Maximize business value with data-driven strategies

3. Empowering sustainable decision-making
Environmental, social and governance (ESG) issues are causing companies to rethink the way they do business. Whether it’s planning decisions around building locations, future supply chain routes, or the amount of insurance to purchase, almost every aspect of business operations is impacted by ESG. AI tools that can extract and analyze a variety of information—such as climate patterns, optimal delivery routes, and population growth trends—are helping companies make better ESG decisions.

For example, many companies are using data to see if they should build warehouses in a certain area, or if climate change will ultimately affect those operations. Others are using data to reduce their carbon footprint. For example, a large detergent company wanted to reduce emissions by reducing package size, but at the same time increasing detergent concentration so that consumers could wash the same amount of load. Its retailers say that even with the same efficiency, the smaller size may not sell because consumers perceive larger packages as a better deal. Instead of sticking with larger sizes, the retailer has each detergent manufacturer reduce packaging, showing them how to keep the same amount of load in a smaller container while being more sustainable. This is a testament to the power of analytics – a company influencing an entire industry to reduce its carbon emissions through timely data-based decisions.

4. increase productivity
The digital age is about hyper-accuracy. By integrating, analyzing and leveraging the right quality data at the right time to evaluate, predict and make decisions, companies can dramatically increase the value of productivity and resources.

For example, global automotive supplier ZF wanted to compare the efficiency of its different plants.It creates an Azure cloud-based digital manufacturing program Factory Intelligence at PwC, analyze the performance data between each location. Through the use of advanced analytics, visualization and automated workflows, the company has reduced switching costs, improved overall performance, and increased workforce efficiency and efficiency across its more than 200 plants.

5. Promote product or service innovation
Data is a game changer when it comes to creating new products and services. The more you know about your customers, the more you know about the kinds of products they might want. However, companies need to move beyond big data and start focusing on so-called “thick data” to effectively influence the use of products and services through human-centred design.

Big data is about capturing when people spend their money, when they buy things, and how much they pay, while thick data focuses on human behavior and digs deeper into what motivates people to buy things and how they use them. For example, a credit company often identifies fraud by looking at unusual transaction patterns. But collecting vast amounts of data around the behavior of fraud-affected customers and fraudsters can bring sophistication to a new level. By interviewing people who have committed fraudulent acts and identifying their motivations and behavioral patterns, these insights can be incorporated into more traditional fraud tracking analytics, the combination of which enables companies to track fraud before it happens. This ultimately leads to better fraud solutions.

Bringing data expertise and technology together
Achieving high-value outcomes will employ new solutions and different approaches to data processing. You must now consider what actions your data can inform.

work together, PricewaterhouseCoopers and Microsoft I have seen firsthand how challenging it is for businesses to understand what “data-driven” really looks like. Many businesses believe that simply gathering information and running numbers through data visualization tools is enough. While fundamental analysis can help you gain information about what has already happened, this type of information combined with actual actions and results can help you assess what might happen in the future and tell you what you can do before a problem occurs what.

Discover how PwC and Microsoft are using data and the latest Azure cloud, artificial intelligence and mixed reality technologies to transform experiences, From football pitches to your industry.

This content was produced by PricewaterhouseCoopers. It was not written by the editorial staff of MIT Technology Review.

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