Connect with us

Featured

Big Data analysis pays off

Published

on

According to Deloitte Analytics, data-driven decision-making and performance is the next wave of the digital revolution that companies need to prepare for to enjoy the opportunities on offer.|According to Deloitte Analytics, data-driven decision-making and performance is the next wave of the digital revolution that companies need to prepare for to enjoy the opportunities on offer.

“Companies need to get smarter with how they harness the immense benefits of these changes, or be left behind by those that do. And with the jobs crisis causing such profound problems in our society today, businesses can harness the efficiencies data analytics provides to generate new jobs by innovating to grow faster,” says Wesley Govender, Director, Risk Advisory from Deloitte.

In its recently issued report, Magic Quadrant for Business Analytics Services, Worldwide, Gartner defines Business Analytics (BA) as services that “encompass decision management capabilities, analytics capabilities, and information management (IM) capabilities.

“This field continues to grow, moving squarely into the mainstream of business decision-making worldwide. Data is everywhere around us and analytics should be everywhere too—in every corner of the business, every day. It should not be a special initiative, or a ‘department’, but an ongoing part of how decisions large and small are made every day,” says Mr Govender.

However, the missing link in the chain is education and insight that matters and is at the cutting edge.

To help plug these gaps, and to provide the corporate world with the tools to bring about true data-driven change, Deloitte School of Analytics begins hosting a series of in-depth training seminars with international partners in South Africa in February next year.

“We want to see companies innovate and grow faster – but we are also the first to know that this cannot happen without regular and constant training and insights into current best practice. Our programmes are therefore designed so that the best international expertise in this field can be brought in to boardrooms in SA and on the continent, as it were, and the process of learning and implementation can truly begin,” says Mr Govender.

Deloitte was recently named a global leader in Business Analytics Services by Gartner and it aims to ramp up even further the assistance it provides to clients in solving a wide variety of data related problems and define strategies for them to better manage, interpret and monetise their data assets.

Analytics innovators continue to push the edge, looking for new ways to gain advantage over slower-moving competitors.

“ In some cases, that advantage comes through sweeping discoveries that can upend entire business models. In other cases, more modest insights may emerge that unleash cascading value,” says Mr Govender.

“The disruptive effects of these changes on business models are significant. However, this change creates opportunities quickly – one of which is an ability to expand and create jobs for people with the right skills sets. To us, this is extremely exciting when you consider youth unemployment in SA is at 51% according to recent world development indicators,” he says.

Exponential growth in the areas of mobile data generation, real-time connectivity and digital business has made the job of protecting these assets and securing the gates in a “big data” world an altogether different–and more challenging undertaking.

“Due to the increase in regulator involvement from a privacy perspective, it is best to have more efficient use of data, rather than more data,” says Mr Govender.

According to Deloitte, companies need to constantly ensure they are a step ahead of the changes, which continue to come at a very fast pace. Questions that need to be answered, and which the Deloitte seminar series hopes to answer, include the most efficient way to make long-term technology investments and the best ways to protect sensitive data on networks.

“Unexpected ways to understand a business or client’s needs can emerge by using rich data analysis, often to information that has been sitting idle for more than two decades. Near real-time insights can be highly beneficial – it is not about simply counting customer numbers or transactions anymore. Simply put, big data analysis pays off,” concludes Mr Govender.

Continue Reading

Arts and Entertainment

VoD cuts the cord in SA

Some 20% of South Africans who sign up for a subscription video on demand (SVOD) service such as Netflix or Showmax do so with the intention of cancelling their pay television subscription.

Published

on

That’s according to GfK’s international ViewScape survey*, which this year covers Africa (South Africa, Kenya and Nigeria) for the first time.

The study—which surveyed 1,250 people representative of urban South African adults with Internet access—shows that 90% of the country’s online adults today use at least one online video service and that just over half are paying to view digital online content. The average user spends around 7 hours and two minutes a day consuming video content, with broadcast television accounting for just 42% of the time South Africans spend in front of a screen.

Consumers in South Africa spend nearly as much of their daily viewing time – 39% of the total – watching free digital video sources such as YouTube and Facebook as they do on linear television. People aged 18 to 24 years spend more than eight hours a day watching video content as they tend to spend more time with free digital video than people above their age.

Says Benjamin Ballensiefen, managing director for Sub Sahara Africa at GfK: “The media industry is experiencing a revolution as digital platforms transform viewers’ video consumption behaviour. The GfK ViewScape study is one of the first to not only examine broadcast television consumption in Kenya, Nigeria and South Africa, but also to quantify how linear and online forms of content distribution fit together in the dynamic world of video consumption.”

The study finds that just over a third of South African adults are using streaming video on demand (SVOD) services, with only 16% of SVOD users subscribing to multiple services. Around 23% use per-pay-view platforms such as DSTV Box Office, while about 10% download pirated content from the Internet. Around 82% still sometimes watch content on disc-based media.

