Usage of Data Analytics for Compliance Management

Global market competition is growing day by day. Companies and managers are seeking for a competitive advantage to be ahead of this competition. Most convenient way to obtain this advantage is to decrease costs and create value-added business activities for the companies. In addition, decision-making mechanisms of the companies should be well-developed to manage these processes efficiently. Best way to create a competitive advantage and adding value is the use developing technology and integrating it into business activities and decision-making mechanism. Creating a solid structure and organization for a company starts with well-defined internal controls. Because increasing availability of technology and easiness of communication caused uncertainty in boundaries of regulations. Moving out of regulatory boundaries could cause significant problems for companies. Considering all these reasons, to create a competitive advantage and decision mechanism, firstly internal control mechanism should be developed and defined completely by taking the advantage of developed technology. In that case, ways of increase the performance of compliance management could be investigated. Big data analytics and business intelligence are very crucial technologies that could be used for increasing the business efficiency. As it is mentioned before, with developed technology data availability and easiness of data collection are significantly increased. Based on collected data from each business activity will provide some insights for decision makers. Analysis of these data and monitoring results would be the main factor of building a solid internal control mechanism and compliance management. Business intelligence tools could be determined as most important tools for decision makers and controllers because analyzed data could be displayed on these tools with different types of visualizations and these displays can support control mechanisms for compliance management. The methodology of research on defined discussion topic could be grouped by three phases regarding the flow of the structure: i) literature review which is a critical phase to gain theoretical knowledge related with research topic and develop deep insights for analysis. ii) Empirical analysis by observing a real-life business case study related with discussion topic in a well-organized company. iii) findings and results which are the outcomes of empirical analysis. These outcomes are obtained by analyzing the case study based on theoretical framework and observing the results. After exercising all these phases, the objectives of the research are met.