What is big data and how does it apply to our industry?

By KPMG Enterprise MIS on 26th July 2018 Free Access Articles Big Data, Five Vs, KPMG

BIG Data is often described in terms of five Vs: Volume, Velocity, Variety, Veracity and Value. If we apply it to the data we collect in our industry, we can start to make sense of what we need to do to manage this data explosion.

VOLUME

THE volume of our data has grown tremendously from the financial and operational data in our DMSs and CRM systems to the volumes we are getting from our smartphones.

We are collecting such large volumes of data that it is becoming increasingly difficult to store and access. Very soon, if not already, our industry will need to make use of big data technology to store and analyse this data.

Our industry is not immune to the increasing volumes of data being generated today and tomorrow.

VELOCITY

THIS is the speed at which our data is being produced and moves around. Just search for “Big Data” and within 0.43 seconds you are presented with 784 million results. Right now potential customers are talking on Facebook or Snapchatting about buying a new car, browsing your website and talking to your salespeople on the phone or by text and all this information is being collected somewhere by someone and is available now.

VARIETY

THIS refers to the types of data: in the past most data we collected from the DMS for example, was structured to fit into tables and databases.

Nowadays we have a large amount of what is referred to as unstructured data like photos and video streams and social media.

Our research has indicated that unstructured data accounts for more than 80 per cent of the world’s data and it will take big data technology to harness and bring together the structured and unstructured data sources.

All this variety is used daily in our industry, mostly from a single device.

VERACITY

THIS is a qualitative measure of how accurate and trustworthy the data is and is a precursor to determine the level of usefulness of the data.

Words used in telephone conversations and collected in call monitoring systems are a good example of the types of data where the veracity needs to be carefully considered because of all the external factors that influence the use of words.

Another good example will be social media posts with typos, spelling errors and slang etc., and how reliable and accurately that content can be rated.

If the data is messy and stems from inaccurate sources then it could be rendered useless but data can be “tamed” into being cleaner and more reliable. Analytics and Big Data technologies allow us to work with these types of data.

VALUE

THIS is, in my opinion, the reason for analysing and collecting the data in the first place.
To provide the decision makers with value in the decision-making process. The key is to determine if the data is relevant and meaningful to provide that value. Some data on its own may provide minimal or no value but when considered with other sources of data its value improves.

KPMG Automotive Intelligence Portal: ‘single source of truth’

KPMG motor industry services has invested significantly into the world of data collection and analytics for the retail automotive industry.

Through KPMG Automotive Intelligence Portal the firm has pulled together data sources that will assist its dealers to realise their value and make complete sense of all their information.

Decision makers can leverage off this “single source of truth” to enhance the day-to-day management of their operations.

Now with the functionality contained within the portal, the decision makers in the retail dealer network can gain the insights into the multitude of data sources in one place, across their network of operations, making this the most powerful retail network management tool available to the dealership management of today.