Describe the increasingly disruptive contexts in which organisations and their finance teams operate and how these contexts shape the role of finance. Take each role and show how finance performs it in a typical organisational setting. The coverage should be introductory and brief. It is meant to set the scene for subsequent sections and draw a link between the roles and the topics that will be covered in other areas of the Operational Level. Use “information to impact” framework to describe the primary activities finance professionals perform. Relate it to how data is generated, transformed and used. Link it to how technology could be used to improve the productivity of finance professionals in these areas and the threat of automation. The aim is to create awareness of the technologies that drive the digital world and how they interact with each other. The technologies outlined by the major advisory firms and the World Economic Forum digital transformation initiative provide the material on which learning and related activities can be based. Examine how finance professionals use the relevant technologies to fulfil their roles.
Explain how the technologies affect various activities finance professionals perform in the “information to impact” framework. The intention is to move from creating awareness to generating understanding of how finance can use these technologies to increase its value and relevance to organisations. Build on the previous section on technology to explain why, in the digital world, finance professionals must place more focus on using information than on collecting and/or processing information. Outline and describe the various uses of information. Link them to the primary activities that the finance function performs and to the topics to be covered in other modules of the Operational Level. Highlight and explain the data competencies required in the digital world.
Locate where finance has a competitive advantage and where finance will need to work with data scientists. Introduce candidates to the structure of the finance function and outline the broad areas of finance such as finance operations, external reporting, financial planning and analysis (FP&A), decision support etc. Describe the evolving shape of the finance function from the triangle to the diamond shape. Link the description to the impact of digital technology and automation on the finance function. The focus is the diamond shape and the four levels within this shape. Explain what each level does, the relationship between the levels, and the link between the levels and the basic finance activities covered under the role of finance. Describe how finance plays its role by interacting with the rest of the organisation. Bring together the issues raised in the previous sections and link them to what the other areas of the organisations do. For example, address how finance and marketing interact using data and collaborative technology to achieve organisational goals and the individual functional goals of both finance and marketing.
Describe how the use of KPIs influence these interactions and how the KPIs of finance and these areas can be aligned to ensure they work together effectively.
CIMA E1 - Managing Finance in a Digital World
The CIMA E1 covers Managing finance in a digital world. It focus at the structuring of organisation and describes how the interrelated parts of the organisation which work together to execute a strategy The structure and principles underpinning the operational functions of the organisation This effective interaction enable the organisation to achieve its strategic purposes. E1 emphases on the structuring of organisations. It covers the structure and principles of underpinning the operational functions of the organisation, well-organized management and operative interaction in the businesses to achieve its aims. It lays the foundation for attainment of further vision in both the instant operating environment and continuing strategic future of organisations. Student will learn about the role of finance in organisations, its structure and the shape of the finance function. They will focus on how this finance function interacts with the organisation to create and preserve value, usage of data and the technology setting and its influence on organisations.
The course /topics covered for study are:
- Role of finance function
- Technology in digital world
- Data and information in a digital world
- Shape and structure of the finance function
- Finance interacting with the organisation
The CIMA E1 EXAM is made up of two types of computer-based assessments. A one and half hour objective test for each of the three subjects within each level. These 90 min test are on demand and available any time of the year. After the successful completion of the above, and to progress to the next level, a 3-hour case study exam is taken up. Test are available in four times a year.
Please note, after passing the case study exam one can move onto the next level and start the objective tests for that level. The Strategic Level case study exam is the last exam that one will take.
Exemption –
One must have completed all five papers in the Certificate Level before moving ahead to the Operational Level. AAT qualified pupils will be exempted from the Certificate Level and advance straight to the Operational Level. Degree students may be eligible for exemptions from Operational Level.