how ai and analytics can reduce costs in ... · xactium deliver risk management solutions to the...
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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
2018 Xactium Risk Network Conference
Making a Difference
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Thank You