CPA Digital Finance (DF) Study
Notes
,Module 1 – The Digital Finance Ecosystem (20%)................................17
Part A: Digital Finance Landscape..........................................................17
1.1 – Technological Evolution..............................................................17
The Network Age.............................................................................17
Big Data.......................................................................................17
The Transformation of Accounting and Finance...............................17
Enabling Skills..............................................................................18
Creating a Future-Ready Finance Function......................................18
1.2 – Impact of Technology on the Digital Finance Landscape............18
Analysing the Digital Finance Landscape Using the Digital Finance
Cube.................................................................................................18
1. Digital Finance Business Functions...........................................18
2. Digital Finance Technologies and Technological Concepts........20
3. Digital Finance Institutions........................................................20
Analysing Drivers of Innovation Using the Ten Types Framework....21
Ten Types of Innovation Framework.............................................21
1.3 – Impact of Technology on Banking/Financial Markets...................22
How Funds Flow Through the Traditional Financial System.............22
A Changing Landscape....................................................................22
A New Model of Innovation – Working Together...............................23
Open Banking and Open Marketplaces...........................................23
Part B: Digital Finance Ecosystem..........................................................23
1.4 – Digital Ecosystem.......................................................................23
Digital Ecosystem Components......................................................23
Software Ecosystems....................................................................23
Data-Oriented Ecosystems..........................................................24
ICT Infrastructure Ecosystems......................................................24
The Characteristics of a Digital Ecosystem.....................................24
How Digital Ecosystems Create and Deliver Value...........................24
Evaluating a Digital Ecosystem........................................................24
1.5 – Digital Financial Services Ecosystem..........................................25
Goals of Digital Financial Services..................................................25
Requirements for a Digital Financial Services Ecosystem...............25
1
, Infrastructure Readiness..............................................................25
Enabling Environment...................................................................26
Consumers, Businesses and Governments...................................26
The Evolution of the DFS Ecosystem – Achieving Digital Liquidity
......................................................................................................26
Issues and Challenges in the DFS Ecosystem.................................26
1.6 – The Payments Ecosystem...........................................................27
Part C: FinTech (Innovations)..................................................................27
1.7 – FinTech in Business.....................................................................27
The Scope of FinTech.......................................................................27
FinTech vs Traditional Financial Services.........................................28
Strategic Issues in the FinTech Sector.............................................28
1.8 – Current use of FinTech by Accounting and Finance Professionals
............................................................................................................28
FinTech Innovations in Retail...........................................................28
Innovation Incentives in the Financial Services Sector...................29
1.9 – Innovation Thinking in Fintech....................................................29
Wealth Management.......................................................................29
Payments........................................................................................30
Financial Markets............................................................................30
Emerging FinTech.............................................................................30
Innovation Roadblocks.....................................................................31
Innovation Opportunities.................................................................31
Part D: Digital Transformation................................................................31
1.10 – Organisational Strategy............................................................31
Strategic Management Processes...................................................31
Strategic Management Environments and Goals............................31
1.11- Digital Transformation Strategies...............................................32
Digital Transformation Methodology...............................................32
Value Drivers....................................................................................32
1.12 – How Digital Transformation Strategy Can Help Achieve an
Organisation’s Goals...........................................................................33
Benefits of Digital Transformation...................................................33
Why Most Companies Struggle to Innovate....................................33
2
, The Role of Accounting and Finance Professionals in Digital
Transformation.................................................................................33
CFO..............................................................................................33
Management Accountant..............................................................34
Financial Accountant.....................................................................34
General Employees and Digital Transformation............................34
Keeping Pace in a Fast-Moving World...............................................34
Cloud Computing, Big Data, and Analytics...................................34
Internet of Things..........................................................................34
Methods and Practices.....................................................................35
Technologies and Architectures........................................................35
Financial Innovation in Organisations – Locking in the Benefits.......35
Module 2 – Future of Money (15%).....................................................36
Part A: Digital Currency..........................................................................36
2.1 – Money and Currency...................................................................36
Functions of Money.........................................................................36
Properties of Money........................................................................36
Types of Currency............................................................................36
Traditional Currencies.......................................................................36
