Are you prepared to make the decisions that matter most? Decision making in consumer goods

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Beverly Hensley
5 years ago
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1 Are you prepared to make the decisions that matter most Decision making in consumer goods Results from PwC s Global Data & Analytics Survey 2014

2 consumer goods Changing demographics everywhere. Resource scarcity and vulnerable supply chains. Social media as a demand influencer. Consumer goods companies are experimenting continuously to engage consumers directly. Are your analytics set up to help you quickly spot and evaluate new possibilities and impacts

3 Big decisions in the consumer goods Big decisions change strategy and long-term course. Few feel fully prepared to make big decisions. Should we... Rethink which markets are right for us Sell directly to consumers Seek new collaborations with competitors Few see their senior management as fully prepared to make the most important decision they need to make in the next 12 months 25% 69% 6% Fully prepared Somewhat prepared Moving from unprepared to prepared Unprepared

4 Where speed and sophistication count The bigger the stakes, the bigger the difference that sophisticated analytical capabilities can make. Among consumer goods executives Top goals for big decisions, next 12 months Grow an existing business A major investment in the business 34% 29% Enter a new industry or start a new business 28% Corporate restructuring 28% Negotiating major contract(s) $ 26% Brand positioning 26% Shrink an existing business 25% Collaborate with competitors 23%

5 No time for indecisiveness Among insurance consumer goods executives, executives, next 12 next months 12 months JAN MAR MAY JUL SEP NOV FEB APR JUN AUG OCT DEC new opportunity months 39% 49% expect to make a big decision at least once per month 43% 38% say say their they ve most been important decision putting will off or be delaying based on a new the opportunity most important they simply can t decision ignore on their agenda 47% 48% plan plan to revisit to revisit their their most most important important big decision big decision within within 3-6 months to adjust 3-6 months for new to information adjust new information 31% estimate the value of their most important big decision as US$1billion or more in future profitability 39% estimate the value of their most important big decision as US$1billion or more in future profitability 39% 9% 25% 20% 6% >US$1bn 31% 7% $250m 31% $50m <$50m 24% 6% $1bn >US$1bn $250m $50m $250m <$50m too $1bn $250m difficult to too value difficult to value

6 Both intuition and analytics matter It s no longer good enough to make decisions based on intuition alone. Among consumer goods executives Which did you rely on most for the last big decision you made 31% 36% 33% My own experience and intuition Relevant experience of others Data and analytics inputs

7 Where deciders struggle: new skills, better analytics Among consumer insurance goods executives: executives: top responses top responses What prevents you from making greater use of data and data analysis when making big decisions skills data data 31% 39% 31% 28% 30% 37% 42% 28% Organisational silos There is a limited direct Other senior leaders benefit There is to a my limited kind direct of role lack sufficient skills or benefit to my kind of role expertise Seeing limits: Consumer goods executives see their own Seeing organisational limits: It s sometimes silos getting difficult in the way to see of how progress. you By exploit focusing new sources on the big of decisions data for competitive that need to advantage. be made and Insurers which need data new sets quantitative might be used skills to that make build them, upon their consumer traditional goods actuarial executives and statistical can create perspectives. These benefits new skills that also cross require organisational different ways boundaries. of thinking about data and how it can be used. It s difficult to assess The quality, accuracy It s which difficult data to is truly assess useful or The completeness quality, accuracy of the or which data is truly useful data completeness isn t high of enough the data isn t high enough Why it matters: Too much information can hurt decision making Real-time if it data: becomes Insurers distracting, are faced takes with too new long, sources or is not of needed. real-time data from sensors, telematics, wearable and Think other mobile instead: devices Imperfection that haven t isn t always been historically bad. Consumer goods available. executives It s challenging can gain to unique interpret insights this data from and incomplete incorporate or new imperfect insight into data traditional sets, provided products, they are triangulated underwriting, with operations other information. and claims decision making.

8 Where change in decision making is starting to happen Among insurance consumer goods executives executives! We ve changed the way we approach big decision We ve changed the way we approach big decision making as a result of big data or analytics making as a result of big data or analytics 61% 71% 28% 23% 11% 6% Yes Yes No, but No, plan but plan No, No, or or to do to sodo so don t don t know Top three changes, last 24 months Relied Changed on the enhanced way data or data analytics analytics is presented such as to simulation, management optimisation, or predictive analytics Employed Made greater a dedicated use data of specialised insights team analytical to inform tools strategic decisions Trained Changed executives the way on interpreting data or analytics data/data analysis presented techniques to management

9 Big decisions need better analytics Some decisions you need to make are big enough to change the course for your business. And your past experiences may not be good predictors of the future. More data are within your reach to understand what was previously unknown. Sophisticated analytical tools are available to you to see a wider range of possibilities and evaluate them quickly. Now is a good time for an upgrade in your decision making capabilities. Where should you start

10 To explore the data and more: Base: Consumer goods (65); All respondents (1,135). Responses of do not know and other are excluded. Responses may not total to 100%. PwC helps organisations and individuals create the value they re looking for. We re a network of firms in 157 countries with more than 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details.

Are you prepared to make the decisions that matter most? Decision making in banking & capital markets

www.pwc.com/bigdecisions Are you prepared to make the decisions that matter most? Decision making in banking & capital markets Results from PwC s Global Data & Analytics Survey 2014 banking & capital markets