Extensible Visual Business Intelligence for Analyzing XBRL Big Data on Blockchain Abbas Bagherian Kasgari, AnalyzerChain PhD, Allameh Tabataba'i University
1 Agenda
• Problem definition • Challenge of the Traditional Solutions • Automating Financial Analysis by Visual Modeling • XBRL+Blockchain+XAI+XBI= XVBI Solution • Democratizing Financial Analysis by Blockchain • Conclusion • Future Challenge
2 Problem Definition
• How to make collaboration between different users of financial applications around the globe? • Motivation: Improving financial analysis and find the best analysis • Idea: Automating and Democratizing financial analysis by technology solution
3 XBRL Users
• Investors • Regulators • Companies • Governments • Data Providers • Analysts • Accountants/Auditors
4 Financial Applications
• Investment Decision Making/Analytics • Accounting Fraud Detection and Auditing • Financial Risk Management • Credit Rating • Robo-Advisors
5 Academic Researches suggesting storing XBRL Big Data in Blockchain
• Real-time accounting and reporting with XBRL combined blockchain (By- ström, 2016, Trigo et al., 2014) • Acceleration of time with the XBRL blockchain (Colgren, 2018, Monterio, 2016) • Continuous auditing and verification with XBRL blockchain (Dai, 2017, Chan et al., 2018, Deloitte, 2018, Dai and Vasarhelyi, 2017) 11 • How to build a distributed ledger platform prototype from the ground up, specifically designed to manage financial reports, in the line of other proposals in the financial area.(article and demo by Boixo et al., 2019) • Design and implementation of a prototype to validate and store financial statements using Ethereum blockchain (d’Atri et al., 2019)
6 Application of blockchain to XBRL fillers, accountants and auditors
• Validation of postings • Verification of financial and non- financial information • Time saving
7 Recent solutions
Making Data Both Machine and Human Readable
Boosting performance
Decentralized Continuous Audit & Reporting 8 AUDT
Decentralized Continuous Audit & Reporting
• Technology Stack Auditchain supports a full stack which includes the base protocol layer, GAAP, IFRS and GAAS smart contract layer, application layer, audit node layer and real time (per block) public facing or permission based financial statement, audit analytics and statistical reporting presentation layer.
9 Recent solutions Challenges
• Complexity, Non-technical users can’t easily use • Permissioned(not free to access) • Less accessible(everybody, everywhere) • The current blockchain platform are ready for business
10 Finding better solution?
11 BI procedure in Financial Apps
• BI Generates Knowledge/Info from data
12 The 5 biggest Business Intelligence challenges
13 Traditional BI solutions Challenges
• Complexity and Difficulty in the implementation of new BI requirements without tremendous support of technical team • Slow in adapting new business requirement • Limited development (in data, process and application level) • Lack of sufficient scalability or flexibility of technical architecture(Vallurupalli Vamsi 2018) • Are not free to use • Analyzing Big Data in a Timely Manner • Managing Big Data Growth • Security Risk of the centralized solutions • BI users cannot work paper free
14 Problems with traditional BI
• Many independent components that require integration • BI systems are impacted by continuous changes
15 From Democratizing Data to beyond Democratizing Financial Analysis
Democratizing Financial Analysis by Creating a Collaboration Model for Both Machine and Human Expert Network
16 Intelligent Level?
• Data • Algorithm • Process • System • Network
17 The Solution
1. Easing access to data, Visual XBRL 2. Automating Financial Report Analysis 3. Collaborating Network Analysis 4. Democratizing Data and Analysis by Blockchain
18 1. Modeling XBRL Data
• Visual XBRL
19 20 Research Background
• 2007: Intelligent Pyramid Continues Auditing Agent Framework for Softening SOX Burden on Small Business Public Stock Companies”, X International Congress on Innovations in Teaching Accounting September 2007, México City, United States of México, September 2007 • 2008- 2009:Prize winner in Global XBRL Academic Competition 2008-2009, Bryant University, USA • 2009: Invited for academic panel with full travel and accommodation reimbursement grant, 9th Global XBRL Academic Competition Winning Team and History of Academics Involvement in XBRL, 19th Conference XBRL International Conference, Paris, France- 23-25 June 2009 • 2010: Invited as Discussant, for the conference ‘THE VISIBLE HAND’, European and Global Perspectives on Financial Market Regulation and Economic Governance, Organized by European Law Journal and ESSCA, Angers, Loire Valley, France, 26-27 Feb 2010. • 2012: ACDM12. The Next Generation of Financial Mobile Networks, The 24th XBRL International Conference • 2013: XBRL Decisión Cloud, Mar 2013 – Mar 2013 • 2014: iBO: Visual Business Inteligencie, Letter of Appreciation, Securities and Exchange Organization • 8 Published Papers
21 22 US XBRL Competition 201
23 2. Automating Financial Report Analysis
24 2. Automating Financial Report Analysis
25 26 27 28 29 30 31 32 33 Multilevel Analysis
34 Title: Sale analysis(A2) Title: A1- Equity Composition Analysis Title: asset analysis(A3) When Run: When Run: When Run: By proc call By proc call By proc call Parameters: Parameters: Symbol or Company Symbol or Company Parameters: Industry=ind Industry=ind Symbol or Company Last disclosure Last disclosure Industry=ind Last disclosure Function: Function: MostChangedElement MostChangedElement Function: MostChangedElement Output: Output: Report(TX) Report(TX) Output: Report(TX)
start
A2 A3 Which element have changed
sale Analysis A2 Calc MostChangedElement(Equity) Calc MostChangedElement(asset)
yes Operational Profit/Sales? Profit/Sales? has Analysis increased Capital Increase A22 Subsidies Analysis others Analysis Analysis Receivable account Analysis A11 A13 Cash income Equipment Analysis A12 A31 A32 A1 Non-Operational Profit/ Sales? Analysis A21
no Non continuous profit is expected in Capital Increase lead to Increase in profit. xxxxx future. Buying Equipment or Long term investment xxxx xxxxx
Durable Short term investment/Non-Durable xxxxx -Long term invaestment
35 3. Collaborating Network Analysis
36 37 38 4. Democratizing Financial Analysis • XBRL Big Data • Extensible Visual Business Intelligence(XVBI) • XAI • AnalyzerChain
39 Smart Contract
• Paying to the best forecast • Finding the best analysis
40 AnalyzerChain
End User
Live Report End User Visual Financial AI Learning Algo
Visual Modeler
Smart Contract
Blockchain 41 New Model for Continuous Auditing sharing XBRL big data and BI Visual Model analytics
Continuous Auditing Procedures
XBRL Big Data XBRL Analytics Fillings/Smart Contract BI Visual Models
Blockchain
42 ` 43 Future Work
• Visual Modeler/XVBI • Network of Analyzers • Making collaboration between AI/ML and Experts • AnalyzerChain
44 linkedin.com/in/abbasbagherian
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