Chapter 3: Tech used in finance

• 1st Industrial revolution?


  Water and Steam
• 2nd Revolution?


  Electricity
• 3rd Revolution?


  Mass production became automated via electricity and and information technology
• 4th Revolution?


  Powered by digital technology
• 4th Revolution features?


  Velocity - The speed of tech breakthroughs faster than at any point in history
• 4th revolution feature?


  Scope - It is disrupting every industry
• 4th revolution feature?


  Scope - breadth and depth of changer is effecting more industries than ever before.
• Characteristics of 4th revolution?

  Employment - More jobs becoming redundant
• Characteristics of 4th revolution?

  Natural assets - tech manages natural assets better
• Characteristics of 4th revolution?

  Fusion - digital and physical machines are one
• Characteristics of 4th revolution?

  AI and machine learning - Products customised easily because of processing
• Cloud computing?


  The 4 key characteristics of cloud computing:

  
  

  1. sold on demand
  2. elastic
  3. fully managed
  4. on demand and self service
• Big Data


  Vast volumes of data which are captured from various sources. Used to identify trends and patterns
• Characteristics of big data?

  1. Volume
  2. Velocity
  3. Variety
  4. Veracity
• Volume


  Refers to amount of data. It is easy to obtain and large quantities
• Velocity


  This refers to the speed at which data can be accessed
• Variety


  Refers to the different forms that data can take
• Veracity


  How trustworthy it is
• Data analytics


  The collection, management and analysis of large data set to find useful information
• Impacts of data analytics

  1. Decision making
  2. Marketing
  3. risk
  4. Product development
  5. knowledge
  6. Performance Management
• Benefits of data analytics

  1. Fresh insights and understanding
  2. Improved performance
  3. Segmentations of markets
  4. Fast decision making
  5. innovation
  6. Risk management
• Process automation


  Refers to ability of of systems to perform routine activities
• AI


  Refers to ability of a computer system to assist a human operator
• Cognitive computing


  Cognitive Collective name for several techs including AI, machine learning, and natural language programming
• Machine learning


  This is subset of AI that codes how the human brain works using past experience
• Data visualisation


  Refers to presenting data in a way that is helps recipient to understand the significance of the content more easily
• Types of data visualisations

  1. Waterfall charts
  2. dashboards
  3. Line charts
  4. mapping charts
  5. bar and pie charts
  6. tables
• Waterfall charts


  Also known as bridges. Used to present variance analysis.
• Dashboards


  Provide summary and are used to provide 4/5 drivers that give overview
• Line charts


  Show trend analysis
• Mapping charts


  Present geographic data
• Bar and Pie charts

  Traditional method of comparing data
• Tables


  Traditional method of presenting reference material by breaking it down into rows and columns
• Five features of data visualisation tools

  1. Real time
  2. Interrogation
  3. decision making
  4. prompt
  5. infrastructure
• DLT


  This is a technology that allows companies to all see one ledger. accurate up to date records
• Blockchain


  form of DLT
• Key Features of blockchain

  1. Propagation
  2. permanence
  3. Programmability
• Propagation


  Everyone has knowledge of changes
• Permanence 


  Nothing can be changed unless everyone consents
• Programmability


  Ability for codes to be stored