10/26/17. Big Data: An Accountant s New Best Friend. Management Information Systems. Big Data Analysis. Parts I and II November 10, 2017

Transcription

1 Big Data: An Accountant s New Best Friend Parts I and II November 10, 2017 Management Information Systems Big Data Analysis 1

2 Besides CPE credits, these are your learning objectives Expected Outcomes What is Big Data? Types of Big Data? Where is Big Data being Used? What are the major trends? What are the major tools for analyzing Big Data? Why Big Data is important to Accountants? Source: Big Data Institute What is Big Data? Insights from Assets A large amount of information that is being stored as an asset to enable insight, visual analytics, decision making, and operational automation. Volume Velocity Variety Big Data should be managed within your business governance policies to foster decisions that can be backed by verifiable data. Types of Big Data Big Data Structured Unstructured 2

3 Sentiment Analysis Shopping Cart Analysis Timing Analysis Behavioral Analytics Customer Segmentation Predictive 3

4 Threat Analysis Fraud Detection Customer Retention and Acquisition Scan Transactional Records Machine Learning Algorithms to target promotional spending. Used predictive analytics to scan transactions to spot anomalies with customers or unusual charges. Source: Fortune Monitor Product Quality Can offer new services to improve customer experience through telemetry data. Once the product is in the customer s hands, HP can monitor how it is performing and the data is being sent back Source: MapR 4

5 Descriptive, Predictive, and Prescriptive Analytics Provide insights about customer data back to the business users. These insights allows the business users to augment products to better serve customers and improve the claim process. Before: There was too much data making it challenging to test hypothesis and make decisions. Source: Big Data Everywhere A leader in the Transportation and Logistics domain, was facing this big data predicament. Combined, their trucks travel roughly 8 million miles per day to deliver their cargo. The Client needed a method to effectively analyze truck travel patterns to gain an understanding on a myriad of issues including how many empty miles were accrued on routes and subsequently make adjustments for more efficient deliveries. Utilizing their in-house logistics tracking software, the Client had been temporarily storing log files for analyzing and debugging issues related to the optimizer s selection process. Due to the massive amount of data being pushed into these files, they were only retaining this data for a short duration. Additionally, since the data was unstructured, developers would have to manually extract, parse, and search the data every time they needed to perform an analysis. Major Trends in 2017 Shift from being a visual reflection on operations to driving results Deepen company commitments in Big Data solutions by integrating across the organization Data will become a much stronger player within the organizations business strategy Rather empower rather than disrupt across the organization Source: Gartner 5

6 What are the main tools Hype Cycle Source: Gartner (July 2016) Hype Cycle Explained Source: Gartner (2003) 6

7 16 Data Science Platforms 16 Big Data Wave Source: EMC., 2016 OPEN SOURCE 7

8 Coming Soon: Artificial Intelligence Machine Learning Helps to Detect Potential Investment Advisor Fraud Structured and Unstructured data are compiled and processed through Hadoop computational cluster (Data Discovery). The results were five times better than randomly selecting language in investment adviser regulation filings that could merit referral to enforcement. Now used in Option Pricing Reporting Authority data as well. Source: SEC Accountants Goal of Profession: To provide information to decision makers through using available analytical tools. Financial Accountants, ensure that that financial statements are compiled and in accordance with the most recent GAAP, applicable laws, and management directives. The introduction of the friction-less economy has begged question to the valuation and predictability of future revenue streams. Source: Journal of Accounting Education ( ) Consistent with mission, expected outcomes, and supporting strategies, accounting degree programs include learning experiences that develop skills and knowledge related to the integration of information technology in accounting and business. Included in these learning experiences is the development of skills and knowledge related to data creation, data sharing, data analytics, data mining, data reporting, and storage within and across organizations 8

9 Intangible Asset Intangible Asset: Capitalizing the costs of purchased software that has an alternative future use. Accountants need to assist with determining the expected contribution to future revenue or market valuation. Acquired/Bought Data Internal Data - subjectivity Source: FASB Accounting Standards Codification 9