How To Understand The Business Case For An Analytics Firm



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Deloitte Analytics Uncommon insights

Contents The dangers of data mismanagement...2 Making the business case...3 How we can help: Deep industry business knowledge...4 ii Deloitte Analytics Uncommon insights

To gain market insight and drive business strategy, organisations need the ability to continuously explore and investigate past business performance and anticipate change. Deloitte Analytics can help. Leveraging deep industry knowledge and proven skills, we extensively use data, statistical and quantitative analysis, explanatory and predictive modelling and fact-based management to drive integrated decision-making. This positions you to make better decisions and take the right actions to improve key business metrics and outcomes. Deloitte Analytics Uncommon insights 1

The dangers of data mismanagement Although data analysis is not always considered a strategic priority, failing to derive key business insights from data can result in lost revenue, lost confidence, compliance problems, competitive pressures, customer dissatisfaction and more. In the face of these challenges, analytics is no longer a luxury it s a necessity. This is especially true when you consider that companies have more information than they can handle. Mountains of it. Turning that information into insight can seem impossible. That may explain why so many business decisions are based on intuition and gut feeling. Although experience plays a role, organisational decision-making is compromised if companies cannot produce information that is relevant, timely, accurate and insightful. You need the ability to: Use information to drive innovation and competitive advantage Access information tools that can help you measure and improve enterprise-wide performance Identify insights from your data that can drive more value from business and IT investments Leverage information to manage risk, improve compliance, and drive business outcomes Although analytics isn t a new concept, it is often applied only in targeted areas of the business. To enable your organisation to base decisions on fact-based analysis and scientific thinking, you need to push analytic capabilities deeper into the organisation from the C-suite to the front lines. That takes a new level of focus and dexterity from organisations that are already grappling with plenty of other challenges. 2 Deloitte Analytics Uncommon insights

Making the business case Comprehensive analytic initiatives are hard work so it s a good idea to get clear about what kinds of improvements you can expect. With effective implementation, you can: Enhance business performance and outcomes You can t manage your business effectively unless you know what s really going on. Deloitte Analytics can help you identify performance improvement opportunities, and action them at the source. Strengthen innovation and competitive advantage Deloitte Analytics can deliver insights to help you better understand your customers and markets and serve them more effectively. Increase efficiency and lower costs Deloitte Analytics can help companies pinpoint inefficiencies and opportunities for improvement. Identify business process changes that allow you to streamline operations and anticipate market shifts. Discover hidden insights Make sense of the complex global business environment to help managers uncover hidden patterns that may otherwise go undetected. Lower costs Deloitte Analytics can help companies pinpoint inefficiencies and opportunities for improvement. Improve compliance If your systems and data are suspect, your decisions and reports will likely be too. Executives bear higher levels of personal responsibility for the accuracy and reliability of their organisations financials. Financial restatements are becoming more costly, and compliance demands from external regulators and oversight organisations are on the rise. Deloitte Analytics can help improve the reliability of a company s reporting by implementing a rigorous and well-tested set of standard tools and techniques for collecting and analysing data. Case study Meeting customer needs A major bank wanted to develop strong capabilities in the area of marketing and customer analytics to better understand how to meet its customers needs. By introducing a range of sophisticated analytical techniques, the company identified which of its customers had a higher propensity to buy products based on the bank s marketing effort. Deloitte Analytics Uncommon insights 3

How we can help: Deep industry business knowledge Successful business analytics requires three powerful engines: deep sector knowledge, broad functional capabilities and a high degree of technical sophistication. Deloitte brings a big-picture approach, combining each of these strengths to provide unmatched services. Issues What business problem are you trying to solve? Advanced analytics Applied analytics Predict Embed Discover Analytic insights Business results Information management Govern Architect Integrate Facts What data can be leveraged to understand the business and improve performance? Data management Actions How do we look to the future and build analytic insights directly into business processes? Performance management Monitor Report Recommend Performance optimisation Business intelligence Understanding What is currently happening or has happened related to our business and why? What should we do about it? Enterprise data management empowers companies to develop and implement architectures, policies and practices to manage data as an enterprise asset, across the data lifecycle, from creation to deletion. Business intelligence & data warehousing can help you implement the processes and applications required to convert high-quality data into high-quality insight. Performance management technology helps companies define and implement streamlined enterprise-wide systems and processes for budgeting and planning, close and consolidation, monitoring KPIs, and management and statutory reporting. Advanced analytics involves the use of modern data mining, pattern matching, data visualisation and predictive modelling tools to produce analyses and algorithms that help businesses make better decisions. With this foresight, analytics can help you determine which events may have the most impact on the enterprise as a whole. 4 Deloitte Analytics Uncommon insights

