Analyze Flashcards
Business Intelligence
Business Intelligence = Analyzes data to glean insights for improved decisions and performance.
-The ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal.
Data > Information > Intelligence
Integrated Decision Model (IDM)
Integrated Decision Model (IDM) = provides framework to organize decision-making process. Quantitative and qualitative factors.
Seven Steps:
1) Define the opportunity or issue
2) Identify options to address opportunity or issue.
3) Analyze quantitative (financial) factors
4) Analyze qualitative (non-financial) factors
5) Make decision with rationale
6) Implement decision
7) Evaluate performace
2 types of Data Analytics
Shadow Data = Data extracted from database and stored in spreadsheets. Shadow the formal accounting system. Control of the accounting professional.
BI Technologies = Analytics, data mining, predictive modeling. Control of IT professionals.
Data Mining =
Predictive Modeling =
Enterprise Intelligence System Components
- 4 components that identify and analyze meaningful relationships to provide insight.
1) Data storage= Data from recurring operations, such as accounting, is stored in an operational database. Data from other sources and the operational database may be loaded into a data warehouse.
2) Data extraction and transfer = Data extraction and transfer tools extract data stored in databases and transfer the data into data analysis tools (Ex. ODBC).
3) Data analysis = Tools to analyze data to identify interrelationships and insights used to create intelligence for better business decisions and actions.
4) Data visualization = tools used by intelligent systems to view the data in multi-dimensional perspectives. (Ex. OLAP Cubes/
Digital Dashboards)
Extract-Transfer- Load (ETL)
ODBC (Open Database Connectivity)
Extract-Transfer- Load (ETL) = convert data into dimensional structure required for the data warehouse
ODBC (Open Database Connectivity) = Pipeline between database and spreadsheet. Translate commands.
BI vs. Shadow Data
Shadow Data = relies on spreadsheet analysis tools, outputs standard charts/graphs, more unauthorized access, quick
BI = rely on BI developers, outputs interactive graphics/dashboards, longer time
Database vs. Data Warehouse
Relational vs. Dimensional
Relational Database = Query might combine multiple tables to extract required data. Better storage harder extraction.
Dimensional Database = Query combines only two tables to extract required data. Harder storage, better/efficient extraction.
Sustainability
Sustainability = Long term. Focuses on ability to sustain an action in future on an ongoing basis.
-Transformational business. No longer a focus on bottom line but a holistic view of business as a part of larger system
Triple Bottom Line
Triple Bottom Line = Short term. Considers the effect on People, Profit and Planet.
-Measures Social, Economic and Environmental results of corporate decisions.
Qualitative Factors
3 ways to store qualitative data for decision making and performance evaluation:
- Numerical ranking (Likert scale of 1 to 5)
- Estimated dollar amounts indicative of risk level and value (Ex. estimating environmental and health effects of a proposed action)
- Predefined labels (such as hazardous levels)
Creating Value
- Shifts decision focus from minimizing risk to creating value
- Innovation
- Looking at issues as opportunities
- Envisioning new sustainable solutions
Redesign the Product
Redesign the Process
Cradle-to-cradle/Zero-waste model
Life Cycle Assessment
Sustainability Reporting Frameworks
ISO 14000 (International Standardization Organization) = providing guidance to organizations in creating an environmental management system (EMS).
European Union Eco-Management and Audit Scheme (EMAS) = requires ISO 14001 as the EMS. European only.
SIGMA (Sustainability Integrated Guidelines for Management) = offer guiding principles for sustainability and a framework that
integrates sustainability into management decision making.
Global Reporting Initiative (GRI) = Performance Evaluation used by 1500 companies worldwide provides guidelines for disclosures related to strategy and profile, management approach, and performance indicators.
Integrated Reporting
Integrated Report = one report containing both financial and nonfinancial info about a company’s economic, social, and environmental performance.
- Strategic focus
- Connectivity of information
- Future orientation
- Responsiveness and stakeholder inclusiveness
- Conciseness, reliability, and materiality
PROS: Increased Efficiency, Improved communications
Extensible Business Reporting Language (XBRL) Definition
Extensible Business Reporting Language (XBRL) = Data is tagged with a description. It is used for digital and financial reporting.
- Tags describe data (Ex.Company name, time period, account title, currency)
- Enables computers to process data intelligently by storing, updating, searching, analyzing, transmitting and communicating with greater speed and standardization.
Metadata = Data about data
XBRL Users
stock exchanges companies governmental and regulatory agencies banks and banking regulators financial and investment analysts accountants
preparers
reviewers
users of financial information
