Data analytics has developed into an essential part of IoT solutions today. IoT connected devices rely significantly on data and their ability to gather information. From an end-user perspective it is not simply the raw data that is valued, but the actual interpretation of this information. This is where data analytics plays a vital role, delivering key insights into data, enabling important decisions to be made.

The ability to generate data in an informative and meaningful manner is what makes the IoT solution so appealing to customers. Data analytics enables users to quickly and efficiently identify patterns and trends. The information provided means each user has the correct details and knowledge required to make sound business or product decisions confidently.

Generally, consumers are prepared to invest in IoT technology due to the solutions it offers that will make any investment viable further down the line i.e. identifying areas where resources are being wasted, saving time, automating tasks, etc. Businesses have considerable power in terms of their position to be selective about data quality and the analysis they produce. The technological progression in artificial intelligence and the launch of a series of new open-source software options means the availability of this technology is more prevalent.

Thanks to the range of emerging technologies, data analytics has become more innovative, generating vital information in quick turnaround times, understanding exactly what the customer is looking for. With IoT becoming more and more part of our everyday lives, data analytics will continue to be of significant important in delivering vital insights.

IoT and its Limitations

IoT data is generally gathered from sensors that are continuing to become more sophisticated. Each sensor collects a range of information via the cloud in the form of datasets. It is then the responsibility of each solution provider to determine how this data is used and presented to each user. What this means is, as the hardware becomes more sophisticated, the actual information available to the user becomes more complex.

As the IoT industry develops and becomes more ingrained in our daily life, it is critical to consider that there are some notable challenges. Certain factors such as unforeseen costs and time constraints related to production are common barriers to IoT solutions.

It is clear that data analytics are no longer an added service but an essential part of IoT solutions. They deliver users with the information required to make more informed and smarter decisions and can identify potential challenges without requiring any significant effort. IoT is driven by the power and potential of data, raw data, but also how data is recorded and what insights can be taken from the information. Data analysis supports profitable decision making and as the IoT industry continues to expand, the demand for advanced data analytical tools will also grow.

According to a new independent study by BitSight, 2 in 5 enterprises have lost business due to overall cybersecurity performance. The new study highlights the importance of effective security performance management in delivering enterprise success.

BitSight, a company focused on security ratings released their new study assessing how executives understand and measure cybersecurity performance and effectively communicate this area to the wider business. The commissioned study performed by Forrester Consulting on behalf of BitSight referred to as ‘Better Security and Business Outcomes With Security Performance Management’ suggests that cybersecurity performance is vital in delivering commercial success. Within the study, one particular finding highlights that just under 40% of enterprises believe they have lost business due to a lack of security performance within their business.

Tom Turner, the CEO of BitSight explains that overall success, brand perception and company reputation are all affected directly by security performance. Turner emphasise that in order to manage performance, you need to be capable of measuring it. Turner believes this study highlights the importance of security and the need for businesses to take a closer look at their own security strategies and its influence on performance management.

The survey delivered to over 200 security decision-makers explored the challenges and technological issues that generally hinder many businesses from implementing effective security performance management strategies. Other report findings include:

-Effective security performance management generates more business wins and enhanced security outcomes. Over 75% of survey respondents stated that an improvement to security performance management would have a significant impact on overall financial performance. The majority of the respondents also agreed that further measurement would enhance company business continuity and company reputation. Furthermore, businesses have created structured security performance metrics and more likely to successfully control their security, more likely to generate security policies and perform security training programs. Investment decisions and overall strategies are more likely to be trusted by a senior member, meaning security leaders are likely to see a continued increase year on year in the security budget.
– The study suggests that commercial success could be affected by steps in effectively measuring security performance and communicating this to other stakeholders. Nearly 80% of security professionals said that the demand for cybersecurity performance has risen, but decision-makers highlight that customers still receive relatively poor accuracy reports.

The survey indicates that metrics are vital to understand and improve overall communication concerning security performance. Over 60% of the respondents have implemented security performance measures, but 4 of the 5 stated their metrics lack detail and present an informed representation of overall performance.

Businesses across the UK will soon be able to utilise a significant boost in cloud computing as Oracle and Microsoft confirmed they would launch multi-cloud capacity services to London.

Leading technology players have announced that customers in London will be able to interconnect Microsoft Azure and Oracle Cloud Infrastructure for the first time as they plan to increase multi-cloud services worldwide. Microsoft and Oracle confirmed their multicloud partnership just a few months ago after a number of customers were seeking to work within both platforms.

