Unlock data possibilities

Data and Analytics: Creating or Destroying Shareholder Value?

Paul Blase Global & US Consulting Data and Analytics Leader

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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What will you do differently?

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4 V’s of Data 10,000 Brains Anywhere, Anytime

Show Me a Picture, Please

To Trust or Not to Trust

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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… PwC’s Global Data & Analytics Survey 2014: Big Decisions™ ®

• Big decisions have a big impact on future profitability; the majority of respondents (59%) in our survey pegged their next big decision at a value of $100 million or more

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

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

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

• 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)

1,135 senior executives

interviewed

from across the world

representing a total of 18 industries

where majority (74%) of companies

reported annual revenues last year

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™ ®

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The technology is advancing rapidly and is ready…

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Machine Learning

IoT/Sensors

Simulation/ Gaming

Advanced Visualization

When will you be ready?

Man

+

Machine

New

Value

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Machine Learning

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83% - Sports Car

12% - Sedan

5% - Coupe

1. Image Source: Lee, Grosse, Ranganath, and Ng. "Convolutional Deep Belief Networks for Scalable Unsupervised Learning of Hierarchical Representations."

(2009)

1 How would you benefit from better informed design choices?

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IoT/Sensors

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What would you connect with instant access to millions of sensors?

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Simulation/Gaming

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How should you alter your strategy to more effectively align with market demographics and exploit new opportunities?

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Advanced Visualization

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Is there a better way to see how your business is performing?

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Framework for unlocking data possibilities

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Discovery: Discover value in your internal and external data

Insights: Apply analytic techniques on internal and external data for tailored, value-creating insights that you can trust

Actions: Make decisions; deliver quick wins; build operational capabilities to enhance products and services

Outcomes: Test and learn; link insights and actions to financial and operational metrics; enhance shareholder value

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What is the group’s role in creating value?

Centralized vs. Decentralized?

Basic vs. Advanced Applications?

Business vs. IT?

Performance Metrics & Incentives?

Data and Analytics Operating Models

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The operating model leaders choose can determine whether shareholder value is created or destroyed

• The Information Enabler Model

• The Functional Model

• The Performance Optimizer Model

• The New Value Creator Model

Data and Analytics Operating Models

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Key takeaways

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Are you targeting value at the right

level?

Adopt mindset of shareholder value creation.

What changes are needed to convert

insights to outcomes?

For your organization to win …

What is the risk of delay?

Decisions have a big impact on future profitability.

What operating model will deliver on your

objectives?

A robust operating model is critical.

Thank you

Paul Blase

Global and US Data and Analytics Consulting Leader, PwC

paul.blase@pwc.com

© 2015 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

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