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Managing Finance in A Digital World Chapter 8: Data To Create & Preserve Value For Organisations

This document discusses the competencies required for finance professionals to use data to create and preserve value for organizations. It covers data strategy and planning, data engineering, extraction and mining, data modeling, manipulation and analysis, and data insight and communication. Finance professionals need skills in assessing data needs, using extraction, transformation, and loading systems, business intelligence systems, big data analytics, and data visualization. They are also responsible for developing data strategies, extracting and profiling data, loading data warehouses, and analyzing and communicating insights from data to stakeholders.

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Jessica Huapaya Cuzcano
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51 views14 pages

Managing Finance in A Digital World Chapter 8: Data To Create & Preserve Value For Organisations

This document discusses the competencies required for finance professionals to use data to create and preserve value for organizations. It covers data strategy and planning, data engineering, extraction and mining, data modeling, manipulation and analysis, and data insight and communication. Finance professionals need skills in assessing data needs, using extraction, transformation, and loading systems, business intelligence systems, big data analytics, and data visualization. They are also responsible for developing data strategies, extracting and profiling data, loading data warehouses, and analyzing and communicating insights from data to stakeholders.

Uploaded by

Jessica Huapaya Cuzcano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Managing Finance in a Digital World

Chapter 8: Data to create & preserve value for Organisations


Data to Create & Preserve Value for Organisations
Learning Outcome

C2. Explain the competences required to use data to create & preserve value
for organisations
Component C2) Explain the competences that finance professionals need in:
a) Data strategy & planning
b) Data engineering, extraction & mining
c) Data modelling, manipulation & analysis
d) Data & insight communication
 Assessment of data needs.
 Extraction, transformation & loading (ETL) systems.
 Business (BI) systems.
 Big Data analytics.
 Data Visualisation.

2
Data Strategy & Planning
Data requirements and stakeholders
Stakeholder- is anybody who can affect or be affected by an organisations actions.
Table below summarises some of the main stakeholders of the finance function
as well as considering the data needs of each group.
Data Strategy & Planning
Data Engineering, Extraction & Mining
Extraction, transformation and loading (ETL)
Extraction, transformation and loading (ETL) are the three stages in transferring
data. They are combined into a single tool to automatically bring data from various
sources into a destination system.
Data Engineering, Extraction & Mining
1. Extraction – data harvested from a variety of sources. Data profiling is an
important part of the extraction phase.
Data profiling – analyses to understand the content, format and structure. This
is used in the coding for the extraction and transformation stages.

2. Transformation – the source data into the required format for its intended use.

3. Loading – the newly cleaned and sorted data to the destination database or
data warehouse.
Data warehouse – sees data held in a systematic format ready for further
use by the business intelligence (BI) function.
Data Engineering, Extraction & Mining
Business intelligence (BI)
Business intelligence is the technology driven process of analysing business data
to generate insightful and actionable information with a view to improving the
operations or products of a business.

ETL is a component of a wider business intelligence or BI process. ETL provides


the required data, BI accesses and analyses this data further for information and
insight. Data visualisation is then used by BI to present findings to the wider
business. The new technologies of the digital world are driving development in ETL
systems to meet the needs of BI, the main features and challenges include:
 The rate of growth in data
 The variety in types and sources of data
 New technology such as Hadoop and GoogleBigQuery are designed for the
world of big data.
Data Modeling, Manipulation & Analysis
Data modelling and the finance function
A data model considers the data of an organisation in a systematic way that allows it
to be stored and retrieved in an efficient and effective manner.
Some of the advantages of a deliberate and consistent approach to data through the
use of organisation wide data modelling include:
 Foundation for handling data, it facilitates the effective use of data
throughout the organisation.
 Enforces business rules and helps achieve regulatory compliance by
ensuring data is complete and secure.
 Consistency of naming conventions and values ultimately underpin a
systematic and reliable database.
 The quality of data is enhanced as data modelling provides an organisation
with a well-planned approach, Ensuring completeness and facilitating high
quality data warehouses.
Data Modeling, Manipulation & Analysis
Data manipulation
Data manipulation is the process of changing data to make it easier to read. It
involves adding, deleting, querying and modifying data in a data-store using a data
manipulation language or DML.

A data model outlines the parameters of data held in a database. A data


manipulation language or DML is then used to search and interrogate the data.

This DML is essentially the basis for instructions used to search and question a
database. For instance from the finance perspective a DML gives the ability to
interrogate the data base to compile reports and analysis to support decision
making.
A data model considers the data of an organisation in a systematic way that allows
it to be stored and retrieved in an efficient and effective manner.
Data Insight & Communication
Managing big data – the finance function
Big data is a huge opportunity for businesses. In order to realise the potential big data
offers a business needs a coherent data strategy.

Data strategy is a coherent approach for organising, governing, analysing and


deploying an organisations information assets.
Digital technology and the use of data in modern businesses must be considered at a
strategic level and be a central component of an overall business strategy.
A key element of any data strategy will look at how to cope with the attributes of big
data as outlined by the 4 V’s:
Data Insight & Communication
Data Insight & Communication
Data visualisations and the finance function
Data visualisation focuses on providing information to users in a practical and
straightforward way. In order to produce an effective data visualisation the following
three questions should be considered:
 Who are the audience? Including things like what is their background? Are they
technically minded etc.?
 How do they want the data? The focus should be to provide data to meet the end
users requirements.
 What outcome do we want? What is the intended purpose of the data and how
can this be achieved in the most straightforward manner.

Business focused data


Data scientists are individuals with the ability to extract meaning from and interpret
data, which requires both tools and methods from statistics and machine learning.
Data Insight & Communication
Organisations looking to capitalise on data are employing specialist data scientists.
This is a hybrid field comprising a mix of maths, statistics, programming and computer
science. Therefore it is more academic than commercial in nature.

Management accountants are increasingly acting as an interface between the


business and the data specialists, acting to translate data into commercial information;
management accountants are uniquely positioned to do so for the following reasons:
 All activities have a financial consequence so the finance function is central to an
organisation with a unique understanding of the overall business picture.
 Information produced is trusted, typically audited and grounded in factual accounting
reality.
 The management accounting function and the information produced provides the
basis of performance management across the business already.
 Finance professionals have credibility and ethical guidelines which underpin their
objectivity and rigour in decision making.
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