SHS Web of Conferences 92, 05010 (2021) https://doi.org/10.

1051/shsconf/20219205010
Globalization and its Socio-Economic Consequences 2020

Big Data Management and Cloud Computing:

Financial Implications in the Digital World
Luminița Ionescu1,*, Mihai Andronie1
1Spiru
Haret University of Bucharest, Department of Economics, Fabricii 46G, 060821, Bucharest,
Romania

Abstract.
Research background: Globalization has had an impact not only on the
Internet society, but also on the way in which digital solutions lead to the
improvement of the business activity and optimal policies in simple
decision-making. Big data, cloud computing and artificial intelligence may
essentially improve the company management and the work of the
accountants. The increase of sharing information by digital technologies
and big data management are opening huge big opportunities and driving
investors towards peak globalization.
Purpose of the article: Our aim is to clarify and present the issues in
question in terms of financial implications due to the influence of big data
management and cloud computing in the digital world.
Methods: Our method to conduct the research is a mix of combining
quantitative and qualitative analysis in order to identify the benefits of
implementing big data management with positively influences over firms’
performance directly.
Findings & Value added: Our research presents the financial implications
of using cloud computing and digital solution for businesses in the digital
world, and also the impact study of adopting cloud technology in business
development. There are many implications for implementing big data and
cloud computing, but the most important one is increasing the productivity
of the companies and improving the international economy.

Keywords: big data; cloud computing; cloud accounting; artificial

intelligence

JEL Classification: H12; J21; M15; M48

*
Corresponding author: [email protected]

© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative
Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).
SHS Web of Conferences 92, 05010 (2021) https://doi.org/10.1051/shsconf/20219205010
Globalization and its Socio-Economic Consequences 2020

1 Introduction
Big data management and cloud computing are the most important technologies in the
digital world with positive impact on the business organizations and decision-making
processes. Big data management is vital for the modern smart sustainable cities in order to
accelerate the education development, transportation and mobility in smart cities [1], digital
networking, and renewable energy [2]. Big data management has a significant financial
implication in the digital world, accelerating the information flow and transmission of data
across the Internet, thus improving the quality, accuracy and trustworthiness of the data in
the finance industry [3]. Big data is an important trend in financial services, but also in
accounting and insurance sectors, not only because of volume of transactions, but also as
regards complexity and speed [4, 5]. The current trend of big data management is
configured by three important factors [4]:
- Growth in computing power.
- New complex sources of data.
- Modern infrastructure for knowledge creation.
The relationship between big data and cloud computing is strong and complex, but cloud
computing provides major solutions for big data [3, 6] while accelerating the benefits of
digital data management. Big data can be used, reused, moved and modified with low cost
at fast speed, bringing about good results for top management.

2. Methods and Data

We developed our research based on data collected from Eurostat, Intuit and Software
Advice databases. Thus, according to the Eurostat, the use of cloud computing and big data
in the EU large companies increased with 21% during the period 2014–2018, with positive
effects for the financial activity. We performed analyses and made some estimates based on
the cloud computing for business in European countries and we present the most important
benefits and financial implications of big data management in the digital world. Cloud
computing is an advanced technology for smart businesses and cloud service models will
automate decision making [7-9].

Fig. 1. Use of cloud computing services in 2018

Source: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Cloud_computing_-
_statistics_on_the_use_by_enterprises (online data code: isoc_cicce_use).
In the last decades two types of cloud models have been implemented by companies to
improve big data management: public cloud and private cloud for new and better services
to customers [7, 10]. Both types of cloud models have financial implications for business in
the digital world. The most important benefits of cloud model implementation are

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SHS Web of Conferences 92, 05010 (2021) https://doi.org/10.1051/shsconf/20219205010
Globalization and its Socio-Economic Consequences 2020

adaptability, flexibility, competitiveness, strong data Security, etc. In the last decades two
types of cloud models have been implemented by companies to improve big data
management: public cloud and private cloud for new and better services to customers [7,
10]. Both types of cloud models have financial implications for business in the digital
world. The most important benefits of cloud model implementation are adaptability,
flexibility, competitiveness, strong data security, etc.
Table 1. Use of the public and private cloud

