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Flashcards in Analyze Deck (16):
1

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

2

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

3

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 =

4

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)

5

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.

6

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

7

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.

8

Sustainability

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

9

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.

10

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)

11

Creating Value

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

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

12

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.

13

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

14

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

15

XBRL Users

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

preparers
reviewers
users of financial information

16

XBRL Essentials

Taxonomy = is like a dictionary which\ defines the XBRL tags used for specific data items
100000

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
taxonomy

Linkbase =define relationships between data