cpa one 2016 - big data: big decisions or big fallacy

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Big data: big decisions or big fallacy THE ONE NATIONAL CONFERENCE SEPTEMBER 19-20, 2016 VANCOUVER, BC

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Page 1: CPA ONE 2016 - Big data: big decisions or big fallacy

Big data big decisions or big fallacy

THE ONE NATIONAL CONFERENCE SEPTEMBER 19-20 2016 VANCOUVER BC

1Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

What is big dataWhat is the language of big data and analyticsHow is it relevant for youWhat are the lessons learned so far

Laurie DesautelsDirector Digital

Part of the PwC network

1

2

3

4

Information is the oil of the 21st century and analytics the combustion enginemdash Peter Sondergaard Gartner

2Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Is your organization hellip

Highly data-driven

Somewhat data-driven

Rarely data-driven

1

2

3

5Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Source PwCs Global Data and Analytics Survey 2016 | Canadian insights

Organizations are seeking the right mix of mind and machine to leverage data understand risk and gain a competitive edge

6Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

What is big data

1

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 2: CPA ONE 2016 - Big data: big decisions or big fallacy

1Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

What is big dataWhat is the language of big data and analyticsHow is it relevant for youWhat are the lessons learned so far

Laurie DesautelsDirector Digital

Part of the PwC network

1

2

3

4

Information is the oil of the 21st century and analytics the combustion enginemdash Peter Sondergaard Gartner

2Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Is your organization hellip

Highly data-driven

Somewhat data-driven

Rarely data-driven

1

2

3

5Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Source PwCs Global Data and Analytics Survey 2016 | Canadian insights

Organizations are seeking the right mix of mind and machine to leverage data understand risk and gain a competitive edge

6Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

What is big data

1

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 3: CPA ONE 2016 - Big data: big decisions or big fallacy

Information is the oil of the 21st century and analytics the combustion enginemdash Peter Sondergaard Gartner

2Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Is your organization hellip

Highly data-driven

Somewhat data-driven

Rarely data-driven

1

2

3

5Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Source PwCs Global Data and Analytics Survey 2016 | Canadian insights

Organizations are seeking the right mix of mind and machine to leverage data understand risk and gain a competitive edge

6Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

What is big data

1

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 4: CPA ONE 2016 - Big data: big decisions or big fallacy

3Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Is your organization hellip

Highly data-driven

Somewhat data-driven

Rarely data-driven

1

2

3

5Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Source PwCs Global Data and Analytics Survey 2016 | Canadian insights

Organizations are seeking the right mix of mind and machine to leverage data understand risk and gain a competitive edge

6Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

What is big data

1

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 5: CPA ONE 2016 - Big data: big decisions or big fallacy

4Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Is your organization hellip

Highly data-driven

Somewhat data-driven

Rarely data-driven

1

2

3

5Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Source PwCs Global Data and Analytics Survey 2016 | Canadian insights

Organizations are seeking the right mix of mind and machine to leverage data understand risk and gain a competitive edge

6Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

What is big data

1

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 6: CPA ONE 2016 - Big data: big decisions or big fallacy

5Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Source PwCs Global Data and Analytics Survey 2016 | Canadian insights

Organizations are seeking the right mix of mind and machine to leverage data understand risk and gain a competitive edge

6Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

What is big data

1

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 7: CPA ONE 2016 - Big data: big decisions or big fallacy

6Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

What is big data

1

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 8: CPA ONE 2016 - Big data: big decisions or big fallacy

ldquoThe techniques and technologies that make handling data at extreme scale affordablerdquo ndash Forrester

ldquoBig data is high volume high velocity and high variety information assets requiring new forms of processingrdquo ndash Gartner

7Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 9: CPA ONE 2016 - Big data: big decisions or big fallacy

8Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoBig Data is all about finding correlations but Small Data

is all about finding the causation the reason whyrdquo

ndash Martin Lindstrom author of ldquoSmall Data The Tiny Clues That Uncover Huge Trendsrdquo

SOURCE

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 10: CPA ONE 2016 - Big data: big decisions or big fallacy

9Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

and this was from 2012

Everyday we create 25 quintillion bytes of

data ndash so much that 90 of the data in the world today has been created in the last two

years alone

Where does big data come from

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 11: CPA ONE 2016 - Big data: big decisions or big fallacy

10Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The nature of the data keeps changing as the software platforms evolve

iMessage

2016

SOURCE httpwwwkpcbcominternet-trends

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 12: CPA ONE 2016 - Big data: big decisions or big fallacy

11Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Ellen Degeneresrsquo tweet from the Oscarrsquos in 2014 had over 33m retweets SOURCE

Wal-Mart has 100000000 customers per weekSOURCE

In 2000 Sloan Digital Sky Survey collected more data in its first few weeks than the entire data collection in the history of astronomy

SOURCE

Sequencing the human genome originally took 10 years An ancestry DNA test can now be purchased for less than $200 and results received within a few weeks SOURCE

What does big data look like

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 13: CPA ONE 2016 - Big data: big decisions or big fallacy

The lexicon of big data

12Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

2

Big data has no value without the insights human expertise and

analytics can tease out of it

Analytics is the combustion engine of the information age

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 14: CPA ONE 2016 - Big data: big decisions or big fallacy

13Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 15: CPA ONE 2016 - Big data: big decisions or big fallacy

14Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Examples

Techniques

Questions

Diagnosticdiscover amp explore

Why is it happening

Where is the problem

What are the trends

bull Agile Dashboards

bull Cause and effect

bull Correlations

bull Behavioral analytics

bull Data amp text mining

bull HALO

bull Risk Analytics

bull Rapid BI apps

bull Workforce analytics

bull Analytical apps

Prescriptiveanticipative

What should I do

What is the next best

action

bull Optimization

bull Artificial Intelligence

bull Machine learning

bull Simulations

bull Analytical apps with

simulated outcomes

Descriptivereporting

What happened

What is happening

bull Business Reporting

bull Scorecards

bull Business Intelligence

bull HALO

bull Financial performance

results

bull Staff performance

scorecards

Predictiveforecast

What is likely to

happen next

bull Predictive modeling and

statistical analytics

bull Regression analysis

bull Forecast modeling

bull Strategy amp growth analytics

bull Customer analytics

bull Fraud amp Cyber analytics

etc

The increasing value of analytics

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 16: CPA ONE 2016 - Big data: big decisions or big fallacy

15Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Active

Passive

Data has traditionally been actively captured Today data is increasingly passively captured

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 17: CPA ONE 2016 - Big data: big decisions or big fallacy

OT IoTThe Industrial

Internet

16Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

IT operational technologies (OT) and the internet of things (IoT) are converging to create the industrial internet

(or what PwC calls Industry 40)

Big data is an output of the industrial internet

Data and analytics are core competencies in this new world of Industry 40

IT

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 18: CPA ONE 2016 - Big data: big decisions or big fallacy

17Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Volume

GB TB PB

EB ZB

Variety

Structured

unstructured

and semi-

structured such

clickstream text

image video

geolocation hellip

Velocity

Speed In which

analysis of data

occurs and data

is delivered for

analysis

Veracity

Uncertainty

predictability

and integrity of

data

The 4Vs of big data

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 19: CPA ONE 2016 - Big data: big decisions or big fallacy

18Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

data measured in TB

data measured in ZB

new large scale data

that is semi-structured

unstructured or

unproven (with potential value)

proven structured and semi-

structured data sources

Multiple new technologies and the cloud deliver big data capabilities

What are the emerging data platforms

NoSQL DB

Columnar DB

NewSQL DB

Big Data Appliances

Distributed File System

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 20: CPA ONE 2016 - Big data: big decisions or big fallacy

19Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The value of a data lake is in finding clues to help your organization answer high

priority questions

SOURCE

Modern data architectures leverage data lakes as a repository for large quantities and varieties of data both structured and unstructured

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 21: CPA ONE 2016 - Big data: big decisions or big fallacy

Value is created by using traditional and big data human and machine learning BI and analytics

Traditional mindset Big data mindset

20Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Reporting Analysis Needs Discovery predictive