2.2 – Digital Currencies.......................................................................37
E-Money (Electronic Money).............................................................37
Virtual Currency..............................................................................38
2.3 – Cryptocurrency...........................................................................38
Part B: Digital Payments.........................................................................39
2.4 – Digital Payments.........................................................................39
Payment Systems and Methods......................................................39
Digital Payment Systems.................................................................39
Payment Gateways and Payment Service Providers.....................39
EMV..............................................................................................40
NFC..............................................................................................40
Australia’s New Payments Platform.............................................40
Cloud-Based Payment Systems....................................................40
2.5 – Types of Digital Payments...........................................................40
3
, 1. Card-Based Payments..................................................................40
2. Electronic Fund Transfer (EFT)......................................................41
3. Digital Wallets..............................................................................41
Business Applications of Digital Wallets.......................................41
Types of Digital Wallet..................................................................41
4. Hybrid Forms of Digital Payments................................................41
Mobile..........................................................................................41
Smart and Contactless Payments................................................41
Buy-Now-Pay-Later.......................................................................42
Stablecoins and Payments...........................................................42
Advantages/Disadvantages of Digital Payments..............................42
2.6 – The Future of Digital Payments...................................................42
Cashless Society.............................................................................42
Personalisation................................................................................42
Frictionless Payments......................................................................43
Cybersecurity/Fraud Protection.......................................................43
Financial Literacy............................................................................43
The Changing Context of Digital Payments.....................................43
Part C: Distributed Ledger Technology...................................................43
2.7 – Distributed Ledger Technology...................................................43
Databases.......................................................................................43
Distributed Ledgers.........................................................................43
2.8 – Blockchain Technology................................................................44
Consensus Mechanisms/Protocols...................................................44
A Solution to the Double-Spending Problem...................................45
Permissions and Ownership............................................................45
2.9 – Smart Contract Technology........................................................46
Ethereum........................................................................................46
Distributed Applications..................................................................46
Oracles............................................................................................46
Comparing Conventional and Smart Contracts...............................47
2.10 – Blockchain in Financial Services and Beyond...........................47
Part D: Cryptocurrencies........................................................................47
4
, 2.11 - Cryptocurrencies.......................................................................47
Coins...............................................................................................48
Currency Coins..............................................................................48
Privacy Coins.................................................................................48
Tokens.............................................................................................48
Stablecoins......................................................................................48
Cryptocurrency Applications...........................................................49
2.12 – Decentralised Finance (DeFi)....................................................49
The Four Phases of DeFi Development............................................49
DeFi DApps vs Incumbents (Traditional Financial Services
Institutions)......................................................................................49
2.13 – Impact of Cryptocurrencies on Finance and Future Outlook.....50
Finance Professionals and Cryptocurrencies...................................50
Benefits and Risks of Cryptocurrencies...........................................50
Part E: Alternative Finance Providers......................................................50
2.14 – What Is Alternative Finance?....................................................50
Alternative Lender Funding Process vs Traditional Lenders.............51
2.15 – Alternative Lending..................................................................51
Peer-to-Peer Lending (Marketplace Lending)...................................51
Balance Sheet Lending....................................................................51
Comparing P2P and Balance Sheet Lending...................................51
Invoice Financing............................................................................51
Comparing Invoice Factoring and Invoice Trading........................52
2.16 – Alternative Funding..................................................................52
Investment-Based Crowdfunding....................................................52
1. Equity Crowdfunding.................................................................52
2. Property-Based Crowdfunding...................................................52
3. Profit-Sharing (Financial Return) Crowdfunding........................53
Non-Investment-Based Crowdfunding.............................................53
Reward-Based Crowdfunding........................................................53
Donation-Based Crowdfunding......................................................53
2.17 – Crypto-Based Funding..............................................................53
1. Initial Coin Offerings (ICOs)..........................................................53
5
, 2. Initial Exchange Offerings (IEOs)..................................................54
3. Initial DEX Offerings (IDOs)..........................................................54
4. Security Token Offerings (STOs)...................................................54
2.18 – Impact on the Organisation......................................................54
