8.3 Data modelling, manipulation and analysis

Question 1

A data model considers the

Answer 1

• data of an org in a systematic way
• this allows it to be stored and retrieved in an efficient and effective manner

Question 2

The process of data modelling involves

Answer 2

• laying out the org data requirements in a way that can be easily converted to computer code
• it requires a clear and systematic plan of the key data and how it should be organised to allow it to be retrieved, interrogated, linked and grouped

Question 3

The advantages of data modelling include:

Answer 3

• Foundation for handling data, it facilitates effective use of data throughout the org
• Enforces bus rules and helps achieve compliance with regulations by ensuring data is complete and secure
• Consistency of naming conventions and values helps create a systematic and reliable database
• Quality of data is enhanced - well planned approach to data ensures completeness and high quality data warehouses

Question 4

Three levels of data modelling process:

Answer 4

• Conceptual - bus orientated and practical, considers the bus data and it’s requirements
• Logical - develop a technical map of rules and data structures, defining how data will be held and used
• Physical - using a specific database management system (DBMS) to meet the defined system requirements

Question 5

The finance professionals role in data modelling process:

Answer 5

• they will play an important role in the conceptual level since they understand the bus data and requirements
• they will work with data specialists to ensure data and requirements are reflected at logical and physical level

Question 6

Data manipulation is the process of

Answer 6

• changing data to make it easier to read
• it involves using a data manipulation language (DML) to add, delete, query and modify data in datastore
  -DML can be used to search and interrogate data
• DML gives instructions to database in a consistent and structured way

Question 7

Finance professionals and data manipulation:

Answer 7

• Data specialists who develop the DML will be guided by FP who have skills to identify and communicate what the bus needs
• to FF the query function of DML will be most relevant, which allows them to ask the database questions about the data
• this is done to gather information required by management for things like analysis, reporting and decision making

Question 8

Data analysis is the process of

Answer 8

• examining, transforming and arranging a given data set in specific ways in order to study it’s individual parts and extract useful info
• it is a component of data analytics which focuses on data collection, organisation and analysis

Question 9

Methods for data analysis: (pg 214)

Answer 9

• A number of methods are available and can be used individually but often used collectively
• Moving from left to right complexity and effort increases but so does added value
• Looking backward: (becoming automated)
  
  • Descriptive - what has happened? (simple statistical and visual tools- averages / bar charts)
  • Diagnostic - why did it happen? (data mining to detect patterns and correlations)
• Looking forward: (tech and human capabilities are combined to reason, understand and learn together)
  
  • Predictive - what will happen next? (advanced statistical tools such as linear regression models, decision trees and simulation)
  • Prescriptive - what actions should be taken? (AI and machine learning)