BSCI BSST 371: Digital

D1 Data and Analysis

 Study Unit Learning Outcomes

On completion of this study unit you should be

able to:
• Interpret underlying characteristics of basic data concepts and how these influence and
interact with one another;
• Identify and evaluate sources of data (financial and non-financial, structured and
unstructured);
• Access and store data (e.g., own location, service provider, cloud, etc.)
• Identify the practical challenges of data analytics (e.g., data volume and quality, and
privacy, regulatory and ethical issues);
• Identify the ways in which the finance function uses data;
• Highlight and explain the data competencies required in the digital world;
 Study Unit Learning Outcomes

On completion of this study unit you should be

able to:
• Locate where finance has a competitive advantage using data and where finance will
need to work with data scientists.
• Use data analytic software tools to analyse data (e.g., Excel and advanced Excel
functions);
• Apply visualisation techniques and tools
 Topics for today include…
• What is data?
• What is information?
• What types of business data is there?
• Where is this data (data sources)?
• How do we collect the data?
• How do we model, manipulate and analyse data?

Data and the Analysis of data

 Introduction
What is data?

• 1: factual information (such as measurements or statistics) used as a basis for

reasoning, discussion, or calculation;

• 2 : information in digital form that can be transmitted or processed; and

• 3 : information output by a sensing device or organ that includes both useful and
irrelevant or redundant information and must be processed to be meaningful

Data Definition & Meaning - Merriam-Webster

 Data vs information

Data: raw, unprocessed facts and figures

Information: data that has been processed in a way that makes

it meaningful for planning and decision making
 Introduction
What is data?

‘’information in digital form’’

Digital Form:
1 and 0 = 1 bit (binary system)
10101010 = 8 bits = 1 byte
Saved to disk : 8 bits ??

https://www.youtube.com/watch?v=wgbV6DLVezo
 Introduction
What is data?
Size
If in weight 1000g = 1kg then 1000 Bytes should be 1KB
(Kbyte)

A kilobyte is approximately 1,000 bytes (in fact

1,024 bytes) ;
https://www.idtech.com/blog/orders-of-magnitude-
digital-data

Why?
 Types of data

Financi Standard metrics tracked and best For data to

al understood by the become useful in

the organisation,
data organisation the data needs to
Financial data plus broad
Enterpri operational and transactional
be turned into
information.
se data that bolsters analysis and
data Enterpriseforecasting
data Communicating the above insights to users and
contributing to an objective, responsible perspective to influence
their decision making
Big What is Big Data?
Types of data Big Data is an emerging technology that has implications across all
data business departments. It involves the collection and analysis of
large amounts of data to find trends, understand customer needs
and help organisations to focus resources more effectively.
Big Data has a role to play in information management.
 Collecting data

Formal data collection

This happens when an organisation needs specific
data to fulfil a particular purpose.

Informal data collection

Happens continuesly,
e.g. when employees learn about what is going on
around them
via newspapers, websites, etc.
Data sources
Sources
of
Data

Intern Extern
al al
Sourc Sourc
es es
 Accounting  Customers – product
record requirements & price elasticity
 Human  Libraries & information services
resources  Newspapers, journals & the
 Production internet
data  Government agencies i.e. Stats
 Sales and SA or SARS
marketing data
 Timesheets
The DATA EXPLOSION!!

www.Salientediscovery.com
 Data sources
Structured data
• Clearly defined data types within a structure.
• Normally this structure is a type of database and / or other
file where the data is stored in rows and columns.
• Recorded in predefined fields and formatted appropriately.
• Allows for easy manipulation and analysis.

Unstructured data
• Unstructured

Semi-structured

Metadata – data about data (all data files have metadata)

File extensions – type of file
 Quantitative and qualitative
information

Qualitative Information
• Can be given a value, e.g. $100m

Quantitative Information
• Cannot be given a value, colour, subjective rating
 Quantitative information:
• Financial statements: Balance sheets, income statements, and cash
flow statements that provide numerical data on a company's financial
performance.
• Stock prices: The price of a company's stock can be measured and
Class activity: Is tracked over time.

this Quantitative • Interest rates: The rate at which money can be borrowed or invested
can be measured and analysed to determine financial strategy.
or Qualitative
information? Qualitative information:
• Market sentiment: The overall mood of investors and traders can
influence stock prices and financial trends.
• Brand reputation: A company's brand reputation can affect its long-
term financial success and value.
• Customer satisfaction: The opinions and experiences of customers
can influence a company's financial performance.
Data sources
 Qualities of information

Accurate
Technology plays an important role in
Complete capturing this type of information.
Cost- Technology can collect data more
effective effectively and efficiently. Technology is an
opportunity that frees up time to
Understand concentrate on creating and preserving
able organisational value.
Relevant
Accessibl
e Timely
Easy-to-
use
 Data modelling, manipulation
and analysis
Data modelling
• Analysis of an organisation’s data needs to support
its business processes
Data manipulation
• Reorganisation or transformation of data to make it
easier to read or more meaningful
Data analysis
• Overall process of collecting, cleansing, manipulating
and modelling data to support decision making.
The role of the finance function in data
modelling
Three stages to data modelling:
Conceptual model:
• Consultation with internal stakeholders to determine
and record data requirements.
Logical model
• Data requirements are developed into formal
documents.
Physical Model
• A physical model is created to manage data and the
relationships between data sets and tables.
 Advantages of data modelling
• Foundation for handling data effectively

• Business rules enforced on data and security

• Quality of data is enhanced

• Consistency is improved
 Types of data analysis
Exploratory
• Finding new relationships or features in a data set

Confirmatory
• Confirming, or disproving a hypothesis

Predictive
• Making forecasts, based on techniques such as statistical
modelling

Text
• Extracting and classifying data from textual data sources
 Data analysis
A methodical approach to data analysis
Plan the analysis
Collect and enhance the data
Perform the analysis
Review and communicate results of analysis

NB – Always document the process and procedures you are following

To be continued

Risk Management
BSCI BSST 271: Digital

D1 Data and Analysis