Description Financial implications Limitations

Third party service

provider through -not all controls will be
the Internet to -flexibility of costs operated by the institution
Public cloud deploy IT -cost reduction itself
solutions suitable -data security -deterioration of service
for small quality
companies
Managed within a -cost optimization
private -flexible budget -computing resources are
Private cloud organization and -competitiveness allows small used solely by the one
suitable for large business to act faster than big single organisation
companies companies
Source: Authors’ own work.
Recently, a hybrid cloud solution has been developed, as an integrated cloud service,
using both private and public clouds to perform distinct functions within the same
organisation. According to Eurostar, the most uses of cloud computing services are e-mails,
office software, storage of files, and hosting the business database.
Table 2. Use of the cloud computing services by email, software, file storage and storage database(s)
Use of the cloud computing services Medium High
e-mail Yes/No Yes/No Yes/No
Office software Yes/No Yes/No Yes/No
Storage of files Yes/No Yes/No Yes/No
Hosting the enterprise’s database(s) No Yes Yes/No
Financial or accounting software applications No No Yes/No
Customer Relationship Management software No No Yes/No
application
Computing power for enterprise’s own No No Yes/No
software
Sources:https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Cloud_computing_-
_statistics_on_the_use_by_enterprises (online data code: isoc_cicce_use).
In a rapidly changing environment, cloud computing and big data are growing fast due
to globalization and the Internet society.

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Globalization and its Socio-Economic Consequences 2020

Fig. 2. Use of cloud computing services in enterprises – 2014, 2016 and 2018 (% of enterprises using
the cloud)
Source: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Cloud_computing_-
_statistics_on_the_use_by_enterprises (online data code: isoc_cicce_use).

3 Results and Discussion

Using cloud computing and digital solutions for businesses creates opportunities for
increasing specialisation and new opportunities for small businesses. Thus, cloud has
become a key technology to develop new financial services and to collaborate with third
parties concerning how to compete in the financial sector industries. We present in the table
below the key areas where automation technology was implemented in 2019.
Table 3. The key areas where automation technology was implemented in 2019 (%)
Finance/Accounting/Auditing 25
Marketing 23
Sales 18
Customer services 16
Operations 9
Production 7
Other 2
Sources: Intuit and our estimates.
The big companies around the world are adopting modern solutions to implement big
data management in order to help the decision-makers to improve the decision-making
process [10]. Also, sharing data between firms across the supply chain helps in many
aspects development of business plans and aims to achieve the objectives of better firm
performance and increasing profits [11, 12].
Table 4. Popularity of cloud computing and big data (%)
Automation helps improve the customer experience 61
Automation leads to higher productivity 59
Automation will enhance knowledge sharing within their organization 50
Sources: Market Research; our survey among 2,500 individuals conducted July-August 2020.

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Globalization and its Socio-Economic Consequences 2020

Flexibility and data security are imperative for investors and managers, while cloud
computing is the technology with the greatest potential to meet both needs. Implementing
cloud computing solutions reduce hardware cost and human resources costs, providing
numerous tools and expansion opportunities for businesses.
Table 5. Best cloud computing services (%)
Google cloud 78
IBM cloud 69
Oracle cloud 71
Others 50
Sources: Market Research; our survey among 2,500 individuals conducted July-August 2020.
Due to globalization and increasing demand of good quality products, big data
management and cloud computing are becoming a new trend among businesses [13]. Using
cloud computing services, smart entrepreneurs can develop and launch new products in a
short time frame, capitalize on new financial trends, and organize the work of accountants
[14]. The adoption of artificial intelligence, robots and big data will increase the
profitability of the businesses and improve the international economy [15] while big data
can help companies achieve competitive advantage over their rivals [16] and drive investors
towards peak globalization. The emergence of data-driven services in the Internet of Things
provides manufacturers of technical products with the opportunity to increase their
businesses and create jobs [17-19].
Big data is enhancing business value through business intelligence, while big data
analytics can assist companies in better exploiting big data for improving customer
satisfaction, managing supply chain risk, generating competitive intelligence, and
articulating faster decision making [16]. The application of big data and cloud computing in
order to improve the financial information provides great value to managers and investors
[9, 20]. Big data brings tremendous promise in the form of exciting innovations, new
opportunities and attractive revenue for businesses, greater speed and precision of
production [12, 21, 22].

4 Conclusions and Implications

The roles of digital technologies become crucial in extending financial development into
new sectors in the wake of the global financial crisis [23]. Big data management and cloud
computing are not only a technological trend, but also have significant and positive impact
on the financial results of businesses. Cloud computing usage is expanding rapidly and
could be the most promising and anticipated technology in the globalization era [24].
Making intelligent decisions requires robust learning ability that explores historical
status data and a good management of big data and cloud computing. The most important
financial implications of cloud computing are adaptability, cost reductions, and
competitiveness, in addition to increasing profitability and efficiency. Big data management
can structurally help the majority of businesses shift more gradually into the cloud
computing and develop their operations. In our opinion, the benefits of cloud computing are
improved efficiency, communication, and resource management, while big data
management can structurally facilitate both internal and customer interactions.

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Globalization and its Socio-Economic Consequences 2020

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