1

Big Decisions – How Data Analytics can drive improved performance and greater efficiencies

Date

Agenda

Speakers

01 02 PwC & Analytics

03 Big Decisions

Survey

04 Analytics

05 Examples

06 Wrap up

2

PwC

Draft

Image credit | Jessie Edwards

PwC | page 3

Business Impact + Creativity

A new kind of analytics consulting.

6 Booz & Co Integration • Marketing and Sales Management

• SME in Operations Research, Data Mining, Analytics • Expertise in Manufacturing, Energy, Oil & Gas, Utilities, Retail

and Customer Experience • Deep focus in optimization and business process improvement

Zaman Forootan, PhD

Speakers

0 01

4

• Director, Consulting & Deals – Oracle Alliance • Expertise in aligning customer requirements to Oracle

technologies including ERP, HCM, EPM, BI, IDM and CX • 22+ years experience in business development

Eduardo Arroyo

PwC, Oracle &

Business Analytics

02

5

PwC

Oracle Awards, Accolades, and a Global Network

6

#1 Deployed the 1st HCM and ERP Cloud project in the world.

3,700+ Oracle Practitioners Worldwide

250+ More than 250 Cloud initiatives deployed in the past year.

157 countries In our global delivery network

16 Industries (29 sub-industries) serving clients with strategy through execution capabilities

80% Of the Fortune 500 financial services institutions are clients.

#1 Awarded two 2015 Oracle Excellence Awards-Industry-Global and North America- HCM Core- HR Solution

37 General Specializations and Recognized as Oracle Diamond Partner

161+ Years serving clients

INTERNAL USE ONLY

PwC | page 7

2015 Oracle Excellence Awards for:

7

Specialized Partner of the Year 2015– Industry – Global Specialized Partner of the Year 2015- North America- HCM Core- HR Solution

PwC | page 8

Gartner–Challenger PwC is positioned as a "Challenger"

in Gartner's Magic Quadrant for Business Analytics Services,

Worldwide, July 2014 Forrester–

Leader PwC is positioned as a Leader in the Forrester

Wave for BI Service Providers, October 2014 IDC–Major

Player According to IDC analysis and vendor perception, PwC is an IDC MarketScape Worldwide

Enterprise Performance Management Business

Consulting Services Major Player, July 2014

The Market

PwC Globally has been recognized as a leader in

analytics.

IDC–Leader According to IDC analysis

and vendor perception, PwC is an IDC MarketScape

Business Analytics Services Leader Worldwide, May 2014

PwC 9

Key service offerings

Offering Information

Strategy

Advanced

Analytics Agile Analytics Analytics Apps

Data Quality –

Master Data

Big Data -

Infrastructure Sustainment

Client

Question Where do I start?

How do I find

hidden insights? Is there value?

Hasn’t someone

done this before?

What I am going

to do about

quality?

How do I reduce

costs?

Where am I going

to find the skills I

need?

Value

Proposition

Identification of

potential value

and plan to

realize

Creation of

transformational

insights with

significant cost,

risk, or revenue

returns

Development of

Fast Insights

and/or

Prove ROI for

Analytics

Provide proven

methods at

optimal price

point to address

client problems

Minimize the

impact of quality

issues upon

decision making

Reduction of data

management

costs

Providing the

talent needed to

harness insights

from information

Clients &

Prospects

PwC | page 10

Our Capabilities in EPM & BI

10

Consulting Managed Services

Data & Application Management

• Monitor Anything

• BI & Hyperion Administration

• Database Administration

• Middleware Administration

Business Intelligence

• Analytic Applications

• Enterprise Reporting

• Scorecarding

• Data Warehousing

• Data Governance

Performance Management

• Strategic Finance

• Financial Consolidation

• Planning and Budgeting

• Financial Mgmt Reporting

We can provide a broad range of Performance Management & IM services

Assess Design Build Implement Operate

• Current state analysis • Case for change • Target operating model

definition • Roadmap and strategy

• Requirements definition • Software Selection • Software technical install • Business process design • KPI, reporting and data

model design • Solution functional Design • Technical Design • Change management plan

• Build application • Data conversion • Data validation and tie

outs • Unit and integration tests • User acceptance tests

support • Build process, procedures

and controls

• Build application training material

• Build process and control documentation

• Support training delivery • Perform promotion of

changes to Prod • Perform cut-off procedures • Deliver user support

• Apply patches • Break/fix request • Upgrades technical

installation and implementation support

• User support

We can support you throughout the whole project and application maintenance lifecycle

Oracle Diamond Partner • 10 areas of Advanced

Specializations • 24 General Specializations Member of Oracle's BI Leadership Council PwC Canada: • 35+ EPM resources • 40+ IM & BI resources PwC Worldwide: • 2,700+ Oracle resources • 880+ IM/BI resources • 2 Solution Delivery Centers

in Asia (India and China)

PwC | page 11

Our capabilities

11

Our industries:

