Analysis and presentation tools

The most important tools in this layer are reporting, data mining, and OLAP tools.

Reporting tools provide reports based on quantitative data and may include for example charts and other forms of visualization of data. OLAP is a tool for

interactive and multidimensional analysis of aggregated data. Data mining tools, on the other hand, are designed especially for large volumes of data. They can identify the hidden patterns in a large structured data set based on statistical methods. (Baars & Kemper, 2010.)

Yeoh and Koronios (2010) argue that BI systems implementation shares similar features with other implementation projects related to IS architecture such as ERP systems. However, compared to operational and transactional sys-tems, BI implementation is rather unconventional project, which implies that im-plementation process is complex and demanding for both resources and infra-structure and have significantly different contextual elements for successful im-plementation compared to other information systems (Yeoh & Popovic, 2016).

The high complexity of BI architecture is due to its back-end systems origi-nating from multiple data sources and to the high volume of data to be processed.

Nonetheless, Yeoh and Koronios (2010) state that BI systems also face challenges as the underlying original back-end systems and processes may not be applicable with BI systems. On the other hand, they also argue that, for instance, the com-plexity of data structures must be maintained to provide an integrated view of the organization’s data so that users in different departments can query for rele-vant data in their respect.

Overall, the tools should be designed so that they contribute to simplifying the decision-making process. Therefore in developing the tools, according to Ringdahl (2000, p. 176), the defined objectives should take into account the fol-lowing:

• Enabling access to critical data obtainable in a feasible format for de-cision-making

• Analyzing trends, highlights, or exceptions related to market, cus-tomers and competitors

• Understanding what is driving changes in revenues or costs

• Forecasting sales revenues and costs

• Providing actionable insights to improve the business.

The latest tools available in the market allow users to interpret, model and forecast the future development of business by incorporating cross-dimension analysis into company strategy. She further argues that the generated reports should improve the overall understanding of the business without needing to understand the complexities of data behind the reports. (Ringdahl, 2000, p. 177.) Microsoft Excel spreadsheets are an excellent example of an analysis tool. It has gained popularity due to its ease of use, flexibility to meet a wide range of analysis needs and its capability to carry out also the heavier data-handling tasks.

However, Excel spreadsheets require manual work, which means that Excel is prone to human errors (Davenport & Harris, 2007, p. 213), and therefore, complex analyses may require time-consuming data validation and double-checking to ensure data quality.

An important concept considering data management is data cube. These can be perceived as a sort of data collections, which have at least three dimen-sions and used to arrange business data for analysis and reporting purposes. Ac-cording to Davenport and Harris (2007), data cubes can be described as multi-dimensional spreadsheets. Compared to the aforementioned OLAP tools, a nor-mal Excel spreadsheet has only three dimensions (up, down, and sheets) while OLAP tools can have seven or even more dimensions, hence, OLAP tools may be better in dealing with multi-dimensional problems. (Davenport & Harris, 2007, p. 213.)

Even analyzed data is not valuable until it is successfully communicated to the stakeholders as relevant information. Therefore, presentation and visualiza-tion tools play an important role in efficient informavisualiza-tion communicavisualiza-tion to the management. The importance of these tools is not limited to analysis purposes but also considers the continuous monitoring of the company’s performance for example in the form of KPIs.

According to Davenport and Harris (2007, p. 216), a good presentation tool should enable the user to easily create at least the simpler ad hoc reports, visual-ize even the more complex data in an interactive manner in addition to being able to share and alarm others when there is, for example, a significant deviance or abnormalities in the data. (Davenport & Harris, 2007.)

Every now and then there can be errors with data loads or other system errors which cause data to look illogical (e.g. negative sales or, on the contrary, exceptionally high sales). In these cases, the tool should have the capability to flag the inconsistencies, which need the user’s attention as the data may need manual confirmation or correction from the user.

The features of a presentation tool determine how widely the company’s analyses can be utilized across the company. Generally, business stakeholders and controllers are not as tech savvy as data analysts or IT and this should be taken into account when selecting the tools for the company to acquire. The more developed presentation and visualization tools enable the users to play with data and analyze data through intuitive interfaces, which do not require deep knowledge and understanding of the tool, hence, these tools are easier for differ-ent users to adopt and use across the company. (Davenport & Harris, 2007, p.

216-217.)

Operative processes define how an organization creates, manages, and maintains data and information management applications. They aim to ensure the reliability and security of an IT system in addition to enabling scalability. In-ternal and exIn-ternal standards and practices can affect how these operative pro-cesses are shaped and implemented in a company for everyone to follow them.

(Davenport & Harris, 2007.)

Regarding operative processes, especially data integrity, privacy and secu-rity are highly important sectors for a company to secure. A good example to highlight the importance of the mentioned sectors is a customer’s lost credit card, which can lead to serious consequences for the company if it has neglected or

failed to secure data integrity, privacy and security. (Davenport & Harris, 2007, p. 217.)

The sections 2.1 and 2.2 presented briefly what BI systems are about, what they are meant to do. Furthermore, it also presented some of the technical solu-tions and processes behind a BI system. Needless to say, that there are different variations of solutions that can be put together to generate a tool for analysis and data visualization and what is mentioned in the above describes only on a general level the basic elements that a BI system can consist of.

In the next section this thesis will discuss about management accounting and its role and purposes in an organization and especially the role in supporting management decision-making – what and how management accounting data and information is used, what challenges and trends management accounting is facing.