Page 61 - Finanancial Management_2022

Take steps to transform data into actionable
insights by using a business intelligence tool,

choosing new data sources, and creating an
interactive dashboard.

By Heimo Losbichler, Ph.D., and Lisa Perkhofer, Ph.D.

A limited number of interaction techniques
core task of management
(eg, filtering, sorting).
accountants is to provide
Fortunately, the barriers for data analysis
decision-makers with the
right information, at the right and reporting are decreasing, and the
time, in a suitable format for
business intelligence (BI) software for
at-a-glance key insights. New proportion of companies relying on
technologies, such as predictive and managerial decision-making is rising.
prescriptive analytics, artificial When choosing the right BI tool, the
intelligence, and real-time data processing, company’s needs and its existing IT
allow data quality to improve and trigger infrastructure should be taken into account.
analytical reasoning and data-driven Two tools — Microsoft Power BI and
decision-making. Tableau — have become market leaders
However, these new technologies can (identified by analysts Gartner and BARC for
also potentially be highly complex and many consecutive years). Based on our
overload the decision-maker, even research, we provide indications of when to
deteriorating decision quality. For the full choose which software product (see the
potential of digitalisation to be unlocked, table, “Benefits of Leading BI Tools”).
management accountants need to pay
particular attention to five steps (for an Step 2: Use new data sources to
overview, see the graphic, “5 Steps to increase understanding
Successfully Digitalise Reporting”). The inclusion and combination of various
data sources such as the internet of things
Step 1: Use BI software to support or social media for a new and better
data analysis and reporting understanding of business models,
Especially for small and medium-size products, and processes is the most
companies, Microsoft Excel is the tool of important and the most challenging task
choice when it comes to data preparation when it comes to big data use. Data that
and reporting. However, Excel as the sole has been stored from various sources and
management information tool can be seen occasions needs to be put to use, and
as a barrier when it comes to the inclusion “value” needs to be generated. Especially
of big data into the reporting routine, due in accounting, the identification of new
to its limited integration and evaluation and better growth or sales predictors could
options as well as its low data storage potentially change the way decisions are
capacity. Additionally, Excel offers limited made today.
options for data visualisation (especially Nonetheless, it is not recommended to
when it comes to newer forms of include every data source available into a
visualisation designed to present big data pool and see if a trend or correlation can be
as described in this article) and only a detected to derive better predictors. Data

FM-MAGAZINE.COM April 2022 I FM MAGAZINE I 21