16 th Annual Accounting Educators Seminar Big Data

16 th Annual Accounting Educators Seminar Big Data, Data Analytics and the Accounting Curriculum: Financial, Managerial, Audit, Tax and Beyond Ann C. Dzuranin, Ph. D. Associate Professor -Accountancy Northern Illinois University March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Agenda • What is Big Data and Data Analytics? • How does it apply to Accounting? • What skills are employers looking for in graduates in regard to data analytics? • How can we incorporate data analytics into the accounting curriculum? – What topics? – What technology? – What quantitative skills? • Where can we find resources? March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

My Background • • Accounting/Finance degrees Public accounting Corporate accounting Academia • Managerial Accounting & Accounting Information Systems. • Developed a “Data Analytics in Accounting” course for our undergraduate program. • No Information Technology experience other than a moderate level of Excel, Access and SPSS March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

What is Big Data? March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

http: //www. nojitter. com/post/240170228/the -network-impact-of-big-data 16 th Annual Accounting Educators Seminar - University of March 3, 2017 Missouri - Kansas City

Just a few facts… • More data has been created in the past 2 years than in the entire history of the human race • 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. • For a typical Fortune 1000 company just a 10% increase in data accessibility will result in more than $65 million additional net income. • Less than 0. 5% of all data is ever analyzed and used. Source: http: //www. forbes. com/sites/bernardmarr/2015/09/30/big-data 20 -mind-boggling-facts-everyone-must-read/#7 d 8 cd 4 b 6 c 1 d 3 March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

What is Big Data? • A collection of data sets that are too large or too complex to analyze them with traditional databases and tools. • Standard descriptions usually include: • • March 3, 2017 Volume Variety Velocity Veracity 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

What is Big Data? March 3, 2017 http: //www. ey. com/gl/en/services/advisory/ey-big-data-bigopportunities-big-challenges 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

What is Business/Data Analytics? • Extensive and systematic use of data, statistical and quantitative analysis, exploratory and predictive analysis, and fact-based management to drive business decisions and actions. (Davenport, 2006, HBR) March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

What is the Impact on the Accounting Professional? March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Big Data Implications for Accounting Professionals • • Audit Advisory Tax Managerial March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Implications for Accounting Professionals • Audit – Internal and External – Data driven audits • Better experience for the client • Better experience for the auditor • More valuable insights – Improving corporate compliance March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Implications for Accounting Professionals • Advisory Services – Identify questions – Use analytics to help business improve performance – Build analytical models March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Implications for Accounting Professionals • Tax – Analyze tax efficiency of business units – Identify tax-opportunities – Aid in evaluating global opportunities March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Implications for Accounting Professionals • Managerial – Risk identification – Risk management – Operational improvements – Forecasting – Optimization models March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Data vs. Big Data • • • Accounting professionals need to know how to conduct data analytics regardless of whether it is “Big”. Transactional Data can tell us what has happened, Big Data and data analytics can often help explain why. We need to embrace both. March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

What are employers looking for? … • An employee with the following skills: • Ability to code and understand big data technology structures • Ability to construct experiments, gather and analyze data, make evidence-based decisions • Strong communication skills • Strong quantitative skills in statistical analysis, visual analytics, machine learning, and ability to analyze unstructured data • Business expertise – a good sense of where to apply analytics and big data March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

So in other words…. March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

What do employers need? • • • Graduates that can think critically • Identify issues, develop questions • Determine appropriate analyses • Interpret results Graduates that are data literate • Know what data is available, how it is stored, where it is stored, how to access it. • Understand data science and be able to bridge the gap between technical knowledge and business knowledge. Graduates that can communicate findings March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

How do we get there? • Curriculum is already full! • Faculty may be resistant • What technology should we use? • Where do we get data? March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

NIU’s Journey…… • Accountancy Department: – Employer needs – Follow the letter or the spirit of the AACSB standard (A 7)? – Could the curriculum be revamped? – Consistency – Constraints: • Limited to 120 credit hours • No accounting courses can be eliminated March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Final decision: • Reinforce technology skills throughout the curriculum. – Piloting MOS Excel Certification – Basic exam in Junior year, Expert 1 in first semester senior year, Expert 2 in second semester senior year. • Add a 3 hour course “Data Analytics in Accounting”. – Required for all undergraduate accounting students. – Taken in their senior year. March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Data Analytics in Accounting Course Design Module 1 (4 weeks) 2 (4 weeks) 3 (7 weeks) Topic Data, Big Data, and Accounting Critical Thinking Framework Data Governance Data Visualization & Storytelling Statistics Essentials Review Statistics Advanced Topics Data Analytics in Financial Accounting Data Analytics in Auditing Data Analytics in Managerial Accounting Skill Development/Reinforcement Topic Awareness Critical Thinking Framework (CTF) CTF Tableau, CTF Excel, Access, SQL Excel & SPSS Excel, Tableau, CTF Excel, IDEA, Tableau, CTF Excel, Tableau, CTF Data Analytics in Tax Big Data and Analytics in Accounting Excel, Tableau, CTF Excel, Tableau, Access, SQL, SPSS, IDEA, CTF March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Do you have to have an entire course dedicated to Data Analytics? • No but you need to be sure you are providing consistent coverage across courses. • Some things to consider: – Embedding analytics in courses all students are required to have. – Providing support for faculty willing to incorporate data analysis projects – Building Excel skills through out the curriculum • Possible MOS certifications? • Lynda. com tutorials? • Increasing textbook problems that incorporate Excel. March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