Large population with focused needs Audience Small user base with unfocused needs

Return on Investment Value for investment Option-creating investments

Waterfall Execution Iterative Agile

Model then store Approach Store then model

Transactional Sources Interactions

Internal Location Outside the company

Structured Format Semi-structured and un-structured

Business Intelligence Tools Analytics simulation visualization

SQL Languages MapReduce Embedded R etc

Relational Storage Data Lakes (Hadoop Cassandra Mongo etc)

Traditional ETL (Extract Transform Load) Integration Data wrangling late binding

Bu

sin

ess

Info

rmati

on

Te

ch

no

log

y

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 22: CPA ONE 2016 - Big data: big decisions or big fallacy

21Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Storytellers

Visualization

Specialists

and Business

Analysts

Information

Architects

Master Data

Management

Specialists

Data Scientists Data Modelers Data Extraction

Specialists

Ability to

communicate and

evangelize

Creative

investigative

analytical minds

with Industry or

business domain

knowledge

Information and

data architecture

data quality and

master data

management skills

Statistical

programming

skills adept at

advanced

techniques

(algorithms) and

languages (R

SAS etc)

Programming

skills and

development

methodology

Application

development and

implementation

experience

Programming

skills with data

discovery and

mashingblending

large amounts of

data skills

DBMS skills data

extraction

transformation

load Detail

oriented to ensure

completeness and

accuracy

Analytics

Applications

Implementers

The data needs to tell a story but to get there you need a variety of skillsets

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 23: CPA ONE 2016 - Big data: big decisions or big fallacy

22Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

A great visualization

httpwwwinformationisbeautifulnetvis

ualizationsworlds-biggest-data-

breaches-hacks

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 24: CPA ONE 2016 - Big data: big decisions or big fallacy

What does it mean for you

23Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

3

SOURCE Artwork by David Somerville based on an original drawing by Hugh McLeod

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 25: CPA ONE 2016 - Big data: big decisions or big fallacy

24Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

days for finalization

of monthly annual

reports

Monthly amp

annual reportingBudgeting

Controlling

FTEs

Business

InsightsCost of Finance

days to complete

the budgetless FTEs in

Controlling than

peers

more time spent on

data analysis vs

data gathering

less cost of

Finance than

peers

+20 -40-203047

Source PwC Finance Effectiveness Benchmark amp Digital Controlling Study 2015

The finance function in best practice companies spend increased time generating insights from data

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 26: CPA ONE 2016 - Big data: big decisions or big fallacy

25Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Our customers

are more

sophisticated

How do we

provide better

value

What drives

customer

satisfaction in my

businessWho from my

team is likely to

leave and how

can we prevent

that

Is my sales

force behaving

with proper

conduct

The concept of big data says you donrsquot know what data to collect because you donrsquot even know what the questions are now or in the future

Are you asking the right questions

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 27: CPA ONE 2016 - Big data: big decisions or big fallacy

26Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

GoalWhat is the

question

you are

asking

Identify

required

data

Obtain data

Prepare

data

Analyze

Data

Did we

answer the

question

Agile Analytics takes a ldquofast failrdquo approach to developing analytics solutions

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 28: CPA ONE 2016 - Big data: big decisions or big fallacy

27Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

A significant role for machines is emerging and companies are taking advantage of what machines offer

A machine learning exampleSource PwCrsquos Global Data and Analytics Survey July 2016 Q What will the analytis informing your next

strategic decision require Global base 2106 senior executives

Machine algorithms Human judgement

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 29: CPA ONE 2016 - Big data: big decisions or big fallacy

28Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

The new role of finance Balancing mind and machine

A spend-analysis machine (SAM) compiles and classifies

millions of financial transactions and gets smarter the more

data it processes

SAM finds optimization opportunities and makes timely

recommendationsmdashsuch as how much you could save by

taking advantage of volume discountsmdashenabling you to make

decisions on negotiations and spending to realize savings

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 30: CPA ONE 2016 - Big data: big decisions or big fallacy

29Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

ldquoOne thing is certain the profession is moving away from the basic bookkeeping chores toward the more sophisticated analytical tasksrdquondash Monique Morden Chief Revenue Officer at Lendified in Vancouver

Source ldquoI robot CPArdquo Yan Barlow CPA Magazine August 2-016

httpswwwcpacanadacaenconnecting-and-newscpa-magazinearticles2016augusti-robot-cpa

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 31: CPA ONE 2016 - Big data: big decisions or big fallacy

Do you need a decision diagnostic

What are the lessons learned to date

30Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

4

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 32: CPA ONE 2016 - Big data: big decisions or big fallacy

31Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Accelerated

agility

Master the

chess moves

Intelligence in

the moment

Cover the

basics

Low HighSophistication

Sp

eed

Lo

wH

igh

Decision Archetypes

bull Data-driven decisions trump intuition

bull Hindsight amp foresight with all available data

bull Slow consensus driven and analytic decisions

bull Intuition based decisions ndash little analysis

bull Descriptive reporting with internal data

bull Low frequency data and model refresh

bull Speedy decisions trump analysis consensus

bull Descriptive reporting with internal data

bull Rapid analyse-decide-act feedback loop

bull Data amp intuition drive decisions

bull Hindsight amp foresight with all available data

bull Advanced analytics with feedback loop

You must apply analytics for your big decisions For each type of decision what do you need

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 33: CPA ONE 2016 - Big data: big decisions or big fallacy

32Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Improving both speed and sophistication helps maximize the return on investment for data and analytics

SOURCE

Increasing sophistication should

simplify not increase complexity

Speed is as much about structure as

it is about data and analytics

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 34: CPA ONE 2016 - Big data: big decisions or big fallacy

33Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Enterprise

adoptionDeliver and scalePilot and proveDue diligenceIdeation

Innovation processes

The big data value chain intakes rough ideas on how to use information strategically and create actionable insights

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

IT G

overn

an

ce

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Investm

en

t

Refer Defer Kill

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Bu

sin

ess G

overn

an

ce

Refer Defer Kill Refer Defer Kill

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 35: CPA ONE 2016 - Big data: big decisions or big fallacy

34Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

Consumer attitudes are hardening as more data is gathered used shared and sold Lawmakers and regulators will respond

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 36: CPA ONE 2016 - Big data: big decisions or big fallacy

35Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

7

7

8

8

8

12

15

26

11

12

10

10

12

15

4

18

Infrastructure andor architecture

Obtaining skills and capabilities needed

Funding for Big Data-related initiatives

Risk and governance issues

Integrating multiple data sources

Defining our strategy

Understanding what is Big Data

Determining how to get value from Big Data

of respondents

Top challenge

2nd

Source Gartner Big Data Industry Insights

What are the top hurdles or challenges with big data

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 37: CPA ONE 2016 - Big data: big decisions or big fallacy

As the tools and philosophies of big data spread they will change long-

standing ideas about the value of experience the nature of expertise and

the practice of management

36Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

SOURCE

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 38: CPA ONE 2016 - Big data: big decisions or big fallacy

If yoursquore making decisions trusting data shouldnrsquot be holding you back What you should be thinking about is how to frame the problem how you can take advantage of the available data thatrsquos out there and what the strengths and weaknesses are of the approaches to use the data

mdash Dan DiFilippo Global and US Data amp Analytics Leader PwC

37Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 39: CPA ONE 2016 - Big data: big decisions or big fallacy

38

SOURCE

Big data big decisions or big fallacy presented September 20 at

CPA CANADA THE ONE NATIONAL CONFERENCE 2016

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom

Page 40: CPA ONE 2016 - Big data: big decisions or big fallacy

39

copy 2016 PwC All rights reserved

PwC refers to the PwC network andor one or more of its member firms each of

which is a separate legal entity Please see wwwpwccomstructure for further details

This content is general information purposes only and should not be used as a

substitute for consultation with professional advisors

Thank you

Laurie DesautelsDirector Digital

Part of the PwC network

lauriedesautelspwccom

wwwstrategyandpwccom