Borrower and Investor Perspectives.................................................55
Different Financing Sources.............................................................55
Part F: Future of Banking........................................................................55
2.19 – Future of Banking.....................................................................55
Customer Preferences......................................................................55
Enablers of Change..........................................................................56
What Does the Future of Banking Look Like?...................................56
Module 3 – Technology and Its Use In Finance (20%)...........................58
Part A: Automation.................................................................................58
3.1 – The Basics of Automation...........................................................58
Data in Automation.........................................................................58
Automation Technologies................................................................58
Combining Technologies..................................................................59
3.2 – The Value of Automation............................................................59
Using Intelligent Automation for Visual, Linguistic, and Prediction
Tasks................................................................................................59
Visual Tasks..................................................................................59
Linguistic Tasks............................................................................59
Prediction Tasks...........................................................................60
Using a Balanced Scorecard to Evaluate Automation and its Benefits
.........................................................................................................60
3.3 – Planning For Success..................................................................60
Steps to Build an Effective Automation Strategy.............................61
Part B: Robotic Process Automation (RPA)..............................................61
3.4 – The Basics of RPA.......................................................................61
How does RPA work?........................................................................61
Unattended, Attended, and Hybrid RPA...........................................61
Business Process Management........................................................61
Categories/Levels of Automation Solution.......................................62
6
, RPA vs Traditional Automation.........................................................62
RPA vs Intelligent Automation..........................................................62
3.5 – Benefits of RPA...........................................................................62
Creating a Business Case for RPA....................................................62
RPA in the Finance Function.............................................................62
RPA in Business................................................................................63
Business Functions.......................................................................63
Business Processes......................................................................63
Industries.....................................................................................63
3.6 – Risks and Challenges for using RPA............................................64
3.7 – Building an Effective RPA Strategy.............................................64
RPA Success Factors........................................................................64
Steps to Develop an RPA Solution...................................................64
Implementation and Building to RPA Maturity.................................65
Part C: Artificial Intelligence...................................................................65
3.8 – The Basics of AI..........................................................................65
How does AI Work?..........................................................................65
A Brief History of AI.........................................................................65
AI Enablers......................................................................................65
Types of AI.......................................................................................66
3.9 – Benefits of AI..............................................................................66
AI in Finance and Business..............................................................66
3.10 – Risks and Challenges for Using AI............................................67
Risks of AI.......................................................................................67
Data Challenges..............................................................................67
Mitigating AI Risks and Data Challenges.........................................67
3.11 – Building an Effective AI Strategy..............................................68
Aligning AI Strategy and Business Strategy....................................68
Methodology for AI Strategy........................................................68
Part D: Machine Learning.......................................................................68
3.12 – The Basics of ML.......................................................................68
How Does ML Work?........................................................................68
Deep Learning.................................................................................68
7
, ML and NLP.....................................................................................69
Types of ML.....................................................................................69
3.13 – Benefits of ML...........................................................................69
ML in Finance and Business............................................................70
3.14 – Risks and Challenges for using ML...........................................70
3.15 – Building an Effective ML Strategy.............................................70
Incorporating ML into the AI Strategy.............................................70
A Strategy for Scalability.................................................................71
Part E: Value of Technologies..................................................................71
3.16 – Choosing the Best Technology..................................................71
3.17 – Reshaping for an Automated Future.........................................71
Elements of a Digital Transformation Strategy................................71
Digital Strategy Priorities and Objectives....................................71
Key Elements...............................................................................72
Value Creation Using Automation...................................................72
Value of Automation in Finance....................................................72
Governance, Risk and Compliance Challenges of Automation........72
Automation of Governance, Risk, and Compliance......................73
Ethical Considerations.....................................................................73
Preparing for an Automated Future.................................................73
Transition to Strategic Roles........................................................74
