New The Analytics Institute of Ireland - Wednesday February 27 … · 2019. 9. 24. · Source:...

Inspire Event @ EYWednesday February 27th 2019

Lorcan Malone – Chief Executive

Agenda

Welcome: Lorcan Malone

Introduction: Eoin O’Reilly

The 'Why' before the 'How‘: Prof Neil Gibson, Chief Economist, EY Ireland

Moving from insight to action: Mary-Kate Martin Smith, People Advisory Services &

Emmanuel Adeleke, Data Analytics, EY Ireland

Q&A: Eoin O’ Reilly & Lorcan Malone

Close: Lorcan Malone

Likelihood of change

= Level of dissatisfaction

x

Vision

x

Skills

x

Incentives

X

Action plans

The ‘Why’ before the ‘How’

Socio-economic changes necessity new thinking

27 Feb 2019

Prof Neil Gibson | Chief Economist | EY Ireland

Agenda

► Economy booming, but all is not well

► The trends shaping change

► Purpose leading our choices?

The Why before the How

Economy booming, but not all is well


All the signs are positive

ROI economic indicators – February 2019 – Snapshot of the Irish economy

GROWTH

+4.9%Q3’17 – Q3 ‘18¹

EMPLOYMENT

+2.3%Q4 ‘17 – Q4 ‘18²

INFLATION

+0.2%Jan ’17 – Jan ‘18

TAX RECEIPTS

+7.0 %Jan ’18 – Jan ‘19

WAGES

+4.1%Q4’17 – Q4 ‘18³

RETAIL SALES

+5.1%Dec ’17 – Dec ‘18⁴

BASE RATES

+0%Jan ’18 – Jan ‘19

UNEMPLOYMENT

-0.7ppJan ‘18 – Jan ‘195

CAR SALES

-2.8%Q4 17 – Q4 ‘18

EXCHANGE RATE

+0.3%Jan ‘18 – Jan ‘19

EXPORTS

+23.4%Dec ‘17– Dec ‘186

HOUSE PRICES

+6.5%Dec ’17 – Dec ‘18

1 Real GDP2 People employed

3 Nominal weekly wage growth, seasonally adjusted4 Nominal, excluding motor sales, seasonally adjusted

5 Seasonally adjusted monthly rate, 15-746Export value (nominal), seasonally adjusted

pp = percentage points

Source: CSO, February 2018

Current rate = 5.3%


Job growth impressive

-5 0 5 10 15 20 25 30 35 40

Agriculture

Other services

Financial, ins & real estate

Professional services

Transportation & storage

Retail

ICT

Health & social work

Public admin' & defence

Industry

Restaurants & hotels

Admin' & support services

Education

Construction

Employment by sector, ROI, Q4 2013 - Q4 2018

Total employment growth:

300,600

Source: CSO, ONS, seasonally adjusted


But… trust is low


52 Global 26 79 China 59 Malaysia 49 US

73 Indonesia 58 Mexico 48 Australia

72 India 56 Canada 46 Argentina

71 UAE 55 Hong Kong 46 Brazil

62 Singapore 54 The Netherlands 46 Italy

52 Columbia 46 S. Korea

45 S. Africa

45 Turkey

44 France

44 Germany

43 UK

42 Ireland

40 Spain

39 Japan

29 RussiaSource: Edelman Trust Barometer

Trust (60-100)

Neutral (50-59)

Distrust (1-49)

Risks are on the rise

Global growth /

trade wars

Competitive

Pressures (wages)

Climate change

Populism

Confidence

Public service

demands / funding

Brexit

Political fragility (NI

and ROI)

Indebtedness


We have many challenges to face

To name but a few…

► Aging population

► Infrastructure deficits

► Public sector demands growing faster than tax revenues

► Environmental change and sustainability

► Inequalities

► Regional disparities

► Revamping of education ‘journey’


The trends shaping change


Key economic and societal trends

Trend #4 Competitiveness pressures

Trend #7

Disruption

Trend #5

Talent availability

Trend #8

Legal & Regulatory

Trend #6

Salary levels

Trend #9The dominance of ‘large’

Trend #1

Global Growth

Trend #2

BrexitTrend #3

Geo-political unrest

Trend #10Attitudinal change

Trend #11Environmental change

Trend #12Diversity, fairness,

inclusion


What people care about is remarkably stable

0

2

4

6

8

10

12

What matter most? Ireland (%)

Source: OECD

0

2

4

6

8

10

12

What matters most? United Kingdom (%)

Top 5 in Sweden:

1. Life Satisfaction

2. Health

3. Education

4. Environment

5. Work-Life Balance

Top 5 in France:

1. Health


3. Education

4. Housing


Top 5 in the US:


2. Health

3. Education


5. Environment

Salary cost – a catalyst for change

Rising salary - double edged sword

► Workers enjoy pay rises!

