How could this website be improved? - http://www.icas.org.uk/site/cms/contentChapterView.asp?chapter=2

“What makes a great website? The short answer is 'one that achieves your goals.' It should also be useful and easy to navigate.”
[Tanja Lian Sablosky, 2003]

My first impressions from entering the site were that the home page was cluttered, instead of initially directing the various cross sections of its users, it attempted to immediately satisfy their craving, posting adverts and announcements which in the main would be irrelevant.

“One of the Web's strengths is the volume of information available. That is also one of its weaknesses.”
[Tanja Lian Sablosky, 2003

I feel that there is much which could be learned from the Strathclyde University homepage. Here the web surfer encounters a more refined, user lead page, where the quest for information begins logically. First the user is identified, according to their particular status they select the most appropriate label allowing the resultant content to be more specifically tailored to their assumed interests. While there exists a tab down the right hand side of the page, however it functions more like an index. It does not segment the potential stakeholders and may often be missed or obscured by the central adverts which are given priority.
"People are drowning in information, but are thirsty for knowledge."

A website such as this should be perpetually updated, as it is a reference point for many graduates seeking employment or practitioners confirming the most current accounting treatment. The lasted revision of the “statement of guidance” was made on the 02/09/2004 is this two year dormancy adequate? The site is deficient of an RSS feed which would also enhance its value for users. A limited number of vacancies are published on the site, however if this was the only aspect that you were interested in then this information would be much more efficiently communicate via an RSS aggregator which the site has failed to acknowledge yet.

“Great Web sites share everything they learn and hear (that's relevant of course) with their users. Give behind the scenes accounts of your latest site features, go open source, start a newsletter, and you'll get more than you give.”
[Tanja Lian Sablosky, 2003

There is currently no supplements or handy downloads that may to entice new browsers, this is also evidenced by the relatively low number of hits returned form a Google link search only 116 other site directly feed into the ICAS page. Returning to the aspect of “sharing” currently only one way communication is possible with the website via the “contact us” link. Interactivity is yet another missed opportunity. This facet would be particularly useful given the subjective nature of accounting. Providing a mechanism for discussions may enhance clarity and iron out gremlins, where the findings can be easily referred back to by people suffering similar woes. It may also raise further deficiencies which can be adhered to by the ICAS web designers, evolving its current offering to best serve the needs of its users.

References;
• http://www.icas.org.uk/site/cms/contentChapterView.asp?chapter=2
• Rating your Website, Tanja Lian Sablosky. ABA Bank Marketing, 2003

What might be the "next big things" on the internet?

The internet has facilitated many monumental changes in the traditional business function. Its wind of change is now firmly fixed to rock the boat for the steadfast bean counters. An un-relinquishing thirst for knowledge has been exposed by the internet as a consequence of the ease of research. This has prompted these changes which are currently being pushed by the combined efforts of the largest accountancy firms;

“In their Utopian fantasy, out would go quarterly reports loaded with complex historical figures and rules-dictated footnotes. Instead, readily accessible updates on a company's state of health would be posted in (almost) real time on the internet.” [3]

This recent announcement, if it pans out in the way which has been proposed will completely revolutionise the current accounting practice and pose significant implications concerning my future prospects. This is the reason I chose to concentrate on this emerging challenge.

