Full data review — South Africa vs. Global - KPMG | …€¦ · Full data review — South Africa vs. Global Building trust in analytics Global D&A commissioned thought leadership

Full data review —South Africa vs. GlobalBuilding trust in analytics

Global D&A commissioned thought leadership study conducted by Forrester Consulting—

October 2016

2

Document Classification: KPMG Confidential

©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 services to clients. 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.

Survey demographics: Country and employees

12%

12%

12%

12%12%

12%

9%

7%

7%7%

United States India

United Kingdom China

France Germany

Brazil South Africa

Canada Australia

Using your best estimate, how many employees work for your organization worldwide?

3%

28%

38%

18%

14%

0%

23%

38%

22%

17%

250 to 499 employees(Medium)

500 to 999 employees(Medium to large)

1,000 to 4,999 employees(Large)

5,000 to 19,999 employees(Very large)

20,000 or more employees(Global 2,000)

Global South Africa

Base: 2,165 (156 South Africa) data and analytics decision makers Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2016

In which country are you located?

3



Survey demographics: Industry and title

Which of the following best describes the industry to which your company belongs?

Which title best describes your position at your organization?


20%

20%

20%

20%

20%

19%

19%

21%

21%

21%

Telecommunications services

Financial services/Banking

Retail

Insurance

Healthcare/life sciences

Global South Africa

16%

29%

55%

12%

26%

62%

C-level executive (e.g., CEO,CMO)

Vice president (in charge ofone/several large departments)

Director (manage a team ofmanagers and high-level

contributors)

Global South Africa

4



Survey demographics: Department

Which of the following best describes your current position/department?


28%

8%

44%

8%

12%

20%

9%

44%

8%

20%

Finance/accounting

Human resources/training

IT

Marketing

Operations

Global South Africa

5



Survey demographics: Responsibilities and type of responsibilities for analytics


Which of the following responsibilities does your current role include?

You indicated that data analytics are part of your job responsibilities. Which of the following types of analytics are you responsible for?

64%

62%

66%

49%

55%

35%

31%

69%

67%

65%

53%

67%

51%

50%

Business intelligence

Customer insights/analytics

Big data analytics

Data warehousing

Data management/big datamanagement

Ad hoc reporting (e.g., exportingreports or dashboards from

applications)

Ad hoc analysis (e.g., usingspreadsheets to conduct analysis)

Global South Africa

60%

100%

44%

49%

56%

1%

63%

100%

45%

69%

69%

4%

Corporate strategy andplanning

Data analytics

New businessdevelopment/sales support

People development/teammanagement

Technology strategy andinnovation

Other (please specify)

Global South Africa

6



Survey demographics: Level of involvement


What is your level of involvement in setting strategy for, or management of, the following types of data and analytics at your organization: business intelligence, data analytics, data warehousing, and data management/big data management?

40%

60%

24%

76%

I am the final decision-maker for managing or setting strategy for my organization’s data

and analytics

I am part of a team making decisions for managing or setting strategy for my

organization’s data and analytics

Global South Africa

7



Survey demographics: Job functionalities and level of involvement


You indicated that data analytics are part of your job responsibilities. Which of the following areas/ function of analytics are you responsible for?

Which area/function of analytics is your primary responsibility?

69%

62%

51%

69%

67%

60%

Customer insights/analytics — Data and analytics about customers and

prospective customers, including digital interactions and behaviors (e.g., web,

mobile, app), marketing and advertising campaign analytics (e.g., clicks,

conversions), and customer intel

Operations and cost analytics — Data and analytics about business

operations and costs, including analytics from business systems and

applications, financial performance/P&L data and analysis, data about physical operations (e.g.,

buildings management and

Risk and compliance analytics — Data and analytics about financial risk and

exposure, business risk, security (information security, cybersecurity),

privacy, compliance reporting data and systems, IT governance) etc.

Global South Africa

42%

38%

20%

35%

42%

22%

Customer insights/analytics — Data and analytics about customers and

prospective customers, including digital interactions and behaviors (e.g., web,

mobile, app), marketing and advertising campaign analytics (e.g.,

clicks, conversions), and customer intel

Operations and cost analytics — Data and analytics about business

operations and costs, including analytics from business systems and

applications, financial performance/P&L data and analysis, data about physical operations (e.g.,

buildings management and

Risk and compliance analytics — Data and analytics about financial risk and

exposure, business risk, security (information security, cybersecurity),

privacy, compliance reporting data and systems, IT governance) etc.

