Finance and Accounting BPM

Accounting & Audit AnalyticsBob Samuels - Data - Magnum

Bob SamuelsThe TechConnectr – www.techconnectr.com

Cell: 408-206-5858Strategic * Marketing Analytics * Client & Partner Door Opening * Demand Generation & Nurturing * Financial ROI Optimization

Financial Applications:Continuous Monitoring Risk Awareness & Mitigation Fraud, Abuse, & Waste Detection Audit & Prep Forecasts & Modeling Benchmarking KPIs Customer Relevance & Value Integrated Normalized Data Patterns & Outliers Data Discovery Revenue Optimization Machine-Learning

DATACorporate Structured Data

Structured / Unstructured

Content Management

Data as a Service

Web Content / Search

3rd Party Data – semi-structured

Images / Video

Mobile / Location

Sensors / RFID / Satellite

Machine / Log Files

Domain ApplicationsCustomer Personalization

Digital Mktg / eCommerce

Healthcare / Bioscience

Insurance / Risk Mgmt

Investment Management

Telecom / Utilities

IT & Operations

Manufacturing / Logistics

Oil & Gas Exploration

Government & Defense

BI, Analytics & VisualizationBusiness Intelligence

Dashboards / KPIs

Data Discovery

Descriptive Analytics

Statistical Packages

Predictive Analytics

Machine Learning

Prescriptive Analytics

Decision Management

Graphs / Visualization

Platforms / ToolsHardware & Infrastructure

Natural Language Processing

ETL / ELT

Data Integration

Data Governance

Marshalling

MapReduce

Databases

Hadoop / In-Memory

Distributed File Systems

Financial Applications – Review of Patterns & Outliers

DATA SOURCES DATA PROCESSING DATA ANALYTICS APPLICATIONS

Accounting Software – Cloud-Based

http://diversity.net.nz/intacct-launches-new-ui-and-rolls-out-srp/2011/12/06/

4 ©2014

Waste

Abuse Fraud

Why is Internal Audit so Hard?… Looking for Waste, Abuse, & Fraud

Big Data Requires Big Data Audit Analytics

The haystack has gotten a lot bigger• Traditional

structured data• Unstructured data

o Documentso Emailo Web contento Social Media

Thanks to Hadoop & Massive Parallel Processing• Query and

retrieval times are short

• Cost of even massive storage is very low

Many predictive modeling techniques can also be applied to structured and unstructured data• Models become

more accurate

New techniques for unstructured data based on NLP (natural language processing) & Ontology• Sentiment analysis

5 ©2014

Focus on Social Media Risks*

*Risk also arises from other types of unstructured and semi-structured data:

Email

Internal documents

Images stored centrally or on users machines

6 ©2014

Social Media Risks

Source: 2014 Internal Audit Capabilities and Needs Survey Report, Protiviti

7.3

6.6

5.6

4.9

4.9

4.0

5.5

6.1

6.9

2.90 1 2 3 4 5 6 7

“They gave me financial aid then I cancelled all my classes and kept the money”

“Sit in at the Chancellor’s Office at 3:00”

“Can’t believe how much I made on eBay today”

“Professor X is such a perv”

“Did you hear we’re losing accreditation. Don’t sign up next term.”

“I found out they’re cutting my budget. I’m going to the union before this gets out”

“I’ll fix them. I put a virus on the lab computer.”

“The instructor said I could make money after school fixing cars in the auto shop”

“I just downloaded a bunch of student financial data from the finance system”

“Joe sold me the answers to tomorrow’s test”

7 ©2014

Personal Computers Electronic

Spreadsheets The end of hand

calculation

ERPs –data in one place

Database analysis

Age of Rules

Predictive Analytics

Statistical Insights True Predictive &

Continuous Audit

Social media, text, image

Improved accuracy

Cost effective continuous audit

The Age of Smart CAATs

You Don’t Need to be a Data Scientist, Just a Smart CAAT Tool User

8 ©2014

Source: Word Cloud created from ecosystem maps via http://www.tagxedo.com

Ecosystem MapsBig Data & Analytics

BI Platform / Reporting

OSS

Visualizations

Unstructured / Search

Indexing / Metadata

Search

NLP

Hadoop Analytics

Hadoop Dev Platforms / Automation

HDFS

Predictive Analytics

THE CONFUSING WORLD OF BIG DATAAP

PLIC

ATIO

NS

TOO

LSDA

TA M

ANAG

EMEN

T

STRUCTURED UNSTRUCTURED

Transactional DB

OSS

High Performance Analytical DB

NewSQL

Enhancement

Distributed

NoSQL

Graph Document

Key Value / Column

Enterprise Apps

Internet Apps

Social Media Web Content Mobile Devices Camera / DVR Sensors / RFID Logfiles

Hadoop aaS

HDFS Alternatives

DBa

aS

HANA

GraphDB

Filesystem

EMR

Text / Sentiment Analysis

Data as a Service

Data Warehouses

vFabric L

Drill

Vertical Market Applications

Impala

Messaging Optimization Data Integration / CEPOSS

IMDG

Redshift

Based on Source: Perella Weinberg Partners

AI

DATA

SO

URC

ESDA

TA P

ROCE

SSIN

GDA

TA A

NAL

YTIC

SAP

PLIC

ATIO

NS

Source: CapGemini: http://www.capgemini.com/sites/default/files/technology-blog/files/2012/09/big-data-vendors.jpg

