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

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

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

  1. 1. 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
  2. 2. PwC Do you have any regrets about Big Decisions you’ve made? 2
  3. 3. PwC Big decision … 3 “Guitar groups are on the way out.” Dick Rowe, Decca Records executive, 1962
  4. 4. PwC Really? 4
  5. 5. PwC Decision redemption 5
  6. 6. PwC Big ambivalence … 6 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?
  7. 7. PwC 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’sGlobal Data& AnalyticsSurvey: Big Decisions™® 7
  8. 8. PwC 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’sGlobal Data& AnalyticsSurvey: Big Decisions™® 8
  9. 9. PwC 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 behaviorand skill related (limited benefit to role; senior management lacks skills; assessingwhich 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’sGlobal Data& AnalyticsSurvey: Big Decisions™® 9 80% of global CEOs say data and analytics is important*, but more than 85% of Fortune 500 organizationswill fail to effectively exploit it.** *PwCGlobal CEOSurvey **GartnerBI Summit, ExtremeData
  10. 10. PwC Most companies don’t yet have mature data analytics capabilities Source: PwC’sIndustry4.0: BuildingtheDigitalEnterprise 10
  11. 11. 11 What are executives saying about the challenges to deriving value from data? “We have very limited knowledge onhow to analyze data and pull out the right information.” “We have lots of data but we haven’t used it ina comprehensive way across businessunits.” “We have a long way to go to have a reasonable balance betweenhumanjudgement and data-drivendecisions.”“Our technology landscape istoo fragmented and unstable.” “Data is embeddedinmost thingswe do at the executive level, but needs to permeate throughout the organization.” “Data lives in many silos, and while it canbe pulled together for one-time analysis, it canbe difficult toreplicate.”
  12. 12. 12 What decisions will your company need to make in the next five years? Develop or launch new products or services Shrinkexisting business Develop partnerships Entera new industry or start a new business Invest in IT Change business operations Enternew markets with existing products or services Corporate restructuring or outsourcing
  13. 13. 13 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?
  14. 14. 14 … and business acumen and instinct? Source:www.timoelliott.com
  15. 15. PwC 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 valueexperience and intuitionmore than quantitative factors when making big decisions. • Barriers to data-driven decisionmaking cited by executives focus on behavior, skills, and data quality issues. Source: PwC’sGlobal Data& AnalyticsSurvey: Big Decisions™® 15
  16. 16. PwC What can your organization do to enable better, faster decision making? 16 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
  17. 17. Thank you © 2016 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

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