Richard Cline - Data Analytics: A Road Map for Expanding Analytics Capabilities

Copyright 2018 by the Internal Audit Foundation. All rights reserved.

Published by the Internal Audit Foundation

1035 Greenwood Blvd., Suite 401

Lake Mary, Florida 32746, USA

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout prior written permission of the publisher. Requests to the publisher for permission should be sent electronically to: with the subject line reprint permission request.

Limit of Liability: The Internal Audit Foundation publishes this document for informational and educational purposes and is not a substitute for legal or accounting advice. The Foundation does not provide such advice and makes no warranty as to any legal or accounting results through its publication of this document. When legal or accounting issues arise, professional assistance should be sought and retained.

The IIAs International Professional Practices Framework (IPPF) comprises the full range of existing and developing practice guidance for the profession. The IPPF provides guidance to internal auditors globally and paves the way to world-class internal auditing.

The IIA and the Foundation work in partnership with researchers from around the globe who conduct valuable studies on critical issues affecting todays business world. Much of the content presented in their final reports is a result of Foundation-funded research and prepared as a service to the Foundation and the internal audit profession. Expressed opinions, interpretations, or points of view represent a consensus of the researchers and do not necessarily reflect or represent the official position or policies of The IIA or the Foundation.

Grant Thornton refers to Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd (GTIL), and/or refers to the brand under which the GTIL members firms provide audit, tax, and advisory services to their clients, as the context requires. GTIL and each of its member firms are separate legal entities and are not a worldwide partnership. GTIL does not provide services to clients. Services are delivered by the member firms in their respective countries. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one anothers acts or omissions. In the United States, visit grantthornton.com for details.

ISBN-13: 978-1-63454-022-3

22 21 20 19 18 1 2 3 4 5 6

Printed in Canada

Analytics Continue to Be a Core Desired Competency for Organizations and Leaders, Offering Many Benefits

Most Companies Are Not Consistently Using Analytics

Analytics Are Not Commonly Used to Mitigate the Top Five Risk Areas

Companies Can Find Where They Fall on the Path to Digital Maturity

Companies Can Follow These Steps to Ensure They Create Value from a Digital Transformation

Through Several Stages, Use Cases Mature to Projects that Deliver Value

Business Imperatives, Analytics Enablement, and Enterprise Components Vary Across the Industrial Value Chain

Four Steps Are the Key to Prioritizing Analytics Projects

Select Criteria Can Aid in Teams Assessment of Their Vision

Teams Collect Key Information, Such as Value Drivers and Insights, for Each Use Case

Scoring Enables a Team to Understand the Resources Necessary for Each Use Case

By Combining Sources of Data, Military Recruiters Were Able to Take a More Focused and Successful Approach

Breaking Data Down into Shorter Time Frames Paints a More Accurate Picture of Trends and Activity

Few Companies Respond to Control Failures and Risks in Real Time

T he accelerating pace of technological advancement and increasing volumes of data has resulted in data analytics and innovation being a top priority for organizations and internal audit departments. The strategy for integrating analytics into an organization, or department, has the ability to transform how a company operates, innovates, and evolves. This book is intended to help companies develop their road map for expanding analytics capabilities.

The daily operations at most companies are ripe with opportunities to streamline and improve functions and processes, and data analytics holds the key to unlocking these opportunities. As such, chief audit executives and internal auditors have the potential to add value to their organizations in more ways than ever beforeas long as they understand the power they wield and the potential of data analytics to add value and set them apart from competitors.

The Institute of Internal Auditors (IIA) partnered with Grant Thornton to conduct research and provide subject matter expertise to shed light on the ever-changing uses of data analytics and how companies and internal auditors canand doharness analytics.

We hope you will use this road map for expanding analytics capabilities as you pursue data analytics, innovate, and tackle your digital transformation. Ultimately, we want you to increase the value of your data, become more efficient, better assess and avoid risk, and capture the new (and often unexpected) benefits of analytics.

Richard Cline

Ward Melhuish

Meredith Murphy

T he Internal Audit Foundation would like to thank the Board of Trustees, the Committee of Research and Education Advisors (CREA) members, and staff for dedicating their talent and expertise to the project.

James Alexander, CREA Member

Steve Mar, CREA Member

Tania Stegemann, CREA Member

Lee Ann Campbell, Managing Editor, Internal Audit Foundation

Candace Sacher, Product Manager, Internal Audit Foundation

Eva Sweet, Director, Global Standards & Guidance, The IIA

No one person could possibly have tackled the research, planning, drafting, editing, and compiling of insights required to create this book. The IIA and Grant Thornton are grateful to the individuals and companies that participated in the research and surveys that led to many of the insights in this book.

We would also like to thank the following organizations and individuals for sharing their insights into how data analytics can maximize value for companies and the internal audit community.

Barbican

Faisal Butt, Group Head of Internal Audit

BBA Aviation

Basil Dixon, Senior Manager of Internal Audit

BNP Paribas

Andrew Hall, Head of Data Fabric

Cargill

Laurence Uzureau, Director of Internal Audit

CF Industries

Mary Ann Tourney, Vice President (CAE), Internal Audit

Chevron Services Company

Angelina Butler, Audit Manager

Linda Ware, Senior Auditor

Cleveland Clinic

Don Sinko, Chief Integrity Officer