Data and Analytics – A New Driver of Performance and Valuation
Transcript of Data and Analytics – A New Driver of Performance and Valuation
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Data and Analytics: A
New Driver of
Performance and
Valuation
Executive summary
kpmg.com/data
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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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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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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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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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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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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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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Data & Analytics Strategies Are Poised to Become a Major Factor in Investment
Decisions and Valuations
45%
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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Data & Analytics Will Drive Fundamental Performance Changes
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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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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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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Data & Analytics’ Greatest Potential Lies in Improving Companies’ Operations
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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Investors See D&A as Serving Many Specific Objectives That Would Make
Companies Better Investments
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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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D&A’s Effect on Different Industries Will Vary Widely in Coming Years
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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Only 40% of Companies Explain their D&A Strategies Well
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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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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© 2015 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 KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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Download the Full Report
Download report here
Media Contact: Jennifer SamuelGlobal CommunicationsKPMG [email protected]
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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firmsof the KPMG network of independent firms are affiliated with KPMG International. KPMGInternational provides no client services.
The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.
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 endeavour 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.