DATA & ADVANCED ANALYTICS IN CANADA HIGH STAKES, HIGH HIGH STAKES, HIGH REWARDS: FOREWORD | 3 FOREWORD

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  • HIGH STAKES, HIGH REWARDS: FOREWORD | 1

    ANALYTICS

    CONSUMPTION

    MARKET

    STRATEGY

    A N A L Y T I C S L I N K A G E S

    INITIATIVES

    ANALYTICS

    PRODUCTION

    OUTCOMES

    COMPETITIVE DIFFERENTIATION

    OPERATING MODEL

    INITIATIVE DESIGN

    MEASUREMENT & LEARNING

    INTERVENTION DESIGN

    DATA & ADVANCED ANALYTICS IN CANADA

    HIGH STAKES, HIGH REWARDS

  • 2 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

    TABLE OF CONTENTS

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    54

    FOREWORD

    EXECUTIVE SUMMARY

    COMPETITIVE DIFFERENTIATION

    OPERATING MODEL

    INITIATIVE DESIGN

    INTERVENTION DESIGN

    MEASUREMENT AND LEARNING

    THE CASE FOR CHANGE

    INDUSTRY SCORE CARDS

    GEOGRAPHIC SCORE CARDS

  • HIGH STAKES, HIGH REWARDS: FOREWORD | 3

    FOREWORD

    We’re pleased to offer our latest research on

    how Canadian organizations are using data

    and advanced analytics to compete and win.

    In this new study, EY and Forbes Insights

    conducted a survey of 1,518 global executives

    at large enterprises, including 110 Canadian

    executives. The survey finds that leading

    organizations are placing greater strategic

    importance on advanced analytics and are

    investing in people and resources to embed

    advanced analytics more deeply into business

    decision-making.

    In some respects, Canadian businesses

    are ahead of their global peers in terms of

    advanced analytics adoption. In fact, 97% of

    Canadian respondents report some sort of

    analytics strategy in place. Of those, 22% say

    there is some analytics strategy for functions

    or lines of business; 22% say their analytics

    strategy is established for the enterprise, but

    not fully aligned across the business; 32%

    say their analytics strategy is established

    and starting to be viewed as a key strategic

    priority; while 17% say their analytics strategy

    is well established and central to their overall

    business strategy.

    When asked how data and analytics

    is impacting their business strategy/

    competitive differentiation, 32% say it’s

    prompted them to change some aspects of

    their business strategy, while another 32%

    say they are in the process of changing it.

    Meanwhile, 14% say they have already used

    data and analytics to completely change

    their business strategy and how they

    compete.

    Despite the attention Canadian companies

    have placed on advanced analytics, there is

    still more work to be done to benefit from

    the value of these programs. According to

    37% of Canadian respondents, designing

    advanced analytics programs/projects/

    initiatives is the biggest challenge to their

    company’s ability to create more value with

    data and analytics.

    In addition, Canadians are less likely than

    their global peers to have advanced analytics

    strategies that are viewed as a key strategic

    priority. In fact, only 17% of Canadian

    executives say their analytics strategy is well-

    established

  • 4 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

    Alex Mohelsky

    Partner & National Analytics Practice Leader EY Canada

    and central to the overall business strategy.

    Some of the top challenges to developing

    or refining the business strategy to account

    for data and analytics include organization/

    culture decision-making that is based

    more on intuition than data, regulatory

    constraints, lack of budget and other forms

    of organization commitment, and lack of

    collaboration/alignment among members of

    the management committee.

    According to the study, Canadian executives

    are also behind their global peers in terms of

    being able to apply analytics at the earliest

    stages of the business-development process

    and are struggling to measure the results of

    these advanced analytics programs. Even when

    data is available, senior business leaders are

    not consistently leveraging data and analytics

    in their decision-making to design and execute

    strategies. This puts Canadian organizations

    behind their global peers, hindering their

    ability to compete on the global stage.

