IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2014i5p124-135.html
   My bibliography  Save this article

Impact of Analytics in Financial Decision Making: Evidence from a Case Study Approach

Author

Listed:
  • Durrel Ramrathan

    (University of KwaZulu-Natal)

  • Mabutho Sibanda

    (University of KwaZulu-Natal)

Abstract

This study seeks to investigate the impact of analytics in financial decision making in organizations in a rapidly growing knowledge economy. Analytics has emerged as a critical business enabler in today?s competitive market place. Its application has provided businesses with the opportunity to gain a competitive advantage by leveraging the vast amount of data they have available. Analytics is not limited to a particular tool or method however; it encompasses a range of combinations and it is this element that has made analytics such a success factor. This study uses a case study approach to identify critical areas of business where analytics have played a vital role in financial decision making. Application of analytics in financial decision making is shown to streamline information resulting in making decisions more efficiently and effectively. This study provides insights in financial decision making using statistical backing which has a vast number of applications in finance functions. As such, areas such as such detecting fraud, budgeting and forecasting, risk management and customer insights need to actively apply analytical tools to better manage and enhance the information gained from these areas. This study integrates the use of information technology tools and packages with financial management with the view of enhancing financial decision flow in organizations.

Suggested Citation

  • Durrel Ramrathan & Mabutho Sibanda, 2014. "Impact of Analytics in Financial Decision Making: Evidence from a Case Study Approach," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 10(5), pages 124-135, October.
  • Handle: RePEc:dug:actaec:y:2014:i:5:p:124-135
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/2500/2252
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Matthew J. Liberatore & Wenhong Luo, 2010. "The Analytics Movement: Implications for Operations Research," Interfaces, INFORMS, vol. 40(4), pages 313-324, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mortenson, Michael J. & Doherty, Neil F. & Robinson, Stewart, 2015. "Operational research from Taylorism to Terabytes: A research agenda for the analytics age," European Journal of Operational Research, Elsevier, vol. 241(3), pages 583-595.
    2. Isabelle Piot-Lepetit & Joseph Nzongang, 2021. "Business analytics for managing performance of microfinance Institutions: A flexible management of the implementation process," Post-Print hal-03209188, HAL.
    3. Isabelle Piot-Lepetit & Joseph Nzongang, 2021. "Business Analytics for Managing Performance of Microfinance Institutions: A Flexible Management of the Implementation Process," Sustainability, MDPI, vol. 13(9), pages 1-22, April.
    4. Benjamin T. Hazen & Joseph B. Skipper & Christopher A. Boone & Raymond R. Hill, 2018. "Back in business: operations research in support of big data analytics for operations and supply chain management," Annals of Operations Research, Springer, vol. 270(1), pages 201-211, November.
    5. Bechler, Georg & Steinhardt, Claudius & Mackert, Jochen & Klein, Robert, 2021. "Product line optimization in the presence of preferences for compromise alternatives," European Journal of Operational Research, Elsevier, vol. 288(3), pages 902-917.
    6. Kirsten Hoffmann & Udo Buscher & Janis Sebastian Neufeld & Felix Tamke, 2017. "Solving Practical Railway Crew Scheduling Problems with Attendance Rates," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(3), pages 147-159, June.
    7. Tom Pape, 2020. "Prioritising data items for business analytics: Framework and application to human resources," Papers 2012.13813, arXiv.org.
    8. Elitzur, Ramy, 2020. "Data analytics effects in major league baseball," Omega, Elsevier, vol. 90(C).
    9. Duan, Yanqing & Cao, Guangming & Edwards, John S., 2020. "Understanding the impact of business analytics on innovation," European Journal of Operational Research, Elsevier, vol. 281(3), pages 673-686.
    10. Michael F. Gorman, 2017. "Interfaces Editor’s Statement," Interfaces, INFORMS, vol. 47(1), pages 1-3, February.
    11. Piotr Muryjas & Monika Wawer & Magdalena Rzemieniak, 2021. "Managing the Process of Evaluation of the Academic Teachers with the Use of Data Mart and Business Intelligence," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 127-140.
    12. Johnson, Michael P. & Midgley, Gerald & Chichirau, George, 2018. "Emerging trends and new frontiers in community operational research," European Journal of Operational Research, Elsevier, vol. 268(3), pages 1178-1191.
    13. Ramayya Krishnan & Alfred Blumstein & Jon Nehlsen, 2018. "Designing and Sustaining an Award-Winning Analytics Educational Program: The Heinz College of Information Systems and Public Policy at Carnegie Mellon University," Interfaces, INFORMS, vol. 48(4), pages 372-383, August.
    14. Isabelle Piot-Lepetit, 2018. "Sustaining performance in turbulent times: Identifying, developing, and expanding core activities," Post-Print hal-01935634, HAL.
    15. Susan W. Palocsay & Scott P. Stevens & Luis J. Novoa, 2020. "STRATA: A Spreadsheet Tool for Multidimensional Analysis of Operations Research/Management Science Assessment Test Data," INFORMS Transactions on Education, INFORMS, vol. 21(1), pages 41-56, September.
    16. Tino T. Herden, 2020. "Explaining the competitive advantage generated from Analytics with the knowledge-based view: the example of Logistics and Supply Chain Management," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 163-214, April.
    17. Isabelle Piot-Lepetit & Joseph Nzongang, 2019. "Performance assessment and definition of improvement paths for microfinance institutions: An application to a network of village banks in Cameroon," Post-Print hal-02619461, HAL.
    18. Gandino, E., 2018. "Co-designing the solution space for rural regeneration in a new World Heritage site: A Choice Experiments approachAuthor-Name: Ferretti, V," European Journal of Operational Research, Elsevier, vol. 268(3), pages 1077-1091.
    19. James R. Evans, 2015. "Teaching Note—Analytic Visualization of Solver Output," INFORMS Transactions on Education, INFORMS, vol. 15(3), pages 232-239, May.
    20. Simonofski, Anthony & Handekyn, Phebe & Vandennieuwenborg, Celien & Wautelet, Yves & Snoeck, Monique, 2023. "Smart mobility projects: Towards the formalization of a policy-making lifecycle," Land Use Policy, Elsevier, vol. 125(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2014:i:5:p:124-135. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.