United International University

ASSIGNMENT
School of Business & Economics
BUSINESS ANALYTICS
Course Code: BUS-509

HOW BUSINESS ANALYTICS APPLICATIONS

WORKS IN FINANCIAL ACTIVITIES

SUBMITTED TO SUBMITTED BY
Dr. Md. Qamruzzaman ACMA Md. Mostak Anwar
Associate Professor ID: 112-193-033

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Abstract
Activities within the various sectors such as banking, debt or leverage, credit, capital markets, and
investments include finance as a broad term; In general, finance involves managing cash and also the
process of raising funds to meet various needs. Supervision, creation, and aspects of financial systems;
Analytics is understood to be a mix of financial and thus intend technology; Financial research can be
a model that offers different interpretations of the company's financial systems; Provides a deep
understanding and develops strategies to improve the overall performance of the business. Play a
critical role in calculating business value. Finance is an important business function and overlaps with
analysis in many regions. Financial professionals are looking for a replacement technology in finance
that is changing the needs of normal financial practices that led to the desire and emergence of
financial Analytics. Data is collected from contingent sources such as websites and articles. Financial
analytics focuses on effective analysis for the effective management of a club's assets such as cash,
machines, etc. Analyzing this financial situation and sketching out tomorrow's goals is the goal of
financial analytics. It provides a thorough understanding of the organization's financial condition and
progress in assessing profitability, sales, and business. Financial Analytics Helps to Make Various
Smart Decisions to Have A Smooth Income, Minimize the Price, Increase Profits Bookkeeping, Taxes
and Other Financial Areas Are Often Monitored with The Help of The Monetary Analysis That
Preserves A Store of Knowledge That Is from The Past and uses business-related data that can help
monitor business activity and achieve all goals of the business.

“Organizations need to innovate in response to changing customer

demands and opportunities offered by
technology and changing marketplaces, structures and dynamics
(Baregheh, Rowley, & Sambrook, 2009).”

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Introduction
As part of the business intelligence and the entire company management, financial analytics facilitates
the prognosis and effective planning of your future measures for all areas of the company. Leveraging
a treasure trove of financial data and other critical data from various departments in your company,
corporate finance teams analyze and use this data to help senior management make informed decisions
and add value to the company. helps organizations improve the profit and loss accounts and processes
that are carried out in companies. Financial analysis helps to find answers to all questions concerning
one's own business, and also helps to calculate profitability and the conditions for the future Business
forecast. Business goals that also improve a company's decision-making strategies.

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Objectives of the Study
1. To understand the importance of financial research
2. To understand the role of analytics in the corporate sector
3. To study changing technology trends for better finance/money management
4. To analyze past data that provides future directions for better decision-making

Research Methodology
The data is collected from secondary sources such as websites and online reading materials for
financial analysis. Oracle's financial analytics model is about understanding the practical application of
financial analytics to business.

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Importance of Analytics
 Today's businesses need timely information to make decisions.
 Every business needs careful financial planning and forecasting.
 The diverse needs of the traditional finance department and technological advances indicate
the need for financial analysis.
 Financial analysis can help with the design. It can help you improve decision-making strategies
for your company.
 Financial research can help you focus on measuring and managing your company's physical
assets, such as Cash flow and Equipment. Closes the year and improves cash flow,
profitability, and business value.

FINAL THOUGHT
Today, analytics has become an essential component for businesses and organizations to stay
competitive and relevant. Financial analytics helps businesses understand and interpret their current
and past performance, and predict future performance to make better business decisions. Financial
analytics software helps in speeding up the creation of reports and enables data presentation through
graphs, which are much easier to read and comprehend.

[Source]

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Literature Review
[Dimitris Andriosopoulos, Michalis Doumpos, Panos M. Pardalos & Constatin Zopounidis-2019] in
their article titled “Computational approaches and data analytics in financial services” outlined the
most important financial applications of computers and data analysis methods, paying particular
attention to current developments and trends. In addition, various methodological tools and their use in
the fields of investment portfolio management, credit analysis, banking, and insurance are also
discussed.

[Md. Morshadul Hasan, József Popp & Judit Oláh-2020] in their article titled, “Current Landscape and
Influence of Big Data on Finance” the study examines the influence of Big Data on Internet banking,
financial markets and financial services management. The study also presents a framework that will
facilitate the impact of big data on finances. Some other finance-related services are also highlighted
here to specify the broader scope of big data in financial services.

[Meryem Ouahilal, Mohammed El Mohajir, Mohamed chahhou, Badr Eddine El Mohajir-2018] in

their research titled, “A Comparative Study of Predictive Algorithms for Business Analytics and
Decision Support Systems" the research paper conducted a study of the literature on predictive
analytics to support business decisions and conducted a comparative study of predictive algorithms to
make a financial forecast of Time series. Regression algorithms, which are multiple linear regression,
support vector regression, and decision tree regression, were performed to assess their effectiveness in
predicting.

[Markus Esswein, Peter Chamoni1-2018] in their research titled, “Business Analytics in the Finance
Department” the research paper conducts a literature search that analyzes the finance department,
financial and operational accounting, and identifies the critical points of current and future research.
Summarize your findings in a literature framework. Classification with the two dimensions of
accounting activity and justification of business analytics.