    Canadian leaders must do more to close the

    gap and use advanced analytics insights in

    order to make the evidence-based case for

    change and fully capitalize on the strategic

    benefits of data-driven business initiatives.

    Contact us to discuss what leading Canadian

    organizations are doing to create a

    competitive advantage using analytics, and

    how we can help you.

    THE ROLE OF DATA AND ANALYTICS IN THE BUSINESS STRATEGY?

    CANADA

    TOTAL

    17%

    23%

    83%

    17%

    Analytics strategy is NOT well established and central to the overall business strategy

    Analytics strategy is well established and central to the overall business strategy

    77%

  • HIGH STAKES, HIGH REWARDS: EXECUTIVE SUMMARY | 5

    EXECUTIVE SUMMARY CANADIAN ENTERPRISES SHOW STRENGTHS

    — AND GAPS — IN ADVANCED ANALYTICS MATURITY

    Data and advanced analytics are taking on greater strategic importance for en-

    terprises throughout the world — nowhere more so than in Canada. Across all

    industrial sectors—from financial services to telecommunications to provincial

    governments — leading organizations are investing in people and resources to

    embed advanced analytics more deeply into business decision-making.

    Many Canadian organizations are ahead of global peers in these efforts, ac-

    cording to new research by Forbes Insights and EY. The survey polled 1518

    global executives at large enterprises, including 110 Canadian executives. The

    research revealed ambitious data strategies. “What’s new today is our capa-

    bilities for advanced analytics, including predictive modeling,” says Christine

    Grimm, senior executive director for investment and decision support within

    Nova Scotia’s Department of Health and Wellness. “This will enable us to link

    data sets that have not been linked before to influence future outcomes.”

    The survey found that a solid percentage of Canadian organizations rank as

    data leaders—as a result, they benefit from well-established analytics strategies

    and see growth in operating margins and revenues of 15% or more, respectively,

    along with significant improvement in their risk profile.

    In total, 11% of Canadian organizations see themselves as market leading in

    terms of their competitive ability to use advanced analytics. This level is higher

    than what global executives report overall. One explanation is that budget con-

    straints and poor collaboration among management committees — two

  • 6 | © 2017 EYGM LIMITED. ALL RIGHTS RESERVED.

    common roadblocks — are not as significant in Canada as in other parts of the

    world. Similarly, senior leaders in Canadian organizations are more willing to

    base decisions on advanced analytics rather than using intuition exclusively.

    But the findings also show a significant number of Canadian organizations

    share pain-points and roadblocks seen in other parts of the world. Canadians

    are less likely than their global peers to have advanced analytics strategies that

    are being viewed as a key strategic priority. Even fewer — only 17% — say these

    strategies are well-established and central to overall business strategy. This puts

    Canadian organizations behind others in two categories that are key differenti-

    ators for advanced analytics maturity.

    Other gaps include not being able to apply advanced analytics at the earliest

    stages of the business-development process and struggling to measure the

    results of analytics programs.

    Canadian firms must do more to build on their advantages in collaboration to

    close these and other gaps. When they do, more organizations will attain global

    leadership status and fully capitalize on the strategic benefits of data-driven

    business initiatives.

    ANALYTICS LINKAGES

    OUTCOMES

    MEASUREMENT AND LEARNING Quantifying and learning from

    data-driven business outcomes.

    OPERATING MODEL Building the underlying models that govern analytics activities, such as organizational structures that allow

    collaboration, chain of command, etc. INITIATIVE DESIGN

    Defining the specific activities and projects that will achieve desired

    business outcomes

    INTERVENTION DESIGN Translating all the upfront goal-setting,

    modeling, and methodology into action— making analytics insights an integral part of business operations.

    COMPETITIVE DIFFERENTIATION Defining the role that data and analytics plays in the company strategy and business model.

    STRATEGY INITIATIVES

    ANALYTICS PRODUCTION

    ANALYTICS CONSUMPTION

    MARKET

  • HIGH STAKES, HIGH REWAR