• TCRC: Technology, Communications, Retail & Consumer

• EUMI: Energy, Utilities, Mining & Industrial Products

• FS: Financial Services

• PCS: Private Company Services

• PS: Public Sector

On Premise

Cloud & Big Data

Data Platform

• BI Foundation Suite, OBIEE, Essbase • Scorecard • BI Apps

• OTBI • OTBI-E • BICS • Big Data Information Discovery

• Oracle Database • Oracle RAC • Times Ten • Golden Gate • ODI

Exalytics & Exadata

Oracle Cloud

Big Decisions Survey

03

12

PwC | page 13

Decision Drivers

Data and analytics

24% 29%

Experience 53% 42%

Instinct 20% 16%

Reality Check

While 50% of Canadian

executives feel that their

companies decision making is

highly data driven, their last big

decision was most likely driven

by intuition or experience

Source: PwC's Global Data & Analytics Survey 2014: Big

Decisions (Canadian insights) Photo Credit: Brian Snelson, Addo Elephant Park, (CC by 2.0)

Rear View Analytics

- Production and operational reports

- Static dashboards

- Point-in-time analytics

- Emphasis on ‘facts’ versus insights (e.g., Attrition rates, loss performance, agent revenues)

Photo Credit: Rob Oo, Elephant, (CC by 2.0)

Forward Looking Analytics

- ‘What-if’ scenarios

- Dynamic ‘cockpits’ to navigate business

- Predictive insights (e.g., opportunity identification, customer trends, preempting customer needs to improve retention)

Where do your clients land?

PwC | page 14

Photo Credit: Antonio Cinotti

, Follow the Path . . . (CC by 2.0)

The Challenge

80%

% of worldwide data collected in the past 2 years

% of data warehousing

projects have failed

Photo Credit: Zach

Dischner, Up and Out

(CC BY 2.0)

PwC | page 15

The Roadblocks

Canadian executives have

identified three key barriers to

achieving improved insights

Quality and completeness of

data

43% 35%

Timeliness of data

70% 46%

Lack of skills and expertise

48% 40%

Source: PwC's Global Data & Analytics Survey 2014: Big

Decisions (Canadian insights)

Photo Credit: B4Bees, Rolling Roadblock, (CC by 2.0)

PwC 16

Key service offerings

Offering Information

Strategy

Advanced

Analytics Agile Analytics Analytics Apps

Data Quality –

Master Data

Big Data -

Infrastructure Sustainment

Client

Question Where do I start?

How do I find

hidden insights? Is there value?

Hasn’t someone

done this before?

What I am going

to do about

quality?

How do I reduce

costs?

Where am I going

to find the skills I

need?

Value

Proposition

Identification of

potential value

and plan to

realize

Creation of

transformational

insights with

significant cost,

risk, or revenue

returns

Development of

Fast Insights

and/or

Prove ROI for

Analytics

Provide proven

methods at

optimal price

point to address

client problems

Minimize the

impact of quality

issues upon

decision making

Reduction of data

management

costs

Providing the

talent needed to

harness insights

from information

PwC 17

Two distinct approaches to advanced analytics

Solving a complex business problem via forming hypotheses

based on an idea or observation, then gathering data to prove

or disprove these specific hypotheses

Given a large set of data, trying to find correlations that

might lead to an insight that could drive an “improvement”

Investigative

(Big Data) Problem solving

(Hypothesis-driven approach)

Data Analytics Insights, Decisions, Action

Both methods would follow the path described below:

Analytics

04

18

PwC 19

Forms of Business Analytics

The four types of analytics, traditionally called the evolution of analytics, PwC can help accelerate to crate value faster

Qu

es

tio

ns

T

ec

hn

iqu

es

E

xa

mp

les

T

oo

ls

What happened?

What is happening?

• Business Reporting

• Scorecards

• BI

• HALO

• Financial performance

results

• Staff performance

scorecards

Why is it happening?

Where is the

problem?

What are the trends?

• Agile Dashboards

• Cause and effect

• Correlations

• Behavioral analytics

• Data & text mining

• HALO

• Risk Analytics

• Rapid BI apps

• Workforce analytics

• Analytical apps

What is likely to

happen next?

• Predictive modeling and

statistical analytics

• Regression analysis

• Forecast modeling

• Strategy & growth

analytics

• Customer analytics

• Fraud & Cyber analytics,

etc.

What should I do?

What is the next best

action?

• Optimization

• Artificial Intelligence

• Machine learning

• Simulations

• Analytical apps with

simulated outcomes

Prescriptive Descriptive Diagnostic Predictive

Reporting Discover & Explore Forecast Anticipate &

Information Continuum

20

DATA TO RUN & OPERATE

INFORMATION TO MANAGE THE OPERATIONS

INFORMATION AS A STRATEGIC

ASSET

INFORMATION TO ENABLE

INNOVATION

FACT-BASED DECISION CULTURE

Le

ve

l o

f M

atu

rit

y &

Va

lue

LOW

HIGH

Information Management / Informatics

Business Intelligence Analytics

Most organizations today largely use data to run/operate the organization and make tactical decisions

Prescriptive Analytics

Predictive Analytics

Real-time Analytics

Diagnostic Analytics

Descriptive Analytics

What happened?

