Dr. Dean Spitzer, the author of Transforming Performance Measurement, points out the intrinsic merits of measurement. In what is a classic insight, he says that measurement directs behavior, increases visibility on performance, focuses attention, enables accountability, increases objectivity, provides a sound basis for goal setting, improves execution, promotes consistency and facilitates feedback. Today’s technology allows you to measure practically anything – including sentiment and behavior. Enabling this are production and enterprise systems along with customers that are spewing data at an unparalleled rate and at an unprecedented velocity.

Big Data, as the phenomenon is called, spells joy for businesses. The IDC Digital Universe study suggests that the world’s structured and unstructured data is doubling every two years with 1.8 trillion gigabytes expected to be created through 2011. The data is so enormous that it also means creating new approaches to analytics. In this issue of Communiqué, which brings a special focus to Big Data and Analytics for Financial Services, Norman H. Nie of Revolution Analytics announces the death of “statistical significance” and Sid Banerjee of Clarabridge tells us how traditional analytics techniques don’t apply any more.

I am fond of repeating Ron Kohavi, a Partner-level architect at Microsoft’s Online Services Division, who observed that objective, fine-grained data are replacing HiPPOs (Highest Paid Person’s Opinions) as the basis for decision-making at more and more companies. Today, thankfully, decision making is more fact versus intuition. But clearly, measurement is only the first baby step towards unlocking the potential of an enterprise. Beyond measurement is analytics. If the analysis of data is flawed, enterprises quickly drift from their objectives.

How do you ensure that your business remains on course? Of course, by understanding what your customers are saying, what they need, personalizing your services, ensuring that regulatory requirements are met, enabling faster decision making, improving the quality of the decisions, creating dynamic pricing models, and using data to reshape products and services. In this issue we have Benjamin Moreland of Celent telling us how Big Data and Analytics can be used for better underwriting decisions and claims fraud; HCLs own Ramani Balakrishnan telling us how it can be used to identify risk throughout the lifecycle of the loan; and Rebecca MacDonald of Attensity telling us how leading retail banks have begun to use sentiment analytics to drive loyalty, growth and market success.

I am happy to tell you that this issue of Communiqué is rich with many more insights shared by leaders in the financial services space. It will go a long way in helping you come to grips with what data and analytics can do for you. I invite you to go through its pages and explore the possibilities.

Subramaniam Baskaran
Head of Business Solutions & Marketing – Financial Services
HCL Technologies Ltd.