banks operations, although these are closely followed by customer service and regulatory reporting. However, it is interesting to note that although banks are besieged by myriad regulations, they still prioritise customer-facing activities in terms of data management. Banks back-office payments and settlement activities are likely to be considered with a if it isn t broken, don t fix it mind-set as their data management requirements are likely to be less complex and less time-dependent than front- and middle-office activities. Despite the aforementioned mid-range focus on data management for regulatory compliance, finance directors and CROs might be worried by the low rating for capital adequacy calculations, given their pivotal importance for key regulations such as Basel III, FinRep/CoRep and the UK s recently-formed Prudential Reporting Authority. 3

4 DEVELOPING BIG DATA STRATEGIES DEVELOPING BIG DATA STRATEGIES Already using big data & applying analytics We have an established strategy Just started developing a big data strategy Considering whether to embark on big data We don t have a big data strategy 0% 10% 20% 30% 40% 50% Two-thirds of banks have taken the decision to adopt a big data strategy and are at varying stages of doing so, ranging from 25 per cent that have already introduced big data and are applying analytics, through to 31 per cent that have just started on their big data journeys. Only 14 per cent of banks have no big data strategy at present, with the remaining 19 per cent equivocating over their big data plans. 4

5 BARRIERS TO BIG DATA ANALYTICS BARRIERS TO BIG DATA ANALYTICS Lack of clarity over return on investment Uncertainty about how to use big data analytics Finding people with relevant skills & expertise Initial investment required (0 = very easy, 100 = very difficult) It is apparent that many people remain uncertain about how to use big data and therefore find it hard to gain clarity on how they could demonstrate a return on investment in the business case for the adoption of big data. Funding availability for big data projects does not appear to be a significant barrier, nor the human resources needed to implement big data, which again suggests that the barriers to big data projects are at the project scoping and business planning stages. 5

6 THE VALUE OF GOOD DATA INSIGHTS THE VALUE OF GOOD DATA INSIGHTS Creating customer reports is an expensive & labour-intensive task There is a lack of understanding in the business of the value of more advanced analytics & modelling KPIs are not used to help drive the business We are losing customers because our premium services are not keeping pace with competitors CxO-level sponsorship is not in place & there is no active engagement (0 = Under control, 50 = Frustrating, 100 = Serious problem) Deriving value from data is frustrating for most banks; they are likely to be coping with their massive volumes of data by resorting to inefficient work arounds, spreadsheets and manual processes. Banks can therefore probably maintain the status quo but are unable to really derive additional value through advanced analytics and modelling. Banks are also aware that, from an internal perspective, they should be making more use of their data to deliver the right KPIs to support decision-making and business strategy and, from an external perspective, using data better to deliver more targeted customer-centric services. As with any fundamental area of technology, there should be more senior stakeholder and board-level support for data management projects but this is the least problematic area. 6

7 ENTERPRISE DATA MANAGEMENT UNIFIED ENTERPRISE DATA MANAGEMENT PLATFORMS There is no well designed blend of structured reports, dashboards & heatmaps There is a lack of consistent & trusted data when accessed at the organisational or business unit level External data sources are not automatically added to the data set A wide range of unstructured data is used, from many sources There is no formalised or centrally-managed data source management across the organisation We have no enterprise data warehouse covering operational, tactical & strategic information requirements (0 = Under control, 5 0= Frustrating, 100 = Serious problem) As might be expected, most banks have no centralised enterprise data management platform, making it very difficult for them to deliver structured reports, dashboards and heatmaps across disparate applications, with the consequence that timely, consistent and trusted data is hard to find. Furthermore, as a result of years of isolated application adoption, few banks have formalised or centrally-managed data policies across their operations; the same applies to enterprise data warehouses. 7

8 DATA GOVERNANCE, SECURITY & LATENCY DATA GOVERNANCE, SECURITY & LATENCY Data ownership / stewardship standards are not embedded across the organisation Data quality standards are not embedded across the organisation There is no capability to get accurate & robust real-time & intraday data provisioning across the organisation Centralised, accurate & robust time-series data is not available across the organisation Robust data access & security is not deployed across the organisation & there is a lack of governance (0 = Under control, 50 = Frustrating, 100 = Serious problem) Continuing the theme of the previous section, most banks are frustrated at their own lack of standards for data quality and data ownership. This has resulted in banks finding it hard to deliver rapid data provisioning across their operational units. And in common with the lack of data standards, data access and security needs additional attention, particularly in view of the widespread adoption of BYOD strategies and the ubiquitous consumerisation of IT where business users can add new cloud-based applications without the direct involvement of IT departments. 8

9 INFORMATION MANAGEMENT GROUP Company name: Information Management Group (IMGROUP) Telephone: Web: IMGROUP is an award-winning data insight and information management consultancy. We combine industry thought-leadership with cutting-edge technology to help our clients improve business performance, achieve competitive advantage and reduce cost. From customer insight to performance management and regulatory compliance, our solutions help clients provide a better service, run their businesses more profitably and successfully deliver business transformation. The largest team of dedicated information management consultants in the UK, IMGROUP is headquartered in London with offices and delivery teams in Manchester, New York, Kolkata and New Delhi. 9

10 SAS Company name: SAS Software Limited Telephone: Web: SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 65,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW. Customer Statistics Number of Countries Installed SAS has customers in 135 countries. Total Worldwide Customer Sites More than 65,000 business, government and university sites SAS Customers or their Affiliates Represent: 90 of the top 100 companies on the 2012 FORTUNE Global 500 list Employee Statistics Worldwide Employees 13,732 total employees, comprising: - United States: 6,691 - World Headquarters (Cary, NC): 5,154 - Canada: Latin America: Europe, Middle East and Africa: 4,027 - Asia Pacific: 2,

11 Copyright Notice The Data Nation 2013 report is published by Riversix Limited. Reproduction of any material from this report, in whole or in part, is strictly forbidden without the prior consent of the publisher. Chief Nation and DATA NATION are copyrights of Riversix Limited.