The CDO, turning

data into money

The CDO leadership forum

February 2014

1© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Introduction

How do you execute comprehensively?

Rise to the

challenge

What are you going to monetise?

Seek out the real

opportunity

How should you as CDO play a lead role?

Take the lead role

Seek out

the opportunity

Take the lead

role

Rise to the

challenge

MK

2© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

The opportunity

Seek out

the opportunity

Take the lead

role

Rise to the

challenge

Is there a new revenue stream?

Boards are

demanding

Are you sat on a gold mine?

Internal / external

opportunities

How do you respond?

Executing the

Business Model

GR

3© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Comprehensive execution strategy

Seek out

the opportunity

Take the lead

role

Rise to the

challenge

Legal, IP and Commercials

Right commercial

framework

Marketing and sales

Banking on the

brand

Engineering data quality

Cost effective

delivery

MK/GR

4© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Monetisation enablers

Seek out

the opportunity

Take the lead

role

Rise to the

challenge

Move cap-ex to op-ex

Cloud-first

strategy

Data acquisition, data delivery

Take a platform

approach

Consulting services

Additional sell-on

GR

5© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Risks and challenges

Seek out

the opportunity

Take the lead

role

Rise to the

challenge

New business model

Execute on

strategy

Reputation, Security and compliance

Take Care of the

Brand

Different world from primary business

Deliver quality

product

MK

6© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

The CDO’s role in achieving monetisation

Seek out

the opportunity

Take the lead

role

Rise to the

challenge

Turn data into a product

Create the product

Right data, right place, right time

Qualify the

opportunity

Lead the data organisation

Enable the

organisation

GR

7© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Summary

Seek out

the opportunity

Rise to the

challenge

Turn data into a new product

Execute boldly

Open new revenue streams

Hunt for the real

value

Own the execution to unlock full value

Be central to

success

Take the lead

role

MK

8© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Q&A

Q&A

Thank you

Tel: +44 20 7311 4019

Mob: +44 7899 063 980

gary.richardson@kpmg.co.uk

Gary RichardsonDirector, Data and Analytics, Data

Insight Services

Tel: +44 20 76945293

Mob: +44 7827 303130

marcus.kinlay@kpmg.co.uk

Marcus KinlayDirector, Data and Analytics, Data

Insight Services

Appendix:

2 Case Studies

11© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Case studies – KPMG Investment Management

■ KPMG has an active advisory team in the IM space, consulting on

aspects of performance, capability, efficiency and innovation

■ The firm wishes to extend its offering into benchmarking and thought

leadership

■ Having done due diligence, KPMG is looking to acquire or licence a

comprehensive data set from a third party that in combination with

current assets will provide new and unique insight that will be

market-leading

■ Due diligence has involved evaluation of:

– Data quality

– Model integrity

– Depth and coverage

– Data security and anonymisation

– Branding

– Delivery platform and channels

■ Expected revenues from initial subscription service in the UK for the

approximately 14,000 IFAs are several million pa with ROI achieved

in under 24 months

Approach

Overview

Expected Revenue

12© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a

Swiss entity. All rights reserved.

The CDO, turning data into money

Case studies – UK Universal Bank

■ The client’s board asked each division to generate ideas for

monetising the data assets

■ The emphasis is clearly on new revenue streams and not

enhancement of existing offerings

■ Initially over 20 ideas were generated through innovation and

creativity workshops, which were then whittled down to six

■ The framework questionnaire was used to rank the selected ideas in

terms of potential opportunity and complexity of execution, including:

– Revenue streams (single or multiple service potential)

– Partnering needs (sales & marketing, delivery platform, channel)

– Branding, IP and data security

■ Full Business Cases are in draft form for review by senior business

stakeholders

■ Revenues for Top 3 ideas range from £100Ks to low £Ms with 1-2yr

ROI

Approach

Overview

Expected Revenue

© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of

KPMG Europe LLP and a member firm of the KPMG network of

independent member firms affiliated with KPMG International Cooperative,

a Swiss entity. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered

trademarks or trademarks of KPMG International Cooperative (KPMG

International).