Is RSS A Disruptive Technology?

First coined by Clayton Christensen, disruptive technologies are deemed to:

• Be technologically straightforward
• Consist of off-the-shelf components
• Be simpler than previous approaches

As implied by its name, Really Simple Syndication (RSS) certainly meets the first criteria; it is designed to distribute content from web sites to users who have previously stated an interest in the given topic. Secondly, it is based on XML- the mark-up language that provides a “text-based means to describe and apply a tree-based structure to information” [1] and thus the second criteria is also satisfied. To enable an RSS-feed, the user must subscribe to a newsreader service (i.e. Blogger) and then click on the RSS symbol on relevant websites- this is a very simple approach to filtering news to the individual users’ preferences. By Christensen’s reasoning, RSS is undoubtedly a disruptive technology/innovation.

In his 1997 book “The Innovator’s Dilemma”, Christensen asserts that technology can be considered to be sustaining or disruptive. Sustaining technology is designed to make incremental improvements to already established technology. On the other hand, disruptive technology is thought to lack refinement and be inherently problematic because it is new. Whilst the RSS/XML symbols (allowing users to subscribe to RSS feeds) appear on the majority of websites, it is thought that less than 5% of the web community actually subscribes to them [2]. This begs the question whether or not the use of RSS is extensive enough to merit being tagged a ‘disruptive technology’. However, I suspect that Microsoft’s decision to include RSS features in Internet Explorer 7 will drastically increase the use of RSS and subsequently amplify its disruptive influence.

As RSS is already prevalent in the weblog community and news site syndication, the development of it within these markets is more sustaining, rather than disruptive. It should be considered that improvements made to these markets as a result of further RSS development may have a disruptive influence on unrelated markets. For instance, RSS was originally designed to filter the plethora of information being made available on the web so that users would not waste time perusing irrelevant articles; this function has been extended so that many feeds now include full text and graphics, essentially bypassing the users need to visit the actual website. Whilst this advancement in technology saves time for RSS users, it is extremely disruptive to the online advertising market as revenues are directly linked to the number of official hits each site receives (I shall elaborate on this later on).

Despite Christensen’s commonly accepted definition of a disruptive technology, John Dvorak questions whether such a thing actually exists by suggesting that there are merely new ideas/inventions (that achieve varying success). Unquestionably, the discrepancy lies in the two authors’ definition of disruptive technology-Dvorak differentiates by claiming that [3]:

“A disruptive technology is defined as a low-performance, less expensive technology that enters a heated-up scene where the established technology is outpacing people's ability to adapt to it. The new technology gains a foothold, continues to improve, and then bumps the older, once-better technology into oblivion”.

According to this definition, RSS is not a disruptive technology. Whilst functionality has been significantly altered since first inception (see the history of its development [4]), I suspect that even the earliest forms of RSS facilitated a browser’s ability to discriminate irrelevant articles far more efficiently than a run-of-the-mill search engine. Consequently, the requisite of being ‘low performance’ is not met.
Dvorak attempts to substantiate his rationale by drawing reference to the effect (or lack thereof) of Linux on Microsoft. As Linux is a free, open source operating system, many perceived that it would disrupt Microsoft’s monopolistic control. Despite this threat, Microsoft’s wealth grew more than thirty-fold in the twelve years following the inception of Linux- “some disruption”[3], boasts Dvorak. Then again, who’s to say that such growth was not actually obstructed by Linux? To illustrate this perspective, consider the analogy of a trip to the cinema:

Whilst attempting to focus on the latest blockbuster, the dialogue is constantly interrupted by two nuisance viewers perched in front of you. Despite their incessant muttering, at no point do these viewers physically replace you by sitting in your seat. Thus, you are able to decipher the main themes/plots of the film regardless of their disruptive influence on your enjoyment of it.

In context, Microsoft was affected by the initiation of Linux- yet it prospered regardless of the disruptive technology.

RSS is revolutionising the way browsers harness the capabilities of the internet. It extends the arm chair culture prevalent in today’s society, as this mechanism interrogates sites on behalf of its client. Frequently visited sites can be subscribed to so that any new activity is relayed back to the RSS aggregator creating a centralised and current data source for the busy browser. However, is this useful little innovation causing havoc for the established technologies it resigns to the bench? If so, how long will it take for RSS to take over? Proponents such as VAN DER POOL [5] claim this development is imminent:

"I think this will become commonplace within a year to 18 months".

