6. Using data to create and preserve value Flashcards
Define Feedback theory
Results of a process are gathered and used to influence future performance by adjusting inputs into the process eg. to exercise control
Explain process of single loop feedback
- Sensor
- Comparator: compares actual result against standard
- Effector: acts upon comparison to issue new instruction
- Inputs are adjusted
- Which effect processes
What is a double loop feedback
There is a higher level controller which sets a standard - Human intervention
Along with a lower level controller
Who are internal stakeholders of feedback
Sales team
Operations Team
Marketing team
Board of directors
What feedback is received from sales team
- Customer accounts showing purchases, sales prices, volumes and customer feedback
- Strategy: use information to seek advantage over competition
What feedback would be recieved from operations team
- Size of future orders
- Strategy: develop long term relationships with suppliers
What feedback is recieved from marketing team
- Wheether sales are falling without reason
- Strategy: understanding of factors of drivers
What feedback is recieved from board of directors
- Insights intow whether or not to purchase coeptitor
- Strategy: consider value added to organisation
What are other groups of staekholders with requirements for information systems
- HR: info of staff
- Shareholders: future prospects of business
- Production team: levels of orders, unit costs
- Individual directors: insight and infomation with data visualisation
- Employees: effectiveness of systems
What is ETL
Data extraction, Transformation and Loading systems
- Take data from existing database and conver it into a different form and place it into a new database
What is meant by extraction
Data is analysed to understand content, format and structure : Data profilling
- Then it is read from source
What is meant by data transformation function
- Convertion of extracted data by combinging data to be placed into another database eg/ using rules or look up
What is meant by the data loading function
- Write transformed data into target database - data warehouse
Define business intelligence systems
System that describes technological architecture that extract, assemble and store data to provide data and analysis
What is the structure fo the Business intelligence stack
- IT infrastructrue at the bottom
- Customer relationship management, finance, enterprise resource planning, HR, supply chain and legacy systems
- ETL
- Data warehouse + external data + meta data
- Data mining, Online analytical processing, query and reporting
- Customers, finances, operations, and supply chain
- Real time access, websites, reports and dashboards
What is the secodn layer on the BI Stack
Specialist information systems for each business function
- Data stored in multiple formats and lcoations
- CRM, Finance, HR, Enterprise resource planning, legacy systems, supply chain
What is the metadata, data warehouse, warehouse maangemtn BI Stack level
- Systems that store transformed data from specialist systems and manage it so it can be used
What are examples of data solutions for Business intelligence
Hadoop
Googlebigquery
What is the prupose fo Hadoop
- Technological solution to handle big data
- Increases speed of tasks completed
- Task is broken down into separate elements and distributed to seperate servors
- Performed by HDFS( Hadoop distribute file system) and Map Reduce framework
- Completed tasks are reassmbled
What are the types of data activities
Data modelling
Data manipulation
Data analysis
Define data modelling
Analysis of organisation’s data needs required to support business processes
Define data manipulation
reorganisation or transformation of data to make it easier to read or more meaningful
Define data analysis
Overall process of collecting, cleansing, manipulation and modelling data to support decision making
What are the three stages of data modelling
Conceptual Model
Logical Model
Physical Model
What is meant by conceptual mode
- stage on eof data modelling
- consultation with internal stakeholders to determine and record data requirements
- Finance: Liason with stakeholders to determine types of insights required
What is meant by logical model
-Stage two of data modelling
- Data requirements are developed into formal documents specifying data structures to be use
- Finance: reviews the logical structure to ensure data requirements will be met
What is meant by physical model
-Stage three of data modelling
- Physical model is created ot manage data
- Finance: testing of physical modelto ensure correct insights can be made
What are the advantages of data modelling
- Foundation for handling data
- Helps with compliance of data regulation
- Enhances data quality
- Improves consistency of database
What is the role of the finace function in data manipulation
- Data manipulation language: DML
- DML used to automate processes and handle complex data
- Finance: manipulate data using accoutning fields
What are the different types of data analysis for decision making
- Exploratory data anlysis
- Confirmatory data analysis
- Predictive data anlysis
- Text data analysis
What is meant by explaratory data analysis
Finding new relationships or detures in data sets
What is menat by confirmatory data analysis
Confirming or disproving hypothesis
What is predictive data anlysis
Making forecasts based on techniques like statistical modelling
What is text data anlysis
Extracting and classifying data from textual sources
How do the characteristics od big data affect its storage requirements
Volume: infrastructure
Velocity: network and communicaiton systems
Variety: Data connection and data visualisation tools
Which charecteristic of big data mainly affects the infrastructure used to store it
Volume
What is the finance function roles in relation to big data qualities
Volume: internal audit for data storage
Velocity: benchmarking insights to IT Function
Variety: Ensure data connection and visualisation tools are adequate
What questions does effective visualisation tools consider
- who is the audience (level of detail and technical ability)
- How do they want the data (form)
- What outcome do they want
Why does the finance function perform data visualisation
- Responsibility to provide key insights
- Knowledge and expertise required
- Improved communication
- Knowledgeof overall organisational strategy
