1
Big Decisions – How Data Analytics can drive improved performance and greater efficiencies
Date
Agenda
Speakers
01 02 PwC & Analytics
03 Big Decisions
Survey
04 Analytics
05 Examples
06 Wrap up
2
PwC
Draft
Image credit | Jessie Edwards
PwC | page 3
Business Impact + Creativity
A new kind of analytics consulting.
6 Booz & Co Integration • Marketing and Sales Management
• 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
Zaman Forootan, PhD
Speakers
0 01
4
• 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
Eduardo Arroyo
PwC, Oracle &
Business Analytics
02
5
PwC
Oracle Awards, Accolades, and a Global Network
6
#1 Deployed the 1st HCM and ERP Cloud project in the world.
3,700+ Oracle Practitioners Worldwide
250+ More than 250 Cloud initiatives deployed in the past year.
157 countries In our global delivery network
16 Industries (29 sub-industries) serving clients with strategy through execution capabilities
80% Of the Fortune 500 financial services institutions are clients.
#1 Awarded two 2015 Oracle Excellence Awards-Industry-Global and North America- HCM Core- HR Solution
37 General Specializations and Recognized as Oracle Diamond Partner
161+ Years serving clients
INTERNAL USE ONLY
PwC | page 7
2015 Oracle Excellence Awards for:
7
Specialized Partner of the Year 2015– Industry – Global Specialized Partner of the Year 2015- North America- HCM Core- HR Solution
PwC | page 8
Gartner–Challenger PwC is positioned as a "Challenger"
in Gartner's Magic Quadrant for Business Analytics Services,
Worldwide, July 2014 Forrester–
Leader PwC is positioned as a Leader in the Forrester
Wave for BI Service Providers, October 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
The Market
PwC Globally has been recognized as a leader in
analytics.
IDC–Leader According to IDC analysis
and vendor perception, PwC is an IDC MarketScape
Business Analytics Services Leader Worldwide, May 2014
PwC 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 | page 10
Our Capabilities in EPM & BI
10
Consulting Managed Services
Data & Application Management
• Monitor Anything
• BI & Hyperion Administration
• Database Administration
• Middleware Administration
Business Intelligence
• Analytic Applications
• Enterprise Reporting
• Scorecarding
• Data Warehousing
• Data Governance
Performance Management
• Strategic Finance
• Financial Consolidation
• Planning and Budgeting
• Financial Mgmt Reporting
We can provide a broad range of Performance Management & IM services
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
We can support you throughout the whole project and application maintenance lifecycle
Oracle Diamond Partner • 10 areas of Advanced
Specializations • 24 General Specializations Member of Oracle's BI Leadership Council 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 11
Our capabilities
11
Our industries:
• TCRC: Technology, Communications, Retail & Consumer
• EUMI: Energy, Utilities, Mining & Industrial Products
• FS: Financial Services
• PCS: Private Company Services
• PS: Public Sector
On Premise
Cloud & Big Data
Data Platform
• BI Foundation Suite, OBIEE, Essbase • Scorecard • BI Apps
• OTBI • OTBI-E • BICS • Big Data Information Discovery
• Oracle Database • Oracle RAC • Times Ten • Golden Gate • ODI
Exalytics & Exadata
Oracle Cloud
Big Decisions Survey
03
12
PwC | page 13
Decision Drivers
Data and analytics
24% 29%
Experience 53% 42%
Instinct 20% 16%
Reality Check
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
Source: PwC's Global Data & Analytics Survey 2014: Big
Decisions (Canadian insights) Photo Credit: Brian Snelson, Addo Elephant Park, (CC by 2.0)
Rear View Analytics
- 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: Rob Oo, Elephant, (CC by 2.0)
Forward Looking Analytics
- ‘What-if’ scenarios
- Dynamic ‘cockpits’ to navigate business
- Predictive insights (e.g., opportunity identification, customer trends, preempting customer needs to improve retention)
Where do your clients land?
PwC | page 14
Photo Credit: Antonio Cinotti
, Follow the Path . . . (CC by 2.0)
The Challenge
80%
% of worldwide data collected in the past 2 years
% of data warehousing
projects have failed
Photo Credit: Zach
Dischner, Up and Out
(CC BY 2.0)
PwC | page 15
The Roadblocks
Canadian executives have
identified three key barriers to
achieving improved insights
Quality and completeness of
data
43% 35%
Timeliness of data
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 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 17
Two distinct approaches to advanced analytics
Solving a complex business problem via forming hypotheses
based on an idea or observation, then gathering data to prove
or disprove these specific hypotheses
Given a large set of data, trying to find correlations that
might lead to an insight that could drive an “improvement”
Investigative
(Big Data) Problem solving
(Hypothesis-driven approach)
Data Analytics Insights, Decisions, Action
Both methods would follow the path described below:
Analytics
04
18
PwC 19
Forms of Business Analytics
The four types of analytics, traditionally called the evolution of analytics, PwC can help accelerate to crate value faster
Qu
es
tio
ns
T
ec
hn
iqu
es
E
xa
mp
les
T
oo
ls
What happened?
