Bringing razor sharp insights to your capital agenda with data analytics

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Organisations remain disciplined in evaluating transactions – placing a premium on thorough analysis of potential risks and exposures. Forward-thinking corporates are recognising data as a strategic asset in the execution of their Capital Agenda and are leveraging it to strengthen their competitive advantage.

For organisations to compete successfully on analytics they need to drive a strategic approach which is applied right across the organisation — impacting how they invest, optimise, raise and preserve their capital.

What are the drivers of analytics — why now?

Decreasing technology costs have brought the techniques and tools of analytics within the reach of a much wider range of organisations. Now, better and cheaper technologies are redefining what is possible. Decreasing costs of data storage is also giving rise to the broader use of data analytics and we are now seeing worldwide data volumes double every two years.

Consequently, there has been dramatic increases in computer processing power, allowing organisations to draw valuable business insights. Leading organisations have become extremely skilled at these techniques and processes and are now embedding such strategies within the corporate strategy.

Stuart Bright, Oceania Leader, Valuations and Business Modelling comments:
“Leading organisations are performing analysis of business issues using hard fact based data which simply was not possible only a few years ago. Boards and executives are beginning to expect this form of analysis over the higher level part–fact/part-hypothesis based analysis which has in the past been the norm”.

There has also been a shift in demand for better decision-making driven by a modest global growth environment. Organisations looking to cut costs have exhausted all the easily identified quick wins. Despite their strong balance sheets, companies are cautious about investing — they want greater assurance that their plans will deliver.

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Advanced analytics enables a competitive edge

To stay ahead of the competition, organisations are increasingly using advanced analytics to shape decisions around their capital agenda. But those with a competitive edge are doing more than generating deeper insight. They are embedding a mindset across the organisation which has senior management commitment and is supported by a clear strategy. The addition of the right skill set, appropriate techniques and strategic know-how creates a powerful opportunity for organisations today.

Stuart Bright continues:
“Organisations can improve their performance by coordinating islands of data and silos of analytic capability. By bringing together different specialists, such as mathematicians, econometricians and operational researchers, to analyse complex and inter-connected data, organisations can ultimately reach the decisions which generate big business benefits.”

Organisations are actively building their analytics capabilities, deploying the techniques throughout their operations and exploiting the data — both proprietary and external — to build invaluable insight to support their decisions. Over time these capabilities should be applied to the analysis of transactions, with the greater insights generated leading to better value decisions being made by vendors and purchasers.

The time is now to get ahead of the curve

The demand and supply forces for big data will continue to shift and extend, offering organisations continued opportunities to advance and enhance their decision-making. There is no doubt that organisations need access to robust insights that only advanced data analytics can deliver. But how companies grasp the growing mountain of information that they hold, in addition to the vast quantities available externally, is up to them.

Those with the necessary combination of technical skills and commercial knowledge can generate detailed, complete and strategic answers to specific business questions around their capital agenda, and ultimately achieve more informed and robust decisions on how they invest, optimise, raise and preserve their capital.

Questions to ask yourself:

  • How can I maximise the value of my business or asset portfolio through data analytics?
  • How could I make better use of available data to respond, adapt and prepare for economic volatility or change?
  • How could I better coordinate resources to pool data that informs decisions around your capital agenda?

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