5 - Data & the Finance Function Flashcards
Novel technologies
New & emerging tech developments that introduce different ways of working and using data. These are the technologies we’ve discussed over past few chapters.
How does cloud computing improve info used by decision makers?
Consistent info as single data source held, maintained and shared by multiple users.
How does big data improve info used by decision makers?
Faster speed info can be sent to decision makers as can be streamed real time.
How does data analytics improve info used by decision makers?
Can now identify patterns and trends that were previously impossible/too time consuming.
How does process automation improve info used by decision makers?
Reduce errors and inconsistencies + faster than humans
How does AI improve info used by decision makers?
Info created by augmenting human intelligence and AI can be made available faster as humans just focus on their part.
How does data visualisation improve info used by decision makers?
Communication of info more rich and effective.
How does blockchain improve info used by decision makers?
Increases trust in info because transactions are verified.
How does internet of things improve info used by decision makers?
Sensors in environment increase range of info.
How does mobile tech improve info used by decision makers?
Decision makers can access info from anywhere = more responsive and reactive.
How does 3D printing improve info used by decision makers?
Fast assembly of prototype products for decision makers to evaluate. Can make changes quickly and results sent to any location that has a 3D printer.
The role of marketing can be summarised by 2 lines…
- Identify customer needs
2. Help the org fulfil those needs
What specific software can collect data from customers?
Customer relationship management (CRM) software
4 ways big data & data analytics can improve understanding of customer
- Identify patterns and trends in customer behaviour to predict demand
- Identify tastes = tailor to individual
- Understand how ind interacts with diff comms channels so create consistent exp for them
- Customer value: understand desires & preferences to identify features that add value for them.
3 main roles of operations
- Fulfil customer orders through production
- Delivery to customer
- transform inputs to outputs
Define EDI systems
Electronic data interchange systems = computer-to-computer exchange of docs in standardised format - so org’s systems exchange data with systems of customer/supplier. Eliminates needs to call up supplier and order materials etc. Use system to understanding change in type/frequency of orders.
5 sources of operational data
- EDI systems
- Logistics & reverse logistics systems
- Inventory mgmt systems
- Material requirement/manu resource/enterprise resource planning systems.
- Quality control systems
Sources of operational data tend to all be… + implication
INTERNAL sources = data should easily be collected and analysed to identify inefficient processes.
How can data analytics be used to identify operational inefficiencies?
Run analytics on data created by internal systems. Compare actual vs benchmark to determine inefficiencies.
How can enterprise-wide systems be used to identify operational inefficiencies?
Data in financial and operational systems can be used to generate KPIs that help org to monitor how efficient processes are.
How can EDI systems be used to identify operational inefficiencies?
EDI systems provide data on how quickly docs are transferred between orgs & may indicate delays
How can inventory mgmt systems be used to identify operational inefficiencies?
Identify product lines moving slowly or have a trend of increasing inventory lvls.
How can benchmarking analysis be used to identify operational inefficiencies?
Compare performance of bis process against comparable internal and external processes to identify underperformance.
How can quality control systems be used to identify operational inefficiencies?
Detect product lines with high levels of reworking or wastage to identify where improvements are needed.
How is data beneficial for operations to forecasting?
Data can map out customer behaviour + use predictive modelling = improve demand forecasting to schedule production processes.
How is data beneficial for operations to preventative maintenance?
data + internet of things (sensors) can continuously monitor systems to identify potential issues that can be prevented by scheduling maintenance before they occur.
How is data beneficial for operations to cost saving?
Efficiency gains by eliminating bottlenecks, reducing waste and downtime.
How is data beneficial for operations to improved service?
Live data and tracking can improve services e.g. customers see waiting times, track parcels.
How is data beneficial for operations to supply chain?
Data enabling large and complex supply chains to be formed through sharing of knowledge and other collab so components and products can be made in most effective manner.
Digital assets =
digital files such as PDFs, music, video and pictures. Users of these files are granted a licence to use the asset by the creator/owner, but do not have ownership rights themselves.
A key feature of digital assets is…
permanence - exist indefinitely unless all copies deleted.
Why do digital assets create problems for orgs?
They’re intangible, easily copied & transferred = need to protect ownership rights & ensure user licences appropriately written & intellectual property rights respected.
What element of value do physical assets have that digital assets have less so?
SCARCITY creates value.
In order to monetise or add value from digital assets, they need…
to have the properties of physical objects so the owner can create scarcity.
What novel technology allows scarcity to be created from digital assets?
Bitcoins that use blockchains - digital assets that cannot be copied and each bitcoin is unique. They can be transferred, but only one copy of each bitcoin exists.