Global South Africa

Overall

Main survey results

9



Q1. How is your organization using data and analytics?


47%

48%

50%

45%

47%

38%

32%

41%

36%

37%

34%

30%

29%

38%

29%

35%

31%

42%

42%

51%

48%

49%

26%

31%

46%

38%

45%

44%

30%

29%

46%

29%

37%

38%

To analyze how our products are used

To find new customers

To analyze our existing customers (their needs, value, profitability,likelihood to defect)

To target marketing campaigns

To develop new products and services

To analyze branding via social media

To aid with maintenance and service of assets

To improve financial reporting

To monitor market changes/threats

To drive process and cost efficiency

To support human resources (HR) and workforce planning

To predict/manage skills shortages

To track the ROI on our training spend

To drive strategy and change

To spot fraud

To identify and manage other business risks

To comply with regulatory requirements

Global

South Africa

Select all that apply

10



Q2. How important are data and analytics in helping your organization make decisions in the following areas?

Base: Up to 1,025 (156 South Africa) data and analytics decision makersSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2016

65%

69%

70%

67%

68%

70%

66%

67%

67%

71%

68%

65%

70%

67%

65%

70%

69%

63%

60%

72%

53%

54%

58%

47%

61%

46%

58%

61%

51%

80%

46%

49%

59%

61%

To aid with maintenance and service of assets

To boost the ROI on our training spend

To comply with regulatory requirements

To develop new products and services

To drive process and cost efficiency

To drive strategy and change

To find new customers

To identify and manage other business risks

To monitor brand sentiment via social media

To monitor business performance via financial reporting

To monitor market changes/threats

To predict/manage skills shortages

To spot fraud

To support human resources (HR) and workforce planning

To target marketing campaigns

To understand how our products are used

To understand our existing customers

Global South Africa

Showing ‘Describes our approach exactly’ only

11



Q3. For each of the functions you use data and analytics for, how confident are you in the insights gained?

Base: 1,501 (156 South Africa) data and analytics decision makersSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2016

75%

73%

70%

69%

68%

65%

Data and analytics about financial risk and exposure,business risk, security (information security, cybersecurity),

privacy, compliance reporting data and systems, ITgovernance) etc.

Data and analytics about customers and prospectivecustomers, including digital interactions and behaviors

marketing and advertising campaign analytics, andcustomer intelligence or market research

Data and analytics about business operations and costs,including analytics from business systems and applications,

financial performance/P&L data and analysis, data aboutphysical operations

Global South Africa

Showing very confident or confident only

12



Q4. What are your firm’s plans to use the following types of analytics?


19%

19%

22%

28%

23%

21%

30%

20%

24%

45%

26%

23%

29%

26%

31%

47%

37%

39%

46%

28%

40%

60%

40%

31%

Advanced visualization/exploratory (new types of graphical datarepresentations beyond traditional bars, pies, or scorecards)

Cognitive learning

Constraint-based numerical optimization

Dashboards

Decision modelling (business rules)

Exploratory visualization

Graph analysis

Machine learning)

Predictive modelling

Reports

Search technology

Streaming analytics

Global South Africa

Showing only adopted and among out longest-and newest used analytics types

13



Q5. Which the following statements describes the intended focus of your organization’s current data and analytics models and processes in insurance?

Base: 432 data and analytics decision makers in InsuranceSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2016

73%

27%

78%

22%

We use our data and analytics models to improvecustomer insight and customer strategy

We use our data and analytics models to improveconsumer protection/conduct risk

Global South Africa

Showing longest used analytics types only

Main survey results

Quality — how well enterprises use processes and best practices to create insights

15



Q6. Please indicate the extent to which the following statements describe your organization’s current approach to developing and managing data and analytics.


Showing ‘describes our approach exactly’ only

63%

64%

54%

63%

63%

61%

66%

67%

59%

59%

57%

46%

49%

61%

49%

56%

64%

48%

In practice, our data and analytics teams and end users always follow ourdocumented processes and practices for creating/using data and analytics

Our analytics and model building techniques aspire to meet industry bestpractices and standards

The data sources we use for analytics are always up-to-date

Third party experts validate or audit our models and analytics we use

We always select the right address

We are able to effectively integrate third party data with internal and otherthird party data to conduct robust analytics from multiple sources

We consistently use rigorous quality checks to ensure the accuracy of dataand analytics models and outputs

We have the right tools and technologies to achieve our data and analyticsobjectives

We only use data sources from third parties) that meet our quality standards

Global South Africa

16



Q7. Please indicate the extent to which the following statements describe your data and analytics organization.


