MODULE:_1__0

MODULE GALS
Explain the role of Business
Analytics in modern business
decision-making.
Discuss the uses and BUSINESS ANALYTICS:

BIG DATA
importance of business
analytics in Finance.
Determine the scope
of Business Analytics

PREPARED BY: MR. DAN JEWARD C. RUBIS, MBA

DATA
BIGDATA
Big data is a term that
describes large, hard-to-
manage volumes of data – both
structured and unstructured –
that inundate businesses on a
day-to-day basis
BIGDAT
A
Big data refers to data that is so
large, fast or complex that it’s
difficult or impossible to process
using traditional methods.
Volume. Organizations collect data from a variety of sources, including
transactions, smart (IoT) devices, industrial equipment, videos, images,
audio, social media and more. In the past, storing all that data would
have been too costly – but cheaper storage using data lakes, Hadoop and
the cloud have eased the burden.
Veracity refers to the quality of data. Because data
comes from so many different sources, it’s difficult
to link, match, cleanse and transform data across
systems. Businesses need to connect and correlate
relationships, hierarchies and multiple data
linkages. Otherwise, their data can quickly spiral
out of control.
Velocity. With the growth in the Internet of Things,
data streams into businesses at an unprecedented
speed and must be handled in a timely manner.
RFID tags, sensors and smart meters are driving the
need to deal with these torrents of data in near-
real time.
Value refers to the usefulness of data in decision-
making; it is adding value to the organization by
analyzing a large amount of big data, without adding
any value, data is of no use.
Variety. Data comes in all types of formats – from
structured, numeric data in traditional databases to
unstructured text documents, emails, videos, audios, stock
ticker data and financial transactions.
WHY IS BIG DATA IMPORTANT?
Determining root causes of Spotting anomalies faster
failures, issues and defects and more accurately than
in near-real time. the human eye.

Improving patient outcomes

by rapidly converting
medical image data into Recalculating entire risk portfolios
insights. in minutes.

Sharpening deep learning

models' ability to accurately Detecting fraudulent behavior
classify and react to before it affects your
changing variables. organization.
BIG DATA – and the
way organizations
manage and derive
insight from it – is
changing the way the
world uses business
information. Learn
more about big
data’s impact.
BIG DATA TYPES
The data type which can be stored and proceed in a fixed format (table format)
is called structured data. In traditional database management
systems (Oracle, MS SQL… etc.) data is stored in fixed format and data can be
easily processed with SQL (Structured Query Language) language. In structured
data format first, we need to define the data model that will illustrate how data is
organized, accessible and processed such as we can define columns, their data
types, and so on.

Example of Structured Data: Dates, Phone Numbers, Credit Card Numbers,

Addresses, etc.
A semi-structured data type is a data type that does not have a
fixed format and can’t reside in fixed fields or format but it has
some organizational properties such as tags and other indicators to
separate elements.

Example of Semi-Structured Data: JSON files, XML, .CSV files, tab

delimited files etc.
The data type which has an unknown format and which cannot be
stored in RDBMS and cannot be analyzed until unless it will be
converted into a structured format is called unstructured data.
Unstructured data is growing quickly as experts say 80% of data in
an organization are unstructured.

Example of Unstructured Data: Text Files, Reports, Web Logs,

Audio Files, e
 BIG DATA EXAMPLES
On daily basis, there are more than 230+ million tweets Worldwide,
are getting created.
more than five million people are using the mobile phone to make c

Automobile
Every day, there are 294 sectors are
billion emails areusing
beingmore
sent.than a hundred sensors to monitor the behavior of Cars such as fu
BIG DATA EXAMPLES
Walmart is processing millions of customer transactions per hour.
Facebook stores, accesses, and analyses 30

Amazon is handling fifteen million customer clicks per day to make a recom
On YouTube, every minute, there are 48 hours of videos are getting uploaded.
Amazon is definitely the number 1 e-commerce shop at the moment and they have their database to
thank for that. They are constantly using big data to improve their customer experience, so here are
two examples that show just how well that works.

DYNAMIC PRICING

Everybody knows that airlines use this tactic when selling plane tickets – if you check out the same
tickets over and over again, it probably means you really want them and are willing to pay more for
them. That same logic is implemented on Amazon’s website. But what you probably
didn’t know is that they change their prices up to 2,5 million times a day.

What affects these price changes are factors like shopping patterns, competitors’ prices, and
whether the product is a common one or not.
PRODUCT RECOMMENDATIONS

It doesn’t matter if the person buys the products, puts it in the cart or even just takes a
look at it – Amazon will use that data. That way they can learn what each customer
wants and likes and can recommend that same product or similar ones to them when
they return to the shop.