What is happening?
• Business Reporting
• Scorecards
• BI
• HALO
• Financial performance
results
• Staff performance
scorecards
Why is it happening?
Where is the
problem?
What are the trends?
• Agile Dashboards
• Cause and effect
• Correlations
• Behavioral analytics
• Data & text mining
• HALO
• Risk Analytics
• Rapid BI apps
• Workforce analytics
• Analytical apps
What is likely to
happen next?
• Predictive modeling and
statistical analytics
• Regression analysis
• Forecast modeling
• Strategy & growth
analytics
• Customer analytics
• Fraud & Cyber analytics,
etc.
What should I do?
What is the next best
action?
• Optimization
• Artificial Intelligence
• Machine learning
• Simulations
• Analytical apps with
simulated outcomes
Prescriptive Descriptive Diagnostic Predictive
Reporting Discover & Explore Forecast Anticipate &
Information Continuum
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DATA TO RUN & OPERATE
INFORMATION TO MANAGE THE OPERATIONS
INFORMATION AS A STRATEGIC
ASSET
INFORMATION TO ENABLE
INNOVATION
FACT-BASED DECISION CULTURE
Le
ve
l o
f M
atu
rit
y &
Va
lue
LOW
HIGH
Information Management / Informatics
Business Intelligence Analytics
Most organizations today largely use data to run/operate the organization and make tactical decisions
Prescriptive Analytics
Predictive Analytics
Real-time Analytics
Diagnostic Analytics
Descriptive Analytics
What happened?
Why is it happening?
What’s happening right now?
What will happen next?
How can we change?
Hindsight
Foresight
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Examples
05
21
Strategic Location Problem A good example of using descriptive and prescriptive analysis
Being SMART:
Examples
05
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
PwC
Strategic Location
Descriptive Analysis
23
2000 2002 2004 2006 2008 2010 2012 2014
Assuming that we want to have P facilities in AB, SK, or BC, where should they be located at?
Where the activities are happening?
PwC
Strategic Location
Descriptive Analysis
24
Assuming that we want to have P facilities in AB, SK, or BC, where should they be located at?
Which firms are doing the activities?
PwC
Strategic Location: Using all sources off data
25
Theory Public Data Google API
Advance Analytics (Prescriptive Model) is the bridge connecting insight to action
PwC
Strategic Location: Results
Prescriptive Analysis
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28% savings in transportation costs More transportation cost Less other facility costs Free up cash from selling real states
PwC
Collection Process
• Every Week
• 300,000 Houshold
• 27,000 km of travel every week
• Nearly 30% of the travel is empty trucks
27
Houshold recyclables collection in Calgary
© Mozart Menez, 2014
PwC
Improving Collection Process
1500
2000
2500
3000
3500
4000
4500
0 1 2 4 C
OS
T I
N S
TA
ND
AR
D K
M/W
EE
K
NUMBER OF TRANSFER FACILITIES
Technology effect
Utilization effect
Status Que
Routing Optimization
28 © Mozart Menez, 2014
PwC
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
Business Challenge maximizing Cash Flow
What is the best selection of wells to operate each year to maximize cash flow?
30
Changing Environment
• Commodity price 1 Limited Capacity
• Production Capacity • Available Cash Flow 2 Model Scalability
• Number of Wells • Planning Horizon 3 C
ha
lle
ng
es
PwC
Optimization Model
To explain the concept, the following simple scenario is modeled:
31
5 wells to select from
10 years planning horizon
3000 M.ft3/yr. production capacity
PwC
Optimization Model Simplified Model with Assumptions
32
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Pro
duction
Year
Total Production
Well 5
Well 4
Well 1
Well 3
Well 2
Base
($20,000.00)
($10,000.00)
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
$70,000.00
$80,000.00
$90,000.00
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 N
PV
Year
NPV for Cash Flows (ROI=3%)
Well 5
Well 4
Well 1
Well 3
Well 2
Base
The base production is simply calculated from the available data
Fixed Production Capacity of 3000 M.ft3/yr.
Once a well is turned on, it remains active for the remaining years
The goal is to maximize the NPV with a discount rate 3%
PwC
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.
33
1 2 3 4 5
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
6
Considering abandonment
and its operations cost/opportunity cost
34
Wrap Up
06
34
35 PwC 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
© 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 www.pwc.com/structure for further details.
PwC
Big Data Infrastructure
Enterprise data hub
Traditional data infrastructure
Big data infrastructure
Infrastructure cost
Big Insights
New data products
Moving a KPI/metric
Defining new metrics and behaviours
Drive costs down
Monetizing Data – turning data into dollars
$17.00/GB
$0.23/GB*
* Cloudera Dell Case Study, 2013