The global data volume is expected to increase fiftyfold over the next ten years (2012-2022). Reasons for extensive growth of data volume within the era of industry 4.0 are the increased use of sensor technology in production and logistics as well as the extensive distribution and the use of mobile Internet. (ICA 2014, p. 3) But the explosion of data is not new. It continues a trend that started in the 1970s. Changes are the velocity of growth, the diversity of data, and the imperative to make better use of information in business.
To harvest and harness every byte of relevant data and use it to make the best decisions is the hopeful vision of organizations in terms of big data. (McKinsey 2013, p. 15) On the one hand, opportunities of big data can be identified in all industries over the entire value chain. On the other hand, many companies are sceptical of big data because of high investment costs, the lack of skilled staff and know-how, and privacy risks. That causes delays in big data´s implementation in companies. The careful analysis of the application, and the identification of realizable excess values of big data is one of the controller’s tasks. Completely new opportunities and challenges for the controller arise due to the massive growth of data.
Though in future the positions of business analysts and data scientists overlap with the controllers’ skills and fields of activity. (ICA 2014, p. 3) This assignment gives an overview of big data itself and illustrates the potential in controlling and for the controller. Additionally challenges, threats and risks are determined.
Table of Contents
1 Introduction
1.1 Problem and Objectives
1.2 Procedure of Seminar Paper
2 Defining the Terms
2.1 Controlling
2.2 Reporting
2.3 Big Data
3 Reporting & Big Data
3.1 Big Data as one Megatrend in the Era of Industry 4.0
3.2 Strategic Potential of Big Data
3.3 Beneficial Categories of Big Data
3.4 Characteristics of Big Data
3.5 Application of Big Data in Industries
4 Big Data in Controlling
4.1 Potential of Big Data in Controlling
4.2 Implementation to the Controller´s Tasks
4.3 Preparing the Controller
5 Threats, Risks, and Barriers of Big Data
6 Conclusion and Outlook
Objectives and Core Themes
This paper examines the integration of Big Data into the field of controlling within the context of Industry 4.0. It aims to analyze how the increasing volume, velocity, and variety of data impact traditional controlling tasks and how controllers can adapt to these challenges to support organizational decision-making effectively.
- The role of Big Data as a megatrend in the era of Industry 4.0.
- Strategic potentials and beneficial categories of Big Data for enterprises.
- Impact of Big Data on core controlling processes, including planning and budgeting.
- Challenges, risks, and barriers regarding the implementation of Big Data in companies.
- Necessary competencies and organizational preparations for the future controller.
Excerpt from the Book
3.1 Big Data as one Megatrend in the Era of Industry 4.0
The era of industry 4.0 with its trends – mobility, big data, and cloud computing – describes the next industrial revolution. Information Technology (IT) connects the individual elements of manufacturing, from the machinery to the product provided with own intelligence. Not only the horizontal supply chain but also the vertical business-IT, the manufacturing execution (MES) and production systems, up to single machinery sensors are connected in industry 4.0. It is not a concrete technology but describes a vision that has to be implemented by existing technology in combination with technology to develop. Industry 4.0 benefits from the introduced trends, as big data, because it builds up a basis for the implementation of the vision of industry 4.0. (Neubauer 2014)
Figure 1 concentrates on the growing global data volume until 2022 within these megatrends of IT-connection. Actually it is not a technically nor an economically problem to store such data but it has to be indicated that only a small percentage (5%) of this amount of data is specifically analysed and used concretely. (CM 2014, p. 35-36)
Summary of Chapters
1 Introduction: Outlines the problem of increasing global data volume in the context of Industry 4.0 and defines the objective of the seminar paper.
2 Defining the Terms: Clarifies essential concepts including controlling, reporting, and Big Data within a business context.
3 Reporting & Big Data: Analyzes Big Data as a megatrend, its strategic potential, and its defining characteristics and industry applications.
4 Big Data in Controlling: Examines how Big Data influences core controlling processes and provides a roadmap for preparing controllers for these new demands.
5 Threats, Risks, and Barriers of Big Data: Discusses the primary challenges, including high costs, privacy concerns, and the lack of qualified personnel.
6 Conclusion and Outlook: Summarizes the impact of Big Data and highlights the future requirements for businesses and controllers.
Keywords
Big Data, Controlling, Industry 4.0, Reporting, Data Volume, Predictive Analytics, Strategic Planning, Data Management, Digitalization, Controller Tasks, Business Intelligence, Data Velocity, Data Variety, Enterprise Strategy, Innovation.
Frequently Asked Questions
What is the primary focus of this paper?
The paper explores the significance of Big Data within corporate controlling and its role as a key driver in the Industry 4.0 landscape.
What are the central themes discussed?
Key themes include the definition and characteristics of Big Data, its strategic potential for companies, its influence on the controller's role, and the associated risks and implementation barriers.
What is the main objective of this study?
The objective is to provide an overview of Big Data, identify its potential within controlling, and determine the challenges that companies and controllers must address.
Which methodology is applied?
The paper uses a descriptive approach, synthesizing existing literature, definitions, and studies to analyze the relationship between Big Data and controlling processes.
What is covered in the main section of the paper?
The main section details the strategic potential of Big Data, its core characteristics, its application in various industries, and its specific impact on strategic planning, operative planning, and budgeting.
Which keywords characterize this work?
Key terms include Big Data, Controlling, Industry 4.0, Digitalization, Predictive Analytics, and Controller Readiness.
How does Big Data specifically change the controller's role?
It shifts the controller's position towards more predictive analytics and requires a deeper involvement in data management, technology selection, and new steering models.
What are the most significant risks associated with Big Data according to the author?
The author highlights high investment costs, privacy concerns (the "transparent society"), and the potential for increased data-related crime and sabotage.
- Quote paper
- Matthias Ackermann (Author), 2015, Reporting and Big Data. Big Data as one megatrend of industry 4.0 and the impacts on controlling, Munich, GRIN Verlag, https://www.grin.com/document/294636
