E1 Fin In Digital World Flashcards
What are the three general ways that the finance function creates and preserves value
Enables, shapes, narrates
What are the five primary roles of the finance function
Planning forecasting resource allocation performance management and control financial/corporate reporting
Which of the five primary roles fall under ENABLES
Planning - which includes budgeting
forecasting
resource allocation - which includes people materials machinery money
Which of the five primary finance roles falls under SHAPES HOW
Performance management and control note that this is viewed as one thing
This includes KPIs & variance analysis
Which of the five primary finance roles falls under NARRATES HOW
Financial/corporate reporting
this is producing the accounts for purposes of shareholders and other interested parties
What are the four levels of the diamond shape of the finance organisation
4 smart finance factories
3 three digital centres of excellence
2 business partnering
1 senior financial leadership
Four is at the base of the diamond one is at the top
Which area of finance handles tax
Tax is handled by the Treasury function
Treasury is part of Level 4 & this would be accounting for tax.
Tax Planning is handled by Specialists in Level 3
What are the key roles of the Treasury function
Working capital management cash management financing foreign currency tax
What are the key things that management accounting brings
Providing information to help managers and other internal users in:
decision-making
performance measurement
planning and control activities
What are 3 of the key tools used by management accounting
Cost schedules/standard cost cards budgets
Variance Reports
In terms of why information is produced what is the key difference between management accounting and financial reporting
Management accounting is for internal use financial reporting is for external use such as shareholders creditors banks and government
What are the legal requirements for financial reporting vs management accounting
Management accounting has no legal requirement
financial reporting is required for limited companies
What are the required formats for management accounting versus financial reporting
Management accounting has no required format - just determined by what the business needs
financial reporting has required formats
What are the characteristics of useful data in management reports
Accurate Complete Cost less than benefits Understandable Relevant Adaptable Timely Easy to Use
What are the attributes of Good Data
Accurate Timely Relevant Concise Cost effective
What are the known limitations of using external data
External data may not be accurate
external data may be out of date
the company publishing the data may not be reputable
external data may not meet the exact needs of the business
it may be difficult to gather external data
What does ETL stand for in terms of data
Extraction
transformation
loading
What is data profiling
Before extracting the data, it needs to be analysed to understand
content
format
and structure
this is data profiling
What is data extraction
Harvesting data from source databases and locations
What is transformation in the ETL process
Transforming the source data into the format used for the destination database
this is done using codes and rules
What is loading in the ETL process
This is the process of the newly cleaned and prepared data being uploaded to the destination database ready for use
What is Hadoop
A company / software provider that allows processing of big data
What is data modelling
Data modelling is a systemic way of looking at all an organisations data requirements in a way that can be converted into code.
Identifies a clear way the data should be organised so it can be retrieved interrogated linked and grouped
What are the three levels of data modelling process
Conceptual
logical
physical
What is the conceptual level of data modelling
Practical of you considering the business data and the required information
What is the logical level of data modelling
Logical level begins to develop a technical map of rules and data structures
it defines how data will be held and used
What is the physical level of data modelling
This considers how the system requirements will be implemented using a specific DBMS (database management system)
What is DBMS
Database management system
this is in used in the Physical level of data modelling
What are the 7 Ps of marketing mix
Product place promotion price people processes physical evidence
Which of the 7 Ps of marketing mix relate to service industries
People
processes
physical evidence
What does place mean in the 7 Ps of marketing
Distribution channels
intermediaries
transportation and storage
What does processes refer to in the 7 Ps of marketing mix
The systems through which the service is delivered
examples are teaching methods at the school or the type and approach of service in a restaurant
What does SMART objectives or KPIs mean
Specific measurable achievable relevant time bound
What are the elements of the IT infrastructure
Core networks databases software hardware and procedures
managed by the IT function
In terms of types of technology what is the difference between Core Modernisation Tools and Exponentials
Core Modernisation tools are considered mainstream
Exponentials are at an early adopter stage
What are two examples of core modernisation tools
Cloud technology