Oracle recently stated that London was one of the highest and active Oracle Cloud regions and explained that their latest announcement would enable customers in the London area to access more services than previously offered.

The London announcement represents the first expansion outside of the US for the Microsoft-Oracle collaboration. Interconnected cloud regions will enable conditions for less latency, resulting in higher data transfer levels and improved application interaction speeds within the cloud.

Oracle confirmed that the partnership would enable a wider range of customers across London to launch innovative new solutions for their business systems. Oracle highlighted that the service will provide customers with a diverse range of new services in Azure, which can be used within the cloud.

As with many other industries, technological innovation, particularly AI and machine learning are developing within finance and causing considerable changes to career options and availability. A recent US report stated that over one million bank employees would potentially lose their jobs or be moved from their position due to the rise of automation.

Whilst this report may be concerning to many financial workers, the reality is that as new technology develops, more opportunities are being created within the financial industry. Financial leaders have highlighted that there is a significant shift within the industry, spurred by improvements in automation, business processes, robotics and robotic process automation (RPA). Whilst this will definitely disrupt existing jobs in the financial industry, it will also create a number of new job roles. The main challenge for all businesses in this market is reskilling and training a large proportion of their existing employees to prepare for a new wave of job opportunities, some of which don’t even exist yet.

Financial leaders have discussed and speculated around a number of potential jobs that could be created in finance in the future:

Fintech Headhunters: Startups and microbanks are transforming finance and causing the larger, more established institutions to reassess their portfolio and focus more on innovative services and potentially generating their own startups. Some banks such as HSBC are partnering with startups to focus on AI-based tracking system which is capable of detecting potential cases of fraud. Many people today are moving away from traditional banking systems and looking for more innovative technology solutions. Whether it be a case of acquisitions or partnerships, fintech will only strengthen from combining with the expertise and stability of larger institutions.

Innovative Finance Engineers

Pressure from fintech and other organisations is causing the big banks to rethink their services and expand their traditional offering to provide more insight into making strategic financial decisions. Wealth management is a significant part of finance today and many people are exploring options to efficiently manage their money and secure their futures. By applying innovative AI technology, areas such as mortgages can be automatically managed and handled at optimum times. Long term investments can be implemented and managed when required. People could have more insight into their finances and be capable of creating their own, personalised savings and wealth management services.

Sustainable Wealth Manager

According to financial leaders, data analytics and sustainability are two of the key skills required within the industry. One particular trend is the sustainability movement in finance, which is transforming many business banking models. Aside from the transition to more sustainable systems, both companies and customers are equally benefiting from sustainable energy trading. Green trading systems could create a new flow of income. Financial institutions can support clients in their movement towards more sustainable practices and developing new supportive standards.

Cryptocurrency Professionals

Many larger banks are researching and testing how cryptocurrencies could be applied in their organisation. Financial leaders state that understanding how to apply the technology is more important than developing it. Partnerships and understanding the regulations and market movements will become ever more important. The cryptocurrency market remains relatively unclear for most investors and policymakers. Professionals with a clear view of conventional markets may be in a stronger position to apply their skills to the cryptocurrency market. Forecasting, measuring current and previous events and segmenting complex areas are emerging skills in the financial market. Applying this skillset to cryptocurrency could support investors in having a clearer understanding of the market.

Data Officers

In business today, there is a significant focus on data and overall data stream available within a business. Many businesses have recently been involved in a number of data scandals and the use of personal data. Whilst self-driving finance services can strengthen personal banking data, enabling people to understand their finances, it also raises concerns around transparency and data protection measures. This is exactly where data officers can play a vital role in providing clarity concerning exactly how financial data can be used within a business.

Cybersecurity Professionals

With more data and the continued emergence of new fintech businesses, everyone, from large corporations to startups are recognising that security cannot be assumed at all levels. In our rapidly interconnected world, every industry needs to work together to reduce the developing nature of new cyber attacks.

Whilst this may be speculative ideas, what is clear to financial leaders that whilst technology may replace a certain number of jobs, many new and exciting opportunities will emerge as the industry continues to evolve. Technology innovation is necessary for the finance industry to continue progressing, but the human talent is also necessary and retaining skills in creativity, critical thinking and leadership will always be required in finance.

Traditional banks today are being bombarded by a combination of innovative technology, rising customer demands, emerging competitors and new regulations.

The question is whether banks are ready and willing to invest in enhancing their service offerings, utilising the new technology options available and at the same time, continuing to maintain a secure system for their customers?