Why is it happening?

What’s happening right now?

What will happen next?

How can we change?

Hindsight

Foresight

21

Examples

05

21

Strategic Location Problem A good example of using descriptive and prescriptive analysis

Being SMART:

Examples

05

Start with the firm’s Strategy and ask the right questions, Measure the relevant metrics, apply Advanced Analytics, Prepare informative Reports, and Transform the business to increase efficiency

Household Recyclables Collection Improving the collection process

Maximizing Cash Flow by Well Allocation Well selection to improve cash flow

Monetizing Data ROI on data – turning data into dollars

22

PwC

Strategic Location

Descriptive Analysis

23

2000 2002 2004 2006 2008 2010 2012 2014

Assuming that we want to have P facilities in AB, SK, or BC, where should they be located at?

Where the activities are happening?

PwC

Strategic Location

Descriptive Analysis

24

Assuming that we want to have P facilities in AB, SK, or BC, where should they be located at?

Which firms are doing the activities?

PwC

Strategic Location: Using all sources off data

25

Theory Public Data Google API

Advance Analytics (Prescriptive Model) is the bridge connecting insight to action

PwC

Strategic Location: Results

Prescriptive Analysis

26

28% savings in transportation costs More transportation cost Less other facility costs Free up cash from selling real states

PwC

Collection Process

• Every Week

• 300,000 Houshold

• 27,000 km of travel every week

• Nearly 30% of the travel is empty trucks

27

Houshold recyclables collection in Calgary

© Mozart Menez, 2014

PwC

Improving Collection Process

1500

2000

2500

3000

3500

4000

4500

0 1 2 4 C

OS

T I

N S

TA

ND

AR

D K

M/W

EE

K

NUMBER OF TRANSFER FACILITIES

Technology effect

Utilization effect

Status Que

Routing Optimization

28 © Mozart Menez, 2014

PwC

Well Allocation

A natural gas company is exploring the optimal solution to select gas wells in order to increase cash flows while keeping within a set of constraints.

PwC

Business Challenge maximizing Cash Flow

What is the best selection of wells to operate each year to maximize cash flow?

30

Changing Environment

• Commodity price 1 Limited Capacity

• Production Capacity • Available Cash Flow 2 Model Scalability

• Number of Wells • Planning Horizon 3 C

ha

lle

ng

es

PwC

Optimization Model

To explain the concept, the following simple scenario is modeled:

31

5 wells to select from

10 years planning horizon

3000 M.ft3/yr. production capacity

PwC

Optimization Model Simplified Model with Assumptions

32

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Pro

duction

Year

Total Production

Well 5

Well 4

Well 1

Well 3

Well 2

Base

($20,000.00)

($10,000.00)

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 N

PV

Year

NPV for Cash Flows (ROI=3%)

Well 5

Well 4

Well 1

Well 3

Well 2

Base

The base production is simply calculated from the available data

Fixed Production Capacity of 3000 M.ft3/yr.

Once a well is turned on, it remains active for the remaining years

The goal is to maximize the NPV with a discount rate 3%

PwC

Optimization Model Scalable Models

The model is presented in a simplified scenario. There are multiple ways to increase complexity level and add more considerations to it.

33

1 2 3 4 5

A more realistic assumption for the base production

More accurate forecasts for gas price

Combination of Simulation and Optimization

Considering different gas mixtures and their production/ cost

Considering yield success rate and probability of drilling a dry well

6

Considering abandonment

and its operations cost/opportunity cost

34

Wrap Up

06

34

35 PwC 35

Key service offerings

Offering Information

Strategy

Advanced

Analytics Agile Analytics Analytics Apps

Data Quality –

Master Data

Big Data -

Infrastructure Sustainment

Client

Question Where do I start?

How do I find

hidden insights? Is there value?

Hasn’t someone

done this before?

What I am going

to do about

quality?

How do I reduce

costs?

Where am I going

to find the skills I

need?

Value

Proposition

Identification of

potential value

and plan to

realize

Creation of

transformational

insights with

significant cost,

risk, or revenue

returns

Development of

Fast Insights

and/or

Prove ROI for

Analytics

Provide proven

methods at

optimal price

point to address

client problems

Minimize the

impact of quality

issues upon

decision making

Reduction of data

management

costs

Providing the

talent needed to

harness insights

from information

© 2015 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the United States member firm, 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.

PwC

Big Data Infrastructure

Enterprise data hub

Traditional data infrastructure

Big data infrastructure

Infrastructure cost

Big Insights

New data products

Moving a KPI/metric

Defining new metrics and behaviours

Drive costs down

Monetizing Data – turning data into dollars

$17.00/GB

$0.23/GB*

* Cloudera Dell Case Study, 2013