data visualisation
What are two examples of types of technology called Exponentials
Block chain
advanced analytics
What are the key benefits of data visualisation
Accessible
real-time
performance optimisation
insight and understanding
What are the accounting rules for Cryptocurrency
This is a great area and is currently undergoing debate
Some say Cryptocurrency should be considered cash or intangible assets or even inventory but nothing has been decided
What is meant by having a Digital Mindset
Taking the overall strategic view of the long-term impact of all the changes in data and data technology
What are the five qualities that Forbes identified as being important for the Digital Mindset
Provide vision at empower others
give up control yet architect the choices
sustain yet disrupt
rely on data yet trust your intuition
be sceptical get open-minded
What are the five key building blocks of data strategy
Identify
store
provision
process
govern
Briefly describe the 5 key building blocks of data strategy
Identify - what does a business have an require this is similar to date a profiling
store - what structure and storage approach will protect and make the data easy to use
provision - data should be package to allow easy use to the organisation. rules and guidelines and access levels are in this section
process - current data should be designed for easy and consistent processing
govern - clear consistent policy is on use and storage. minimising risk of breach/hack
What are the primary tasks of smart finance factories ( level four)
Overall- basic day to day accounting
Financial reporting
Treasury management
internal audit
Management accounting
What are the primary tasks of digital centres of excellence (level three)
Specialists who provide further insight on info handed over from level 4
financial planning and analysis (fp&a)
project management
Project appraisal
Taxation
What are normal roles of FP&A
Getting the organisations overall health using key financial ratios
looking at effectiveness of organisations current investments and comparing to other ways that might use its cash
Prepare budgets across departments to consolidate into an overall budget
Identify which products/product lines are the most profitable
What are the four Vs of operations
Volume
variety (of inputs & outputs)
variation (in demand)
visibility (to customers)
What are the four Vs of big data
Velocity
veracity
volume
variety
(Put “of the data” at the end of these for meaning)
What are the five steps in the product/service development
Consider customers needs
concept screening
design process
time to market
product testing
What are the three categories of stakeholders
Connected
internal
external
What are internal stakeholders and give two examples
Internal stakeholders are intimately connected to the organisation
examples include
employees
managers and directors
What are connected stakeholders and give for examples of connected stakeholders
Connected stakeholders invest in or have dealings with the company
examples include
shareholders
customers
suppliers
finance providers
What are external Stakeholders and give for examples of external stakeholders
External stakeholders don’t have a direct link with the company but can influence or be influenced by its activity
examples include
the community
environmental groups
government
trade unions
What is structured data versus unstructured data
Structured data is deliberately produced and collected for a specific purpose
unstructured data is captured passively without a clear purpose. examples include social media and likes
Briefly explain principal sources of data or give a couple of examples of each
Human sourced - social media text messages emails
machine generated data - smart technology Internet of things sensors home assistance
processed data - traditional data data bases customers transactions
open data - publicly available data such as information from government’s national statistics
What is Porters value chain
This is focused on activities instead of functions and looks at where value is added
In Porters value chain describe primary and secondary activities
Primary activities are once the customer interacts with and sees the value being created
secondary are support activities Required to deliver the primary activity
What are four main characteristics of services
Intangibility
inseparability
perishability
variability
What is the difference between a critical success factor (CSF) and a KPI
Critical success factors are the vital areas where things must go right for the business to meet some strategic objectives
KPIs are the measures which indicate whether or not the CSFs are being achieved
What are the five CIMA code of ethics Principles. Give a short definition
Integrity - straightforward honest and truthful
objectivity - no bias
professional competence and due care - CPD & diligence
confidentiality
professional behaviour - laws and regulations conduct unbecoming
What are the primary roles of Level 2 in the diamond shape
Business partnering
communicating insight to influence users
What are the primary rules of level one of the diamond structure
Key initiatives that support the organisations goals
executing and funding strategies set by the CEO
liaise effectively with internal and external stakeholders
What are the useful reasons for budgets
Crumpet
Coordination
responsibility
utilisation
motivation
planning
evaluation
telling (coms)
