Metric Engine Step-Up: A Swimming Pool Example

A couple of years ago a friend was continuing to try to help Risk and Finance effectively coordinate their use of data, and asked me how would I get started on helping them. I noted that the fundamental problem in some instances is the imprecision of our language. We use a single term which actually refers to different things to different people. Solving this problem … Continue reading Metric Engine Step-Up: A Swimming Pool Example

The Value of Data Part 2: The Data Supply Chain

In the previous post, The Value of Data Part 1: Business Functionality I discussed the costly process of capturing attributes of business events, and the value in understanding them over time. In this post I’ll discuss various types of business events and their potential impact and use in financial and analytical processes. Data Supply Chain Defined A data supply chain is defined as a process … Continue reading The Value of Data Part 2: The Data Supply Chain

The Value of Data Part 1: Business Functionality

Optimizations verses Functionality An expert recently said to me that the most important optimizations of systems need to be identified at the appropriate time. Trying to identify and create them too early can affect the design of the system, negatively impacting functionality and flexibility. In other words, the optimization can become more important than the functionality, compromising the over results of the system design. I … Continue reading The Value of Data Part 1: Business Functionality

The Problem with Financial Systems: An Overview

This week I release a discussion I had on the fundamental problems with financial systems held in Bangalore, India on April 10, 2018. To make the concept more approachable, I use personal financial examples to explain the structure of our financial data, and many of my quantitative insights about the nature of our financial systems problems. The following is an outline of the discussion. In … Continue reading The Problem with Financial Systems: An Overview

Computer Efficiency and Consistent Data Structures

This week’s episode of Conversations with Kip deals with the computer efficiencies that can be gained through consistent data structures. Analytical processes typically aggregate or combine data in some way. To understand our spending over time, we have to accumulate spending. If the format of each expense record is different, logic will have to be applied to each one to find the common fields needed … Continue reading Computer Efficiency and Consistent Data Structures

Allocation Processing Steps

This week’s episode shows the general steps of an allocation processes, from transactions to balances and back down to transactions. This graphic gives a sense of how the data flows for an allocation process. The costs must be accumulated to a total costs. The activities or drivers must also be accumulated to get to a total number of activities. The total costs are divided by … Continue reading Allocation Processing Steps

Business Rules, Source Data, and Code Synchronization

This week’s episode discusses how (1) source or transactional data, (2) reference data and rules, and (3) the application engine must be synchronized to arrive at the desired answers. To produced ledgers, metric engine environments or reports that contain meaningful results, the source data must be created in ways that are very consistent; that typically means bringing together all of the elements listed above. If … Continue reading Business Rules, Source Data, and Code Synchronization

Business Rule Structures

This week we begin a series of videos to discuss business rules in the finance system. Today’s episode discusses the general structure of business rules, either table or if-then-else structures, and compares and contrasts those approaches and their use. The following extract from my textbook, Balancing Act, Chapter 59, gives a sense of the choices: Tables are easily thought of as spreadsheets, with rows and … Continue reading Business Rule Structures

“Show Me the Money” with Jim Hladyshewsky

This week’s episode of Conversations with Kip is a conversation with Jim Hladyshewsky about his first assignment with the SAFR team, called “Show me the Money”, what now might be called a data science method for financial data. Show me the Money is a way of rapidly determining business rules and logic for posting processes without reading code.  It recognizes that patterns of financial systems … Continue reading “Show Me the Money” with Jim Hladyshewsky

Blockchain Gap: Reporting Integration

Today’s episode is in response to a question from Steven Ulmer about the challenges of reporting using Blockchain. The development of papyrus in ancient Egypt was a breakthrough technology, but today if one needs to write a contract or record transactions in a ledger, it’s not that expensive to buy a piece of paper. Deciding what to write down is much, much more expensive.  It … Continue reading Blockchain Gap: Reporting Integration