Banks are being forced to radically transform their business models, alter products and services in order to maintain momentum with the ever-changing technology and innovation on offer. Whilst many studies have suggested that customer behaviour is the primary driver for change, a report by the Economist Intelligence Unit states that the key driver for transformation is the emergence of new technologies, in particular, artificial intelligence, machine learning, blockchain and other systems related to data and analytics. The report suggests that this influence of new technologies is only going to get bigger over the next few years.

In a survey commissioned to major financial institutions, clearly, the most vulnerable factor to competition was payments, followed closely by savings and deposit services. Short term competitor threats were highlighted as large technology businesses, payment providers and peer-to-peer lenders. Financial institutions also stated that they believe strategic priorities to continue to change over the coming years. Banks expect expansion in key areas of digital marketing, digital channel migration and cutting costs.

The rise of open banking

From the customer side, people are looking for simpler ways to handle money and make their daily lives easier. Many banks are concerned about the challenges faced with open banking services, especially in regards to collecting and sharing data with third parties and the associated risks of this.

Banks need to determine what path they wish to take in the future, whether this is providing a multi-service offering of financial and non-financial products or looking to specialise in a specific area of the banking community. What is quite clear, is that the traditional banking system is not a feasible pathway for a sustainable future.

Max Chuard, the chief executive officer at Tenemos believes that five years from now, intelligent banking will involve a bank that utilises the cloud, AI and other innovative technologies. Banks will be able to offer a wider range of new services to their customers. Historically, conventional banks have tended to avoid the risk of changing systems but the need to continue innovating is clearly a path that needs to be taken.

In terms of investment in digital strategies, a large focus continues to remain on cybercrime. Cloud technology, however, is becoming an increasing area of interest, followed closely by the importance of data and advanced analytics.

Leading global analyst provider Gartner has recently confirmed the release of it’s latest Magic Quadrant for Cloud Financial Planning and Analysis Solutions.

Analytics remains a vital element of new software technology, particularly within the last year. Gartner believes that automation will be the main driver for new product purchases over the next year within business intelligence and analytics, including data science and embedded BI. Gartner has also forecast that nearly half of all analytic queries to be performed via search, automation, voice or natural language.

The rise of natural language and conversation analytics will generate a new wave of technology users within the BI and Analytical arena. It is due to this uptake that Gartner believes we will experience a rise of nearly 15% of these tools in enterprises, with significant growth of data and analytics users within businesses. Analysts at Gartner also believe that this rate of growth will stimulate other innovative businesses to modify their business models.

The latest Gartner report outlines of the development of ‘modern’ analytics and business intelligence tools over the last few years. Traditional platforms are being transformed by the development of augmented analytics and machine learning, as well as the rise of visual-based data system providers. Gartner states that those leading the natural language processing arena are more likely to be capable of setting a higher pricing level for their products compared to their competitors.

In their latest Magic Quadrant, Gartner summarises the overall strengths and weaknesses of over 20 key providers, regarded as the most significant within their market. Gartner provides a graphical representation of vendor performance based on their overall ability to execute and their ability to reach their overall vision. The graph is split into four quadrants: nice players, challengers, visionaries, and leaders. 

Based on last year, Microsoft and Tableau were regarded as market leaders in this space. This year, Gartner has placed Microsoft in a more commanding lead, improving its position on the ‘ability to execute’ section of the Gartner graph. Microsoft provides excellent functions, especially for its price, enabling users to perform detailed analysis relatively easily. Gartner believes that Microsoft will remain a leader for some years to come. Tableau, however, has recently announced new natural language processing and automated data management services which strengthen its portfolio further.

Qlik maintained its leadership status based on Gartner’s definition of consisting of a strong product roadmap and its global reach compared to other competitors. Other mentioned businesses include ThoughSpot, a business that is leading the augmented analytics industry. The business raised nearly $150 million in new venture capital and released ThoughtSpot5 last year, containing its innovative voice-driven analytics systems referred to as SearchIQ.

In terms of challenges, Gartner highlight Microstrategy as a key business. The company has invested heavily in augmented analytic services and has received high customer scores based on its range of product capabilities. The system also enables detailed analysis of large data sets and recently launched a new offering which it describes as a ‘new class of enterprise intelligence’, known as HyperIntelligence.

WIthin the Visionaries section, Gartner highlight TIBCO Software, Sisense, and Salesforce as nearly equal leaders and all having the potential to be the leader in 2020. Gartner suggests that TIBCO showed the most improvement in the last year due to a number of recent acquisitions which have enabled them to expand their offering in data science and management. The business also improved its embedded analytics product and launched a new AI analytical tool known as Spotfire X. Sisense raises dits funding to $200 million showing its interest in acquiring enterprise-level customers. The business has emphasized its focus on machine learning and launched a new Data Cognition Engine that can understand large data volumes and can produce nearly instant analytical responses.

