Analytics and Big Data for Accountants

Chapter 2 BIG DATA HISTORY—BIG DATA SOURCES AND CHARACTERISTICS

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

•     Identify distinctive points of computing history and their impact on the evolution of Big Data today.

•     Identify Big Data sources.

•     Recall Big Data from the perspectives of a small business and the accountant.

INTRODUCTION

This chapter examines the history as well as the sources and characteristics of Big Data. To accountants, the concept of Big Data relates to the ability to access, manipulate, analyze, and report on data using tools such as electronic spreadsheets. Understanding the history of computing and the evolution from clay tablets to modern day computer systems is essential. To best employ Big Data, we must recognize the past, present, and future implications of Big Data for our organizations as well as our profession.

Big Data can be created in a multitude of ways and transformed into knowledge by many avenues, providing that the organization has the skills and resources to do so. It is also important to recognize that data can be identified by a variety of characteristics.

THE ACCOUNTANT’S PERSPECTIVE—BIG DATA = SPREADSHEETS

Prior to 1978, the accountant’s job was a factor of the underlying accounting systems. The accountant recorded, processed, and analyzed transactions and reported on the financial results. Also, the accountant created additional value by evaluating results based on ratio ...