Data and Analytics – A New Driver of Performance and Valuation

Data and Analytics: A

New Driver of

Performance and

Valuation

Executive summary

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About the Report

In 2015, KPMG commissioned Institutional Investor Research to

examine investors’ and sell-side analysts’ views in a study on

the use of data and analytics (D&A) in business

• In January and February of 2015, the survey collected a total of 260

responses – 130 from senior institutional investors and 130 from senior

decision makers at sell-side firms.

• Respondents are high-level investment decision makers, including buy-side

portfolio managers and sell-side research directors and corporate

managers.

• Represented countries include U.S., Canada, Australia, China, India, Japan,

France, Germany, the UK, and Brazil.

• Over half of buy-side respondents work for institutions with $50 billion or

more in assets under management (AUM).




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Key Data Points

• 45% of respondents are likely to change valuation or investment opinions over the next two years as a

result of a company’s D&A strategy

• 52% of respondents believe D&A strategies have begun to deliver better business performance or will

do so in the near future

• 62% of respondents say that they would view investing in a company in their sector more favorably if it

used D&A to improve operating performance

• Despite the potential financial impact, only 40% of companies explain their D&A strategies adequately

• 82% of investors and equity analysts expect some level of disruption from D&A during the next three

years




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Data & Analytics Will Reshape Industries

82% of investors and analysts expect D&A to disrupt the sectors they cover during the next three years




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Data & Analytics Strategies Are Poised to Become a Major Factor in Investment

Decisions and Valuations

45%




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Data & Analytics Will Drive Fundamental Performance Changes




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52% of Respondents See D&A as Improving Companies’ Business Performance

52% of respondents say companies have already used D&A to improve business performance or will do so in the next two years

3%

14%

35%

48%

Have seen better performance, but don't expect it to continue

Have not seen better performance, but expect it in the future

Have seen better performance and expect it to continue

Have not seen better performance and don't expect it in the future




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Data & Analytics’ Greatest Potential Lies in Improving Companies’ Operations




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Investors See D&A as Serving Many Specific Objectives That Would Make

Companies Better Investments




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D&A’s Effect on Different Industries Will Vary Widely in Coming Years




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Only 40% of Companies Explain their D&A Strategies Well




Key takeaways 12

1D&A CONTINUES TO DISRUPT AND IMPACT COMPANY BUSINESS

MODELS WORLDWIDE.

2 INVESTORS BELIEVE D&A HAS A MEASURABLE BOTTOM-LINE IMPACT.

3EXECUTIVES MUST DEVELOP AND EXECUTE A FOCUSED D&A

STRATEGY TO REAP THE GREATEST FINANCIAL REWARDS.

4 COMPANIES IN ALL SECTORS AND OF ALL SIZES SHOULD TAKE

NOTICE AND PREPARE.




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Download the Full Report

Download report here

Media Contact: Jennifer SamuelGlobal CommunicationsKPMG [email protected]

http://www.kpmg.com/US/en/topics/data-analytics/Documents/kpmg-d-a-main-report-for-web-28-june-2015.pdf

mailto:[email protected]



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Data and Analytics – A New Driver of Performance and Valuation