Unlock the power of dataand your people

www.pwc.com.au

Justine Winston Smith

Managing Director

PwC Australia

Scott Albin

Southeast Asia ConsultingData & Analytics Leader

PwC Singapore

PwC

Most leaders tap into only a fraction of the datathey have to inform decision-making

Most companies recognize thevalue of data and analytics

2

But only 39% are using that capability today:

Decision-making in my organization

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

62%Of executives rely onexperience and advicethan data to makebusiness-defining choices

senior executivesinterviewed

Industriesrepresented

where majority (74%)of companies reportedannual revenues lastyear of at least $1bn

PwC

Relative to their current capabilities, mostrespondents report a future need for largeincreases in both speed and sophistication – buthave doubts about their ability to achieve that

3

Current decision making capabilities arediverse in terms of Speed & Sophistication

Respondents anticipate significant futureimprovement in Speed & Sophistication

Existing decision making capability

Sp

eed

Sophistication

LO

WH

igh

Low HighS

pee

dSophistication

Lo

wH

igh

Low High

Future need to beFuture likely to be

PwC

Size of the prize

4

We alwaysoverestimate thechange that willoccur in the next

two years andunderestimatethe change thatwill occur in the

next ten. Don't letyourself be lulled

into inaction.

- Bill Gates

Global GVA impact of Al by effect ($ in Billions)

Source: PwC Analysis; based on US results, PwC results ($3.7T impact by 2030) falls within McKinsey Global Institute’s A Futurethat Works range of impact, and slightly less than half of Accenture’s Why AI is the Future of Growth estimate of AI GDP impact($8.3T by 2035),

$4.6T

$4.3T

$6.6T

$0.2T

““

PwC

AI covers a wide range of capabilities thatspans foundational, cognitive, system, andsensory layers

5

CollaborativeSystems

MachineVision

NaturalLanguage

KnowledgeRepresen-

tationReasoning

Statistics Econometrics

Planning &Scheduling

RoboticProcess

Automation

Audio &Speech

OptimizationComplexity

TheoryComputer

ScienceGameTheory

MachineLearning

(inc. DeepLearning)

Big & FastData

Technology

Navigation Visualization

DeepQuestion

Answering

AdaptiveSystems

MachineTranslation

• Sensory Layer: AIlayer through which thesystem layer interactswith other humans andmachines

• System Layer: AIsolutions that exploit andcombine the cognitivelayer to provide specificinsights, take actions ormake decisions.

• Cognitive Layer: Corecognitive elements ofstoring concepts,reasoning with them andlearning them

• Foundational Layer:Mathematical andcomputationalfoundation for buildingthe other layers

PwC

Different types of business problems

6

Differenttypes ofbusinessproblems

A wide variety ofbusiness problems

require a wide varietyof techniques and tools

Searching,Querying &Conversing

Describing,Classifying,

Understanding& Visualizing

Diagnosing,Discovering &

Reasoning

Not Exhaustive

PwC

Different types of business problems

7

Differenttypes ofbusinessproblems

A wide variety ofbusiness problems

require a wide varietyof techniques and tools

Trending,Forecasting,Projecting &Predicting

Recognizing,Sensing, and

Recommending

Simulating,Learning,

Optimizing, &Adapting

Not Exhaustive

PwC

Different types of data

8

Image

Audio

Text andNatural

Language

Video

Sensors

UnstructuredData

Image search

Facial Recognition

ObjectClassification

Video search

PatternRecognition

MotionTracking

Security

Sentiment Analysis

Question Answering

Customer ServiceAnalysis

DocumentClassification

Text-to-Speech

Speech-to-text

Voicerecognition

Emotiondetection

Signal detection

Alarm monitoring

Predictive maintenance

Differenttypes of Data

A rich source ofunstructured data is

fueling the rise of AI todrive increasing moresophisticated solutions

PwC

Data availability v. AI algorithms

9

The average elapsedtime between key

algorithm proposalsand corresponding

advances is about 18years; the average

elapsed time betweenkey dataset

availabilities andcorresponding

advances is less than 3years,

6 times faster.

PwC

Four ways to embrace AI

10

Robotic ProcessAutomation is here

PwC

Applying AI and disparate data in real world

11

Frame for Video on slide 7

Lower

Higher

Net WetSpecificEnergy

Bunker Dischargewagon (BDWs)removing coal fromthe bunker

Coal Quality Legend

PwC

Coal movement animation

12

C

B

A

CB

DE

F

A

PwC

Improving Safety Through Data Mining andRisk Profiling

Energy Company Safety Dashboard – A large Australian energy company needed toleverage and analyse its internal business performance and safety data to predict,prevent and proactively report on likely increases and decreases in safety risk.

