Integrating Data Analytics and Visualization into Management Accounting Courses Ann C. Dzuranin, Ph.D., CPA Associate Professor – Northern Illinois University.

Integrating Data Analytics and Visualization into Management Accounting Courses
Ann C. Dzuranin, Ph.D., CPA Associate Professor – Northern Illinois University January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

My Data Analytics Journey
Accounting/Finance degrees Public accounting Corporate accounting Academia Managerial Accounting & Accounting Information Systems. Developed a “Data Analytics in Accounting” course for our undergraduate program and co-developed a “Decision Making and Data Analytics in Accounting” course for our MAS graduate program January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

What skills 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, how to verify it. Understand data science and be able to bridge the gap between technical knowledge and business knowledge. Graduates that can communicate findings January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Where can we integrate analytics in the curriculum:
Everywhere! Any accounting course can provide students the opportunity to Develop critical thinking skills Work with data Work with data analysis technology Learn data analysis techniques Practice communicating results January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Data Visualization Data visualization - the process of displaying data (often in large quantities) in a meaningful fashion to provide insights that will support better decisions. Data visualization improves decision-making, provides managers with better analysis capabilities that reduce reliance on IT professionals, and improves collaboration and information sharing. January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

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, , HBR) January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Types of Business Analytics
Descriptive Analytics Predictive Analytics Prescriptive Analytics January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Descriptive Analytics
Most common and most widely understood analytics Categorize, characterize, consolidate and classify data to convert it to useful information. Answer questions such as: What business unit has the lowest productivity? How much did we sell in each region? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Predictive Analytics Seeks to predict the future by examining historical data. Helps to detect patterns and trends in data. Addresses questions such as: What will happen if demand falls by 10% What do we expect to pay for maintenance for the next 6 months? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Prescriptive Analytics
Uses optimization to identify the best alternatives to minimize or maximize some objective. Addresses questions such as: How much should we produce to maximize profit? What is the best way to ship our goods to minimize costs? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

How can we incorporate analytics into our existing courses…
Focus on developing the analytic mindset Help students develop critical thinking skills by introducing a data analysis framework… Critical Thinking Foundation: Data Analysis Cycle January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Data Analytics Cycle Critical Thinking Critical Thinking
Formulate Question Gather Data Perform Analytics Test Hypotheses Communicate Results/ Implement Insights Critical Thinking Critical Thinking Critical Thinking Data Visualization Excel. Access & Tableau Critical Thinking Critical Thinking Data Visualization Statistical Analysis Excel & Tableau January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Ways to integrate data analytics into your class
Use already created visualizations – pick a company they will find interesting Create your own visualization, or Tableau Gallery Give students a dataset to work with to practice: Using data to answer questions Analysis Visual analytics Communication of results Have students gather their own data (with guidance) Financial Non-financial January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Option 1: Use Existing Visualizations
Tableau Public – Gallery ixbytheNumbers/NetflixDashboard January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Critical Thinking exercise
Students go to the Tableau Public website and search for an accounting related topic (or the instructor picks one for the class to use) E.g.: Profitability Cost Management Job Costing Break-even & ROI Variance Analysis Students need to address: What question/issue/ problem does the visualization address? What data was used in the visualization? What analyses were conducted? What does the visualization reveal? Did the author effectively communicate the results of their analysis with the visualization? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Example: Pick a company they can relate to…

Find a visualization January 6, 2018
MAS 2018 Midyear Meeting - Scottsdale, AZ

Critical Thinking exercise
Students need to address: What question/issue/ problem does the visualization address? What data was used in the visualization? What analyses were conducted? What does the visualization reveal? Did the author effectively communicate the results of their analysis with the visualization? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Option 1 (supplement): Provide students with the data to recreate a visualization

