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

Transcription

1 Date Big Decisions How Data Analytics can drive improved performance and greater efficiencies 1

2 Agenda Speakers PwC & Analytics Big Decisions Survey Analytics 06 Wrap up 05 Examples 2

3 Draft Business Impact + Creativity A new kind of analytics consulting. Booz & Co Integration Marketing and Sales Management PwC PwC page 3 6 Image credit Jessie Edwards

4 01 Speakers Zaman Forootan, PhD Eduardo Arroyo 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 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 4

5 02 PwC, Oracle & Business Analytics 5

6 Oracle Awards, Accolades, and a Global Network #1 Awarded two 2015 Oracle Excellence Awards-Industry-Global and North America- HCM Core- HR Solution 16 Industries (29 sub-industries) serving clients with strategy through execution capabilities 37 General Specializations and Recognized as Oracle Diamond Partner 3,700+ Oracle Practitioners Worldwide #1 Deployed the 1 st HCM and ERP Cloud project in the world More than 250 Cloud initiatives deployed in the past year. 157 countries In our global delivery network 161+ Years serving clients 80% Of the Fortune 500 financial services institutions are clients. PwC INTERNAL USE ONLY 6

7 2015 Oracle Excellence Awards for: Specialized Partner of the Year 2015 Industry Global Specialized Partner of the Year North America- HCM Core- HR Solution PwC page 7 7

8 Gartner Challenger PwC is positioned as a "Challenger" in Gartner's Magic Quadrant for Business Analytics Services, Worldwide, July 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 Forrester Leader PwC is positioned as a Leader in the Forrester Wave for BI Service Providers, October 2014 IDC Leader According to IDC analysis and vendor perception, PwC is an IDC MarketScape Business Analytics Services Leader Worldwide, May 2014 The Market PwC Globally has been recognized as a leader in analytics. PwC page 8

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 9

10 Our Capabilities in EPM & BI Oracle Diamond Partner We can provide a broad range of Performance Management & IM services 10 areas of Advanced Consulting Managed Services Specializations Performance Management Business Intelligence Data & Application Management 24 General Specializations Strategic Finance Financial Consolidation Planning and Budgeting Financial Mgmt Reporting Analytic Applications Enterprise Reporting Scorecarding Data Warehousing Data Governance Monitor Anything BI & Hyperion Administration Database Administration Middleware Administration Member of Oracle's BI Leadership Council We can support you throughout the whole project and application maintenance lifecycle 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 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 10 10

11 Our capabilities OTBI OTBI-E BICS Big Data Information Discovery Cloud & Big Data On Premise BI Foundation Suite, OBIEE, Essbase Scorecard BI Apps Our industries: TCRC: Technology, Communications, Retail & Consumer EUMI: Energy, Utilities, Mining & Industrial Products Oracle Database Oracle RAC Times Ten Golden Gate ODI Data Platform Exalytics & Exadata FS: Financial Services PCS: Private Company Services PS: Public Sector Oracle Cloud PwC page 11 11

12 03 Big Decisions Survey 12

13 Reality Check Where do your clients land? 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 Rear View Analytics Forward Looking Analytics Data and analytics Decision Drivers 24% 29% Experience 53% 42% Instinct 20% 16% Source: PwC's Global Data & Analytics Survey 2014: Big Decisions (Canadian insights) - 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: Brian Snelson, Addo Elephant Park, (CC by 2.0) - What-if scenarios - Dynamic cockpits to navigate business - Predictive insights (e.g., opportunity identification, customer trends, preempting customer needs to improve retention) Photo Credit: Rob Oo, Elephant, (CC by 2.0) PwC page 13

14 The Challenge % of worldwide data collected in the past 2 years 80% % of data warehousing projects have failed hoto Credit: Antonio Cinotti Follow the Path... (CC by 2.0) Photo Credit: Zach Dischner, Up and Out (CC BY 2.0) PwC page 14

15 The Roadblocks Canadian executives have identified three key barriers to achieving improved insights Timeliness of data Quality and completeness of data 43% 35% 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 page 15

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 16

17 Two distinct approaches to advanced analytics Investigative (Big Data) Given a large set of data, trying to find correlations that might lead to an insight that could drive an improvement Problem solving (Hypothesis-driven approach) Solving a complex business problem via forming hypotheses based on an idea or observation, then gathering data to prove or disprove these specific hypotheses Both methods would follow the path described below: Data Analytics Insights, Decisions, Action PwC 17