► Can accelerate the automation

journey

► Though it is not without pain (given

happy workers)

► It is stimulating new businesses and

transforming the way firms do what

they do


All employees: +4.1%.

Average annualised wage now €39,606

0% 2% 4% 6% 8% 10% 12%

Public admin

Manufacturing

Industry

Retail

Real estate

Utility supply

Prof. Services

Education

Other

Health

Accommodation

All employees

Arts

Finance and insurance

ICT

Mining

Construction

Transport

Admin

Average weekly wage increases by sector, Ireland, year to Q4 2018

People do not feel they are going to be better off Source: Edelman


What do people really think about transformation?


Will automation…

► Kill jobs

► Take my job

► Increase unemployment

Source: Talent Leaders Pulse report 2019

The fear of job loss

Source: Edelman Trust Barometer

Jobs expected to be transformed

► Food preparation

► Construction

► Cleaning

► Driving

► Agricultural labour

Not having the training

and skills necessary to

get a good paying job

Automation and/or

other innovations taking

your job away

All employees 59% 55%Multinational

employees 63% 60%

Source: OECD/Economist

(search engine auto complete options)

The reality of change

► Healthcare

► Professional services

► Logistics

► Energy

► Public administration?

Source: EY

Purpose leading our choices?


Case Study – The Government is clear what ‘our’ vision is…


A personal perspective – analytics in EY

Costsavings

e.g. Finance, Risk Management,

Travel

Faster turnarounde.g. Finance,

Conflict

checking

Improved customer

experiencee.g. Expense

policy chatbots

Greateradoption of new

applicationse.g., Mercury,

SF

Process standardization

e.g., Finance,

Talent

BringingInnovation

closere.g. Travel,

Meetings

Improved compliance and

data qualitye.g. RM, Procurement,

pipeline hygiene,

Revenue planning

Encouragingnew learning

e.g. Automation

on EY Leads,

EY Badges


The better the question…


How before the Why … final reflections

► What are we (society / businesses / individuals) trying to achieve?

► What priorities do we hold, what matters more or less?

► To get from here to there what is the journey?

► Who will be impacted but the journey (and the new destination)

► What tools / processes can we use to get there

► Who needs to know what that involves and what difference it can make?

► How seriously to we take the analytics potential – is it at Board or Executive level? (How do

ideas get heard and taken seriously?)

► Ensuring some ‘accidental’ ideas can still make it, answering the questions you did not know

needed asked

► Recognising the need for purpose, empathy and responsibility in

realising the analytics potential


Thank you

Neil Gibson

Chief Economist at EY

T: +44 28 9044 1700

E: [email protected]

Moving from insight to action

Mary-Kate MartinSmith I People Advisory Services

Emmanuel Adeleke I Data Analytics

EY Ireland

Recap on what you told usWhat’s the key takeaway for this discussion?

Key areas contributing to analytics success, with a focus on the human element and organisational culture

Make data and analytics a

strategic imperative

Identify analytics leaders and

embed data and analytics

throughout the enterprise

Build and maintain your analytics

backbone

Define and manage data and

analytics competencies

Align the organisation around

data and analytics

Create an analytics-driven

culture

Start with the end user in mind

Align business user incentives

and capabilities

Measure results

Strategy &

LeadershipOrganisational

capabilities

Analytics

production

Analytics

consumption

Underpinned by a culture of decision making and commitment to continuous improvement

With the right people, culture and values, you can accomplish great things

How can you create a data-driven culture that is not just the reserve of the few, but of the many?

Leadership

and talent

Infuse

and prove

Scale

and access

Develop

and sustain

Engage

and reward

Look at how you

source and enable

the right talent

Deploy analytics

use cases to

accelerate path to

value

Access to the right

capabilities and

right mix of

resources to scale

Build the analytics

skills of people who

are not analytics

expert

Give people an

incentive to change

1 2 3 4 5

Key takeaway Going from insights to action… to value

Start with the business

problem…

…focus on the end

user…

…Ensure analytics

alignment (capabilities,

incentives)…

…Experiment and

measure value; then

scale

Focus on the human element!

Thank you

New The Analytics Institute of Ireland - Wednesday February 27 … · 2019. 9. 24. · Source:...

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