Investors and other groups of stakeholders feel that the current static reporting is inadequate within today’s fast track business environment. The widespread adoption of ecommerce has “made it possible to gather more data significantly faster than before.” [1] Current processes to record these rapid transactions are not fit for the challenge requiring an entirely new system.
Many of the essential components required for the transition to “Real Time” reporting are already in place. Since the beginnings of the 21st century many large companies have toiled with the implementation of Enterprise Resource Planning (ERP) systems. A full blown ERP system may be wholly uneconomic for the small to medium sized organisation. In response slim lined versions are becoming available from firms such as; AccTrak21, to accommodate the revisions for all.
This technology is designed to centralise the information output of every distinct activity within the organisation. The goals of this software are comparable with the intentions behind the real time proposal, namely to un-obstructive the data collection and interrogation process. By effectively posting this information online via the companies website, replacing the archival of financial reports. Up to the minute results become assessable for any interested party to analyse and interpret.
“It wasn't too long ago that corporate accountants could take their time assembling, analyzing and packaging financial data for executives. It took a while to massage the numbers, and that wasn't a problem because the competition was moving at the same sluggish pace”. [3]
Whilst eventually every organisation would be subject to these new requirements, so that the information advantage would be cancelled out. It does raise concern for the early adopters. Competitors would gain insight into the current sales patterns and mark up. From this knowledge they may be able to adjust their policy to counteract these observations appropriately.
The also exists a suitable format to display this information, XBRL, eXtensible Business Reporting Language. This is a derivative of the present XML / RSS technology. Not only is un-molested data presented immediately to the user, it is also made vastly more interrogatable through the use of these tags. The job of the analyst is seriously under threat from the enhanced capabilities of the new system. Individuals can more readily filter specific data they may require, the creation of “wiki” accounts.
This is the predominant facet that makes managers less than cooperative to join. As information is published in near real time there is little opportunity for managers to be selective in their announcements, there may also be a distinct lack of narrative to explain or qualify the results.
While this real time was intended to empower investors, “the development of such access would create major problems for both management and the financial world - more problems than it would solve.” [1]

Real time reporting is bound to favour select industries or company practices. Variants across the results may lead to in appropriate conclusions being drawn. For example; the seasonality of some business may not be reflected well by the new system which may induce investor prejudice and short-termism amongst the markets. In theory the requirement of keeping accurate information should benefit the company however this may not materialise is it is not comprehended correctly by investors.


Bibliography;

• [1] Real-Time Accounting, Paul Ashcroft. The CPA Journal. New York: Apr 2005

• [2] Harnessing technology: Real time, real problem? Abid Shah, Andrew Higson. Accountancy. 1997

• [3] Real-Time reporting, Maria Trombly. Computerworld. Framingham: May 8, 2000

• [4] Opening the books; Auditing firms, The Economist, 2006

• [5] http://www.acctrak21.com/ecommerce.shtml

Identify the key points in this case. What is the hidden agenda?

Omnexus


The case involves five large plastics manufacturers amalgamating to form an online market for their produce. Through offering a concoction of the differing attributes and resources from each of the founding members it was hoped to expand the retail division, opening up the market to potential customers where previously there existed no service that satisfied their needs.

It was conceived as a neutral marketplace to remedy the inefficient way the plastics industry had operated previously. Moving online, the administration function could be dramatically revitalised reducing the input required from counterparties to the transaction. The quest for a suitable material was also made significantly more straight forward, through browsing capabilities and ease of comparisons.

The work of the founders was not entirely onerous, there existed motivation not directly interoperable that lead them to undertake such a cooperative venture. The project was not solely implemented by the plastics firms; there were many other organisations that had a significant hand in its development. One of the partners was Accenture, formerly Anderson consulting. They muscled themselves into this role pushing out McKinsey & Company shortly after their appointment. Although the critics to this appointment were effectively fobbed off stating that Accenture were the recognized global leader therefore better placed to develop the e-market. Possibly amidst all the collusion, a malleable ally was required to choreograph the unison. Anderson, prior to it collapse under contentious circumstances, may have served a selection of the founding suppliers. This lucrative relationship may have been hoped to have extended through Omnexus.

