1. The power of analytics for better and faster decisions
27 June, 2016
WEF Annual Meeting of the New Champions
The power of analytics for better and faster decisions

2. PwC’s 2016 Global Data and Analytics Survey Big DecisionsTM
Why
Strategic decisions create value for an organisation.
Decision-makers are now face-to-face with an opportunity to learn from massive amounts of data.
How can we apply data analytics to create greater value?
What
What types of decisions will you need to make between now and 2020?
What types of data and analytics do these decisions require?
What is the role of machines in decision making?
What’s your ambition for improving your company’s decision speed and sophistication to make these decisions?
Who
2,100+ senior decision-makers
50+ countries
15 industries

3. What is a big decision?
90% of respondents think their next strategic decision will increase shareholder value, ranging up to a 200% increase.

4. Approximately 1/3 of business leaders plan to make decisions around the development of a new product or service by 2020
Which one of the following best describes this key strategic decision?
Survey question: Which one of the following best describes this key strategic decision?
Note: Survey data is still being collected and final results may change.

5. Polling question
Which of the following best describes decision-making in your organisation?
Highly data-driven
Somewhat data-driven
Rarely data-driven
Survey question: Which of the following best describes decision-making in your organisation? 
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6. The landscape is changing
A high percentage of companies consider themselves data-driven…
Global
China
Highly data-driven
Somewhat data-driven
Rarely data-driven
… and data-driven companies are making these strategic decisions
Survey questions:
Which of the following best describes decision-making in your organisation? 
Which one of the following best describes this key strategic decision?
Developing or launching new products and services
Entering new markets

7. PwC’s Decision Sophistication & Speed Matrix
Why look at decision speed and sophistication? Improving both can help maximise return on investment
Sophistication
Low
High
Speed
Speed
Time to answer question
Time to decide action
Time to implement and measure
Sophistication
Analytics maturity
Data breadth and depth
Decision approach
PwC’s Decision Sophistication & Speed Matrix
(n=# of decisions)

8. Ambition is high to improve decision speed and sophistication Orange shows today; blue shows where companies want to be by 2020
Global
China

9. Capabilities vary by country for speed and sophistication…
Low
High
Speed
Sophistication
High
Low

10. Government and Public Sector
… and the same is true for industries The Insurance industry is known for advances in analytics. Compared with other sectors, they give today’s capabilities only modest marks.
Government and Public Sector
Technology
Insurance
Low
High
Speed
Sophistication
Low
High
Speed
Sophistication
Low
High
Speed
Sophistication

11. Polling question What is more critical to you?
Improve speed in decision making
Improve sophistication of analysis
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12. Everyone will fall short of their ambition – but less so in China
Global
China
Add dots here; add global & china; medians & 3 dots
Existing
Likely in 2020
Needed in 2020

13. A significant role for machines is emerging and companies are taking advantage of what machines offer
Why?
Machines don't replace human judgment but the right mix of mind and machine can reduce the impact of human bias, yield more accurate answers and de-risk the decision - even for complex problems.
What will the analysis informing your next decision require?
41% Machine analysis/algorithms
59% Human judgment

14. Companies can de-risk decisions by using machines
Reliance on Judgment vs. Machine Analysis by Risk Profile
(n= # of Decisions)
Known Manageable...Unknown, Uncertain RISK
Machine Algorithms....Human Judgment
Global
ANALYSIS
How we tested the concept 2,100+ decisions
2 dimensions
x axis: Risks are known and manageable or unknown and uncertain
y axis: Analysis relies on human judgment or machine algorithms

15. The use of human judgment and machine algorithms varies by country
United States
China
Japan UK
Germany

16. The survey reinforces that data driven companies are using machine algorithms more pervasively…
Global
Human Judgment
Machine Algorithms

17. …and also shows that data driven companies are much more likely to be using predictive and prescriptive analytics.
Global
China
Predictive
Prescriptive
Diagnostic
Descriptive

18. What limits decision-making
What limits decision-making? Decision-makers say it’s not data or the ability to analyse it
Decision-makers feel least constrained by…
Ability to analyse data
Data limitations
These areas hold them back more…
Availability of resources
Budgetary considerations
Issues with implementation
Leadership courage
Operational capacity to act
Policy constraints/regulation of data
Poor market response
Survey question: This decision will likely be limited by…

19. What we’ve learned
More and more organisations are taking a data-driven approach to making strategic decisions. Are you?
Data-driven organisations are using machines to de-risk their decisions.
Executives have great ambition to increase decision speed and sophistication.
But, everyone expects to fall short of their ambition. What’s your expectation?
Organisations face many limitations in their decision making, however data and the ability to analyse data are the least of their concerns.

20. Thank you For more information visit, www. pwc
Thank you For more information visit, Continue the conversation with us online, follow: Dan DiFilippo, Global and US Data and Analytics PwC Advisory
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