16 Annual Accounting Educators Seminar

16th 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
16th 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 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
16th Annual Accounting Educators Seminar -

March 3, 2017 University of Missouri - Kansas City
What is Big Data?

http://www.nojitter.com/post/240170228/the
-network-impact-of-big-data16th Annual Accounting Educators Seminar - University of
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/#7d8cd4b6c1d3

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:
• Volume
• Variety
• Velocity
• Veracity

What is Big Data?
http://www.ey.com/gl/en/services/advisory/ey-big-data-big-
March 3, 2017
opportunities-big-challenges

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)

What is the Impact on the Accounting
Professional?

Big Data Implications for Accounting
Professionals
• Audit
• Advisory
• Tax
• Managerial

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

• Advisory Services
– Identify questions
– Use analytics to help business improve performance
– Build analytical models

• Tax
– Analyze tax efficiency of business units
– Identify tax-opportunities
– Aid in evaluating global opportunities

• Managerial
– Risk identification
– Risk management
– Operational improvements
– Forecasting
– Optimization models

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.

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

So in other words….

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

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

NIU’s Journey……
• Accountancy Department:
– Employer needs
– Follow the letter or the spirit of the AACSB standard (A7)?
– Could the curriculum be revamped?
– Consistency
– Constraints:
• Limited to 120 credit hours
• No accounting courses can be eliminated
March 3, 2017

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

Data Analytics in Accounting Course Design
Module Topic Skill Development/Reinforcement

Data, Big Data, and Accounting Topic Awareness
1 Critical Thinking Framework Critical Thinking Framework (CTF)
(4 weeks) Data Governance CTF
Data Visualization & Storytelling Tableau, CTF
2 Statistics Essentials Review Excel, Access, SQL
(4 weeks) Statistics Advanced Topics Excel & SPSS
Data Analytics in Financial Accounting Excel, Tableau, CTF
Data Analytics in Auditing Excel, IDEA, Tableau, CTF
Data Analytics in Managerial Accounting Excel, Tableau, CTF
3
(7 weeks)
Data Analytics in Tax Excel, Tableau, CTF
Big Data and Analytics in Accounting Excel, Tableau, Access, SQL, SPSS, IDEA,
CTF
March 3, 2017

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.

For Each Project/Assignment Apply the Business
Analytics Cycle

Formulate your questions
• “Getting the right answers is only possible when you have asked the
right questions.”

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?

More examples:
• Operations questions:
• How do we optimize supply chain?
• How do we minimize production waste?
• How do we optimize delivery routes?

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

Get the data
 Internal data
 Transaction data, sales data, customer data, etc.
 External data
 Social media, weather data, government data, maps

Apply Analytics
• Descriptive Analytics
• Predictive Analytics
• Prescriptive Analytics

Communicate your findings…
• Memo’s
• Presentations
• Data Visualizations

Data Visualization
• The process of displaying data to provide insights that will support

better decisions.
• Examples:
– Dashboards
– Data Visualization software
– Charts
• Line charts
• Pie charts
• Area charts
• Scatter chart

Dashboards
• Visual representation of a set of key business measures

• Provides summaries of key business information to help managers

Resources for Critical Thinking, Data, and
Technology

Critical Thinking
• Find a framework
• Use it ALL THE TIME
• Example:
– http://www.criticalthinking.org/ctmodel/logic-model1.htm

Experience working with data
• Do you need “Big Data”?
March 3, 2017

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

Resources for Data
• Vendors
• Public Data
• Academic Communities
March 3, 2017

Data Visualization Software
• Tableau
• Qlik
• Microsoft Excel BI
• Spotfire
• IBM
• SAS

Vendors
• IBM
• SAS
• SAP
• Tableau
• Teradata University Network
March 3, 2017

Academic Communities
• American Accounting Association

– http://commons.aaahq.org/pages/home
– http://commons.aaahq.org/groups/cea5c9d7d1/summary
• Tableau Academic Resources
– https://www.tableau.com/academic
• IBM Academic Resources
– https://www-
304.ibm.com/ibm/university/academic/pub/resource/courseware
• EY Academic Resource Center
– www.ey.com/us/arc
• HUB of Data Analytics Education – Northeastern University
–2017http://hae.damore-mckim.northeastern.edu/
March 3,

What have we accomplished?
1. Defined “Big Data”

2. Described the business implications of Big Data.
3. Described the implications of Big Data for the accounting
profession.
4. Identified the types of business analytics.
5. Explained data visualization
6. Identified options for adding more data analytics to exisiting
courses
7. Identified resources.

QUESTIONS?

March 3, 2017

GO HUSKIES!

References & Contact Info
• Bernard Marr (2015) “Big Data: Using Smart Big Data Analytics and
Metrics to Make Better Decisions and Improve Performance”
• Cole Nussbaumer Knaflic (2015)
“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”

Contact Information
• Ann C. Dzuranin, PhD

Associate Professor
Department of Accountancy
Northern Illinois University
Barsema Hall - 345Q
DeKalb, IL 60115
Phone: 815-753-6212
• adzuranin@niu.edu


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16th Annual Accounting Educators Seminar

Big Data, Data Analytics and the Accounting Curriculum:

Ann C. Dzuranin, Ph.D.

16th Annual Accounting Educators Seminar - University of

• What is Big Data and Data Analytics?

16th Annual Accounting Educators Seminar - University of

• No Information Technology experience other than a moderate level

16th Annual Accounting Educators Seminar -

16th Annual Accounting Educators Seminar -

• Less than 0.5% of all data is ever analyzed and used.

16th Annual Accounting Educators Seminar - University of

• A collection of data sets that are too large or too

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

• Extensive and systematic use of data, statistical and quantitative

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

• Audit – Internal and External

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

• Accounting professionals need to know how to conduct data

16th Annual Accounting Educators Seminar - University of

• An employee with the following skills:

16th Annual Accounting Educators Seminar -

16th Annual Accounting Educators Seminar - University of

• Graduates that can think critically

16th Annual Accounting Educators Seminar - University of

• Curriculum is already full!

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

• Reinforce technology skills throughout the curriculum.

16th Annual Accounting Educators Seminar - University of

Module Topic Skill Development/Reinforcement

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar -

16th Annual Accounting Educators Seminar -

 Based on your objective/question

16th Annual Accounting Educators Seminar -

16th Annual Accounting Educators Seminar -

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar -

• The process of displaying data to provide insights that will support

16th Annual Accounting Educators Seminar - University of

• Visual representation of a set of key business measures

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

• Do you need “Big Data”?

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

16th Annual Accounting Educators Seminar - University of

• American Accounting Association

16th Annual Accounting Educators Seminar - University of

1. Defined “Big Data”

16th Annual Accounting Educators Seminar - University of