Big Data, Data Analytics and the Accounting Approach: Financial, Managerial,

Audit, Tax and Corporate Implementation

Real and Around You……..

Indra Saputra, SE, MSi, Ak, CA

CONTENTS
1. What is Big Data and Data Analytics?
2. How does it apply to Accounting?
3. How can we incorporate data analytics into the accounting curriculum?
a) What phenomenon?
b) What topics?
c) What theoretical foundation?
d) What technology used?
e) What quantitative skills?

4. What skills are employers looking for in graduates in regard to data

analytics?
5. Where can we find resources? And….
6. How to corporate implementation in business strategy
“Case study for Financial Technology Adopt”
2
 What is Big Data and Data Analytics?
 As one of the most trending business topics,
Big Data Analytics is having an enormous infl
uence on today’s executives.
 Big Data refers to data sets that are so volum
inous and complex that traditional data proce
ssing application software is inadequate to d
eal with them.
 The convergence of the Internet of Things, cl
oud and mobile computing, and social media
has led to exponentially increasing volumes o
f data being created and collected.
 Big Data Analytics is improving business effic
iency and productivity and big data has beco
me a whole industry, growing at a fast pace.
 Data Analytics is extensive and systematic us
e of data, statistical and quantitative analysis,
exploratory and predictive analysis, and fact-
based management to drive business decisio
ns and actions. (Davenport, 2006, HBR)

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in world

4
 Just a few facts…

Internet Usage in Indonesia

• Indonesia is one of the countries with the highest number of internet users in the world ; as of June 2019, 171.26 million out of the
country’s total population of over 260 million were active internet users.
• Every second we create new data. 40,000 searches on Google alone are made every second for a total of 1.2 trillion searches per
year.
• By 2020 1.7 megabytes of new information will be created every second for every human on the planet.

Digital E-commerce

Academics

The COVID-19 has resulted in schools shut all across the world. Globally, over 1.2 billion children are
out of the classroom. As a result, education has changed dramatically, with the distinctive rise of e-
learning, whereby teaching is undertaken remotely and on digital platforms.

Source : Statista Unesco 5

 Click to edit Master title style

Key words

Volume Variety Velocity Veracity

 Click Stream  Unstructured  Speed of Generation  Untrusted

 Active/Passive Sensor
 Semi – Structured  Rate of Analysis  Uncleansed
 Log
 Event  Structured
 Printed Corpus
 Speech
 Social Media
 Traditional 6
How does it apply to Accounting
Big Data Implications for Accounting Professionals.
Auditing

Internal and External Audit

Data driven audits
Better experience for the client
Better experience for the auditor
More valuable insights
Improving corporate compliance
Improving data quality

Accounting

Advisory Services

 Identify questions
 Use analytics to help business improve
performance
 Build analytical models
 Business Strategy Plan

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 Big Data Implications for Accounting Professionals.
Taxation

• Thinks smart an Do …. its!!  Analyze tax efficiency of

• Accounting professionals need to business units
know how to conduct data analytics  Identify tax-opportunities
regardless of whether it is “Big” and  Aid in evaluating global
“Tools’ opportunities
•  Tax Compliance
Transactional Data can tell us what
has happened, Big Data and data Accounting
analytics can often help explain why
and Big Data representation of the
actual Business ‘who’.
Managerial
• We need Embrace both
 Business Innovation and
Strategy
 Risk identification
 Risk management
 Operational improvements
 Forecasting
 Optimization models
 Business Intelligent Unit

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How can we incorporate data analytics into the accountin
g curriculum?
What phenomenon?
 The phenomenon of big data—large,
diverse, complex, and/or longitudinal data
sets—is having a stark influence on
organizational strategy making.
 An increase in levels of data and
technological capabilities is redefining
innovation, competition, and productivity.
 Big Data represents a new way of doing
business, one where strategy is informed
by large volumes of varied sources of data
quickly and how Big Data can benefit
even the smallest organization.
 Digitization and the increasing value of big data
analytics have led to a global disruption of
immense proportions, similar to what was
experienced during the industrial revolution.
 The enforcement of social distancing, lockdowns
and other measures in response to the COVID -19
pandemic has led consumers to ramp up online
Phenomenon shopping, social media use, internet telephony and
teleconferencing, and streaming of videos and film.
 Education has changed dramatically, with the
distinctive rise of e-learning, whereby teaching
is undertaken remotely and on digital platforms.
Whether it is language apps, virtual tutoring,
video conferencing tools, or
online learning software, there has been a
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significant surge in usage since COVID-19.
 What topics?
University need to develop new skills and continue to be resilient, adaptive and
innovative to remain competitive and help their organizations navigate this
100%
95% transformative and revolutionary technology.

