The other posts in this series were inspired by interesting articles I read online, but this post is not a reference to any specific article. Instead, it was inspired by how Twitter and Twitter analytics were used during the U.S. presidential election.
For today’s discussion, let’s take a look at the following infographic which shows generically how Twitter analytics can be applied:
I like this image because it shows the power of hashtag analytics and dashboarding. You can visualize the volume of:
- hashtags tweeted relevant to other terms
- hashtags tweeted over time
- hashtags tweeted within your network
All in a simple dashboard.
How does this apply to the world of accounting and financial software? Let’s take the most basic example of the chart of accounts (COA) since it is one of the most critical parts at the heart of any business. Some COAs are massive and unwieldy, and many organizations find it is easier to analyze Twitter than to dashboard their own financial performance.
Takeaways to think about:
• How can you Twitterize your COA? With hashtags you can simply slice and dice your data. You should be able to apply dimensions to your COA such as location, department, vendor, and asset class and discover the headcount cost by department with location = “San Jose” or “New York” just as easily.
• Just as you can look at hashtags over time you should be able to analyze your financial reports, such as P&L or cash over time.
• Just as you can look at many Twitter statistics in real time you should be able to analyze your financial performance across one or more entities in a real-time dashboard.
The next post in this series will be, “Invisible AI - A Glance at your iPhone and its iBrain.” Be sure to check back next week!
Note: This is part three of a six-part series for CFOs who are thinking about how they can optimize their business by being more data driven. Here is the full series of blog posts:
• Part 1, introduction: Reading for the Data-Driven CFO
• Part 2, big data and the general ledger: “GLplus” – Making Your General Ledger the Center of Gravity for Your Data Strategy
• Part 3, dashboards and analytics: Twitterize Your Chart of Accounts
• Part 4, invisible AI: Invisible AI: A Glance at Your iPhone and Its iBrain
• Part 5, AI and accounting: The Power of AI for Accounting
• Part 6, strategy and conclusion: The 2017 Journey for the Data-Driven CFO