Analytics Consulting 

Digital Consulting

Achieve better performance through data

Organization

Identify drivers of high performance

Operations

Supply-chain management

We help clients adopt a cross-functional, end-to-end perspective on supply-chain management and offer a complete suite of proprietary tools for network design, clean-sheet logistics, inventory management, and warehousing.

Manufacturing

We serve clients in all production industries to achieve sustained improvement in manufacturing strategy, quality, asset productivity, and energy efficiency, offering support at every stage from analytics to planning to implementation.

Procurement

Over the past 10 years, we have worked with clients to source more than $350 billion in spend and generate savings in excess of $50 billion through improvements in demand management, supplier rationalization, operational processes, global sourcing, and design-to-value product development.

Service operations

We help clients in both service and non-service industries across all their service functions, including customer experience, service strategy and delivery, business-support functions, customer care, and lean management.

Strategy & Corporate Finance

Access to unparalleled expertise and insights

STAC provides our clients with the comprehensive analysis and insights they need to develop winning strategies. Our global team of 90 experts have access to proprietary databases, analytical platforms and advanced modeling techniques to generate distinctive data-driven insights that empower our clients to make faster and better strategic decisions.

Long-standing leadership in strategy topics

With a tradition of research and innovation spanning decades, we have consistently produced knowledge that breaks new ground. We bring clients the most powerful solutions for tackling strategic challenges, and we invest continuously in innovation and capability building. Our independent, fact-based perspective is anchored in large volumes of data, processed through advanced analytics to yield fast, accurate, and deep insights.

Greater clarity and confidence in decision making

We help clients sift through the complexity of strategic planning to understand where the real uncertainties lie. The scope of our data, the interpretive force of our models, and the rigor of the processes applied by our analytics experts equip leaders to build a clearer and more detailed picture of the world, make better-informed and more robust decisions, and introduce greater transparency into direction setting.

Risk

Credit risk modeling and analytics

Advanced credit risk analytics enable institutions to improve underwriting decisions and increase revenues while reducing risk costs. We work across all asset classes, credit risk models, and the entire credit life cycle, including profit maximization, portfolio management, and loss mitigation. We cover a wide variety of sectors, including banking, telecommunications, and government agencies. Our work helps clients address six strategic imperatives:

• Understanding and adapting to changing consumer behavior
• Mining the vast amounts of available data
• Expanding the credit “buy box” without altering the overall risk profile or appetite
• Increasing penetration of the customer base
• Containing credit risk within the portfolio
• Understanding aggregate risk levels in a range of baseline and stress scenarios.

Stress testing and balance-sheet analytics

A structured, well-defined stress-testing process connects the “engine room” to the board room. It goes beyond cumbersome exercises aimed solely at achieving regulatory compliance and moves board members and business leaders to action. Our stress-testing capabilities include generating scenarios, translating them into environmental parameters through macroeconomic quantification, and then assessing the impact of these scenarios on the market, and on the client’s profit and loss (P&L) and balance sheet. All of this informs an action plan to mitigate risks and swiftly capture opportunities.

Operational risk and fraud analytics

We provide advanced operational risk and compliance analytics, protecting clients’ P&L and capital. We support both financial and nonfinancial institutions in solving the most complex analytical problems across all nonfinancial risk types. These risk types include loss and scenario-based models—for setting capital requirements (for example, the advanced management approach and the Solvency II Directive) and for stress testing (for instance, the Comprehensive Capital Analysis and Review in the United States, the Prudential Regulation Authority in the United Kingdom, and the European Banking Authority and the European Central Bank in Europe). We also cover advanced models for operational risk and compliance management, such as anti-money laundering, know-your-customer fraud, and unauthorized behaviors.

Model validation

We support clients on a broad spectrum of model risk-management topics: defining model governance, policies, and procedures; identifying model needs; validating models; and providing the necessary organizational support, capabilities, and culture. Our deep capabilities in advanced analytics allow us to assist clients in model validation across all model classes. Our recent acquisition of Risk Dynamics, a leading risk-analytics firm, further bolsters our abilities in this burgeoning area. Together, we help clients transform and enhance their risk-modeling capabilities and strategies, and we establish robust and sustainable business models.

Machine learning

We help clients complement traditional risk analytics with machine learning to find previously unidentified patterns and make better predictions. For example, we use machine learning to improve fraud detection and mitigation, improve underwriting decisions, and optimize collection efforts. Our efforts with a Latin American telecommunications provider enhanced its collections process and identified the 15 percent of customers causing 83 percent of losses.

Institutional-investment analytics

We help institutional investors—particularly large public pension plans, sovereign-wealth funds, and endowments—better understand the risk and return potential of their portfolios. We help clients analyze risk factors, model asset and liability matching, and enhance their asset-allocation methodologies. We also help them disaggregate the sources of investment performance and costs to get a fuller view of their risk-adjusted returns. Increasingly, we help institutional investors use insights from big data and machine learning to stay at the cutting edge of their disciplines. We embed these insights and techniques into ongoing investment and risk-management processes to help clients build lasting capabilities.

Insurance analytics

We help insurers apply big data and advanced analytics to address key issues, such as underwriting and pricing. In doing so, we help optimize new-customer acquisition and maximize economic value from policies to ensure that clients settle claims fairly for customers and shareholders.

Marketing & Sales

Customer life-cycle management

We help clients use proprietary customer data and analytics to acquire, develop, and retain high-value customers more profitably and effectively—and drive the necessary organizational changes from the C-suite through to the front line.

Marketing return on investment

Tracking activities along the whole customer decision journey brings transparency to marketing return on investment. By optimizing the effectiveness of marketing spend across the board, clients can free up 10 to 20 percent of their investment to reinvest for growth or take as bottom-line savings.

Pricing and promotions

Through our proprietary methods, our innovative research, our suite of analytic software solutions, and our economic simulators for complex scenario analysis, we help clients manage their pricing, promotions, and trade terms to optimize their return on sales.

Assortment optimization

Adopting an analytically driven approach to assortment optimization helps clients determine which items should be stocked where to maximize profit. Our approach has the flexibility to optimize at multiple levels, from department and category down to micro space.

Analytic transformation

For companies seeking to transform their marketing and sales through advanced analytics, we can help define a vision, develop use cases, organize initiatives into an implementation road map, and build capabilities to create strategic value and competitive edge. Our support is tailored to clients’ needs, ranging from collaborations to build centers of excellence and pilot use cases to deep dives into model construction, insight generation, and capability building.

Our Approach to Analytics Consulting

Analytics Consulting Leader