For Each Project/Assignment Apply the Business Analytics Cycle Formulate Question Implement Insights Gather Data Test Hypotheses March 3, 2017 Perform Analytics 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Formulate your questions • “Getting the right answers is only possible when you have asked the right questions. ” March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Some examples: • Financial questions: • what is the optimal product/service pricing to maximize revenue/ profit margin? • What is the predicted profit margins for a product X? • What is our optimal investment strategy? March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

More examples: • Operations questions: • How do we optimize supply chain? • How do we minimize production waste? • How do we optimize delivery routes? March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

Identify what data you will need § Based on your objective/question § Types of data – Structured – • POS data, financial data, customer data – Unstructured – • Text files, photos, images – Semi-structured • Includes tags but doesn’t have a column/row structure. XML, tagged documents March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

Get the data § Internal data § Transaction data, sales data, customer data, etc. § External data § Social media, weather data, government data, maps March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

Apply Analytics • • • Descriptive Analytics Predictive Analytics Prescriptive Analytics March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Communicate your findings… • Memo’s • Presentations • Data Visualizations March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

Data Visualization • The process of displaying data to provide insights that will support better decisions. • Examples: – Dashboards – Data Visualization software – Charts • • March 3, 2017 Line charts Pie charts Area charts Scatter chart 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Dashboards • Visual representation of a set of key business measures • Provides summaries of key business information to help managers March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Resources for Critical Thinking, Data, and Technology March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Critical Thinking • Find a framework • Use it ALL THE TIME • Example: – http: //www. criticalthinking. org/ctmodel/logicmodel 1. htm March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Experience working with data • Do you need “Big Data”? March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Where can I find data? https: //www. data. gov/open-gov/ http: //ohiotreasurer. gov/Transparency/Ohios-Online. Checkbook https: //data. cityofchicago. org/ March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Resources for Data • Vendors • Public Data • Academic Communities March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Data Visualization Software • • • Tableau Qlik Microsoft Excel BI Spotfire IBM SAS March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Vendors • • • IBM SAS SAP Tableau Teradata University Network March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

Academic Communities • American Accounting Association – http: //commons. aaahq. org/pages/home – http: //commons. aaahq. org/groups/cea 5 c 9 d 7 d 1/summ ary • Tableau Academic Resources – https: //www. tableau. com/academic • IBM Academic Resources – https: //www 304. ibm. com/ibm/university/academic/pub/resource/c ourseware • EY Academic Resource Center – www. ey. com/us/arc March 3, 2017 • HUB of Data Analytics Education – Northeastern University 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City – http: //hae. damore-mckim. northeastern. edu/

What have we accomplished? 1. 2. 3. 4. 5. 6. 7. Defined “Big Data” Described the business implications of Big Data. Described the implications of Big Data for the accounting profession. Identified the types of business analytics. Explained data visualization Identified options for adding more data analytics to exisiting courses Identified resources. March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

QUESTIONS? March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

March 3, 2017 16 th Annual Accounting Educators Seminar - University of Missouri - Kansas City

GO HUSKIES! March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

References & Contact Info • Bernard Marr (2015) “Big Data: Using Smart Big Data • Cole Nussbaumer Knaflic (2015) • • Analytics and Metrics to Make Better Decisions and Improve Performance” “Storytelling with Data: A Data Visualization Guide for Business Professionals” Thomas H. Davenport. “Competing on Analytics” &”Keeping up with the Quants: Your Guide to Understanding & Using Analytics” Dona M. Wong (2013). “The Wall Street Journal Guide to Information Graphics: The Dos and Don’ts of Presenting Data, Facts, and Figures” March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City

Contact Information • Ann C. Dzuranin, Ph. D Associate Professor Department of Accountancy Northern Illinois University Barsema Hall - 345 Q De. Kalb, IL 60115 Phone: 815 -753 -6212 • adzuranin@niu. edu March 3, 2017 16 th Annual Accounting Educators Seminar University of Missouri - Kansas City