A further, more complex web of interrelations developed. IBM was also heavily involved in facilitating trade through the e-market. IBM had external ties with Ariba (a rival software company) that were contingent upon the success of Omnexus; while Ariba also had influence over the technological design of the site. The culminated in a family of organisations with both the incentive and capability to scratch each others back. These affiliations did not end here, as the conglomerate nature of Omnexus quickly emerged as it established trade relations with Chemcross and Conferos, similar plastic procurement sites operating in other regions. These mergers were conditional that Omnexus was granted more trade having rapidly tapped into the global market

The site focused only on one division of the Thermoplastic Polymer Processing Market; Injection and Blow Molding which accounted only 25% of the revenue generated by the industry. Whilst it may have been necessary to start on a manageable scale, no significant developments were to be observed thought the entirety of the case. Once again a convincing argument was proclaimed, referencing the significant growth experienced in the US markets. Maintaining my scornful perception, this rationale may too have been tainted as all of the factors above imply an underlying collusion objective. Were it the case that this sector of the polymer market displayed the most pronounced competitive tendencies, then the main suppliers may seek to combine their efforts in a more proactive way, to restrain the antagonism towards each other, through discrete use of price controlling, potentially?

Further entry to supplier status, was restricted, initially by the suppliers themselves. Those who had yet to cotton on to the plan, perceived that participation
“would result in greater price transparency”. Within the year a further nine suppliers were added to the consortia further emphasising the existence of a perfect market. This facet was not taken at face value by many however; comprehensive assurances had to be made to silence the scathing “anti” trust voice.

Concerted efforts were aimed at retaining the independence of Omnexus’s board, which coincidentally consisted of a member from each of the founding suppliers. This created a cosy environment, and plausible alibi for covert discussions to take place before a limited audience.

“Legal counsel had to be present whenever the founding members were in the same room because topics regarding pricing or other consortia related conversations were sure to arise.”

While controls were in place to combat the oligopoly powers from reaching mutual consensus I do not imagine that the presence of minders inhibited discussions completely. A monopoly outcome was advantageous to every one of the suppliers, why else would they actively try to integrate their functions indiscriminately under a single banner? The costs savings addressed in the sales pitch predominantly benefited the buyer. I could see little legitimate reason that would encourage the distributors to pool their efforts in the way that was observed.

While the site appeared to get of the ground without much distress, the Federal Trade Commission is bound to be keeping a watchful eye over future developments.

Assignment - Geneva Case Study

The integration of an Enterprise Resource Planning (ERP) system is generally deemed to improve the fluidity of the order-process cycle. In other words, ERP allows for improved assimilation of all processes inherent within the business. Whilst the rationale for ERP implementation can be substantiated in reference to a variety of factors, we believe that the following three were most vital in the Geneva Pharmaceuticals case:

• Rivals’ products can be used interchangeably
• Need for ‘on-demand’ supply function
• Manufacturing is scientific and requires high levels of cohesion between processes.

As generic drugs are indistinguishable in terms of composition, it is vital that Geneva is able to supply retailers/consumers at a competitive price within a sufficient time-span. Moreover, increased transparency in the amount of surplus output would allow Geneva to take advantage of the emerging internet market for generic drugs. Owing to this realisation, the first two key points are interlinked: if Geneva is to attain a reasonable market share, it must be able to satisfy orders promptly. As previously insinuated, ERP’s ability to improve cohesion between different departments was a fundamental factor in Geneva’s decision to implement the system. The benefits of ERP implementation are related to the complexity of operations- as Geneva’s processes are “scientific, controlled and highly precise”, their mangers evidently deduced that the integration benefits of ERP would allow for greater consistency in production and more stringent monitoring of operations.

Without question, implementation of ERP is a complex and often prolonged process. In order to ensure that operation disruption is minimised, Geneva were faced with several dilemmas. In our opinion, their initial choice of consultancy firm, Whitman-Hart (WH), was a contributing factor to the problems experienced during the first phase of implementation. Granted, WH had prior experience of R/3 execution. However, their distinct lack of familiarity within the pharmaceuticals industry perhaps meant that a significant proportion of their time would have been allocated to discussing a course of best practice whenever a contentious issue was discovered; had Geneva chosen a firm with both technical knowledge and relevant experience, such discussion would not have been necessary. Furthermore, the selection of a more experienced consultancy firm would enhance the competitive advantage gained through ERP implementation; had Geneva been able to hire a firm previously employed by a rival manufacturer, they may have been able to gain an insight into the manner in which their competitors integrate their systems.