State 4 other sources of customer value from digital assets that they’d be WTP for
- Brand
- Content of the asset
- Marketing of the asset
- Product dev - create bundle of digital assets that have more value than if sold individually e.g. apps with basic, limited & full functionality.
How can finance support discovering value customers get from content of digital assets?
Provide insights into how much value different customers place on an asset.
Digital asset mgmt systems =
store digital assets in a central, secure, accessible location - usually a database. Often cloud based = can access from any location.
How would finance be involved in Digital asset mgmt systems?
Create business case for and choose a suitable provider
How is metadata used in Digital asset mgmt systems? + 2 benefits.
Assets are categorised according to their metedata e.g. by format, date/time stamp etc = reduce time as can search for specific assets + prevents duplication.
Why do Digital asset mgmt systems provide good security?
User require authorisation and different users may have different levels of access. Also version controls, watermarking and embargo dates (specifies exact data work made available for download).
How can Digital asset mgmt systems provide insights?
User records provide data on usage and access to assets = can direct production of future assets that generate most value.
2 ways Digital asset mgmt systems help external users
- Consistent & clear info as can see copyright & contact info
- Better service as can easily access through internet
How do Digital asset mgmt systems affect cost?
Reduced cost and space requirements to store assets
State 4 ethical considerations relating to data.
- Data dependence
- data storage
- data mining
- Data distribution
Data storage ethical consideration
Ever increasing volumes of data = investment required in secure data systems. Affordability coming down to cost per unit of data storage.
Data mining ethical consideration
Org should consider if using most effective data mining tools in order to extract max amount of useful data from their systems.
How does increased data use impact org in terms of right to be informed data right?
More data = need to find effective & efficient methods of informing individuals e.g. single data policy auto distributed.
How does increased data use impact org in terms of ‘access’ data right?
More data = org must have resource and systems in place to quickly and efficiently provide info requested.
How does increased data use impact org in terms of ‘rectification’ data right?
More data = need resources and procedures in place to investigate reported errors & rectify quickly and efficiently. Must identify cause of errors and implement appropriate controls.
How does increased data use impact org in terms of ‘erasure’ data right?
Resources in place to ensure all traces of data removed.
How does increased data use impact org in terms of ‘restrict processing’ data right?
More data = harder to keep track of processing restrictions. Need systems to cope with restrictions automatically = need to be flexible.
How does increased data use impact org in terms of ‘data portability’ data right?
Data needs to be stored in a format that can be easily transferred to another org & used by diff types of software
How does increased data use impact org in terms of ‘to object’ data right?
Employees must be aware that where data held for direct marketing purposes, ind has right to object. Need systems to process these requests.
How does increased data use impact org in terms of ‘automated decision making & profiling’ data right?
Need team of suitably qualified and experienced employees to intervene if human intervention requested.
UK’s Info Commissioner’s Office (ICO) has identified what 8 Qs an org should ask itself which, if cannot be answered, identifies a data weakness.
- Do you have record of what data held & what it’s used for?
- Do people know the above^
- Do u only collect personal data needed?
- Do u only keep data for as long as needed?
- Do u make sure data UTD & accurate?
- Do u keep data secure?
- Do u have a way for ind to exercise data rights?
- Do u & staff know data protection responsibilities?
State 4 features of sound data management
- Culture
- CDO
- Data strategy
- Training
Culture feature of sound data mgmt
Top down approach to promoting significance of data
CDO feature of sound data mgmt
Consider appointing a CDO with overall responsibility for governance and protection of data + strategies to make best use of data held.
Data strategy feature of sound data mgmt
Data strategy embedded within org’s overall strategy.
SAS Institute: 5 key building blocks of data strategy
- Identify
- Store
- Provision
- Process
- Govern
SAS Institute: ‘Identify’ building block of data strategy
Identify business requirements and org structure.
SAS Institute: ‘Store’ building block of data strategy
Identify data storage requirements and protection.
SAS Institute: ‘Provision’ building block of data strategy
Identify how data should be packaged to allow easy access. Rules, guidance & access lvls should be determined.
SAS Institute: ‘Process’ building block of data strategy
Data designed for clear, easy and consistent processing. Unify data stores to max processing potential.
SAS Institute: ‘Govern’ building block of data strategy
Publish clear, consistent and user friendly policies on using and storing data to ensure correct use and min security breaches.
Training feature of sound data mgmt
Provide training to staff to ensure compliance with legislation.
5 responsibilities for CDR due to increased data use
- Act as steward of data
- Be transparent
- Ensure accuracy
- Have human checks
- Manage volume of data held
Expand on responsibility to manage volume of data held
Orgs might deliberately or through inaction see datasets grow exponentially and beyond their ability to control and manage = need to put procedures in place to min this risk and ensure data is min needed to fulfil specific purposes.
