Chapter 3 Flashcards
Two benefits of cloud computing
Production costs relating to hardware
Information, it automatically backed up on the cloud
The term Big Data refers to…
Large volumes of structure, data
Large volumes of unstructured data.
The technology required to handle that data.
 For reasons for finance to perform Big Data analytics
Finding trends
Understanding customer behaviour
Reducing costs
Analysing opportunities
Augmented
Added to
Make larger in size
Software as a service.
S A,AS
A remote based email service, for example
Infrastructure as a service.
IAAS
For example, Internet based storage for sharing docs remotely
Benefits of cloud, computing
Clouds
Competitiveness – who said the cloud can give small businesses, advantages
Limber – flexibility as a result of not having to invest in hardware.
Our planet – reduce carbon footprint
Unity – enables better collaboration and contribution.
Disaster recovery
Security dash reduce the chances of lost in transit.
Big Data
Definition
 Collections of data that are so large, that traditional methods of data collection are insufficient.
Big Data
The for V’s
Volume – the amount
Variety – the sources – structured or unstructured
Velocity – the speed at which it changes.
Veracity – it’s truthfulness.
Structured data
Data capture intentionally for an identified use
Unstructured data
Date of a mess with no identified purpose
Potential and strategic significance, Big Data
Information becomes more transparent and more accessible. It becomes more viable to predict trends, analyse customer behaviour and understand what they want.
It is possible to minimise risk by testing scenarios.
There is more potential for customer, segmentation, targeted marketing and customisation of products
Business make better decisions by revealing new insights Into production methods/processes,
Helps develop future products/services with a faster time to market
How finance may use Big Data?
Drive sales/revenue
Reduce costs
Internal audit
Drawback – expensive for a small or new business
Process automation
The use of software to carry out low-level tasks
Repetitive tasks
Results in huge cost savings 
Process automation can have a negative impact on staff morale (robots, taking our jobs)
Must be managed sensibly.
Make course redundancies
Can be motivating for staff if they will now be used in less routine ways
How finance may use process automation
Processing credit notes.
Sending customer statements
Performing supplier statement reconciliations
Basic tax returns.
Process automation may add to the role of internal audit 
Artificial intelligence
Technology that can be used to make decisions. Are you carry out tasks required human intelligence
Learning machines 
Benefits of machine learning
Machines can process considerably more data
Machines are able to identify patterns
Machines do not suffer from human characteristics, such as biased, tiredness of boredom
Limitations of machine learning
Shit in shit out
How finance may use artificial intelligence?
FAF
Forecasting
Accounting entries
Fraud detection
How finance may use Blockchain
Validity of recordkeeping – checking and doublechecking is no longer required.
The removal of the need for the administrator will reduce costs.
Users of financial information will be able to trust it and there will be less need for external validation.
Businesses may essentially become cashless.
There are currently no accounting standards that cover crypto currencies.
Give assurance to auditors regarding ownership of assets.
How finance may use the Internet of things
 Remote access can give feedback about wear and tear
Knowledge about how machines are working main form, costings and infantry valuation.
Up-to-the-minute, analytical procedures may inform pricing and decision-making.
3-D. Printing definition
Printing 3-D. Objects from a variety of materials, for example, classic metal and even human tissue full time is sometimes called additive manufacturing (a.m.)
Impact of automation on the 4 finance departments
Financial accounting dash coding of routine information
Management, accounting – forecasting
Treasury dash processing, certain tax returns
Internal audit – improve fraud detection
Ethics of technology usage
Five moral dimensions of the information age
Pails
Property dash the right to protect intangible property
Accountability – who is accountable for the information
Information rights/privacy, the rights to be free from the surveillance or interference
Live quality – what are the negative social costs, and how do we achieve balance
Systems, – what standard of data and system quality to society demand
Corporate digital responsibility
Voluntary commitment to go beyond corporate social responsibility.
Companies must clearly obey the law concerning data protection.
CDR is a commitment to protecting customers and employees and using new technologies and data responsibly.
Development of CDR strategy
Digital Stewardship– developing a responsible approach to using data.
Customer expectations – transparency and ability to opt in
Giving back – using data to help society, rather than merely pursue corporate objectives.
Data value – rewarding/incentivise in customers to give data
Digital inclusion – ensuring lack of digital barriers in society.
