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
Do you have any regrets about Big Decisions youve made?
Guitar groups are on the way out.
Dick Rowe, Decca Records executive, 1962
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?
Data-driven decision making is still a new frontier of competitive advantage
1,135 senior executives
from across the world
representing a total of 18 industries
where majority (74%) of companies
reported annual revenues of at least
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: PwCs Global Data & Analytics Survey: Big Decisions 7
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: PwCs Global Data & Analytics Survey: Big Decisions 8
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: PwCs 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
Most companies dont yet have mature data analytics capabilities
Source: PwCs Industry 4.0: Building the Digital Enterprise 10
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 havent 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.
What decisions will your company need to make in the next five years?
Develop or launch new products or
Shrink existing business
Enter a new industry or start a new
Invest in IT
Enter new markets with
existing products or
Whats 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?
and business acumen and instinct?
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: PwCs Global Data & Analytics Survey: Big Decisions 15
What can your organization do to enable better, faster decision making?
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.
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