data and analytics in the digital age
TRANSCRIPT
Data and Analytics in the Digital Age
Nigel Wright IT Directors Forum
June 2016
www.pwc.co.uk
PwC
Who we are
• A team of data professionals from a variety of backgrounds who help our clients better leverage there data and manage their risks around it
• We split our time between performing analytics to support external audit clients and performing data work for other clients
• Recent project work includes:
• Performing analysis to ensure that our client’s employees are being paid correctly
• Designing a website for a student accommodation provider
• Building a system to visualise customer orders
• Verifying that the balance on a customer’s loan is calculated correctly
• Modelling a more precise risk weighting for a customer within the gaming industry
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Agenda
This presentation will provide insights into data and analytics in the digital age.
We will cover:
• How companies are evolving the way that they operate and using analytics to stay ahead of competition.
• What it means to be a truly digital organisation.
• Do a Live demonstration of a tool to support with a digital transformation.
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What is Digital?
Revolutionising ways of operating through embracing modern technology to support
Social - A digital business uses social to interact with customers, both proactively and
responsively.
Mobile –For a business, mobile enabling the workforce makes them better connected
and more efficient. For the consumer, it allows a business anytime access in a non-intrusive and non-interruptive way. It allows consumers to get on with their lives, and easily blend in aspects of their digital lives.
Analytics and Big Data – Businesses use analytics in the discovery and communication
of meaningful patterns in data. They use ‘Big Data’ to understand behaviour through statistical analysis of clumps of data, both structured and unstructured.
Cloud - Outsourcing IT functions to the cloud, whether just computer power, or
functionality on an Software as a Service (SaaS) basis.
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A digital journey discussion
We assisted one client on their digital journey.
They are a manufacturing client who were losing market share. In order to regain this, they needed to understand exactly where this was being eroded. They operated in a traditional manner; orders were placed over the phone and manually keyed in. They had poor data quality which was preventing a single view of a customer.
We helped them to cleanse their customer data and build a process to keep their data clean. We created a single customer view and built a data mart containing all relevant data. We used a visualisation tool to provide insights from their data and help them ask and answer business critical questions to regain market share.
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Mobile
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The same event – 8 years apart…what is it?
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The great opportunity
• There are now 8 billion mobile devices globally
• Most people are connected for at least 4 hours a day
• Mobile is an untapped opportunity for many businesses
• PwC conducted a survey of over a thousand mobile users in China, the US and the UK
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Mobile has become the primary channel for how consumers access and engage with the internet
50
118
233
303
356
420
500
24%
40%
61%66%
69%75%
81%
0%
20%
40%
60%
80%
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013
Mobile in China; connecting 450m netizensNumber of mobile internet users in China, % of internet access of mobile (2007 – 2013)
More smartphones than the entire population of the United StatesTotal base of smartphones in China (2011 – 2017)
209
382416
466
509549
592
2011 2012 2013 2014 2015 2016 2017
41%CAGR
8%CAGR
Source: CNNIC (2013) , emarketer(2013)
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App downloading is on the rise
4236
23 20
China Brazil UnitedKingdom
UnitedStates
0
10
20
30
40
50
60
70
80
90
80%
55%54%
Content value
Frequency of use
Differentiation from free
Chinese download more apps. than anywhere else in our cross-country survey…Number of apps. downloaded in the last 12 months
…but 89% of those are free. Of the 11% that were paid, content value was the main driverWillingness to pay depends on (%)
Source: PwC "Mobile advertising in China: What do Chinese consumers want and how should businesses be engaging with them?" (2014)
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UK
28%US
30%China
58%
UK
27%US
26%China
59%
Willingness to share personal data for a free app? PwC “Mobile advertising: What do Chinese consumers want” (2014)
Willingness to share personal data for fewer adds?
Consumers are willing to share their personal data if they receive something of value in return
Source: PwC "Mobile advertising in China: What do Chinese consumers want and how should businesses be engaging with them?" (2014)
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Cloud and Cloud BI
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What is Cloud BI?
Applications hosted on a network that enable businesses to obtain the most value out of the information at hand
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2014 Gartner Survey
“In each of the last four years, around 30% of respondents to a Gartner survey said they'd run their mission-critical BI in the cloud. This year, however, nearly half - 45% -said they would adopt cloud BI.”
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The Cloud and Business Intelligence fit
Business Intelligence
Enabling the user to have access to the information they need, when they need it
Cloud computing
Providing a lightweight, agile way for the business to access their information
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Social
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Social media risk on a page
Risk Factors
Financial
Operational
Regulatory / Compliance
Information Security
• Companies face several financial risks associated with a breach:
• DPA – Fines• Stock price decline• Crisis management /
Remediation efforts
• Lack of good governance leading to:
• Reduced employee productivity
• Increased process complexity
• Loss of competitive advantage
• Disruption of business activities
• Insufficient moderation leading to poor content
• Enforcement actions from government –EU regulation
• Compliance with self-regulatory frameworks (i.e. US-EU Safe Harbor, TRUSTe)
• Data retention / personal data off-shore
• Employee misuse / inappropriate communications
• Negative impact to the brand• Loss of employee, customer and /
or investor confidence
Reputational
• Access controls• External threats• Careless employees• Data classification and
governance• Sharing of confidential
information• Use of offshore
organisations and 3rd parties
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The Associated Press gets hacked…
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Which caused this….
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The Guardian also gets hacked…
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Risk…Engaging on Social MediaJP Morgan Twitter Chat
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Greggs the bakery
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Greggs the bakery
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Greggs the bakery
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Greggs the bakery
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Greggs the bakery
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Greggs the bakery
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Greggs the bakery
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Greggs the bakery
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Analytics and Big Data
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Data is growing at an exponential rate ...From diverse and complex sources
Vo
lum
e o
f D
ata
Time
500 million tweets per day
73 item sales per second
5 billion searches per day
100 hours of video added per minute
40 TB of data generated every second
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Big Data can be Used to Provide a Significant Commercial Advantage
Pricing Strategies
Operational Performance
Customer Insight and Sentiment
Demand Planning
Optimisation
Competitor Insight
Staff and Resource
Optimisation
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Some Key Questions Exist for Management
Analytics
Descriptive –What happened?
Predictive –What could
happen?
Prescriptive –What should we
do?
Business Value
Data Internal / External Data Accuracy
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Need more inspiration?
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Dave Williams
T: 07734 959115 E: [email protected]
Cathy Nockles
T: 07730 147787E: [email protected]