Within the Niche Players, this year are more traditional BI providers such as Oracle, IBM, and Board International, as well as more specialist embedded analytical providers like Logi Analytics and GoodData. One business, in particular, Looker, gained the highest increase within this section, ending the year with a growth funding round valued at $100 million. The business also released new integrations for data science workflows and new developer tools in Looker 6, as well as integration with Google BigQuery.

For years data analytics has been regarded as a valuable tool for businesses to enhance their marketing strategies. What has become more clear in recent years is how data can be applied to multiple sections of a business and improve overall performance and management. Today, data is applied to many systems across public and private sectors, enabling teams to use data to streamline workflows and identify errors.
Collecting data on customers and applying machine learning, businesses can gain a clearer understanding of how each customer behaves on their website. This information is critical in determining how effective your website platform is and enable businesses to optimize their technology to create a better overall experience. Businesses can become more intuitive, creating a custom user experience, delivering a website that is unique to each user.

Data can also support businesses in improving their workflow and enhancing employee performance. Through a clearer idea of employee performance, HR teams can gain a detailed insight into how employees utilize their working day and identify opportunities to improve work efficiency. This type of methodology is also very useful for financial businesses in monitoring and detecting and fraudulent activity.

Data in the public sector

Public sector and government agencies can utilize data analytics to support a number of common challenges, improve the efficiency of their operations and save money. Data analysis can support agencies in creating public policies and offer clear service to measure the success of each policy.

Data and Decision Making

Utilizing new data streams can support decision making in businesses and overall improve business performance. The effectiveness of data in enhancing management has resulted in a transition in how businesses operate. With continued improvement in data analytics and innovative technology, we will continue to see a greater demand for skilled, talented data analytical professionals. As more companies begin to understand the real value of data and analytics demand for new services will rise and technology companies will likely create a number of new and improved services that enable businesses to collect, analyze and apply their own data sources.

Salesforce has announced the completion of its $15.7 acquisition of analytical vendor Tableau Software, forming its largest-ever acquisition to date. The deal between both companies was announced earlier in June, coming not long after Google moved to acquire data analytics business Looker for a value of $2.6 billion.

In relation to the Tableau deal, Salesforce believes the acquisition will provide an improved role in expanding digital transformation, allowing companies worldwide to harness new data streams within the entire business and generate more insights leading to smarter decisions. Salesforce believes the new platform will create intelligence, integrated customer experiences and support further innovation.

Leading global market intelligence firm IDC forecasts the global spending on technology and services supporting digital transformation will reach $1.8 trillion by 2022. Tableau offers a self-service analytical system with a platform that enables people from a range of skills to work with data. Over 85,000 businesses including Verizon, Netflix, and Schneider Electrical are using Tableau to support their existing data streams.

Salesforce Customer 360 offers businesses an intuitive and intelligent view of customers across an entire company, including sales, service, marketing, and other key areas. Salesforce Einstein provides detailed AI-driven analytics focusing on sales and marketing. Combining the forces of Tableau and Einstein means Salesforce is capable of delivering one of the most intelligent analytical and visual platforms available for all departments and users.

Tableau will also enhance the potential of Customer 360, allowing the platform to expand to a wider range of customers. Tableau will perform as an independent provider under the Tableau brand and will continue to be headquartered in Seattle and be managed by the existing leadership team. Keith Block, the co-CEO of Salesforce explains that data is essential for digital transformation and Block highlights this is why the business is very committed to producing the highest level of analytics available to every user. Block states that Tableau will allow Salesforce Customer 360, including the analytic potential of Salesforce to improve further, allowing customers to focus on innovation and generate smarter strategic business decisions.

Recently, Salesforce has revealed plans to launch a second data center within the UK and strengthen its data center capacity within France.

Implementing digital technology can create a number of challenges to financial operations. Investment business The Carlyle Group recently launched a CPM platform to support its business objectives.

With the continued rise of digital technology, financial businesses and utilizing innovative systems to transform people and processes to enhance business performance through an improved and more flexible service. Through the implementation of new technology, businesses are creating more time to focus on analysis and improving their overall strategic decision-making process.

