Data extraction & transfer
used to extract data stored in databases (operational databases & data warehouses) & transfer the data into data analysis tools
used to analyse data to identify interrelationships & insights that can be used to create intelligence for better business decisions
include user interface applications that display results of the data analysis on the user's computer
often interactive, permitting the viewer to see the effect of changes in various scenarios, parameters, & variables
Shadow data storage
may be scattered throughout an organisation
Fig 7.9 pg268
Shadow data extraction & transfer
given the widespread use of spreadsheets, ways to transfer data from the accounting database into spreadsheets have been streamlined to meet this demand.
a relational database management system (RDMS) is used to estract data from the operational database, using queries; because the data analysis application may not be compatible with the database's RDBMS query commands, software called Open Database Connectivity (ODBC) is used
Open database connectivity (ODBC)
may be necessary to translate the data analysis query commands into commands that are compatible with RDBMS commands
Shadow data spreadsheet analysis tools
one reason often cited for the popularity of spreadsheets among accountants is the ease of performing data analysis. The end-user accoutant can perform relatively complex data analysis from a desktop computer using spreadsheet analysis tools.
Extraction & transfer
a database connection was established to connect to the accounting database system; then the selected data stored in the accounting system is extracted & imported into a spreadsheet, such as a data list
Analyse & visulaisation
analyse the data the put it in a visual form
Decision & action
make a decision ad then take action
The concept of business intelligence first introduced?
in 1958 by Hans Peter Luhn, an IBM researcher, who defined intelligence as "the ablity to apprehend the interrelationship of presented facts in suc a way as to guide action towards a desired goal" (Luhn, 1958)
In 2009, Gartner Group predicted?
"Through 2012, more than 35% of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business & markets" (Gartner Business Intelligence Summit, 2009)
a specialised type of business intelligence. The use of accounting data to make more intelligent decisions or a tool used to extract accounting data from the operational database for BI applications
a term more widely used in Europe to refer to the use of information technology to solve problems. Business informatics focuses on how to use information technology to solve business problems.
SAP & Microsoft
worked collaboratively to develop Duet, a product that extracts data from the SAP R3 relational database & transfers the data into Excel
Shadow data advantages
it bypasses rigorous T software engineering, it is quicker to build & implement. The end-user accountant does not have to wait on IT staff to design, develop, build, & deliver the application
Shadow data disadvantages
it bypasses rigurous IT software engineering, there is minimal testing, documentation & security
Where should time be delegated?
80% of time & resources should be invested in the accounting system design & 20% should be invested in maintenance of the system