The Analytics Value Chain Houston Transform - Spotfire

Transcription

1 The Analytics Value Chain Houston Transform - Spotfire April 2014

2 Data Analytics defined Analytics is not just reports on conventional data Analytics is the use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions within an organization to create strategic value. And it is not just a data warehouse Analytics is business driven and technology enabled. Page 2

3 Working through the noise The Analytics Value Chain Manage Data Perform Analytics Drive Decisions Relevant data Insights Appropriate data sources Answers to business questions Transaction / behavior history continuous feedback loop Page 3

4 Trading Sales / Marketing Supply Chain Operations Drive Decisions Focus on specific areas to get started Manage DATA relevant data Perform ANALYTICS insights rules/algorithms Drive DECISIONS Energy Focus Areas Functions / Departments Value focused analytics Greater Risk coverage Hydrocarbon Value chain Business Insights Page 4

5 Perform Analytics Big Data demands more capable analytics Manage DATA relevant data Perform ANALYTICS insights rules/algorithms Drive DECISIONS Advanced Analytics Business Intelligence Prescriptive Analytics To determine WHICH decision and/or action will produce the most effective result against a specific set of objectives and constraints Predictive Analytics Leverage past data to understand the underlying relationship between data inputs and outputs to understand WHY something happened or to predict WHAT will happen in the future across various scenarios Descriptive Analytics Mine past data to report, visualize, and understand WHAT has already happened after the fact or in real-time Mathematical Complexity Page 5

6 Manage Big Data Use the right tools to filter out the noise Manage DATA relevant data Perform ANALYTICS insights rules/algorithms Drive DECISIONS Data Characteristics Volume Variety Velocity Big Data Technology (in-memory, distributed file system, etc.) Organization Relevant Solutions Context Specific Veracity Page 6

7 Enabling the enterprise to realize the power of analytics Sales Force Effectiveness Anti-bribery/ FCPA Health Safety Environment Innovative Business Models Sales & Marketing Predictive Models & Analytics Effective Close Mgmt Cost of Finance Policy Compliance / Fraud Compliance Analytics COE Finance Optimize Operating Model Responsive and Agile Supply Chain Working Capital Supply Chain Tax Effective Supply Chain Information Visibility Customer Retention Strategic Impact Innovation & Product Development Emerging Markets Page 7

8 The Analytics Value Chain in Practice Page 8

9 Measuring value through an analytics portfolio Aligned analytics program with most critical business priorities. Treat each opportunity as stand alone project under a portfolio Create an analytics culture with talent, training, and knowledge management enabled with technology Implications to client were: Definition and build out of analytics enablers, including: Data Manual annotated, searchable data manual Technology environment and reference architectures Analytics solution catalog and playbook Engagement and operating model Knowledge management and collaboration portal Creation of an Analytics University with classroom and virtual training sessions as well as learning pathways to help the company build its own internal capability Unidentified Opportunity $334M Pipeline $210M In process $346M Realized $300M $1,000M $900M $800M $700M $600M $500M $400M $300M $200M $100M 22+ new programs in pipeline awaiting assessment, with new ideas surfacing daily Page 9

10 Targeted value identification analytics Focus Area Analytics Approach Value Realization Price Floor Product Substitutions Define improved price floors for materials based on weighted average as well as price targets based on market and proprietary product data. Identify potential products with higher margins that can be substituted for other lower margin products. Product Portfolio Identify opportunities for cross-sell and upsell at the product line and account levels. Contracts Review quotes, contracts, invoices, and field tickets for potential undercharges, discrepancies in quantities, missing surcharges and more. Page 10

11 Value Stream Optimization The Value Stream connects and maximizes the performance of all groups in the business unit (e.g., Downstream - Wholesale, Supply, Scheduling, Risk Mgmt, Terminals, Refining, Retail). Optimization is maximizing the performance of the business unit, not necessarily individual groups within the business unit. Crude Terminal Refinery Product Transport Optimize Optimize Optimize Optimize Optimize Optimize Pipeline Product Terminal Retail Value Stream Optimization Optimize Optimize Optimize Upstream Midstream Downstream Page 11

12 Monitoring enterprise risk FS Ratio Analysis Corporate Hotline Data Past Audit Scoring Risk Survey Results Entity Risk Composite JE Analytics O2C Analytics P2P Analytics T&E Analytics The Entity Risk Composite (ERC) is an indicator of relative risk between auditable entities The ERC is based on risk and performance analytics of key business processes and macro-level risk profile data Process Monitors deliver analytic results on the key process and are leveraged across the audit life cycle Page 12

13 Questions Thank you Jose Contreras EY Enterprise Intelligence James Walton EY Analytics Page 13