The Power of Analytics For Better and Faster Decisions

PwC‘s Global Data and Analytics Survey 2016: Big Decisions™
27 June, 2016
WEF Annual Meeting of the New Champions
The power of analytics for better and

faster decisions
PwC’s 2016 Global Data and Analytics Survey

Big DecisionsTM
Why What Who
• Strategic decisions create • What types of decisions will • 2,100+ senior decision-
value for an organisation. you need to make between makers
• Decision-makers are now now and 2020? • 50+ countries
face-to-face with an • What types of data and • 15 industries
opportunity to learn from analytics do these decisions
massive amounts of data. require?
• What is the role of
• How can we apply data
machines in decision
analytics to create greater
making?
value?
• What’s your ambition for
improving your company’s
decision speed and
sophistication to make
these decisions?
PwC 2
What is a big decision?
90% of respondents think their next strategic

decision will increase shareholder value,
ranging up to a 200% increase.
PwC 3
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?
PwC Note: Survey data is still being collected and final results may change. 4
Polling question
Which of the following best

describes decision-making in
your organisation?
1. Highly data-driven
2. Somewhat data-driven
3. Rarely data-driven
PwC 5
The landscape is changing

A high percentage of companies consider themselves data-driven…
Global China
Highly data-driven
… and data-driven companies are making these strategic decisions Somewhat data-
driven
Developing or launching new products and services Entering new markets
Rarely data-driven
PwC 6
Why look at decision speed and sophistication?

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

Orange shows today; blue shows where companies want to be by 2020
Global China
PwC 8
Capabilities vary by country for speed and sophistication…
High
High
High
High
Speed
Speed
Low
Low
Low
Low
Speed
Low High High
Sophistication Sophistication
High
High
Low
Speed
Speed
Low High
Sophistication Low
Low
Low High Low High
Sophistication Sophistication
PwC 9
… 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
High
High
High
Speed
Speed
Speed
Low
Low
Low
Low High Low High Low High
Sophistication Sophistication Sophistication
PwC 10
Polling question
What is more critical to you?

1. Improve speed in decision
making
2. Improve sophistication of
analysis
PwC 11
Everyone will fall short of their ambition – but less so in China
Global China
Existing
Likely in 2020
Needed in 2020
PwC 12
A significant role for machines is emerging and companies are

taking advantage of what machines offer
Why?
What will the analysis
Machines don't replace human judgment but
informing your next decision
the right mix of mind and machine can reduce
require?
the impact of human bias, yield more
41% Machine analysis/algorithms accurate answers and de-risk the decision -
59% Human judgment even for complex problems.
PwC 13
Companies can de-risk decisions by using machines
Machine Algorithms....Human Judgment

Global
ANALYSIS
Known Manageable...Unknown, Uncertain

RISK
Reliance on Judgment vs. Machine Analysis
by Risk Profile
(n= # of Decisions)
PwC 14
The use of human judgment and machine algorithms varies by

country
China United States Japan
UK Germany
PwC 15
The survey reinforces that data driven companies are using

machine algorithms more pervasively…
Global
Human Judgment
Machine Algorithms
PwC 16
…and also shows that data driven companies are much more
likely to be using predictive and prescriptive analytics.
Global China
Predictive
Prescriptive
Diagnostic
Descriptive
PwC 17
What limits decision-making?

Decision-makers say it’s not data or the ability to analyse it
Decision-makers feel least constrained by… These areas hold them back more…
• Ability to analyse data • Availability of resources
• Data limitations • Budgetary considerations
• Issues with implementation
• Leadership courage
• Operational capacity to act
• Policy constraints/regulation of data
• Poor market response
PwC 18
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.
PwC 19
Thank you
For more information visit, www.pwc.com/bigdecisions
Continue the conversation with us online, follow:
Dan DiFilippo, Global and US Data and Analytics Leader, @DanDGlobal
PwC Advisory Services, @PwCAdvisory
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, PricewaterhouseCoopers LLP, its members, employees and agents do 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.
© 2016 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP
which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal
entity. 21

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PwC‘s Global Data and Analytics Survey 2016: Big Decisions™

The power of analytics for better and

PwC’s 2016 Global Data and Analytics Survey

What is a big decision?

90% of respondents think their next strategic

Approximately 1/3 of business leaders plan to make decisions

Which of the following best

The landscape is changing

Why look at decision speed and sophistication?

Ambition is high to improve decision speed and sophistication

Capabilities vary by country for speed and sophistication…

Low High High

… and the same is true for industries

Government and Public Sector Technology Insurance

What is more critical to you?

Everyone will fall short of their ambition – but less so in China

A significant role for machines is emerging and companies are

Companies can de-risk decisions by using machines

Machine Algorithms....Human Judgment

Known Manageable...Unknown, Uncertain

The use of human judgment and machine algorithms varies by

The survey reinforces that data driven companies are using

What limits decision-making?

What we’ve learned

• More and more organisations are taking a data-driven

For more information visit, www.pwc.com/bigdecisions

Continue the conversation with us online, follow:

Dan DiFilippo, Global and US Data and Analytics Leader, @DanDGlobal

PwC Advisory Services, @PwCAdvisory

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