This is how the company earns 35% of their annual sales.

 HOW BIG DATA IS IMPACTING ACCOUNTING FIRMS

DATA ANALYTICS

Big data contains a large volume of unstructured data to be organized. Applying data
analytics to big data creates opportunities for accounting firms to gain significant
insights, predict future outcomes, and automate non-routine financial tasks.

An accountant must learn technical and analytical skills to handle statistics and run
large data sets with data mining and statistical analysis tools such as Statistical
Analysis System (SAS) to their knowledge base. In the era of big data, it’ll help
businesses deliver greater value and transform their decision-making skills.
HOW BIG DATA IS IMPACTING ACCOUNTING FIRMS
DATA VISUALIZATION

With the help of visualization software such as Tableau, accountants can see large
amounts of data, which, in turn, helps users see patterns, flows, irregularities, and
exceptions more easily.

These tools have helped accountants see data in ways that were previously possible
using traditional methods. Also, they have made it easier to link together data from
various sources to provide new insights to the reports.

The tools have also made it possible for accountants and CPAs to perform advanced
statistical analysis using more variables, real-time data, and advanced modeling.
HOW BIG DATA IS IMPACTING ACCOUNTING FIRMS
AUDIT ANALYTICS

Internal and external auditors have been at the forefront of big data in the accounting
industry. Nowadays, the traditional approaches to auditing, which include analyzing
billions of transactions in a ledger based on sampling, are not used anymore.

Though auditors still work on large data sets, audit analytics enables them to
visualize a wide range of financial and non-financial data. It helps identify
exceptions and pressure points so that auditors can focus on greater risk areas to
predict outcomes that will improve forecasting.
 How Big Data Works?
Before businesses can put big data to work for them, they should consider how it
flows among a multitude of locations, sources, systems, owners and users. There are
five key steps to taking charge of this "big data fabric" that includes traditional,
structured data along with unstructured and semi structured data:

Set a big data strategy. Identify big data sources. Access, manage and store the data. Make intelligent, data-driven
Analyze the data.
 Set a big data strategy.

At a high level, a big data strategy is a plan designed to help you oversee and
improve the way you acquire, store, manage, share and use data within and
outside of your organization.

A big data strategy sets the stage for business success amid an abundance of data.
When developing a strategy, it’s important to consider existing – and future –
business and technology goals and initiatives. This calls for treating big data like
any other valuable business asset rather than just a byproduct of applications.
 Identify big data sources.

• Streaming data comes from the Internet of Things (IoT) and other connected devices that flow into IT
systems from wearables, smart cars, medical devices, industrial equipment and more. You can analyze
this big data as it arrives, deciding which data to keep or not keep, and which needs further analysis.

• Social media data stems from interactions on Facebook, YouTube, Instagram, etc. This includes vast
amounts of big data in the form of images, videos, voice, text and sound – useful for marketing, sales and
support functions. This data is often in unstructured or semistructured forms, so it poses a unique challenge
for consumption and analysis.

• Publicly available data comes from massive amounts of open data sources like the US government’s
data.gov, the CIA World Factbook or the European Union Open Data Portal.

• Other big data may come from data lakes, cloud data sources, suppliers and customers.
 Access, manage and store big data

Modern computing systems provide the speed, power and flexibility needed to
quickly access massive amounts and types of big data.

Along with reliable access, companies also need methods for integrating the data,
building data pipelines, ensuring data quality, providing data governance and
storage, and preparing the data for analysis. Some big data may be stored on-site
in a traditional data warehouse – but there are also flexible, low-cost options for
storing and handling big data via cloud solutions, data lakes, data pipelines and
Hadoop.
 Analyze the data

With high-performance technologies like grid computing or in-memory analytics,

organizations can choose to use all their big data for analyses.

Another approach is to determine upfront which data is relevant before analyzing

it.
Either way, big data analytics is how companies gain value and insights from data.

Increasingly, big data feeds today’s advanced analytics endeavors such as artificial
intelligence (AI) and machine learning.
 Make intelligent, data- driven decisions

Well-managed, trusted data leads to trusted analytics and trusted decisions.

To stay competitive, businesses need to seize the full value of big data and
operate in a data-driven way – making decisions based on the evidence presented
by big data rather than gut instinct. The benefits of being data driven are clear.

Data-driven organizations perform better, are operationally more predictable and

are more profitable.
THANK YOU!