According to Somers and Nelson (2001)[1], the most critical factor in determining the success of ERP implementation is the extent to which management staff support the process. By encouraging employees to embrace the fact that their traditional job roles were changing, Geneva was able to ensure that staff were fully committed to the transitional process. Hence, employees developed a clearer understanding of their responsibilities and consequently were able to give a more accurate insight into the detrimental effects of the old system. Without question, this decision is underpinned by the ‘people before process’ mantra inherent within most successful implementations of ERP.



The transition to an ERP system is significant, for any business, in terms of cost, time scale and a change in the overall structure and organisation of departments. The benefits associated with this revolutionary business model are also of a similar scale and are rarely ever achieved as smoothly as proposed during the planning stages. Implementations of ERP have been initiated by many well renowned organisations to widely varying degrees of success. While ERP remains in its infancy, there is much still to be learned regarding how to consistently implant the technology within the business environment.

As may be expected the majority of the issues were encountered during the initial stages; as explained above, the root cause could be traced back to the limitations of the consultancy firm, Whitman Hart.



“SAP’s rapid implementation methodology called Accelerated SAP (ASAP) was selected for deployment, because it promised a short implementation

cycle of only six months!”



Whilst this group were technically proficient, the above statement demonstrates their naivety of the business context. This deficiency severely hindered the progress of Geneva’s ERP system, where little had been achieved four months since the inception of the project. This may seem totally unacceptable but precedent tells us that the application of ERP is not a speedy process, “54% take longer than 2 years to completion”[2]. Contrary to the WH “ASAP methodology”, it was this lack of foresight that encouraged many of the failings of phase 1.

Installation was not differentiated from implementation; little regard was paid to the specific requirements of Geneva. What WH had produced did not fulfil the needs of the corporation. To combat this, ERP guru Randy Weldon was employed to direct further proceedings. His experience had taught him “ERP was fundamentally about people and process”.



The approach to stages 2 and 3 were markedly different to that which WH had pursued- the haste to complete the project was replaced with an unsparing commitment to the development of a useful end product. The diminishment of constraints allowed the remainder of the implementation to flow in a more frictionless manner. The Y2K deadline was given less significance, the project was granted as much time as it required. Staff were also encouraged to buy in to the changes by more proactive training schedules. Focusing on how their role would evolve with the system and less concerning the system itself.



The introduction of ERP was treated less as a new software package and more applicably as a colossal culture change for the firm. ERP instils a complete interdependency between the segments of an organization. As the data is centralized, each subsequent department in the chain is reliant upon the accurate input from a previous division. It is essential that employees uphold the integrity of the system. Geneva’s gradual acknowledgement of this facet is evidence from the text. During the preliminary discussion, preceding phase two, much greater involvement was encouraged from the key users. They were given increased opportunity to raise concerns and suggest improvements enabling further progress in a much more cooperative and social fashion. This is the main discovery from the case and is substantiated by the findings from previous implementations of the technology. Successful incorporation is obtained only where the system is unequivocally adopted throughout the entire organization.



References



[1] H. Akkermans and K. van Helden, "Vicious and virtual cycles in ERP implementation: a case study of interrelations between critical success factors", www.palgrave-journals.com/ejis/journal/v11/n1/pdf/3000418a.pdf



[2] Christopher Koch, "The ABC’s of ERP", http://www.cio.com/research/erp/edit/erpbasics.html



Additional Reading



Ben Worthen, "Nestle’s ERP Odyssey", CIO Magazine, 2002

Christopher Koch, "When Bad Things Happen to Good Projects", CIO Magazine, 2004

Will the internet reduce prices?

Will the internet reduce prices?