Results

• Workshop for key stakeholders from the client’s safety andexecutive teams

• Based on the availability of data, six of these testable hypotheses wereidentified as high-priority

• An exploratory analysis to extract interesting relationships to safetyrisk. This resulted in a self-organising map (SOM) – a machinelearning tool capable of clustering the client assets into distinctgroups with varying risk profiles

• An interactive dashboard was developed allowing them to explore theclustering and data associated with each of their assets.

C# Dashboard type # of wells (% of 952)

IVMS events

No SeatbeltHandingDriving 2 HrsSpeeding

First AidRestrictedLTIMedicalNo Treatment

EnvironmentalProperty Damage

Near MissInjury

IllnessProcess Incident

Drilling OriginalDrilling Re-entry

Initial CompletionWorkover

Fraccing

Equipment audits

Visits: HSE

Visits: Other

[avg observations per day]

[avg incidents /avg injuries]

OCIS incident rates

Activity incident rate

Observation rate

Rig: Drilling Original

Rig: Stimulation fraccing

Rig: Initial Completion

Rig safety history

Average

Belowaverage

Aboveaverage

Zero

Below averagedays since last

injury

Above averagedays until next

injury

ObservationsOther

HazardStop

Unsafe

13

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© 2017 PricewaterhouseCoopers. All rights reserved.PwC refers to the Australia member firm, and may sometimes refer to the PwC network. Eachmember firm is a separate legal entity. Please see www.pwc.com/structure for further details.

This content is for general information purposes only, and should not be used as a substitutefor consultation with professional advisors.Liability limited by a scheme approved under Professional Standards Legislation.

At PwC Australia our purpose is to build trust in society and solve important problems. We’re anetwork of firms in 157 countries with more than 223,000 people who are committed todelivering quality in assurance, advisory and tax services. Find out more and tell us whatmatters to you by visiting us at www.pwc.com.au.

WL 127056190

Unlock the power of dataand your people

www.pwc.com.au

Justine Winston Smith

Managing Director

PwC Australia

Scott Albin

Southeast Asia ConsultingData & Analytics Leader

PwC Singapore

2

Discussion points:

02 Our Philosophy in delivering bottom upresults

03 Our integrated approach based on ourphilosophy

04 Key principles that differentiate ourapproach

05 Case Study - Unlocking value with a coalmining client

06 Q&A

01 Why are we here?

3

Unlocking the power of data andyour people

How to best use your data and analytics to deliverbottom line results.

How internal capability building and front linecoaching is key to establishing an effective

organisation of improvement.

Why are we here?1

Optimism in the future of mining inAsia:

• Increased interest in mineexpansions

• capital and debt raisings.

Miners are still cautious, focusing onoperational efficiency improvementsas their path to realizing greatereconomic returns.

4

Identify the art of the possible

• Applying best practice data andpredictive analytics, to reveal the art ofthe possible for your organization.

• Data driven focus to differentiateidentified opportunities from what istheoretically possible, to what is actuallypossible.

Set-up for success

• Frontline focused.

• Building capability.

• Establishing an implementationframework mindset.

Our Philosophy in delivering bottomup results

2

5

Identifying the art of the possible…

• Best practice data is your most valuable strategic resource.

• PwC maintains the leading database of open cut miningequipment performance in the world.

• Enables mining organizations to unleash the value of data.

PwC Mining Intellegence andBenchmarking Database

Value Driver Tree (VDT)Tools

Enterprise Optimiser (EO)

Performance Reporting

• VDTs help to identify and prioritize gaps to best practice.

• Break down levers to manageable opportunities that caneasily translate into bottom line results.

• Modelling and analysis of business processes to increaseperformance through full integrated decision making.

• Enables data driven decisions based on financial impacts,causal behaviors and future events.

• Detailed performance at equipment and operator level.

• Provide insight and identify opportunities forimprovement.

6

.. and supporting you to deliver bottom upresults

• Upskill and educate teams on improvement processes, andrequired implementation capabilities.

• Identify and cover gaps between delivery requirementsand current implementation performance.

Coaching & Training

Structured ImplementationFramework

ImprovementImplementation Workflow

• Establish a cadence structured designed to maintain focusand accountability implementation teams.

