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