Integrate Other Technologies.......................................................74
Module 4 – Data Analytics, Interpretation and Visualisation (25%)......75
Part A: Data Literacy.............................................................................75
4.1 – Introduction to Data and Data Literacy......................................75
Data-Informed Decision Making......................................................75
Analytics.........................................................................................75
4.2 – The Need for Data Literacy.........................................................76
Defining Data Literacy and Implementing it at Leading Companies
.........................................................................................................76
4.3 – Data Literacy Culture and the Role of the Finance Professional. 76
What is Data Literacy Culture?........................................................76
8
, The Role of the Professional in Data Literacy Culture and
Developing Data Literacy.................................................................76
Data Literacy Leaders and Champions........................................77
Training Existing Employees vs. External Recruitment................77
4.4 – Basic Data Science Concepts.....................................................77
Data Categories..............................................................................77
Qualitative Data............................................................................77
Quantitative Data.........................................................................77
Probability.......................................................................................78
Probability Terms and Concepts....................................................78
Probability in Decision Making......................................................79
Probability in Practice...................................................................79
Part B: Extraction, Consolidation and Design of Data Strategy..............80
4.5 – Data Strategy: Why a Business Needs a Data Strategy..............80
Developing a Data Strategy for Analytics.......................................80
4.6 – A Framework for Designing an Effective Data Strategy..............81
Data Strategy Frameworks..............................................................81
The SMART Strategy Board.............................................................81
Purpose Panel..............................................................................82
Customer Panel............................................................................82
Finance Panel...............................................................................82
Operations Panel..........................................................................83
Resources Panel...........................................................................83
Competition and Risk Panel.........................................................83
Prioritising Data Needs and Obtaining Data....................................84
Analysing Data and Communication to Support Decision Making...84
4.7 – Data Strategy Implementation...................................................85
Data ‘Ownership’, Organisation Politics and Culture.......................85
Data Management Systems............................................................85
System Development Life Cycle (SDLC)......................................86
Database Management Systems.................................................86
Data Migration................................................................................87
Change Management......................................................................87
9
Notes
,Module 1 – The Digital Finance Ecosystem (20%)................................17
Part A: Digital Finance Landscape..........................................................17
1.1 – Technological Evolution..............................................................17
The Network Age.............................................................................17
Big Data.......................................................................................17
The Transformation of Accounting and Finance...............................17
Enabling Skills..............................................................................18
Creating a Future-Ready Finance Function......................................18
1.2 – Impact of Technology on the Digital Finance Landscape............18
Analysing the Digital Finance Landscape Using the Digital Finance
Cube.................................................................................................18
1. Digital Finance Business Functions...........................................18
2. Digital Finance Technologies and Technological Concepts........20
3. Digital Finance Institutions........................................................20
Analysing Drivers of Innovation Using the Ten Types Framework....21
Ten Types of Innovation Framework.............................................21
1.3 – Impact of Technology on Banking/Financial Markets...................22
How Funds Flow Through the Traditional Financial System.............22
A Changing Landscape....................................................................22
A New Model of Innovation – Working Together...............................23
Open Banking and Open Marketplaces...........................................23
Part B: Digital Finance Ecosystem..........................................................23
1.4 – Digital Ecosystem.......................................................................23
Digital Ecosystem Components......................................................23
Software Ecosystems....................................................................23
Data-Oriented Ecosystems..........................................................24
ICT Infrastructure Ecosystems......................................................24
The Characteristics of a Digital Ecosystem.....................................24
How Digital Ecosystems Create and Deliver Value...........................24
Evaluating a Digital Ecosystem........................................................24
1.5 – Digital Financial Services Ecosystem..........................................25
Goals of Digital Financial Services..................................................25
Requirements for a Digital Financial Services Ecosystem...............25
1
, Infrastructure Readiness..............................................................25
Enabling Environment...................................................................26
Consumers, Businesses and Governments...................................26
The Evolution of the DFS Ecosystem – Achieving Digital Liquidity
......................................................................................................26
Issues and Challenges in the DFS Ecosystem.................................26
1.6 – The Payments Ecosystem...........................................................27
Part C: FinTech (Innovations)..................................................................27
1.7 – FinTech in Business.....................................................................27
The Scope of FinTech.......................................................................27
FinTech vs Traditional Financial Services.........................................28