• Provide leadership with visibility to support teams, actionrisks and address challenges.

• Collaboratively design, develop, imbed a logical flow toprogress improvements from idea to benefits realised.

• Monitor the progress and status of initiatives with a cloudbased workflow tool – QuickBase.

7

Our three step integrated approach basedon our philosophy

3

8

Data driven approach to identifying and prioritisingImprovement opportunities

Generate &Prioritise

PredictAnalyse

• Data assessment and detailedanalysis of identified performanceissues to determine root causes.

• Leverage PwC’s extensive miningperformance benchmarksdatabase and compare currentperformance to best practice.

• Apply predictive analytics to gobeyond the retrospective analysis ofhistorical data and identify bestassessment future opportunities.

• Generate ideas on closing the gapto best practice for predictedopportunities, and conductsimulation/scenario management toquantify impacts.

• Prioritize the greatest benefits tobottom line.

Structure

9

A fit for purpose implementation program that sets thefrontline to successfully deliver improvements

PlanningCoaching

• Build on existing improvementstructures and processes

• Tailor and enhance program tools toembed a structuredimplementation approach

• Provide on-site implementationtraining and coaching toimprovement and operational teamsto build on established capability

• Move from ‘business as usual’ tocontinuous improvement

• Work with teams to effectively planinitiative implementation (businesscase, KPI’s, execution plans,resourcing) and embed the tools tosustain

10

Focused on empowering the frontline and leadershipteams to achieve bottom up results

SustainRealiseExecute

• On-site support to provide the‘horsepower’ to fast track theexecution of initiatives and drivethe improvement Program

• Structure drives implementationperformance monitoring andaccountability

• Operational KPI’s assigned toimprovement projects that link tocommercial benefits

• Active benefits realisation trackingand initiative implementation tuningto ensure benefit and valuerealisation

• Work with teams to checkimprovement initiatives havesustained value creation and developany action plans to maximize thesustainability of results.

11

The five key elements that differentiate ourapproach

1 Knowing the power of data

3 State of the art tools

2 Identifying gaps to best practice

4 Upskilling and coaching

5 Establishing structure and shifting mindsetsat an operational level

4

12

Unlocking value with our coal mining client

… the client could not tellif they were focused onthe right levers to get thebest impact from limitedresources…

• Our client was challenged with managing many ongoing improvementprojects.

• Lacked a consistent and continuous improvement process.

• Competing priorities that challenged resource allocation.

• Gap between the need to deliver a large initiative pipeline and theimplementation capability across frontline and leadership roles.

A desire for improvement with varying priorities, focus and capability

5 Case Study

13

• Benchmarking and value driver analysis identifiedimprovement focus areas at equipment and operator level.

• Existing improvement priorities were confirmed andrealigned.

• Generation of over 30 cost reduction and productivityimprovement initiatives across three operations.

• Value driver models provided clear benefit identification andrealisation modelling.

Data driven process to direct decision making …

Unlocking value with our coal mining client

14

… and a shift to an implementation mindset…

Implementationaccountability

Coaching and mentoring Initiative Workflow

• Designed a cadence to maintainfocus and accountability

• Weekly meetings to progressinitiatives

• Weekly Result Progress Meetingsestablished to provide visibilityand address issues

• Identified and cover gapsbetween delivery requirementsand current implementationperformance.

• Weekly training module sessionson best practice in initiativeimplementation.

• One-on-one coaching with to turntheory into practice.

• Co design, develop, imbed andtrain initiative owners on anonline workflow managementprocess.

• The workflow processunderpinned the initiativeimplementation framework.

Unlocking value with our coal mining client

15

02Increased the probability of:

• Timely implementation.

• Realisation of tens of millions of dollars incost and productivity benefit..

03

SustainedProgram

• Ignited the motivation in site teams andleadership

• Drive initiatives from generation toimplementation

04• Highly successful across multiple

operational sites

• Client is looking to roll-out this approachglobally

01

… to achieve long term benefits

• Ownership and ongoing use of cadenceframework

• Ongoing coaching and mentoring

Igniting an improvement mindset Implementation and benefit focused

Post PwC ownershipReplace existing process

Unlocking value with our coal mining client

16

Q&A5

© 2017 PricewaterhouseCoopers. All rights reserved.PwC refers to the Australian 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.

Liability limited by a scheme approved under Professional Standards Legislation