18 04 Analytics 18

19 Tools Examples Techniques Questions Forms of Business Analytics The four types of analytics, traditionally called the evolution of analytics, PwC can help accelerate to crate value faster Descriptive Diagnostic Predictive Prescriptive Reporting Discover & Explore Forecast & Anticipate What happened? What is happening? Why is it happening? Where is the problem? What are the trends? What is likely to happen next? What should I do? What is the next best action? Business Reporting Scorecards BI Agile Dashboards Cause and effect Correlations Behavioral analytics Data & text mining Predictive modeling and statistical analytics Regression analysis Forecast modeling Optimization Artificial Intelligence Machine learning Simulations HALO Financial performance results Staff performance scorecards HALO Risk Analytics Rapid BI apps Workforce analytics Analytical apps Strategy & growth analytics Customer analytics Fraud & Cyber analytics, etc. Analytical apps with simulated outcomes PwC 19

20 Level of Maturity & Value Information Continuum HIGH What will happen next? How can we change? Predictive Analytics Prescriptive Analytics Foresight What happened? Descriptive Analytics What s happening right now? Why is it happening? Diagnostic Analytics Real-time Analytics INFORMATION AS A STRATEGIC ASSET INFORMATION TO ENABLE INNOVATION FACT-BASED DECISION CULTURE Hindsight DATA TO RUN & OPERATE INFORMATION TO MANAGE THE OPERATIONS Most organizations today largely use data to run/operate the organization and make tactical decisions LOW Information Management / Informatics Business Intelligence Analytics 20

21 05 Examples 21 21

22 05 Examples Strategic Location Problem A good example of using descriptive and prescriptive analysis Being SMART: 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

23 Strategic Location Assuming that we want to have P facilities in AB, SK, or BC, where should they be located at? Descriptive Analysis Where the activities are happening? PwC 23

24 Strategic Location Assuming that we want to have P facilities in AB, SK, or BC, where should they be located at? Descriptive Analysis Which firms are doing the activities? PwC 24

25 Strategic Location: Using all sources off data Advance Analytics (Prescriptive Model) is the bridge connecting insight to action Theory Public Data Google API PwC 25

26 Strategic Location: Results Prescriptive Analysis 28% savings in transportation costs More transportation cost Less other facility costs Free up cash from selling real states PwC 26

27 Houshold recyclables collection in Calgary Collection Process Every Week 300,000 Houshold 27,000 km of travel every week Nearly 30% of the travel is empty trucks PwC Mozart Menez,

28 COST IN STANDARD KM/WEEK Improving Collection Process Routing Optimization Status Que Utilization effect Technology effect NUMBER OF TRANSFER FACILITIES PwC Mozart Menez,

29 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

30 Challenges Business Challenge maximizing Cash Flow What is the best selection of wells to operate each year to maximize cash flow? 1 Changing Environment Commodity price 2 Limited Capacity Production Capacity Available Cash Flow 3 Model Scalability Number of Wells Planning Horizon PwC 30

31 Optimization Model To explain the concept, the following simple scenario is modeled: 5 wells to select from 10 years planning horizon 3000 M.ft 3 /yr. production capacity PwC 31

32 NPV Production Optimization Model Simplified Model with Assumptions Total Production 3, , Fixed Production Capacity of 3000 M.ft 3 /yr. 2, , Well 5 Well 4 Well 1 1, Well 3 Well 2 The base production is simply calculated from the available data 1, Base - Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Year Once a well is turned on, it remains active for the remaining years $90, NPV for Cash Flows (ROI=3%) $80, $70, The goal is to maximize the NPV with a discount rate 3% $60, $50, $40, Well 5 Well 4 Well 1 $30, Well 3 Well 2 $20, Base $10, $0.00 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 ($10,000.00) PwC ($20,000.00) Year 32

33 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 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 Considering abandonment and its operations cost/opportuni ty cost PwC 33

34 06 Wrap Up 34 34

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 PwC 35 35

36 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 for further details.

37 Monetizing Data turning data into dollars Big Data Infrastructure Big Insights Traditional data infrastructure New data products $17.00/GB Big data infrastructure Enterprise data hub Moving a KPI/metric Drive costs down Defining new metrics and behaviours $0.23/GB* Infrastructure cost PwC * Cloudera Dell Case Study, 2013