Internet of Things
Diverse

Information Privacy
Technology
What information can be Usage What Technology can be Develop
Innovation

Are u Ready……???? Visual

 Curriculum is already full! Machine
programming

 Faculty may be resistant

Organizations

Impact Methods
Applications
Decision Making

Change Performance. Roadmap and Process

Improvement Business Modelling

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What theoretical foundation?
 As major corporations, hedge funds, and entrepreneurs are struggling
with the emergence of big data, academicians continue working to
understand its role in business, the inputs and outputs of big data, and
how big data projects are best executed.
 Big data can be viewed as an extension of business intelligence and
Technology Information System Strategic Management
analytics, enhancing the efficiency and effectiveness of existing functional
competencies and fitting with established practices in the use of
technology. Such a vision is not using data or advanced analytics to alter
strategy, but rather to better execute a chosen strategy.

 Organizational learning has been applied broadly across

Resources Based Theory (RBT)
management literatures, though definitional consensus remains
elusive with 4 perspective:
• Intuiting is the recognition of patterns and/or possibilities;
• interpreting is the explanation of an insight or idea;
Organizational Learning
• integrating is the process of developing a shared
understanding among individuals and taking coordinated
action,
• institutionalizing is the process of ensuring that routinized
actions occur.
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What technology should we use?

1 2
Data Storage: Data Mining
1) Hadoop 1) Presto
2) MongoDB 2) Rapid Miner
3) RainStar 3) Elasticsearch

3 4
Analytics Visualization
1) R 1) +ableau
2) SAS 2) Plotly
3) Blockchain 3) FusionCharts Suite XT

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What quantitative skills?

Critical Thinking
Organizations have become information processors. They are
making considerable investments into analytic capabilities and
data science talent to exploit opportunities presented by
digitization, seeking to create or capture value and develop
competitive advantage.
Skill Decision Making

Programming

Statistical, excel, Access

Knowledge
Analytical

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What skills are employers looking for in g
raduates in regard to data analytics?
What are employers looking for?…
4
3 Strong quantitative skills in
Strong communication statistical analysis, visual
skills analytics, machine
learning, and ability to
analyze unstructured data
2
Ability to construct
experiments, gather and
5 5
Business expertise – a
analyze data, make
good sense of where to
evidence-based decisions
apply analytics and big
1 3 4 data

1 2
Ability to code and
understand big data
technology structures

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Where can we find resources?
Where can we find resources? Glimpse of the Future of Accou
nting and Finance Role

03 key
rds
01 key wo
w o rds
04
wor y
ds ke
02

The Shared Service Leader

The CFO and Financial Planning Leader

The Financial Controller  Increase number and complexity of

 Expand data stewardship outside financial
data.
 Bring together operational data with financial
data to drive new data driven insights.
 Leverage data visualization techniques to
support decision-making.
 Improve timeliness and accuracy of reporting
(e.g., real-time forecasts).
 Increase focus on managing relationships
with stakeholders.
and Accounting Manager
 Enhance governance of financial and
nonfinancial information by using machine
learning algorithms to sift through multiple
data sets to uncover hidden trends and
anomalies.
 Shorten financial- close cycles while
reducing errors.
 Enhance efficiency and quality of processes
and controls through automation.
processes centralized and automated The Investor Relations Officer
by leveraging intelligent automation
 Predict which investors will have a high
tools. probability of adding positions to the company
 Leverage virtualization and remote in a 90-days horizon and launch targeted
work environments along with a global campaigns to encourage investment.
 Identify core metrics important to each
digital workforce to enable production
investor’s investment decision by using
schedules.
machine learning to review trade patterns to
assess correlation with achievement of certain
company fundamental indicators

Source: Big Data and Artificial Intelligence — The Future of Accounting and Finance 19
How to corporate implementation in busi
ness strategy
How to define a Big Data into Strategy Business

One Two Three Four

A Big Data strategy defines and lays A well-defined and comprehensive By adopting data analytics into the How firms might derive their own
out a comprehensive vision across Big Data strategy makes the organization’s decision making and
big data approach through the
the enterprise and sets a foundation benefits or Big Data actionable for protocol, business leaders can disrupt
merits of aligning data strategy
the status quo and usher in a culture of
for the organization to employ data- the organization. It sets out the
“data relevancy” and sharper analysis to aspirations with data strategy
related or data - dependent steps that an organization should
support (and drive) the company’s authenticity.
capabilities. execute in order to become a “Data
growth strategy.
Driven Enterprise”..

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A well-defined enterprise Big Data strategy should be
actionable for the organizations. In order to achieve this,
organizations can follow the following 5-step approach to
formulate their Big Data strategy:

Define business objectives

• Understand the corporate business objectives of the enterprise.