“Linear and non-linear television both play significant roles in South Africa’s video landscape, though disruption from digital players poses a growing threat to the incumbents,” says Molemo Moahloli, general manager for media research & regional business development at GfK Sub Sahara Africa. “Among most demographics, usage of paid online content is incremental to consumption of linear television, but there are signs that younger consumers are beginning to substitute SVOD for pay-television subscriptions.”

Continue Reading

Featured

New data rules raise business trust challenges

When the General Data Protection Regulation comes into effect on May 25th, financial services firms will face a new potential threat to their on-going challenges with building strong customer relationships, writes DARREL ORSMOND, Financial Services Industry Head at SAP Africa.

Published

on

The regulation – dubbed GDPR for short – is aimed at giving European citizens control back over their personal data. Any firm that creates, stores, manages or transfers personal information of an EU citizen can be held liable under the new regulation. Non-compliance is not an option: the fines are steep, with a maximum penalty of €20-million – or nearly R300-million – for transgressors.

GDPR marks a step toward improved individual rights over large corporates and states that prevents the latter from using and abusing personal information at their discretion. Considering the prevailing trust deficit – one global EY survey found that 60% of global consumers worry about hacking of bank accounts or bank cards, and 58% worry about the amount of personal and private data organisations have about them – the new regulation comes at an opportune time. But it is almost certain to cause disruption to normal business practices when implemented, and therein lies both a threat and an opportunity.

The fundamentals of trust

GDPR is set to tamper with two fundamental factors that can have a detrimental effect on the implicit trust between financial services providers and their customers: firstly, customers will suddenly be challenged to validate that what they thought companies were already doing – storing and managing their personal data in a manner that is respectful of their privacy – is actually happening. Secondly, the outbreak of stories relating to companies mistreating customer data or exposing customers due to security breaches will increase the chances that customers now seek tangible reassurance from their providers that their data is stored correctly.

The recent news of Facebook’s indiscriminate sharing of 50 million of its members’ personal data to an outside firm has not only led to public outcry but could cost the company $2-trillion in fines should the Federal Trade Commission choose to pursue the matter to its fullest extent. The matter of trust also extends beyond personal data: in EY’s 2016 Global Consumer Banking Survey, less than a third of respondents had complete trust that their banks were being transparent about fees and charges.

This is forcing companies to reconsider their role in building and maintaining trust with its customers. In any customer relationship, much is done based on implicit trust. A personal banking customer will enjoy a measure of familiarity that often provides them with some latitude – for example when applying for access to a new service or an overdraft facility – that can save them a lot of time and energy. Under GDPR and South Africa’s POPI act, this process is drastically complicated: banks may now be obliged to obtain permission to share customer data between different business units (for example because they are part of different legal entities and have not expressly received permission). A customer may now allow banks to use their personal data in risk scoring models, but prevent them from determining whether they qualify for private banking services.

What used to happen naturally within standard banking processes may be suddenly constrained by regulation, directly affecting the bank’s relationship with its customers, as well as its ability to upsell to existing customers.

The risk of compliance

Are we moving to an overly bureaucratic world where even the simplest action is subject to a string of onerous processes? Compliance officers are already embedded within every function in a typical financial services institution, as well as at management level. Often the reporting of risk processes sits outside formal line functions and end up going straight to the board. This can have a stifling effect on innovation, with potentially negative consequences for customer service.

A typical banking environment is already creaking under the weight of close to 100 acts, which makes it difficult to take the calculated risks needed to develop and launch innovative new banking products. Entire new industries could now emerge, focusing purely on the matter of compliance and associated litigation. GDPR already requires the services of Data Protection Officers, but the growing complexity of regulatory compliance could add a swathe of new job functions and disciplines. None of this points to the type of innovation that the modern titans of business are renowned for.

A three-step plan of action

So how must banks and other financial services firms respond? I would argue there are three main elements to successfully navigating the immediate impact of the new regulations:

Firstly, ensuring that the technologies you use to secure, manage and store personal data is sufficiently robust. Modern financial services providers have a wealth of customer data at their disposal, including unstructured data from non-traditional sources such as social media. The tools they use to process and safeguard this data needs to be able to withstand the threats posed by potential data breaches and malicious attacks.

Secondly, rethinking the core organisational processes governing their interactions with customers. This includes the internal measures for setting terms and conditions, how customers are informed of their intention to use their data, and how risk is assessed. A customer applying for medical insurance will disclose deeply personal information about themselves to the insurance provider: it is imperative the insurer provides reassurance that the customer’s data will be treated respectfully and with discretion and with their express permission.

Thirdly, financial services firms need to define a core set of principles for how they treat customers and what constitutes fair treatment. This should be an extension of a broader organisational focus on treating customers fairly, and can go some way to repairing the trust deficit between the financial services industry and the customers they serve.

Continue Reading

Trending

Copyright © 2018 World Wide Worx