Strategic Issues in the FinTech Sector.............................................28
1.8 – Current use of FinTech by Accounting and Finance Professionals
............................................................................................................28
FinTech Innovations in Retail...........................................................28
Innovation Incentives in the Financial Services Sector...................29
1.9 – Innovation Thinking in Fintech....................................................29
Wealth Management.......................................................................29
Payments........................................................................................30
Financial Markets............................................................................30
Emerging FinTech.............................................................................30
Innovation Roadblocks.....................................................................31
Innovation Opportunities.................................................................31
Part D: Digital Transformation................................................................31
1.10 – Organisational Strategy............................................................31
Strategic Management Processes...................................................31
Strategic Management Environments and Goals............................31
1.11- Digital Transformation Strategies...............................................32
Digital Transformation Methodology...............................................32
Value Drivers....................................................................................32
1.12 – How Digital Transformation Strategy Can Help Achieve an
Organisation’s Goals...........................................................................33
Benefits of Digital Transformation...................................................33
Why Most Companies Struggle to Innovate....................................33
2
, The Role of Accounting and Finance Professionals in Digital
Transformation.................................................................................33
CFO..............................................................................................33
Management Accountant..............................................................34
Financial Accountant.....................................................................34
General Employees and Digital Transformation............................34
Keeping Pace in a Fast-Moving World...............................................34
Cloud Computing, Big Data, and Analytics...................................34
Internet of Things..........................................................................34
Methods and Practices.....................................................................35
Technologies and Architectures........................................................35
Financial Innovation in Organisations – Locking in the Benefits.......35
Module 2 – Future of Money (15%).....................................................36
Part A: Digital Currency..........................................................................36
2.1 – Money and Currency...................................................................36
Functions of Money.........................................................................36
Properties of Money........................................................................36
Types of Currency............................................................................36
Traditional Currencies.......................................................................36
2.2 – Digital Currencies.......................................................................37
E-Money (Electronic Money).............................................................37
Virtual Currency..............................................................................38
2.3 – Cryptocurrency...........................................................................38
Part B: Digital Payments.........................................................................39
2.4 – Digital Payments.........................................................................39
Payment Systems and Methods......................................................39
Digital Payment Systems.................................................................39
Payment Gateways and Payment Service Providers.....................39
EMV..............................................................................................40
NFC..............................................................................................40
Australia’s New Payments Platform.............................................40
Cloud-Based Payment Systems....................................................40
2.5 – Types of Digital Payments...........................................................40
3
, 1. Card-Based Payments..................................................................40
2. Electronic Fund Transfer (EFT)......................................................41
3. Digital Wallets..............................................................................41
Business Applications of Digital Wallets.......................................41
Types of Digital Wallet..................................................................41
4. Hybrid Forms of Digital Payments................................................41
Mobile..........................................................................................41
Smart and Contactless Payments................................................41
Buy-Now-Pay-Later.......................................................................42
Stablecoins and Payments...........................................................42
Advantages/Disadvantages of Digital Payments..............................42
2.6 – The Future of Digital Payments...................................................42
Cashless Society.............................................................................42
Personalisation................................................................................42
Frictionless Payments......................................................................43
Cybersecurity/Fraud Protection.......................................................43
Financial Literacy............................................................................43
The Changing Context of Digital Payments.....................................43
Part C: Distributed Ledger Technology...................................................43
2.7 – Distributed Ledger Technology...................................................43
Databases.......................................................................................43
Distributed Ledgers.........................................................................43
2.8 – Blockchain Technology................................................................44
Consensus Mechanisms/Protocols...................................................44
A Solution to the Double-Spending Problem...................................45
Permissions and Ownership............................................................45
2.9 – Smart Contract Technology........................................................46
Ethereum........................................................................................46
