Issue 9 / February 2010 Transforming Information into Action
I believe the future of decisioning
and business analytics is in mining
that unstructured data
DMcN Are these new specialist skills In financial services, real-time also becomes DMcN Large financial services We just released a sentiment analysis DMcN Final question, Jim, but it is in Now I’ll make an assumption that I am
that organisations have to equip their important in fraud detection. We know the organisations capture vast amounts product which assesses the feelings of two parts. What are the key things that hired to work on this whole fact-based
people with? importance of being innovative. One of of data. Do you think that is the right customers. Are they pleased with what an organisation like RBS should be decisioning concept. I think I would start not
the places where you will find the best thing to do, or is there a risk that they you’re discussing with them? Are they considering? Imagine that you’ve just by looking at technology but again I would
JD It’s not a single skill set - you need many
innovators in the world right now, are are capturing data that they will never getting upset? That leads to triggering joined RBS, what is the first thing that look more at process. The first task I would
people with diverse skill sets. This is how
fraudsters and fraud rings. The closer we ever use? events so you know how to best manage you would turn your attention to? undertake is something I would call
analytics has moved from the backroom to
can get to real-time processing and analysis that relationship. Sentiment can also be ‘decision decomposition’. How are the
be more pervasive and embraced by the
around potential fraud activity, the less
JD I think that is happening today.
analysed in pure audio content through
JD Those are two loaded questions.
highest value-added decisions and the
majority of the organisation. You need some
we’re going to have leaving our
There is a mentality that we just capture
the inflection in the voice. Unstructured data
I think you’ve got a challenge. I think
highest risk decisions being made today?
people that have a strong skill set in terms
organisations.
every possible transaction and every
is especially relevant in the area of social
what RBS should be considering is what
Where are the opportunities to improve
of analytics, but they don’t have to be the possible piece of data; and we just buy
networks. Facebook users now exceed
is the experimentation strategy in the
those? What are the things that stand in our
majority. The key is how you surface the DMcN What typically are the benefits more, cheaper, disk storage. If an
300 million. There are more social network
organisation? What is the willingness to
way of answering those questions in a more
results of analytical processes out to the in the areas of customer service and organisation captures everything it is going
users out there today than there are email
experiment and to accelerate learning?.
efficient manner? I would also ask some
masses. Some people will need in the understanding of risk? to drown in that data. There has to be a
users – but are we utilising that data?
How do we measure data collection
very basic questions. What is the quality
workstations on their desktop where they strategy in place for capturing those things
There is a tremendous potential within
processes, and improve data quality?
of our data? Does anybody know? Are we
can do further modelling. While on the
JD The advantage of a business analytics
that are most important so we can get away
social networks in terms of understanding
What are the untapped opportunities in
measuring what matters in the organisation
opposite end of the spectrum, you have
framework is how you join up those
from this hoarding mentality that exists in
customers and what they mean to
unstructured data? How do we use
and are we being transparent with those
end users who just want to see the results
feedback mechanisms (phone, online
most large IT organisations today.
our business.
simulation and scenario analysis to
measures so the rest of the organisation is
in a graphic fashion, where they can get a
chat, branches), to create a more relevant
deal with these uncertain times?
aware of what is going on? I think I would
feel for the pulse of the organisation and
experience. How does feedback get back DMcN There is a view that we could move
DMcN Are we really beginning to push
be pretty busy.
where they need to be taking things.
to other constituents in the bank interested from the more familiar structured data into
the boundaries of holistic analysis?
I would be asking, is our data supporting
in that customer segment? It is not that analysing more of the unstructured data
What do you think the constraining
reactive decision-making, or is it supporting
DMcN Jim thank you very much
DMcN We’ve seen the rise of real-time difficult to do, but it is a change of attitude and things which exist in narrative. Is this
factors on being able to do that are?
proactive decision-making? There’s a big
you have given us lots to think about.
capabilities in the analytical tool sets in terms of what customer service a useful direction for financial services difference. The majority of companies today
on the market. Just how important is represents to an organisation. We have to organisations to move in? JD I think it is a greenfield waiting to be use data to look at past activity - all that
real-time? join up all potential customer points to cultivated - I don’t think we are pushing supports is reactive decision-making.
create a more holistic environment.
JD I am a firm believer that two or three
the boundaries enough. The obstacles To use analytics to its fullest, we should
JD The answer is it depends. The fact years from now - hopefully not any longer -
You only understand total
again come down to understanding the be able to employ things like optimisation,
is real-time is not necessary for every In the area of risk, organisations can do we’re going to say “do you remember
importance of creating a more holistic predictive modelling, forecasting, and value of a customer or risk
application. It’s becoming increasingly some very sophisticated value-at-risk when we ran our businesses on nothing
environment, where data is shared across statistical analysis. These are more forward
important at the point of customer contact; computations to help understand where but structured data?” Today probably with a particular business or
departments. The total value of the looking and give an opportunity to be more
being able to score the customer in terms they are at any given point in time. Also with only 2-3% of the data that is out there
customer is not based on a single business proactive in decision-making.
of their value to the organisation and their fraud as already mentioned, you can look at in the world is structured. Over 95% is
customer when you can
unit - you only understand total value of a
propensity to respond in a particular way. everything from particular area like ATMs, unstructured and it remains untapped.
customer or risk with a particular business
The next consideration is to look at what bring the data together.
Real-time scoring and real-time analytics current accounts. I believe the future of decisioning and
or customer when you can bring the data
the appetite is. Will the culture allow change
can play a big part there. You want to be business analytics is in mining that
together. The only obstacle is in strategic
and experimentation to reach that point
dealing with the customer at the point of unstructured data.
direction and in the business mandate.
where data is an asset as important to as
contact, not a day later. That’s what the organisation’s people, buildings and its
customers expect. Products are becoming
There has to be a strategy
In financial services in particular there are
customers.
commoditised - the differentiator is the
a number of ways of looking at it. There is
in place for capturing
customer experience and that’s where
text analytics where you can look at forms
real-time will really play. those things that are most
and things where you could see potential
patterns in the data that are fraudulent.
important so we can get
away from this hoarding
mentality that exists in most
large IT organisations today.
14 / Perspectives on the future Perspectives on the future / 15
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