69%

66%

62%

63%

60%

47%

The C-level executive team fully understands andsupports our ethics strategy for data use

Our data analysts have the right skills, knowledge andtraining to continuously push the business forward with

data and analytics

Our analytics teams work with business owners to definespecifications clearly and comprehensively up-front, to

ensure all objectives are covered

Global South Africa


Main survey results

Effectiveness — how well enterprises measure the value of the D&A on the business

18



Q8. Please indicate the extent to which the following statements describe the accuracy of your organization’s current data and analytics models and processes.


81%

71%

67%

65%

73%

64%

53%

58%

The historical training data we use for machine learningaccurately represents the use case

We regularly validate our analytics and models to ensuretheir continued accuracy and effectiveness throughout

their life span

We track/monitor the impact of incorrect/misused analyticson the business

We assess and monitor the accuracy of models inpredicting future results or occurrences

Global South Africa


19



Q9. Which the following statement describes the intended focus of your organization’s current data and analytics models and processes in banking?

Base: 434 data and analytics decision makers in banking/financial servicesSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2016

52%

48%

47%

53%

We use our data and analytics models to assess risk infinance separately from operational risk

We use our data and analytics models to assess risksimultaneously in both facets (finance and operations)

Global South Africa

20



Q10. Please indicate the extent to which the following statements describe the utility of your organization’s current data and analytics models and processes.


67%

67%

67%

67%

53%

58%

48%

64%

Data and analytics outputs are consistently put to use across the organization — we rarely or never create a model,

algorithm, or analysis that is not utilized

Employees throughout my organization use data and analyticsappropriately to complete tasks and make decisions

Our use of data has optimized and improved the effectivenessof key business processes across the organization

We assess and monitor the effectiveness of our data models insupporting business decisions

Global South Africa


21



Q11. How effectively is your organization using data and analytics (D&A) to improve performance?


42%

46%

10%

2%

51%

31%

14%

4%

Using D&A fairly effectively

Considered a leader of D&A usage/understandingcustomer behavior

Still evaluating our usage of D&A

Struggling in this area

Global South Africa

We are… Select all that apply

22



Q12. Please select which of these two statements best reflects your organization’s attitude toward meeting objectives for data and analytics.


72%

28%

64%

36%

Data and analytics quality is of utmost importance. Sometimes,that means we must sacrifice our ability to meet business

expectations (e.g. timelines, utility of outputs) to ensure our dataand analytics meet all quality standards

Delivering value to the business is of utmost importance. Aboveall, we must quickly and effectively generate valuable insights to

support business goals. Sometimes that means we cannotvalidate the quality of all data and analytics we generate but we

nee

Global South Africa

Data and analytics quality is of utmost importance. Sometimes, that means we must sacrifice our ability to meet business

expectations (e.g. timelines, utility of outputs) to ensure our data and analytics meet all quality standards

Delivering value to the business is of utmost importance. Above all, we must quickly and effectively generate valuable insights to

support business goals. Sometimes that means we cannot validate the quality of all data and analytics we generate but we

need to keep moving forward

Main survey results

Integrity — how well enterprises ensure they are in regulatory compliance and ethically use data and analytics

24



Q13. Please indicate the extent to which the following statements describe your organizations current approach to data and analytics regulatory compliance.


71%

75%

71%

64%

Our use of data and analytics fully complies withrelevant/applicable laws

Our use of data and analytics is completely transparentfor regulatory purposes

Global South Africa


25



Q14. Please indicate the extent to which the following statement describes your organization’s current approach to data and analytics privacy and ethical use?


