Dan Difilippo - PWC at the Chief Analytics Forum Officer, West Coast

Unlock data possibilities

Analytics for All: Data as an enabler of decision making across the business Dan DiFilippo Global & US Data and Analytics Leader May 26, 2016

PwC

Do you have any regrets about Big Decisions you’ve made?

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Big decision …

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“Guitar groups are on the way out.”

Dick Rowe, Decca Records executive, 1962

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Really?

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Decision redemption

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Big ambivalence …

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Science: Analytics & Data

“We are now able to get responses back from the technologies in a fraction of the time, and over a large dataset.” Executive from Western Union

Art: Experience & Advice

“… Another part is management intuition based on market insight, feet on the street, which the data may not tell you.”

Executive from Western Union

Is there a better way to combine Art

& Science in Decision Making?

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Data-driven decision making is still a new frontier of competitive advantage

1,135 senior executives

interviewed

from across the world

representing a total of 18 industries

where majority (74%) of companies

reported annual revenues of at least

$1bn

Highly data-driven companies are three times more likely to report significant improvement in decision making, but only 1 in 3

executives say their organization is highly data-driven.

Source: PwC’s Global Data & Analytics Survey: Big Decisions™ ® 7

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The stakes are high to make better, faster decisions

• Big decisions have a big impact on future profitability. Majority of respondents (59%) pegged their next big decision at a value of $100 million or more.

• Almost 50% of companies expect to make Big Decisions monthly or more frequently in the next 12 months.

• More big decisions are made opportunistically (67%) than deliberately (33%).

Source: PwC’s Global Data & Analytics Survey: Big Decisions™ ® 8

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Data-driven decision making is sometimes easier said than done

• 4 of the top 5 barriers to getting more value from data and analytics are behavior and skill related (limited benefit to role; senior management lacks skills; assessing which data is useful; communicating insights).

• 52% of senior executives say they previously discounted data they did not understand.

• The majority of executives, 62%, rely more on experience and advice than data to make business-defining choices.

Source: PwC’s Global Data & Analytics Survey: Big Decisions™ ® 9

80% of global CEOs say data and analytics is important*, but more than 85% of Fortune 500 organizations will fail to effectively exploit it.**

*PwC Global CEO Survey **Gartner BI Summit, Extreme Data

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Most companies don’t yet have mature data analytics capabilities

Source: PwC’s Industry 4.0: Building the Digital Enterprise 10

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What are executives saying about the challenges to deriving value from data?

“We have very limited knowledge on how to analyze data and pull out the right information.”

“We have lots of data but we haven’t used it in a comprehensive way across business units.”

“We have a long way to go to have a reasonable balance between human judgement and data-driven decisions.” “Our technology

landscape is too fragmented and unstable.”

“Data is embedded in most things we do at the executive level, but needs to permeate throughout the organization.”

“Data lives in many silos, and while it can be pulled together for one-time analysis, it can be difficult to replicate.”

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What decisions will your company need to make in the next five years?

Develop or launch new products or

services

Shrink existing business

Develop partnerships

Enter a new industry or start a new

business

Invest in IT

Change business

operations

Enter new markets with

existing products or

services

Corporate restructuring

or outsourcing

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What’s the right balance between data …?

Descriptive: What has happened?

Diagnostic: Why did it happen?

Predictive: What will/could happen?

Prescriptive: What should happen, and how?

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… and business acumen and instinct?

Source: www.timoelliott.com

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In summary …

• Big decisions get made and revisited by senior executives more than you might think.

• Big decisions often have ‘hot state’ as opposed to ‘planned’ motivators.

• Executives value experience and intuition more than quantitative factors when making big decisions.

• Barriers to data-driven decision making cited by executives focus on behavior, skills, and data quality issues.

Source: PwC’s Global Data & Analytics Survey: Big Decisions™ ® 15

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What can your organization do to enable better, faster decision making?

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Put the right people in the right structure

• Create the structure best suited to your organization.

• Deploy the right talent to translate data jargon into a business context.

Clearly define the opportunity and the business objective

• Before digging into the data or choosing the technology stack, define the business opportunity.

• Allow for trial and error while keeping your eye on the ultimate goal.

Blend the art and the science

• Embrace the advanced algorithms, artificial intelligence, machine learning, natural language processing, etc. …

• But remember that decisions also require human judgement, so change management and communication are critical.

Example

Thank you

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