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Flashcards in Analyze Deck (16):

Business Intelligence

Business Intelligence = Analyzes data to glean insights for improved decisions and performance.

-The ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal.

Data > Information > Intelligence


Integrated Decision Model (IDM)

Integrated Decision Model (IDM) = provides framework to organize decision-making process. Quantitative and qualitative factors.

Seven Steps:
1) Define the opportunity or issue
2) Identify options to address opportunity or issue.
3) Analyze quantitative (financial) factors
4) Analyze qualitative (non-financial) factors
5) Make decision with rationale
6) Implement decision
7) Evaluate performace


2 types of Data Analytics

Shadow Data = Data extracted from database and stored in spreadsheets. Shadow the formal accounting system. Control of the accounting professional.

BI Technologies = Analytics, data mining, predictive modeling. Control of IT professionals.
Data Mining =
Predictive Modeling =


Enterprise Intelligence System Components

-4 components that identify and analyze meaningful relationships to provide insight.

1) Data storage= Data from recurring operations, such as accounting, is stored in an operational database. Data from other sources and the operational database may be loaded into a data warehouse.

2) Data extraction and transfer = Data extraction and transfer tools extract data stored in databases and transfer the data into data
analysis tools (Ex. ODBC).

3) Data analysis = Tools to analyze data to identify interrelationships and insights used to create intelligence for better business decisions and actions.

4) Data visualization = tools used by intelligent systems to view the data in multi-dimensional perspectives. (Ex. OLAP Cubes/
Digital Dashboards)


Extract-Transfer- Load (ETL)

ODBC (Open Database Connectivity)

Extract-Transfer- Load (ETL) = convert data into dimensional structure required for the data warehouse

ODBC (Open Database Connectivity) = Pipeline between database and spreadsheet. Translate commands.


BI vs. Shadow Data

Shadow Data = relies on spreadsheet analysis tools, outputs standard charts/graphs, more unauthorized access, quick

BI = rely on BI developers, outputs interactive graphics/dashboards, longer time


Database vs. Data Warehouse
Relational vs. Dimensional

Relational Database = Query might combine multiple tables to extract required data. Better storage harder extraction.

Dimensional Database = Query combines only two tables to extract required data. Harder storage, better/efficient extraction.



Sustainability = Long term. Focuses on ability to sustain an action in future on an ongoing basis.

-Transformational business. No longer a focus on bottom line but a holistic view of business as a part of larger system


Triple Bottom Line

Triple Bottom Line = Short term. Considers the effect on People, Profit and Planet.

-Measures Social, Economic and Environmental results of corporate decisions.


Qualitative Factors

3 ways to store qualitative data for decision making and performance evaluation:

1. Numerical ranking (Likert scale of 1 to 5)
2.Estimated dollar amounts indicative of risk level and value (Ex. estimating environmental and health effects of a proposed action)
3.Predefined labels (such as hazardous levels)


Creating Value

-Shifts decision focus from minimizing risk to creating value
-Looking at issues as opportunities
-Envisioning new sustainable solutions

Redesign the Product
Redesign the Process
Cradle-to-cradle/Zero-waste model
Life Cycle Assessment


Sustainability Reporting Frameworks

ISO 14000 (International Standardization Organization) = providing guidance to organizations in creating an environmental
management system (EMS).

European Union Eco-Management and Audit Scheme (EMAS) = requires ISO 14001 as the EMS. European only.

SIGMA (Sustainability Integrated Guidelines for Management) = offer guiding principles for sustainability and a framework that
integrates sustainability into management decision making.

Global Reporting Initiative (GRI) = Performance Evaluation used by 1500 companies worldwide provides guidelines for disclosures related to strategy and profile, management approach, and performance indicators.


Integrated Reporting

Integrated Report = one report containing both financial and nonfinancial info about a company’s economic, social, and environmental performance.

1. Strategic focus
2. Connectivity of information
3. Future orientation
4. Responsiveness and stakeholder inclusiveness
5. Conciseness, reliability, and materiality

PROS: Increased Efficiency, Improved communications


Extensible Business Reporting Language (XBRL) Definition

Extensible Business Reporting Language (XBRL) = Data is tagged with a description. It is used for digital and financial reporting.

-Tags describe data (Ex.Company name, time period, account title, currency)

-Enables computers to process data intelligently by storing, updating, searching, analyzing, transmitting and communicating with greater speed and standardization.

Metadata = Data about data


XBRL Users

stock exchanges
governmental and regulatory agencies
banks and banking regulators
financial and investment analysts

users of financial information


XBRL Essentials

Taxonomy = is like a dictionary which\ defines the XBRL tags used for specific data items

Instance Document = specific amounts for a taxonomy at one instance

Elements =Data elements, Context elements, Unit elements, period element, entity element, identifier element

Schema = elements are related to a particular

Linkbase =define relationships between data