70%

67%

68%

66%

69%

69%

67%

71%

66%

66%

52%

61%

63%

58%

63%

57%

57%

58%

64%

62%

Before applying customer data to analytics and models, we evaluate howcustomers will perceive our use of their data (e.g., to avoid perceptions of

negative intent or creepiness)

It is our policy to periodically purge inactive customer data

Our customers can easily opt-out of sharing any data they do not want to sharewith us

Our organization has an ethical use strategy and policy (a code of ethics)covering all our data and analytics with clear responsibilities for its execution

and compliance management

The C-level executive team fully understands and supports our ethics strategyfor data use

We are fully transparent to our customers about the data we hold and how weuse it

We consider our approach to customer privacy to be a competitive differentiator

We measure how customers feel about the personalized data and models weuse about them

We periodically review the actions taken based on data and analytics —manual or automated — to ensure that these actions comply with our ethical

standards

We track the views of our customers and our industry on the ethical implicationsof what we do with data and analytics

Global South AfricaShowing ‘describes my organization exactly’ only

Main survey results

Resilience — how well enterprises have end-to-end governance and processes

27



Q15. Please indicate the extent to which the following statements describe your organization’s current approach to data and analytics security.


71%

65%

74%

75%

69%

65%

65%

73%

62%

68%

59%

56%

An individual’s identity is established before access to data is granted

Data is only changed by individuals who are authorized tochange it

Our cyber assurance and response services and internalprocedures reflect leading practice in our sector and

protect our data and our reputation

Our cyber team members have the right skills, knowledgeand training to continuously address cyber security

threats to our data

Our data and analytics auditing process allows us to trackby whom and when changes are made

We use several sources of intelligence

Global South Africa

Showing ‘describes my approach exactly’ only

28



Q16. Please indicate the extent to which the following statements describe your organization’s current approach to data and analytics governance.


66%

67%

67%

67%

68%

71%

55%

64%

61%

55%

59%

66%

Business stakeholders know whom they should work withon the data management team for strategic, project, and

ad hoc data and analytics requirements

Data and analytics governance policies are tailored tospecific data usage scenarios

The communication of data policies and processes areenterprise-wide

We have a cross-functional governance team to ensureour analytics models are accurate and appropriate

We have different levels of data governance in placedepending on the data source

When blending data from multiple sources, we usetechnologies to ensure that governance is maintained

based on the source of the data

Global South Africa


Main survey results

Trust

30



Q17. How strongly do you agree or disagree with the following statements regarding your trust in the use of data and analytics throughout your organization?


63%

53%

54%

41%

My organization’s customers trust our use of data and analytics to better serve them

By using data and analytics we expose ourselves to reputational risk — for example, through data breaches,

miss-selling of products and services, etc.

Global South Africa

Showing strongly agree or agree only

31



Q18. To what extent do you trust the manner in which your organization uses data and analytics for each of the following?


45%

39%

33%

27%

40%

29%

30%

17%

Ethical use

Accuracy

Security

Effectiveness

Global South Africa

Showing ‘high levels of trust with no queries’

32



Q19. Which stages of the analytics lifecycle do you have the most trust? Please rank the following in order of trust — where 1= most trust and 6= least trust.


Showing Ranks 1-3 grouped only

75%

69%

63%

52%

41%

76%

65%

68%

55%

36%

Data sourcing — identify data is relevant

Analysis and/or modelling

Data preparation and blending

Usage/deployment of analytics and/or models

Measuring the effectiveness of the use of analytics

Global South Africa

33



Q20. To what extent do you trust the different types of analytics in which your organization uses?

Base: Up to 1,511 (156 South Africa) data and analytics decision makersSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2016

Showing high levels of trust with no queries only22%

21%

23%

28%

24%

22%

28%

22%

21%

40%

26%

24%

10%

12%

13%

17%

16%

13%

19%

13%

13%

29%

16%

12%

Advanced visualization/exploratory (new types of graphical data representationsbeyond traditional bars, pies, or scorecards)

Cognitive learning (an interactive computing system that uses artificial intelligence tocollect and analyze information, build models of understanding and inference,

develop and test hypotheses, and make recommendations or take action.)

Constraint-based numerical optimization

Dashboards

Decision modelling (business rules)

Exploratory visualization

Graph analysis

Machine learning (creating and continuously improving algorithms that automaticallyanalyze data to identify patterns or predict outcomes)

Predictive modelling

Reports

Search technology (e.g., users can submit queries to the platform in the form oftyped text, voice input, document uploads, or images, and the platform will return a

list or other visualization of relevant matches)

Streaming analytics (real-time insights from sensors/devices (e.g. for internet ofthings (IOT) use cases)

Global

South Africa

34



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