“The increase in accessibility to high-speed connections and the growth of broadband has made online shopping a more pleasant experience than ever before. Online shopping is open 24 hours a day, without the effort of travelling to a mall and dealing with the hassles of crowded stores with overworked staff.”
[Valerie Merahn, 2004]

I feel that the major impact of ecommerce has been in promoting consumer awareness. The marginal cost of obtaining product information has been slashed. This enables those with a desire to be informed access to masses of information in order to elevate their bargaining power and make much more educated decisions. The web has facilitated far greater disclosure of a product’s entire range of attributes allowing comparisons between products and outlets to be conducted effortlessly. Thus, distributors must perform the same function ensuring that they remain competitive in the markets place. In the main consumers are becoming ever more sophisticated and will vote with their feet where prices step out of line.

Designated websites have established themselves to further ease the consumers’ task, namely; Froogle.com, BizRate.com, mySimon.com, NexTag.com, PriceGrabber.com, Price SCAN.com and Shopper.com. Here the interrogation process is completely outsourced. Once the results return they can be sorted in ascending order of price, presumably with the most attractive option appearing at the head of the queue. This system proves most effective where the object of desired is homogeneous, i.e. price is the only feature that differentiates the prevailing competitors.

Empirical evidence has uncovered that “as price becomes easier to search in comparison to other search attributes, customers may base their choices predominantly on prices”.
[Pingjun Jiang, 2002]

The underlying concept driving the observations above is “IT parity” where modern technology has diminished the information gap between the customer and supplier. Both parties have access to the same resources. Correspondingly, this reduces the consumers’ dependency on the outlet as they can gain broader and more independent knowledge equivalent to that of the in house sales expert to form their conclusions.

Recently I discovered a new artist, overwhelmed with excitement I had to have the album. Below is a list of options and constraints in order to satisfy my craving;


Source Cost Conditions

HMV store £10.00 -

HMV - online £5.99 3-5 day wait, Impulsive and wanted it now!

Illegal Download - Morality issues


The price divergence offered by the same company is plain to see, how do the offline counterparts justify this discrepancy? There are issues with the logistics of purchasing online. How did I value having to wait almost a week to satisfy my craving, incurring the risk that it may be lost in the post and then having to haggle with their customer services department to possibly get another copy sent out only to wait yet another week? Only for it to arrive when I am not in and thus have to walk approx 1 mile to the post office, probably in the rain! In response, I opted for the security of traditional methods this is the comparative advantage physical shops hold and must retain.


Downloading or effectively stealing the album throws up interesting issues regarding the effect of the World Wide Web on the price certain goods. Without the internet, this option would not be possible. Intuitively you may perceive this may have detrimental to record sales, however the opposite is proclaimed true, where “due to sampling: consumers are willing to pay more because the match between product characteristics and buyers' tastes is improved.”

[Jyh – Shen Chiou, Chien – yi Huang, Hsin – hui Lee, 2005]


The internet as a retail base has produced contrasting results, whilst driving the price of online goods through ease of research; it has allowed the offline price to rise in some markets pairing the customer’s desire more closely with the specific product. Therefore evidence confirming the essay question is inconclusive. The online market for many good is extremely competitive with many firms operating precariously close to the margins. Can this continue, not for sustained periods at least. Therefore, internet prices will fall inline with the cost of manufacture.





Bibliography;



• The Antecedents of Music Piracy Attitudes and Intentions; Jyh – Shen Chiou, Chien – yi Huang, Hsin – hui Lee, Journal of Business Ethics, 2005

• Priced to Go: A Quick Search for Soda, Valerie Merahn. Brandweek, 2004

• A model of price search behavior in electronic marketplace, Pingjun Jiang. Internet Research, 2002

• The impact of shopbots on electronic markets, Michael D Smith. Academy of Marketing Science. Journal, 2002

• What’s price got to do with it?, Carl Steidmann, Progressive Grocer, 2006

Competitio.us

Competitio.us; just one of a flurry of innovative products arisen as a result of the increased capabilities of web 2.0. It provides a service monitoring designated web sites, and relays any new publications back to its client.

