KPMG Capital Formed to Accelerate Innovation in Data and Analytics

Recent KPMG survey shows 96 percent of businesses not managing data effectively.

KPMG International has announced the formation of KPMG Capital, a new investment fund created to accelerate innovation in data and analytics (D&A) that will help clients of member firms unlock tangible value of their 'big data'.

KPMG Capital will support technology partnerships, strategic alliances and the recruitment of top talent to create new D&A solutions. With these capabilities, KPMG member firms will help clients solve critical business challenges in such areas as new revenue streams, risk management and cost optimisation.

The use of D&A has become a critical business priority as companies try to derive value from the vast amounts of data now available to them. A new KPMG survey of business leaders from many of the world's leading companies found that while 69 percent see D&A as strategically important to their current growth plans, an overwhelming 96 percent believe their company is not currently using D&A effectively.

"Our new research shows that business leaders recognise the tremendous importance of D&A to business growth but feel they need more support to develop effective solutions," said Mark Toon, CEO of KPMG Capital and global lead for KPMG's D&A practice. "KPMG Capital will enable us to develop or acquire opportunities in D&A quickly. Through partnerships with technology and service providers, strategic partners and other third parties, we aim to accelerate innovation in D&A to bring potential solutions to clients – and to the market – faster."

Toon continued: "With more data produced and stored in the last two years than in the rest of human history, many businesses are looking for strategic and practical solutions to manage the volume, velocity and variety of this data revolution. KPMG Capital will lead the way in addressing the challenge of the three 'v's."

Frank Rizzo, Africa Lead for KPMG’s D&A practice sees this as a particularly important move for KPMG in Africa.

"Through KPMG Capital, our firm will be able to link entrepreneurs and established businesses in the D&A space with our global practice to take these African initiatives to a global level,” said Rizzo."This ties in very well with a number of recent technology hubs that have been established across the continent. In addition, this fund will, amongst other things, assist in providing D&A solutions in healthcare and education initiatives which are imperatives for Africa.”

KPMG Capital's Toon believes the most successful companies will be those not merely collecting the data, but those that can distil data and translate it to insightful business guidance.

"Too many companies still see big data principally as a technology issue, when it really is a business issue across all industries," he said. "We are helping companies look at their data differently and turn it into value."

Investment will be made in a number of critical business areas including enhancing business flexibility; finance; regulation and compliance; improving workforce productivity; and customer and revenue growth. KPMG Capital will work to develop solutions that will focus on growth sectors such as healthcare, financial services, energy and telecommunications.

KPMG Capital's aim is to invest in, partner with and acquire organisations that specialise in data and analytics tools and assets. Combining that expertise with the KPMG network's global reach, existing D&A capabilities and deep insights, KPMG Capital will work to unlock new thinking to address the most pressing business challenges and deliver new solutions to market more quickly.

"KPMG Capital will enable a nexus for the world's best thinking in data and analytics," said Michael Andrew, Chairman of KPMG International. "D&A is part of our heritage, but with the fast pace of technology and globalization, clients want deeper insight more quickly. KPMG Capital's structure will allow us the flexibility to commercialise solutions which our global network of professionals can use to help business leaders harness the right data, analyse it and translate it into value. This is a transformative step for the future of KPMG's member firms as well as for clients' businesses."