Key Tech Driving Business and Finance Flashcards
What is big data?
Big data describes sets of data that are so large they cannot be analysed by standard reporting facilities.
What is data analytics?
Data analytics is the process of analysing big data to make conclusions and answer questions.
What are the forms of big data?
Big data can come in three forms:
* Structured data
* Unstructured data
* Semi-structured data
Define structured data.
Structured data is easy to deal with as it has a fixed format, allowing it to be organised into categories.
Define unstructured data.
Unstructured data does not have a clear format, making it more difficult to categorise and analyse.
Define semi-structured data.
Semi-structured data has some properties that allow it to be organised into categories but is not entirely structured.
What is one benefit of big data for the finance function?
Provide fresh insight by identifying patterns in large sets of data.
How does big data improve decision making?
Big data analytics allows for better financial forecasting based on mathematical evidence rather than subjective opinions.
What is a challenge for the finance function when dealing with big data?
Lack of expertise in data analytics may require hiring data scientists.
What is 3D printing?
3D printing is the process of using equipment to print 3D shapes from designs held within computer files.
What is the most common method of 3D printing?
Additive Layering Manufacturing (ALM).
List two benefits of 3D printing.
Benefits of 3D printing include:
* Reduction of transport costs
* Reduction of emissions
What is a disadvantage of 3D printing?
3D printing can be expensive due to initial setup and maintenance costs.
What is AI?
AI is when computers or robots perform tasks typically associated with intelligent beings.
What are two applications of AI?
AI is used for:
* Voice recognition
* Predicting financial activities
Define machine learning.
Machine learning is a subset of AI that allows computers to learn from data and identify patterns.
What is one benefit of AI for the finance function?
AI can detect errors or fraud by identifying abnormal activities or transactions.
What is a disadvantage of AI in the finance function?
Lack of expertise in AI technology can pose a challenge.
What is data visualisation?
Data visualisation is the graphical representation of information and data.
Why is data visualisation important for finance?
It helps businesses understand complex data quickly and efficiently.
Fill in the blank: The human brain can process an image ______ times faster than words.
60,000
What percentage of information that comes into the brain is in a visual form?
Around 90%
What do agile finance leaders rate higher than their non-agile peers?
Data visualisation skills
What is data visualisation?
Attempts by an entity to make data more accessible and understandable by presenting it visually.
List some formats used in data visualisation.
- Charts
- Infographics
- Graphs
- Tables
- Maps
What is one key benefit of data visualisation tools for the finance function?
Makes data easier to understand
True or False: Data visualisation tools can help identify issues in a business.
True
What does volume refer to in the context of big data?
The amount of data collected by the organization.
What does velocity refer to in big data?
The speed at which data is collected by the organization.
What does variety refer to in big data?
The range of data types and sources of data available to an organization.
What does veracity refer to in big data?
The quality and reliability of the data being collected.
What are the 4 V’s of big data?
- Volume
- Velocity
- Variety
- Veracity
What is blockchain?
A growing list of records, called blocks, linked using cryptography.
List the key characteristics of a block in blockchain.
- Contains transaction data
- Has a timestamp
- Encrypted information
- Must be verified
- Unique hash code
True or False: Once a record is made in a block, it can be altered.
False
What is one benefit of blockchain to the finance function?
Security
How does blockchain reduce costs in transactions?
By eliminating charges from banks.
What are smart contracts?
Contracts written in computer code that allow the transfer of assets.
What is one challenge for the finance function related to cryptocurrencies?
Unclear financial reporting treatment.
Fill in the blank: Big data describes sets of data that are so incredibly large, they cannot be handled through _______.
traditional data processing
What is a significant use case of blockchain in business?
Handling transactions without needing a bank.
What does real-time accounting enable?
Adding validated transaction details to balance sheets in real time.
Why is the complexity of blockchain a challenge for organizations?
It prevents many organizations from making full use of the technology.
What is business process automation?
The transferring of tasks previously done by humans to computers.
What are the two types of business process automation?
Traditional process automation and modern process automation.
Define traditional process automation.
Automation of any type of simple repetitive task originally done by hand.
Define modern process automation.
Automation that deals with more complex business processes, incorporating technologies like big data, IoT, AI, and machine learning.
List some benefits of business process automation for the finance function.
- Accurate audit trails
- Human error eliminated
- Flexibility
- Cost reduction
- Consistency in output
- Productivity
How does automation contribute to accurate audit trails?
Automated systems record electronic logs of all business transactions and their outcomes.
True or False: Business process automation can help prevent fraud.
True
What is cloud computing?
A method of storing and accessing files remotely over the Internet.
What are the two main types of cloud computing?
Public cloud and private cloud.
Give an example of a public cloud service.
Microsoft Azure or Google Cloud Platform.
What is one major benefit of cloud computing for the finance function?
Accessibility of information from any Internet-connected device.
What is a potential challenge of using cloud computing in finance?
Security breaches.
How does mobile technology impact the finance function?
It improves communication and provides flexibility for employees.
What does IoT stand for?
Internet of Things.
What is the main function of IoT devices in an organization?
To gather device-and user-specific data and provide insights.
List some benefits of IoT to the finance function.
- Up-to-date data
- Real-time decision making
- Improved resource utilization
Fill in the blank: Business process automation can lead to _______ in the finance function.
[cost reduction]
True or False: Cloud computing eliminates the need for physical servers entirely.
False
What is one way cloud computing enhances collaboration in finance?
Real-time co-working on shared financial documents.
Explain how automation can lead to cost reduction in finance.
By reducing the number of staff needed in the finance function.
What major change did Netflix implement regarding cloud computing?
Migrated to using Amazon’s public cloud service, AWS.
What technology allows mobile devices to communicate wirelessly?
Code-division multiple access (CDMA).
Fill in the blank: The transition to cloud computing means finance employees can access their work _______.
[anywhere, anytime]
What is a significant risk of heavy reliance on public cloud providers?
Dependence on the provider’s quality of service.
What is the greatest impact on the finance function of an organization?
The analysis of data
What benefit does real-time data provide to organizations?
More responsive to change and effective use of resources
How does real-time auditing enhance the finance function?
Allows internal auditing to be carried out in real-time
Fill in the blank: Environmental audits are particularly important for _______ plants.
manufacturing
What unique feature does the Google Home device provide?
Personalized customer experience
What is a significant challenge of IoT related to security?
IoT devices often have limited computing power and security
True or False: A smart fridge can be a source of useful data for the finance function.
False
What is a challenge related to integrating IoT devices?
Devices may only communicate with others of the same brand
What is the Fourth Industrial Revolution (4IR)?
Convergence of technologies that blur physical, digital, and biological systems
What distinguishes the 4IR from the third industrial revolution?
Fast rate of change and widespread impact across industries
What impact does artificial intelligence have on the finance function?
Changes the way accounting is done and improves financial forecasts
Define autonomous technology.
Technology which does not need to be controlled by a human
What is a cyber-physical system?
Physical systems with integrated computers or networks monitoring them
How can cyber-physical systems benefit a business?
Ensure cost savings and improve product attractiveness
What job types are likely to change due to 4IR?
Shift from repetitive tasks to jobs requiring compassion and creativity
Fill in the blank: The technology of the 4IR has potential for improving the management of _______.
natural resources
How can digitization and automation impact an organization’s environmental footprint?
Reduce the environmental footprint
What is one example of technology used in the third industrial revolution?
Computers and the Internet
What was a significant innovation during the first industrial revolution?
Steam and water-powered machinery
What characterized the second industrial revolution?
Development of electricity, telephones, and global communication networks