By combining deep technology experience with practical business strategy, we can help you connect your analytic initiatives with your overall business goals. The value derived from Deloitte Analytics will depend on your ability to build a strong foundation in corporate culture, technology and business processes. As organisations mature through the analytics lifecycle, they gain greater ability to leverage this foundation to gain insight to make more informed decisions. Depending on your current capabilities, you may benefit from focusing on one or more of these areas: Traditional delivery models Advisory analytics Use of analytics to support business operations and strategy Hosting delivery models Managed analytics Outsourced analytics services and platform Transformation analytics Design and implement enterprise solutions Subscription analytics Subscription based analytics that provide analytical scoring and results on periodic basis Case studies Manpower rationalisation A large bank wanted to reduce costs through the effective allocation of staff and optimisation of its branch footprint in order to serve a dynamic and diverse market environment. From a micro market analysis of the branch network and a review of the staff and branch performance a reduced targeted footprint was identified. As a result of this analysis the bank was informed with recommendations to enable it to meet its short and long term goals. Quantifying overbilling To reduce potential losses, a public sector agency wanted to understand the risks related to partner overbilling. Through a data analytics risk review, rule-based and statistical threshold testing was used to identify billing anomalies. As a result, the agency was able to estimate the potential and actual losses incurred due to inappropriate billing. Deloitte Analytics Uncommon insights 5

Turning data into insight 6 Deloitte Analytics Uncommon insights

With experienced industry specialists, Deloitte Analytics can help you identify which questions matter most and where to find the answers. Whether you need to look backward to evaluate past performance or look forward to engage in scenario planning or predictive modelling, you need proven strategies for turning your data into valuable insight. Deloitte Analytics can help. By delivering uncommon insights, we help you see beyond the data and provide you with what you need to know to improve your operation s performance and hone your competitive edge. Deloitte Analytics Uncommon insights 7

Contacts For more details please contact: Glenn Gillard Insurance Partner T: +353 1 417 2802 E: ggillard@deloitte.ie Alan Flanagan Consulting Partner T: +353 1 417 2873 E: aflanagan@deloitte.ie Richard Southern Director of Analytics Consulting T: +353 1 417 3831 E: risouthern@deloitte.ie Sinéad Kiernan Director, Non-Life Actuarial & Insurance Solutions T: +353 1 417 2897 E: sikiernan@deloitte.ie Richard Tulloch Director, Non-Life Actuarial & Insurance Solutions T: +353 1 417 2576 E: ritulloch@deloitte.ie Dublin Deloitte & Touche Deloitte & Touche House Earlsfort Terrace Dublin 2 T: +353 1 417 2200 F: +353 1 417 2300 Cork Deloitte & Touche No.6 Lapp s Quay Cork T: +353 21 490 7000 F: +353 21 490 7001 Limerick Deloitte & Touche Deloitte & Touche House Charlotte Quay Limerick T: +353 61 435500 F: +353 61 418310 www.deloitte.com/ie Ciara Regan Director, Life Actuarial & Insurance Solutions T : + 353 1 407 4856 E: cregan@deloitte.ie 8 Deloitte Analytics Uncommon insights

Deloitte Analytics Uncommon insights 9

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, Deloitte Global Services Limited, Deloitte Global Services Holdings Limited, the Deloitte Touche Tohmatsu Verein, any of their member firms, or any of the foregoing s affiliates (collectively the Deloitte Network ) are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. 2013 Deloitte & Touche. All rights reserved