BPP LEARNING MEDIA Course Book Operational Level E1 Managing Finance in a Digital World For exams from 4 November 2019 to January 2021 acm IVIL MAL Ccfelo\C-M-lsioleLgCIMA Operational E1 Managing Finance ina Digital World Course Book For exams from 4 November 2019 to January 2021 BPP LEARNING MEDIASecond edition 2019 ‘SBN 9781 5097 3163 1 ISBN 9781 5097 3188 6 ‘SBN (for internal use only) 9781 5097 3097 1 British Library Cataloguing-in-Publication Data \ catalogue record for this book is available from the British Library Published by 3PP Learning Medio Ltd 3PP House, Aldine Ploce -ondon Wi2 BAA ‘carningmedia.bpp.com Drinted in the United Kingdom Your learning materials, published by 8P Leaming Media Ltd, are printed on paper sourced from sustainable, managed forests. [All our rights reserved. 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If they act illegally cnd unethically in one area, can you reolly trust them?Contents Introduction Description of the paper iv Syllabus v Examination structure xiii How to pass xvi The Case Study exam and links with E1 will Features in this Course Book xix 1 Role of the finance function 1 2 Activities of finance professionals 31 3 Technologies used in business and finance 51 4 Digital technologies and the finance function 7 5 Data and the finance function 95 6 Using data to create and preserve value 13 7 Structure and shape of the finance function 131 8 The operating levels of the finance function 185 9 The finance function and operations a 10 The finance function and sales and marketing 201 11 The finance function and human resources 237 12 The finance function and IT on Test your learning answers 299 Index 307 Bibliography 319 Essential ReadingDescription of the paper E1 focuses on the role of accountants within an organisation and how technology is central to their activities. It provides the understanding of the business environment and the importance of organisations creating and preserving value. Following on from this, the activities of finance professionals is explained. These activities include collecting data to provide insights for decision makers, communicating these insights and supporting the decisions that result from it. The key digital technologies and their uses are covered, os well as how they affect the finance function. Data is of great importance to many organisations and the paper covers how it can be used to create and preserve valve. Finally, the structure of the finance function ond how it has evolved ‘over time is explained, followed by how the finance function interacts with other business. functions. Syllabus E1 examination blueprint The syllabus outcomes each detail what you need to know, and each syllabus outcome has a number of associated representative task statements which make clear what you need to be able to do with that knowledge, eg do you need to simply be able to identify and understand a theory or do you need to use that theory to perform calculations? You will also see these critical representative task statements clearly referenced at the beginning of each chapter as well os throughout the chapters, giving you confidence that you are learning exactly what you need for success in your CIMA exam. ‘BPP worked closely with CIMA to help create these vital exam blueprints, so you can trust our learning materials to give you all the information you need to pass your exam, Areas and weightings ‘A. Role of the finance function B, Technology in a Digital World 20% CC. Data and Information ino Digitol World 20% D. Shape and structure of the finance function | 20% E. Finance Interacting with the Organisation | 20% 100% (CIMA exom blueprint, 2019) Blueprint "Key: RU = Remembering and understanding; AP = Application; AN = Analysis; EV = Evaluation BPI LEARNING MEDIA fv Managing Finance in a Digital WorldaU aay Skill level Function EUR areeeny eT fer uu Le ee Stee cd 1.Theroles a. Enables ’ Understand how technology of the finance organisations ‘and competition drive the fast fonetion oie changing and unpredictable sinetion - ° . one contexts in which organisations organisations preserve value operate. b.Shopeshow — v Understand how the finance ‘organisations function enables, shapes, and Seana tet norrates value creation \ thorough planning, forecasting, preeenan’s resource allocation, performance management, and financial reporting. c.Narrateshow |v Understand the purpose and ‘organisations principles of corporate create ond governance, the ethical preserve value responsibilities of the ‘organisation and individuals, and ways of achieving corporate social responsibility. 2.The ©. Collates , Understand how data is ootivities data to prepare collected, cleaned, and that finance information connected by finance. professionals bout perform to ‘organisations fulfil the roles b. Provides . Understand the types of insight to ‘analyses used to produce ers insights. conalysing ‘information Communicates ¥ Understand how finance insight to communicates to influence koy es stakeholders (audiences, " mes frequency, and format). d.Supports the v Understand how finance implementation supports the implementation of oh dantcer decisions to achieve the desired to achieve the pe desired impact Introductionaaa uae) eed prs e. Connects Sd ci) a ay Cour cnd neg the different activities that connect to ‘each other CC nL Ar) ier) fou’ Ete mee . The key features of the fourth business and industrial finance revolution 'b, The key technologies that define and drive the digital world 2.Howthe a. Digital finance technology function uses digital technologies to fulfil its roles b. Digital mindsets. vi Managing Finance in a Digital World oa) eee) ay in.an organisation. Duar ees Understand the key features ‘and dynamics of the fourth industrial revolution, Understand key technologies and their impact on an ‘organisation including, cloud computing, big data, dato ‘nalytics, process automation, artificial intelligence, data visualisation, blockchain, internet of things, mobile technologies, and 3-D printing. Understand key technologies and how the finance function use cloud computing, big dato, data analytics, process ‘automation, artificial intelligence, data visualisation, blockchain, internet of things, mobile technologies, and 3-D printing. Understand how a digital mindset con transform finance functions, processes, and | measurement of performance. Pp LEARNS MEDIA