[MUSIC] Welcome back. In this video we're going to look at the business implications of technology advancement and datacrytes. Data and analytics is impacting every industry. Let's start with agriculture, one of the oldest sectors. Farmers have typically used their experience and the weather to decide when to plant seeds, when to irrigate them, and when to harvest them. But now, thanks to advance analytics, they can log into a system and analyze the best time to plant their seeds to obtain the best yield. Precisely when to irrigate which part of their multi acre farm. In another example, a high net worth young professional logs onto a robo-advisor platform, selects the money she wants to invest for the next two years and lets the system know her risk appetite. The robo-advisor then selects the right mutual funds and ETFs or Exchange Traded Funds that she should own, buys them through the exchange, and continuously monitors the value of her portfolio. It is ready to sell if the situation warrants. When we look at what's going on in the world we can see three major implications of technology advancements. Customers are changing the way they choose products and services. Competitors are faster and nimbler than ever before. Supply chains are more complex and diverse. Let's start by talking about how customers are changing the way they choose products and services. Online sales of products is increasing, and organizations need better online marketing and access to optimal distribution channels. At the same time, customers increasingly rely on information from social media. Organizations need to be aware of changing customer behavior and perceptions. The farmer practicing precision agriculture is demanding timely information, relevant and personalized information with respect to their farm and what they should do. Similarly the high net worth young professional is making decisions late at night from the comfort of her home. In both cases, the customers trust their online systems but have high demands on simplicity, personalization, ease of use, and transparency. Next, let's consider how competitors are faster and nimbler than ever before. For every organization, time to market for competitors has decreased. Managers at all levels need to access information on market changes so they can make quick adjustments in product strategies. Although the initial decision supports software product used by the farmer was from a start-up, it got acquired by a large agri business company. We see this again and again, where start-ups innovate and established companies acquire them in order to become more nimble and competitive. Now you see all of the major agribusiness companies using advanced analytics, censors, and other technologies to extract more. Similarly, the use of digital advice or robot advice is now no longer restricted to just startups. There's an arms race within the asset management sector to build better analytic tools for their customers and advisors. Finally, supply chains are more complex and diverse. Better global connectivity has allowed businesses to purchase imports from around the world. This makes purchasing decisions more complex. Increasingly, industry sectors are becoming more global and interconnected. Internet of things and sensors are revolutionizing physical supply chains and enabling data driven optimization and decisions. For example, the robo-advisors can manage funds across multiple parties distributed across the world. They can execute trades 24/7 and they're not dependent on the traders in each local market. The business benefits from advance data and analytics are four-fold. Increased revenues and profits as companies look at hyper targeting customers and selling tailored solutions to them. Decreased cost and enhanced productivity as more automation takes over from human decision making. Better customer experience as the omni channel interactions for why the convenience for customers and the low cost for providers. Reduced risk and better quality as standardization and automation become the norm. Increasingly, the workforce will be asked to focus on high value tasks as more of the repetitive, manual, and intellectual tasks are taken over by machines. Over time, the ability to use data and analytics and make data driven decisions will become standard practice. PWC is recruiting with this end state in mind. Data and analytics is becoming a part of the repertoire of all of our consultants. There are three key factors increasing the relevance and importance of data and analytics. The amount of data generated has exploded because of technology advancements. There are many new types of data available that cover a much wider range of activity. The price point for infrastructure and tools needed to capture and analyze this data has dramatically reduced. Making data collection and analytics much more economical for the organizations that need it. In the new normal of lower growth, regulated markets, and cost constraints, our clients are increasingly considering data and analytics as unexploited assets they can use to help them meet their goals. Technology has changed the data we have access to and how we can analyze and then visualize that data. We are now seeing things like big data, non-traditional data, information synthesis, sophisticated analytics and visual insights. Let's talk about what each of these are. The exponential growth of data and computing power is multiplying the number of opportunities to drive insights from information. That's what we call big data. Nontraditional data are telematics, satellites, voice, video-to-text, and other emerging technologies that create data from previously non-quantifiable concepts. Information synthesis is a catch-all term for how evolving data analysis and processing technologies are increasing our ability to draw insights from complex, messy and unstructured data. Sophisticated analytics are the advanced techniques such as simulation and optimization that are making it possible to pursue previously out-of-reach insights from data. Finally, there are visual insights as data visualization disciplines mature, organizations and software tools are simplifying and accelerating the path to insights and decisions. In this video, we talked about the major implications of technology advancements. Customers are changing the way they select products and services. Competitors are faster and nimbler than ever before. Supply chains are more complex and diverse. Think about how some of these changes have impacted you personally. How have you chosen products differently since the birth of social media? Compare this to how you bought products before social media? Think about other technology advancements that you have seen. Then join your fellow learners on the discussion board and engage in a dialogue on how technology advancements have changed your behaviors. And from that, consider the big question: "In what ways do you think organizations need to use data to help them think differently?" [MUSIC]