• The Big Data strategy should align to the corporate business objectives and address key
business problems, as the primary purpose of Big Data is to capture value by leveraging data.
• Involvement of key business stakeholders

Execute a current state assessment

• The primary focus is to assess the current business processes, data

sources, data assets, technology assets, capabilities, and policies or the
enterprise.
• Identify and nurture some data evangelists.

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 Identify and prioritize Use Cases
• Understand how predictive analytics, prescriptive analytics and ultimately cognitive  analytics
(further discussed in chapter 8) can help the organization to accelerate, optimize and
continuously learn
• Prioritize all of the Use Cases based on their business impact, budget and resource
requirements.

Formulate a Big Data Roadmap

• The Roadmap should focus on identifying gaps in data architecture,

technology and tools, processes and of course people (skills, training ,
etc.).

Embed through Change Management

• Change Management (involving the hearts and minds of people) will have
a profound impact on the success or failure of a Big Data strategy.
• Change management should encompass organizational change, cultural
change, technological change, and changes in business processes.

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Data Analytics and Business
By adopting data analytics into the organization’s decision making and
protocol, business leaders can disrupt the status quo and usher in a
culture of “data relevancy” and sharper analysis to support (and drive)
the company’s growth strategy.

key words key words

Improved data quality from

Increase revenue and drive
reduction in manual errors.
profitability good audit trail and faster
decision-making

key words key words

Improve compliance and Boost operating excellence and

avoid risk supply chain management

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Data Analytics and Business

Sources : https://www.bigdataframework.org/formulating-a-big-data-
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strategy/
“Big data and Financial Technology Adopt”

4 Fintech Next Gen Business Models

Bridging the MSMEs Credit Gap: Data
& Ecosystem

Digital Merchant Cash Advance Factoring Inventory and Input Financing Platform-Based Lending

 Buyer & Payment Gateway  Invoice Financing  Buyer Financing  Platform/marketplace models help
Financing.  Invoice-based lending providing  Credit secured against inventory or enable efficient matching of many
 Loans based on cash records, loans based on the value of the inputs, allowing Lenders and Borrowers
 financing of inventory with more  Improved operational cost through
enabled through integration with Borrower’s invoice
appropriate credit terms digitization and
digital sales and transaction tools
 Reduces risk of Borrowers misusing
 Allows direct deductions to
business loans for other purposes
reduce NPL

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www.islide.cc 27
Source: OJK, and PWC 28
Where can we find the role of Big Data

03 key
rds
01 key wo
w o rds
04
wor y
ds ke
02

Risk Scoring Model Digitalization

1) E Platform Procurement
1) Traditiona Data
 Borrower
Blockchain Technology 2) Integration with Fintech Industry Linkage Program
 Credit Bureau – (Pefindo, Thomson 3) Digital Platform
Reuters etc)
1) Artificial Intelligence
1) Business Network Environment 4) Automation & Big Data Driven.
2) Non Traditional Data  Shared Ledger 2) Machine Learning
5) Innovation and Collaboration
 Internal Data  Smart Contract 3) Big data
 Account Software  Privacy
 E-Commerce  Consensus
 Procurement 2)Essential Function
 OJK SLIK  Payments
 Social Media  Escrow
 Google

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“Big data and Financial Technology Adopt”

How to Fintech Verification

by Machine Learning

Verification KYC Verification AML-APUPPT

 Google Map  Survey…oh No online survey..Yes!  Access Black List BI or OJK

• We found home address  Telephone….Yes  API
 Email…Yes  Bareskrim/Catatan Kriminal
• We found work place
 PPATK
 Dukcapil
 Approval
• We found identity (KTP)  OTP
 SLIK/BI Checking  Online Signature
• Historical Loan (good or bad) 
 Social Media
Link
Eligible or Not
• Habit, supporting data
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Questions
Reference:

Bernard Marr (2015) “Big Data: Using Smart Big Data

Analytics and Metrics to Make Better Decisions and
Improve Performance”

Chartered Professional Accountants Canada

Noble David & Mattew J. Mazzei (2019), Big Data and

Strategy: Theoretical Foundations and New
Opportunities. DOI: 10.5772/intechopen.84819.

https://www.bigdataframework.org/formulating-a-big-da
ta-strategy/

https://www.adb.org/news/indonesia-s-economic-growt
h-slow-2020-covid-19-impact-gradual-recovery-expect
ed-2021

http://www.cs.us.es/~fsancho/ficheros/IAML/BigData.p
df

https://www.edureka.co/blog/top-big-data-technologies/

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“Once you stop learning, yo
u start dying”
Albert Einstein