Business today is very complex due to technological innovations, many complexities, questions, etc.
keep popping up in the bright minds of company leaders, analyzes organize the solutions for all these
complexities, financial analyzes help managers / decision-makers in the organization, through accurate
reports and Have information about business activities.
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Below are few complex questions that analytics can answer:

 The probability of the success of the various investments.

 Which sector of the market is probable to raise more profit for the business in the future?
 What is the profitability of the product through various sources of sales?
 What are the threats involved in various situations that are forecasted?
 What are the factors that will affect the business in the future?
 How to carry out the business processes more effectively?

One must understand Analytics in general i.e., Integrated analytics, and the importance of Data
warehouse as all the data which is to be analyzed is stored in the Data warehouse.

The framework of Financial Analytics

INTEGRATED ANALYTICS
Today, integrated analytics is all the rage and is used by almost every company to compete in the
marketplace. Integrated analytics will help companies generate timely reports and pass them on to
internal and external sources for further improvement. Integrated Analytics is an integrated solution
that combines performance management, analysis and business intelligence tools in one package.

DATA WAREHOUSE
The data warehouse consists of critical analysis components such as data warehouses, data marts, and
reporting applications. The data warehousing of the future requires extensive analysis functions. Smart
decisions are easy to make when business data and procedures are standardized across a company's
business activities.

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Financial Analytics software which is one of the best in the market includes:

ORACLE ANALYTICS FOR FINANCE PROFESSIONALS

Oracle Analytics provides a comprehensive set of tools and functions that support the collection,
processing, and management of financial data to provide a unified view of financial results while
providing predictive models to stay ahead of market changes. The general features of financial
analytics software are:
 It reduces Human Bias/errors.
 Use the existing resources to the fullest.
 Associate data for Greater Accuracy.
 Increased efficiency, Better models, and projections based on Artificial Intelligence while
generating reports.

The benefits of Oracle Financial Analytics in increasing ROI by analyzing the information about the
costs incurred and the benefits of all departments in a company will scale cash flow by closely
monitoring and managing assets, liabilities, inventory, and more. reports regularly on what helps
determine and improve the company's performance. In addition, it helps to have a forecast for the
future and to organize your budget well. In conclusion, Oracle Financial Analytics code can lead to
better corporate financial health.
Few tools that oracle financial analytics application include:
 Fixed Assets Analytics – Deals with the measuring assets’ life.
 Budgetary Management Analytics – It helps in avoiding over disbursal through effective
planning of the budget and disbursal effectively.
 General Ledger Analytics – Monitor the financial activities of the corporate through varied
factors.
 Profitability Analytics – Helps in distinguishing a variety of customers and those channels
which add additional profit to the organization.
 Payables Analytics – Deals with Liabilities.
 Receivables Analytics – Deals with Current assets i.e., Receivables.

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 Proactive Intelligence – It is an indicator regarding the problem to the managers of the
organization that helps to provide instantaneous decisions and solve the problem through
further actions.
 Pre-Built Information Models and Metrics – Oracle money Analytics has over a hundred
metrics and models.
 Out-of-the-box integration with ERP systems – It assists in simple integration with ERP
systems at low risk, less price, and lower effort.
 Oracle Financial Analytics for Oracle Fusion Applications – It assists in knowing the
company's past,
gift and future performance that allows making sensible selections.
 Powered by Oracle Business Intelligence Foundation – Generates prime quality reports and
encompasses a practical dashboard and is very climbable.
 Exalytics prepared – It drives on the far side of morals of ancient information analytics and
offers deeper data regarding a massive volume of information at the speed of thought.

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 A PICTURE OF THE ORACLE FINANCIAL ANALYTICS TOOL

Statements used in Financial Analytics

BALANCE SHEET
The balance sheet is concerned with depicting the current state of the company, it lists the financial
components related to assets and liabilities, and does not provide strategies for managing and
monitoring them, which will help the company perform better in the future.

CASH FLOW STATEMENT

The cash flow statement includes the inflow and outflow of cash in the organization, which shows the
exact numbers of revenue, bills, debt, and growth of businesses in relation to the organization's cash.

Components to figure out the Financial trustworthiness

LIQUIDITY
Liquidity refers to the free flow of cash and other assets to offset bills of exchange, debts, etc. by
organizations. Low liquidity generally refers to poor performance and high capital requirements.
Liquidity varies from time to time due to variations such as sales, expenses, economic situation, etc.

LEVERAGE
Leverage is capital raised from various sources, with returns expected to be greater than interest.
Leverage is an important feature that is well thought out, especially by bankers and investors.

PROFITABILITY
Amount invested as capital in commercial activities the components that affect profitability are the
evolution of the market, the prices of raw materials in the market, the valuation of assets, etc.

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Final Thought
At the end of the study, a clear understanding of the importance of the use of financial analytics in
today's world with the help of the analytics framework i., The use of data warehouses and software is
explained. Applying Oracle's financial analysis model has helped businesses grow, and financial
statements such as income statements, cash flow statements, and balance sheets are used as a tool to
measure financial performance in order to improve performance. Key role for the functioning of the
organization.

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Conclusion
Financial analytics is a concept that can be used by all types of businesses, small or large, that provides
a clear picture of current market developments that will help decision-makers adapt and work
efficiently. at regular intervals that bankers, investors, management analysts, etc. can trust. The advent
of financial research is a huge boost for businesses.

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