how ai and analytics can reduce costs in ... · xactium deliver risk management solutions to the...

Dr Andy Evanswww.xactium.com

How AI and Analytics can Reduce Costs in Projects

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Overview

● What does Xactium do?

● What is Project Risk Management?

● What is AI?

● How can it reduce costs?

● Why Analytics?

● How can it help?

● The future

● Summary

What is AI?

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Xactium

● Deliver risk management solutions to the financial services and infrastructure sectors

● Cloud based business focused on using the latest technologies and modern user experience

● UK and global customers, e.g:

○ UK’s largest engineering project

○ Global manufacturer- 60 countries

○ UK Financial Regulator

○ UK’s leading car insurer

What is AI?Project Risk Management

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Project Risk Management

● The process of identifying, analyzing and then mitigating risks that arise over the life cycle of a project

● A RISK is anything that could potentially impact your project’s timeline, performance or budget.

● Risks are potentialities: if they become actual or crystallise they become ISSUES.

● ACTIONS are steps you take to reduce risk.

● CONTROLS are measures you put in place to mitigate a risk.

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Cloud Based Project Risk Platform

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Reducing Costs - Project Risk Management

● Anything that helps you manage risk better (and give more insight) is going to reduce costs in your projects.

● Anecdotal evidence suggests that as much as 10-15% of project cost relates to poor risk management.

● AI and Analytics can help...

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Overview

AI

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Artificial Intelligence

● The use of machines to perform intelligent tasks○ Planning, prediction, learning, reasoning, problem solving,

knowledge representation, perception, vision, motion, manipulation and even social intelligence and creativity.

● Becoming embedded in all types of areas:

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Types of AI

● Assistive:○ Help you work smarter and more efficiently.○ E.g. Amazon suggested products.

● Predictive:○ Predicting outcomes based on previous history.○ E.g. facebook vision, predictive text.

● Often requires large data sets to train AI.

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AI for Risk Management

● How do we utilise AI within Risk Management?

● Challenges:

○ Low data volumes.

○ Varied data quality.

Assistive AI based on small data sets

Assistive AI based on small data sets

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Outlier Detection

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Predictive AI and Project Management

● Make predictions of task and team performance based on previous results.

● Predict potential risks or issues based on similar projects.

● Prediction of next best actions based on previous experience.

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The Future?

What is Analytics?

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What is Risk Analytics?

● Asking your data questions:

○ Which risks should I be prioritising?

○ Is my mitigation strategy working?

● Tools for identifying trends in your data:

○ What sorts of issues are trending and why?

○ Exposure vs contingency

● Gaining insight into behaviours:

○ Where are risks not being updated?

○ Where are actions not being completed?

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What Analytics isn’t:

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● Analytics is not about making decisions for you

● Doesn’t need ‘Big Data’

Case Studies - Benefits

● Focus in on areas which need attention.

○ Save time.

● Spot trends.

○ Avoid problems.

● Communication.

○ Share insights with senior execs.

○ Move away from static documents.

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Simple Dashboards

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Deep Analytics

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Data Modelling & Simulation

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Best Practices

● Make analytics accessible:

○ Easy to interpret charts.

○ Support for drill down.

○ Embedded.

○ Multi device.

○ Responsive.

● Use dashboards that prompt action and focus time.

● Ability to easily share data with key stakeholders.

● Use the power of “The Cloud”.

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Challenges

● Data Quality is key:

○ Typically spreadsheet based.

○ Unstructured.

○ Similar risks using different terminology.

● Data Loading

○ Preparation and cleansing of data

○ Data loading tools are quite unforgiving.

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The Future

● Risk Management moving to data analytics

● Seen a large growth in our customers who are building out their own analytics suites:

○ Requires user friendly reporting tools.

○ Or easy integration with third party tools, e.g. Tableau

● The greater the insight, the more controlled and efficient you can be when managing risk and projects in general.

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Adapting to the future

● Understand the benefits of AI and Analytics

● Experiment with some of the emerging tools.

● Speak to the senior executive team: what information do they need?

● Make a business case around improvements in efficiency.

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www.xactium.comhttps://www.xactium.com/the-xactium-risk-network

2019 Xactium Risk Network Conference | 9th OctoberRoyal Institution

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FeedbackTo join our AI and Analytics beta programme,

contact: info@xactium.com

2018 Xactium Risk Network Conference

Making a Difference

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Thank You