Your competitors’ web sites have a wealth of information about their products, actions, plans, and strategies. Indeed, according to some researchers, “Track your competitors' web sites, and you’ll be able to track them!”
[Srikanth Chari, 2006]

Using this facility companies can effortlessly keep themselves informed regarding the published information of their main rivals. A deep insight can be extracted form a companies’ website; for most this initial point of reference when conducting research into a companies therefore it is in the companies interests to keep this source in line with current activity. That any alterations which may have a bearing on its potential as an investment candidate are fully disclosed, in a flattering light.

Press releases, News or media coverage, Products and solutions, Events and web seminars, Financial or investor relations, Executive team and board and Job openings are just some of the features targeted by the service. For example the simple vacancy advertisement could suggest much about a company. Revealing a new direction it intends to pursue or if they are strengthening a particular department or hiring people in a new location? Each of the scenarios above would have repercussions for its competition, which can be minimised or counteracted if advanced notice is given. This is the role I see for this technology to raise issues, for further investigation.


Of course companies could track these sites themselves, setting up RSS feeds, where possible, from each of their opponents sites would create a crude version of what Competitio.us offer. Establishing and operating this system, would expend a significant amount of the companies resources and as feeds can only be subscribed to for limited postings it may still require traipsing through all the web pages and documenting anything new or yet still relevant, a value adding process?

There clearly exists a market for this service, however Competitio.us itself has competition. A finding of a simple link search on Google produced the following results;

Firm Links

• Competitio.us 31,600

• Google 319,000,000

• EBay 71,100,000

• Semphonic 536

• Watch 360 822


This provides a primitive notion of public awareness as it measures how many sites indicate to wards the subject’s page. The conclusions which can be drawn from this are that while vastly more sites promote the Competitio.us brand than either of its main adversaries it still lags well behind the heavy weights of the virtual world. This is to be expected as the company is still in its infancy however it does allude to that fact that Competitio.us’s comparative advantage lies within its more renowned name. This attribute would stand it in good stead as a take-over target; significant returns can be sought by investors in web start-ups where their revolutionary idea or creation has been latched on to by a major force such as Google. Examples are widespread; Google’s acquisition of Blogger, Writely and Utube. In addition to expanding its range of tools it also gains valuable user data and statistics. In the case of Blogger this software gave Google a foot in the door in establishing its own version, whilst thinning out the competition and gained access to over 2 million blogs which it could utilise to further more refine its search results. An optimal situation for all parties, especially given the most recent scenario where the founders of Utube were compensated with $1.6 billion Google shares.

This is the scenario hoped for by Competitio.us investors. Currently the service is offered free of charge, almost certainly to accumulate a valuable client statistics to entice the data hungry predators. The other firms offering a comparative product have been successful in monetising by charging for it’s premium service, as much as $1000 per month. Clearly this is an option available to the management of Competitio.us who have already confirmed that they are developing such a hierarchy within their range.


“The basic idea is that it’s a tool for web start-up teams to keep track of their competitors.”

While I think that this is a very useful product, the main drawback I foresee it that companies especially those who are web orientated is that it may not always be that simple to determine who your main competitors are. As much effort may be required in tackling this question as would be involved in keeping abreast of new developments within these. Competitio.us provides a quick and effective solution to the latter which I am sure will appeal to a tremendous volume of companies. Although this goal is not solely pursued by Competitio.us, I am inclined towards their approach, firstly publicising their brand with immediate returns absent from the priorities list, at least form now. I feel there great potential for success inherent within this concept and would not discourage the addition of this into a diversified portfolio of securities.


Bibliography;

• Do You Know Who Your Competitors Are? James Allen, Kara Gruver. Brandweek. New York: Apr 11, 2005.

• Keeping an eye on the competition, Stephen J Mraz. Machine Design. Oct 6, 2005

• http://www.techcrunch.com/2006/10/04/competitous-track-your-competition-online/

• http://www.imakenews.com/scip2/e_article000334573.cfm?x=b11,0,w

• Why track competitors' web sites? Srikanth Chari, SCIP.online Monday, October 30, 2006