Distributed Applications..................................................................46
Oracles............................................................................................46
Comparing Conventional and Smart Contracts...............................47
2.10 – Blockchain in Financial Services and Beyond...........................47
Part D: Cryptocurrencies........................................................................47
4
, 2.11 - Cryptocurrencies.......................................................................47
Coins...............................................................................................48
Currency Coins..............................................................................48
Privacy Coins.................................................................................48
Tokens.............................................................................................48
Stablecoins......................................................................................48
Cryptocurrency Applications...........................................................49
2.12 – Decentralised Finance (DeFi)....................................................49
The Four Phases of DeFi Development............................................49
DeFi DApps vs Incumbents (Traditional Financial Services
Institutions)......................................................................................49
2.13 – Impact of Cryptocurrencies on Finance and Future Outlook.....50
Finance Professionals and Cryptocurrencies...................................50
Benefits and Risks of Cryptocurrencies...........................................50
Part E: Alternative Finance Providers......................................................50
2.14 – What Is Alternative Finance?....................................................50
Alternative Lender Funding Process vs Traditional Lenders.............51
2.15 – Alternative Lending..................................................................51
Peer-to-Peer Lending (Marketplace Lending)...................................51
Balance Sheet Lending....................................................................51
Comparing P2P and Balance Sheet Lending...................................51
Invoice Financing............................................................................51
Comparing Invoice Factoring and Invoice Trading........................52
2.16 – Alternative Funding..................................................................52
Investment-Based Crowdfunding....................................................52
1. Equity Crowdfunding.................................................................52
2. Property-Based Crowdfunding...................................................52
3. Profit-Sharing (Financial Return) Crowdfunding........................53
Non-Investment-Based Crowdfunding.............................................53
Reward-Based Crowdfunding........................................................53
Donation-Based Crowdfunding......................................................53
2.17 – Crypto-Based Funding..............................................................53
1. Initial Coin Offerings (ICOs)..........................................................53
5
, 2. Initial Exchange Offerings (IEOs)..................................................54
3. Initial DEX Offerings (IDOs)..........................................................54
4. Security Token Offerings (STOs)...................................................54
2.18 – Impact on the Organisation......................................................54
Borrower and Investor Perspectives.................................................55
Different Financing Sources.............................................................55
Part F: Future of Banking........................................................................55
2.19 – Future of Banking.....................................................................55
Customer Preferences......................................................................55
Enablers of Change..........................................................................56
What Does the Future of Banking Look Like?...................................56
Module 3 – Technology and Its Use In Finance (20%)...........................58
Part A: Automation.................................................................................58
3.1 – The Basics of Automation...........................................................58
Data in Automation.........................................................................58
Automation Technologies................................................................58
Combining Technologies..................................................................59
3.2 – The Value of Automation............................................................59
Using Intelligent Automation for Visual, Linguistic, and Prediction
Tasks................................................................................................59
Visual Tasks..................................................................................59
Linguistic Tasks............................................................................59
Prediction Tasks...........................................................................60
Using a Balanced Scorecard to Evaluate Automation and its Benefits
.........................................................................................................60
3.3 – Planning For Success..................................................................60
Steps to Build an Effective Automation Strategy.............................61
Part B: Robotic Process Automation (RPA)..............................................61
3.4 – The Basics of RPA.......................................................................61
How does RPA work?........................................................................61
Unattended, Attended, and Hybrid RPA...........................................61
Business Process Management........................................................61
Categories/Levels of Automation Solution.......................................62
6
, RPA vs Traditional Automation.........................................................62
RPA vs Intelligent Automation..........................................................62
3.5 – Benefits of RPA...........................................................................62
Creating a Business Case for RPA....................................................62
RPA in the Finance Function.............................................................62
RPA in Business................................................................................63
Business Functions.......................................................................63
Business Processes......................................................................63
Industries.....................................................................................63
3.6 – Risks and Challenges for using RPA............................................64
3.7 – Building an Effective RPA Strategy.............................................64
RPA Success Factors........................................................................64
Steps to Develop an RPA Solution...................................................64