4 Main Buckets: Data Acquisition; Structuring/Indexing; Analytics; ApplicationsDATA SOURCES DATA PROCESSING DATA ANALYTICS APPLICATIONS

Source: http://blog.softwareinsider.org/wp-content/uploads/2013/04/Screen-Shot-2013-04-25-at-2.48.29-PM.png

- Applications & ToolsDATA SOURCES DATA PROCESSING DATA ANALYTICS APPLICATIONS

Source:

APPLICATIONS

DATA SOURCES

DATA PROCESSING DATA ANALYTICS

Big Data Landscape

http://www.bigdatalandscape.com/

DATA ANALYTICS

DATA PROCESSING

DATA SOURCES

APPLICATIONS

Source: http://www.bigdatalandscape.com/

APPLICATIONS DATA ANALYTICS

DATA SOURCES

DATA PROCESSING

Source: http://wikibon.org/wiki/v/Big_Data:_Hadoop,_Business_Analytics_and_Beyond

More Slices of the Key Technologies Involved ..

* Next Gen Data Warehouse

DATA PROCESSING

APPLICATIONSDATA ANALYTICS

Source: Sqrrl: http://blog.sqrrl.com/post/46306669352/sqrrls-take-on-the-big-data-ecosystem

DATA ANALYTICS

DATA PROCESSING

Big Data Open Source Tools

Source: http://www.bigdata-startups.com/open-source-tools/

Source: http://www.forbes.com/video-specials/industry-atlas.html?VID=24891553 & Wikibon

The Big Boys will eat up the pure-play Big Data providers soon Forbes & Wikibon

Data Sources

Sources

• Corporate Structured Data•Structured / Unstructured•Content Management• Data as a Service•Web Content / Search•Social Media•Images / Video•Mobile / Location•Sensors / RFID / Satellite•Machine / Log Files

Examples Examples

Infrastructure

Technology

•Hardware & Infrastructure•Natural Language Processing•ETL / ELT•Data Integration•Data Governance•Marshalling•MapReduce•Databases•Hadoop / In-Memory•Distributed File Systems

Examples Examples

https://cloudblueprint.wordpress.com/category/vendor-strategies/salesforce-com/

Infrastructure Cloud

http://reference180.com/launch-save-money?code=m5p0r6#

Updated from 12/12

Technical Skill Sets

http://practicalanalytics.wordpress.com/2013/11/06/data-science-and-analytics-outsourcing-vendors-models-steps/

http://en.wikipedia.org/wiki/Benford's_law

Analytics

Types

•Dashboards / KPIs•Business Intelligence•Data Discovery•Descriptive Analytics•Statistical Packages•Machine Learning•Predictive Analytics•Prescriptive Analytics•Decision Management•Graphs / Visualization

Examples Examples

Source: http://www.xmind.net/m/LKF2/

AnalyticsSkill Sets & Data Sources - R

Increasing Value of DataData- BI – Predictive - Prescriptive

PrescriptivePredictiveBiz IntelligenceData Mining

Source: IBM

Another way to look at Analytics Levels

Dash Boards

Analytics

Prescriptive

Pivots

Predictive

http://practicalanalytics.wordpress.com/2011/05/01/the-vendor-landscape-of-bi-and-analytics/

Business Intelligence Analytics / Visualization

Big Data BI & Analytics/Visualization Solution Providers

Oracle Essbase Laurén

*(NICE)

*(SAP)

Predictive AnalyticsSolution Providers

Predictive AnalyticsSolution Providers

Applications Digital Marketing & Client Retention

Sources: http://graphicriver.net/item/digital-marketing-doodle-elements-set/5861147http://www.jigsawcommunications.co.uk/index.php?p=digital-marketing

Other Applications

Vertical / Horizontal

•Customer Personalization•Digital Marketing / eCommerce•Healthcare / Bioscience •Insurance / Risk Management•Investment Management•Telecom / Utilities•IT & Operations•Manufacturing / Logistics•Oil & Gas Exploration•Government & Defense

Examples Examples

Source: http://cloudtimes.org/wp-content/uploads/2011/11/Clouds.cloudtimes.png

Applications: Example Solutions & Verticals

Verticals (& Horizontals) Solution - Predictive / Prescriptive

Finance & Insurance * Fraud Detection / Risk ManagementIT & Operations * Resource OptimizationManufacturing & Tracking * Resource OptimizationTelecom & Utilities Resource OptimizationTransportation & Logistics * Resource OptimizationProduct Management * Resource OptimizationRetail * Revenue & Customer ExperienceInvestment Management Optimization / Risk ManagementGovernment & Defense * Risk ManagementeCommerce / Digital Marketing * Targeting / PersonalizationMedia & Entertainment Targeting / PersonalizationMobile & Location * Targeting / PersonalizationNatural Resources & Exploration Patterns / CausalitiesHealthcare & Life Sciences * Patterns / Causalities

Applications Example Vertical and ‘Horizontal’ SaaS Applications

About MeBob Samuels, Consulting – TechConnectr, Data-Magnum