Moderate: Provide students with the data to recreate a visualization
NFLX Consolidated Segment Reporting.xlsx January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Option 2: Give the students data & questions to answer
The key is to provide enough data so that advanced skills must be used. Example: HMC case 2685 rows of data (sales) 48 attributes HMC Clean Data.xlsx Practice and develop advanced Excel skills Practice and develop visualization skills Practice and develop critical thinking skills January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Case Background Huskie Motor Company (HMC) is a automobile manufacturing company with production and sales throughout the world. HMC is currently selling in 15 countries grouped into three regions: Europe, North America, and South America January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Business Issue Miranda Albany started with Huskie Motor Corporation (HMC) as a senior cost analyst three years ago when the company first began operations after a spin-off from a large automotive manufacturing company. Recently promoted to Assistant Controller, Miranda is anxious to make a good impression on her boss. The problem is that the company has grown so quickly she is having a difficult time keeping up with the rapid growth. In addition, Miranda’s boss has championed a “data – driven” strategy at the company, however now they have more data than they know what to do with. Miranda is sure that the data they have can help them make better decisions but she doesn’t have the time, or the expertise, to figure out how to use the data effectively. Miranda interviewed several consulting firms and ultimately chose your company to help her. Miranda would like your project team to assist in optimizing their product line and revenue stream. January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Overall Performance Analytics
Using Tableau answer the following questions for each year of data. How is HMC performing globally? Which Regions are performing best/worst? What measure (s) did you use to determine this? Why that measure? Which Countries are performing worst? What measure (s) did you use to determine this? Why that measure? How does performance compare year to year? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Global Performance - Sales

Discussion points: Which measure did you use to evaluate performance?
Gross Sales? Net Sales? Contribution Margin? Revenue? Revenue after tax? What are the pros/cons of using each of the measures above? Are there other factors you may want to consider? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

How are various HMC brands performing? Identify the top performing brands. Which measure (s) did you choose to evaluate performance? Explain why you believe those are the most relevant measures. January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Brand Performance January 6, 2018

Brand Performance - Visualization

What are the most & least profitable models? Has this changed from 2015 – 2016? Which measure did you use to determine profitability? Why? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Model Performance: January 6, 2018

Contribution Margin Analysis
Answer the following questions for 2016 What is the current CM per model? What is the average CM per model? Prepare an analysis of Variable Cost for the 5 models with the highest VC. What is the current CM and sales volume per sales channel 1 and 3? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Operations Analytics Operations Analytics:
What Packages are the top and bottom sellers in 2016? (Use Tableau) Use a Pivot Table in Excel to find the following for the year 2016: Average number of days on the lot per model by brand Standard deviation of number of days on the lot per model by brand The total number of days on the lot per model by brand Discuss your findings to answer (b). How does analyzing the number of days on the lot by model and brand help us to understand operational performance? January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Top Selling Packages - 2016 January 6, 2018

What else might you want to know about package sales?

Days on Lot Analysis January 6, 2018

Descriptive Statistics
Using Excel prepare descriptive statistics for Labor, Materials, and Overhead. Discuss your findings for the following statistics: Mean, Median, Mode, Standard Deviation, Kurtosis, and Skewness. January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Excel Descriptive Statistics Tool
This tool provides a summary of numerical statistical measures for sample data. Data > Data Analysis > Descriptive Statistics Enter Input Range Labels (optional) Check Summary Statistics box The data must be in a single row or column. If the data are in multiple columns, the tool treats each row or column as a separate data set January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Option 4: Have students collect their own data and perform an analysis
City of Chicago Example Primarily as a “thought” piece. Example: Rubric: As a team project Example January 6, 2018 MAS 2018 Midyear Meeting - Scottsdale, AZ

Integrating Data Analytics and Visualization into Management Accounting Courses Ann C. Dzuranin, Ph.D., CPA Associate Professor – Northern Illinois University.

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Integrating Data Analytics and Visualization into Management Accounting Courses Ann C. Dzuranin, Ph.D., CPA Associate Professor – Northern Illinois University.

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Presentation on theme: "Integrating Data Analytics and Visualization into Management Accounting Courses Ann C. Dzuranin, Ph.D., CPA Associate Professor – Northern Illinois University."— Presentation transcript:

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