3. Empowering sustainable decision-making
Environmental, social and governance (ESG) issues are causing companies to rethink the way they do business. Whether it’s a planning decision around building a site, future supply chain routes, or the amount of insurance to buy, almost every aspect of a business is affected by ESG. Artificial intelligence tools, which can input and analyze all kinds of information – such as climate models, optimal distribution routes, and population growth trends – are helping companies make decisions better ESG determination.
For example, many companies are using data to see if they should build warehouses in a certain area, or whether climate change will ultimately affect those operations. Others are using the data to reduce their carbon footprints. For example, a large detergent company wants to reduce emissions by reducing packaging size, but at the same time increasing the concentration of detergent so that consumers can wash the same amount. Its retailer says that even with the same effect, the smaller size may not sell, as consumers think larger packs are a better deal. Instead of sticking to the larger sizes, the retailer asked every detergent manufacturer to reduce their packaging by showing them how they could maintain the same amount of load in a single container. smaller in size, at the same time becoming more sustainable. This demonstrated the power of analytics — a company that has influenced an entire industry to reduce their carbon footprint with timely data-driven decisions.
4. Improve productivity
The digital age is all about super-accuracy. By consolidating, analyzing, and leveraging the right quality data at the right time to evaluate, predict, and make decisions, companies can dramatically improve the productivity and value of their resources. their.
For example, the global auto supplier ZF wants to compare the efficiency of its different plants. It created a digital production program, built on the Azure cloud with PwC’s Factory Intelligence, to analyze performance data between each location. By using advanced analytics, visualization, and automated workflows, the company has reduced conversion costs, improved overall performance, and increased the efficiency and effectiveness of its workforce of over 200 its factory.
5. Drive product or service innovation
When it comes to creating new products and services, data is a game changer. The more you know about your customers, the better idea you’ll have of the types of products they might want. However, companies need to go beyond just big data and start looking at what is known as “thick data” to effectively influence the use of products and services through human-centered design. center.
While big data is about capturing what people spent their money on, when they bought an item and how much they paid, thick data focuses on human behavior and digs deeper into dynamics. people’s preferences for buying something and how they use a product. For example, a credit company often identifies fraud by looking at unusual transaction patterns. But gathering dense data about customers affected by fraud and the behavior of scammers can bring a new level of sophistication. By interviewing people who have committed fraud and determining their motivations and patterns of behavior, those insights can be fed into more traditional fraud tracking analysis, a combination of This allows companies to track when fraud can happen before it happens. This ultimately leads to better cheating solutions.
Bringing data and technology expertise together
Achieving high-value results will require new solutions and different data approaches. Now you have to think about what actions your data can inform.
Work together, PwC and Microsoft has witnessed first-hand the challenge for businesses to understand what “data-driven” really looks like. Many businesses believe that simply gathering information and running the numbers through a data visualization tool is enough. While fundamental analysis can help you get information about something that happened, this type of information, when combined with actual action and results, can help you gauge what’s going on. may happen in the future and tells you what you can do about a problem before it happens .
Discover how PwC and Microsoft are using Azure data and the latest cloud, AI, and mixed reality to transform experiences, From the football field to your industry.
This content is produced by PwC. It was not written by the editorial board of the MIT Technology Review.