Using data and analytics to assess future disruptions - PwC India

By Sudipta Ghosh, Partner and Leader, Data and Analytics

We are entering an era where the past is no longer a good predictor of the future. The entire concept of extrapolating past data is becoming less relevant for understanding the future. This opens up the need for sensing the external environment on a real-time basis to understand both disruptions and opportunities.

The need for a “control tower” to continuously sense these disruptions using advanced analytical techniques will become a necessity. Horizontal integration of the flow of information between the customer and supplier ecosystem will provide early warning signals to react quickly to these changing external circumstances.

In addition to sensing and quickly reacting to changes, it will also be important for organisations to proactively address risks and vulnerabilities. This entails creation of digital twins of processes and systems, which is a very cost-effective and agile way of simulating the impact of disruptions on critical factors like service levels, lead times, inventory levels, cash flow and the overall financial viability of the organisation.

Emerging stronger out of COVID will require organisations to gear up by adequately sensing the external environment, translating the data-driven insights into action, and simulating the impact of future disruptions using digital twins to stay nimble and competitive.