Implementation and Building to RPA Maturity.................................65
Part C: Artificial Intelligence...................................................................65
3.8 – The Basics of AI..........................................................................65
How does AI Work?..........................................................................65
A Brief History of AI.........................................................................65
AI Enablers......................................................................................65
Types of AI.......................................................................................66
3.9 – Benefits of AI..............................................................................66
AI in Finance and Business..............................................................66
3.10 – Risks and Challenges for Using AI............................................67
Risks of AI.......................................................................................67
Data Challenges..............................................................................67
Mitigating AI Risks and Data Challenges.........................................67
3.11 – Building an Effective AI Strategy..............................................68
Aligning AI Strategy and Business Strategy....................................68
Methodology for AI Strategy........................................................68
Part D: Machine Learning.......................................................................68
3.12 – The Basics of ML.......................................................................68
How Does ML Work?........................................................................68
Deep Learning.................................................................................68
7
, ML and NLP.....................................................................................69
Types of ML.....................................................................................69
3.13 – Benefits of ML...........................................................................69
ML in Finance and Business............................................................70
3.14 – Risks and Challenges for using ML...........................................70
3.15 – Building an Effective ML Strategy.............................................70
Incorporating ML into the AI Strategy.............................................70
A Strategy for Scalability.................................................................71
Part E: Value of Technologies..................................................................71
3.16 – Choosing the Best Technology..................................................71
3.17 – Reshaping for an Automated Future.........................................71
Elements of a Digital Transformation Strategy................................71
Digital Strategy Priorities and Objectives....................................71
Key Elements...............................................................................72
Value Creation Using Automation...................................................72
Value of Automation in Finance....................................................72
Governance, Risk and Compliance Challenges of Automation........72
Automation of Governance, Risk, and Compliance......................73
Ethical Considerations.....................................................................73
Preparing for an Automated Future.................................................73
Transition to Strategic Roles........................................................74
Integrate Other Technologies.......................................................74
Module 4 – Data Analytics, Interpretation and Visualisation (25%)......75
Part A: Data Literacy.............................................................................75
4.1 – Introduction to Data and Data Literacy......................................75
Data-Informed Decision Making......................................................75
Analytics.........................................................................................75
4.2 – The Need for Data Literacy.........................................................76
Defining Data Literacy and Implementing it at Leading Companies
.........................................................................................................76
4.3 – Data Literacy Culture and the Role of the Finance Professional. 76
What is Data Literacy Culture?........................................................76
8
, The Role of the Professional in Data Literacy Culture and
Developing Data Literacy.................................................................76
Data Literacy Leaders and Champions........................................77
Training Existing Employees vs. External Recruitment................77
4.4 – Basic Data Science Concepts.....................................................77
Data Categories..............................................................................77
Qualitative Data............................................................................77
Quantitative Data.........................................................................77
Probability.......................................................................................78
Probability Terms and Concepts....................................................78
Probability in Decision Making......................................................79
Probability in Practice...................................................................79
Part B: Extraction, Consolidation and Design of Data Strategy..............80
4.5 – Data Strategy: Why a Business Needs a Data Strategy..............80
Developing a Data Strategy for Analytics.......................................80
4.6 – A Framework for Designing an Effective Data Strategy..............81
Data Strategy Frameworks..............................................................81
The SMART Strategy Board.............................................................81
Purpose Panel..............................................................................82
Customer Panel............................................................................82
Finance Panel...............................................................................82
Operations Panel..........................................................................83
Resources Panel...........................................................................83
Competition and Risk Panel.........................................................83
Prioritising Data Needs and Obtaining Data....................................84
Analysing Data and Communication to Support Decision Making...84
4.7 – Data Strategy Implementation...................................................85
Data ‘Ownership’, Organisation Politics and Culture.......................85
Data Management Systems............................................................85
System Development Life Cycle (SDLC)......................................86
Database Management Systems.................................................86
Data Migration................................................................................87
Change Management......................................................................87
9