A few years ago, investment company Carlyle Group started exploring new methods to support digital technology within its financial and enterprise systems that provided a simplistic and easier option to their existing services. At this time, the group utilized three separate systems for planning, budgeting, and forecasting but intended to launch one system that could integrate all of these services into one platform. Carlyle Groups financial planning and analysis group used SAP Business Objects Planning, a traditional tool that no longer provided options to support annual budgeting, quarterly forecasting, and long term plans. Carlyle Group was focusing a lot of time and effort on consolidating and handling information due to technical limitations faced with their systems in place. The Group highlighted that its existing Hyperion Financial Management system required significant customization to meet business needs. The business also relied on a custom HR budgeting and forecasting service that met the needs of a complex investment business but was a single-user system and required added support with excel-based data integrations.

To progress further into the digital era, Carlyle Group knew they would need to implement a more modern, flexible platform, capable of scaling to meet its existing and future business needs. Carlyle explored a range of tools to determine which one suited the company from an FP&A perspective. In the end, the business picked OneStream Software LLC integrated CPM platform.

OneStream operated in the cloud or on-premise and allows businesses to focus on reporting, budgeting and forecasting, all within one integrated system. The CPM platform can tackle the requirements of most businesses as well as the more complex reporting needs of other companies and specific groups.

Financial benefits of the move Carlyle Group selected OneStream for its budgeting, planning and forecasting services but the platform also supported their consolidation and reporting processes, combining this area into one platform. Aside from the productivity benefits, the business also experienced an improvement in their IT infrastructure, making life much easier for both users and system managers. The new platform means a reduction in data movement between systems, making it easier to manage and implement periodic upgrades. So instead of launching a series of upgrades to multiple systems that can take some time, the group can upgrade one application in a matter of hours. OneStream has met all the requirements of Carlyle Group. Through the delivery of a single platform, all data is gathered in one place, making processes simpler and quicker.

The business now has much more access to information and has greatly reduced manual, time-consuming data tasks. Carlyle Group has also highlighted a number of other notable benefits, such a reduction in consolidation times by over 50%, despite a massive surge in data generated. Standard processes that previously took up to a week to deliver, such as expense budget updates, can now be implemented in the same day, in literally a few minutes. Since implementing the new system, the group has expanded their use of the OneStream platform by developing point planning solutions for specific expense areas, generating scenario models to support business strategy and review discussions.

MHR Analytics recently highlighted some of the key ways data is transforming the role of finance professionals and how to adapt to the future market. Data has created multiple opportunities for finance professionals but in order for finance teams to continue being seen as a value-added service, finance professionals need to continue evolving and take advantage of the new technology available to them. MHR Analytics recently highlighted some of the main changes the finance industry is likely to experience in the next few years.

The Rise of Predictive Analytics

Traditionally, finance teams utilized historical data to generate information and insights. This process was relatively limited due to the overall scope of the data and also lacked a complete representation of how particular decisions would influence the business. Predictive analytics has enabled finance professionals to expand beyond asking why things happened to understand what will happen next. Access to insightful information will allow finance teams to monitor customer data in real-time and develop a detailed analysis of their data. The future role of finance professionals increasingly is focused on using value-added analytical data to develop highly effective information to deliver business strategies.

Remote working options

The rise of cloud computing has allowed for more flexibility in finance work. Improvements in the security of cloud systems enable finance professionals to share and manage information wherever they may be, without worrying about the traditional concerns of handling sensitive information outside of the office space. An additional benefit is an increase in businesses moving towards a single operating system, putting all data in one place, creating a more streamlined and simplistic system.

Utilizing financial and non-financial data

Finance data can be supported with other data streams to enrich overall financial insights for business. This can include examining customer behavior patterns to determine fraud or suspicious activity. Finance teams can use internal data such as employee performance metrics to determine the ROI according to each employee. Adding this type of data into the entire process creates further value to overall financial insights. Recent research shows that CFOs utilize a large bulk of non-financial data in business forecasting.

Improving Standard of Service

An increase in analytics is creating a more augmented working environment, meaning previous tasks completed by people are now being performed by machines. Augmented analytics is enabling people to focus on creating more insights and value for their business. As a result, the combined forces of augmented analytics and the ability for more insight generation means the overall standard of service is higher than ever.

Introduction of new data-focused roles

Whilst there are concerns augmented analytics will mean fewer jobs, it does mean we are likely to experience a rise of more data specific alternatives to traditional finance positions. As data continues to become more important to finance teams and for generating insights for business strategy, it will result in a higher demand for specialist data professionals. New data science roles are expected to emerge as a result of the rising demand for skilled data specialists.