8.4 Data insight and communication

Question 1

The FF and managing big data:

Answer 1

• The FF is responsible for providing management info and big data has increased the pool of data available to compile this management info
• The FF still plays an integral role in understanding and managing data and info

Question 2

Data strategy is a

Answer 2

• coherent approach for organising, governing, analysing and deploying an org info assets
• it is an common element of overall corp strategy
• data is central to the overall strategic thinking of bus and must be incorporated in strategic planning

Question 3

A key element of a data strategy from a value adding perspective is how to

Answer 3

• effectively capture and utilise big data
• it should consist of the five elements:
  
  • Identify
  • Store
  • Provision
  • Process
  • Govern

Question 4

To maximise the benefits of a data strategy it must be able to cope with the attributes of big data (4V’s):

Answer 4

• Volume - key consideration is capability to handle and process the vast volume of data
• Velocity - must have capability to process the constant stream of live data, providing up to date info and storing for later use
• Variety - must have capability to handle data from a range of internal & external sources and in different formats
• Veracity - must ensure data can be validated and is trustworthy and reduce uncertainty to tolerable levels (combining data with other sources can act as a check)

Question 5

Data visualisation and the FF:

Answer 5

• Data visualisation is an enabling technology that complements data analytics by presenting user friendly and accessible data through the following:
• Information - core responsibility of FF is providing info to stakeholders
• Users - the focus is on highlighting the key data the user needs and presenting in an engaging and informative way
• Simplicity - effective visualisations should be intuitive and require practically no training for end user

Question 6

Simple questions to ask to improve data visualisations effectiveness:

Answer 6

• Who are the audience? (what level of detail do they need and what is their technical ability)
• How do they want the data? (level of detail, interface, medium and interactivity should be considered)
• What outcome do we want? (what do they want to take from data and how should it help improve performance)

Question 7

Data scientists are

Answer 7

• individuals who have the ability to extract meaning from and interpret data, which requires both tools and methods from statistics and machine learning

Question 8

Bus focused data:

Answer 8

• Management accountants will act as interface between bus functions and data specialists
• They will partner with data scientists to ensure work is deliberate and targeted with clear objectives to ultimately support and enhance the bus
• MA should also be able to translate insights gained back to the wider bus in a practical and commercial way

Question 9

MA are ideally situated to take lead with data specialists because:

Answer 9

• all activities have a financial consequence so they are central to the org and have a unique understanding of the overall bus pic
• info produced is already trusted and typically audited
• info produced by MA function provides the basis for performance management across the bus
• Finance is based on rational and measurable info. Finance prof have credibility, objectivity and follow ethical guidelines