Impactions of Big Data to Business Research Assignment

Impactions of Big Data to Business
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Impactions of Big Data to Business
The business environment is currently experiencing significant transformations as entrepreneurs seek to attain new insights from information so as to make real-time, better, smarter, and fact-based decisions. In the past when the competition was less intense, businesses used to utilize data by assessing current and future trend patterns and their impact on the business in the long run. Such assessment, also known as data analytics, was concerned with manual extraction and analysis of data that was written in spreadsheets. However, the term ‘big data’ is currently being used to refer to massive collection multifaceted data that is impossible to accurately analyze using the traditional approach. This is the reason why modern businesses are utilizing big-data analytics that have the capacity of using contemporary computational techniques for efficient and rapid processing of data. Big data analytics are currently transforming business processes in a major way, thus revolutionizing new business trends.
Changes in the way businesses analyze and report data have influenced accountants to seek new ways of tackling the challenges and opportunities that are associated with the present big data. According to a report published by the American Institute of CPAs, incorrect data analysis has made more than a third of financial institutions across the globe to suffer huge revenue losses. Financial experts have struggled with the aim of turning the huge amount of data into a valuable insight in order to avoid the pitfalls facing the operations of several institutions. Professionals have come to understand that data is increasingly transformative, but organizations are having a difficult time of turning this huge information into insightful and worthwhile business intelligence.
The role of management accounting information in organizations has also been transformed, particularly with the advent of the big data revolution. To have a competitive position, an organization must be able to balance between cost control and investment, and this can only be done through accurate data analytics. This is where the important role of management accountants comes into play to enhance the success of a business, particularly when it comes to the current data-driven era. Management accountants have been provided with the opportunity of turning data into value-added information despite the vast amount of information which organizations are exposed to. Studies have revealed that organizations are only able to analyze and utilize less than 0.5% of information which they create. This implies that analysts are provided with a profound opportunity of increasing the efficiency and competitiveness of their organizations when they accurately anal...