The ramifications of this realisation concern several established industries.

Online Advertising

Advertising is the primary means of monetising many websites- if RSS takes off in the manner currently predicted, then this will seriously affect the volume of hits on web pages, as people are effectively able to bypass the often pesky or irrelevant adverts and are transported directly to the content they desire. With less hits, this form of marketing may become uneconomical for the sponsor who may end up withdrawing their funding, leaving the site precariously searching for additional means of revenue.

On the other hand, another train of thought exists which suggests that RSS instead of threatening advertising, in fact creates an opportunity for a more efficient approach. Browsers who use RSS to stay informed generally feed from a variety of sources; this diverse selection may allow for an insight in to the profile of the individual. If advertising agencies could tap this database they could more accurately surmise the interests/personal preferences of the user. From these images they can better tailor more effective advertisements. For example, if you want to advertise to computer game players, then an RSS feed of computer game news provides a focused channel to a specific audience.

“So, as more consumers realize the timesaving benefits of being able to scan numerous Web sites for new content quickly via an RSS reader, it's no surprise that advertisers are clamouring for new ways to reach these eyeballs”[8].

Pheedo is one such internet start-up intent on capitalising on this new possibility as they place adverts within the content of RSS feeds. I personally use the Pheedo aggregator to view new F1 articles; the way this site pushes adverts on the user is by first directing them for 10 seconds to their sponsor’s page before the article is displayed. Adopting this technique, there are many counter measures to enhance the existing role of internet advertisements.

However it is not just internet advertisements that the emergence of RSS is having repercussions for. The classified ad within the common newspaper was once said to be a “river of gold” for the industry. However the flow is all but dried up as sellers have resorted to the wider net cast by internet markets such as eBay or Craigslist. RSS has not directly initiated the decline, as these sites were present before the adoption of RSS. However it has enhanced many features of these sites causing them to be even more user friendly and certainly more likely to attract an expanding piece of the pie diverting business from its paper-based adversary.

Traditional ‘Classifieds’

The demise of the newspaper is approaching: Philip Meyer [7] predicts that the last conventional newspaper will circulate in 2043.

The rise of the internet becoming the dominant information reference has created an unhappy paradox for the news reporter. Never before has information been so easily accessed. Journalists no longer have to weather perilous conditions to get a scoop; almost everything worth researching is to be found only a few mouse clicks away. However, increased availability is a double edged sword for the tertiary reporting sector. The availability of more streamlined channels has enabled consumers to conduct an increasing proportion of their own research. No longer bound or spoon-fed biased perspectives they are able to investigate in whichever fashion they deem appropriate.

“When the sources speak directly to the customer, and the customer can access the sources 24 hours a day, there is no one in the middle.” [7]

Harnessing RSS is almost like editing/amalgamating your own personal newspaper. Constituted of everything you may ever want to read about and delivered to you in condensed form able to be accessed and referred back to at any time, RSS outshines the process it is set to displace in almost every respect therefore has this new technology earned its right as disruptive?

Business Information Systems

The RSS format may also lend itself as a mode of communication replacing the intranet or office memo. “One of the biggest complaints I hear about intranets is that it's hard to drive traffic.”[5]. Using a news reader important notices can be pushed upon them, with a centralised mechanism for all information employers can be more confident that the aggregator is more frequently visited than the internal network so that employees at the very least have been able to glance at a summary of the notice.
As RSS develops and taps into the mobile devices market its purpose may become more pronounced. There is evidence of the use of RSS to convey general information such as library opening times. While utilising its capabilities in this way is not directly affecting any technology it just happens to be that RSS is best suited to providing this service cheaply and effectively.

Financial Reporting

Real Time accounting is a very recent proposal which can only have been facilitated through RSS. RSS was built upon the XML format to relay information; to incorporate Real Time reporting this has evolved into XBRL. This revised format allows companies to enter financial information in a meaningful way enabling it to be recalled automatically by stakeholders. Instead of static quarterly reports prepared often long after the event, companies can simply publish their transactions as and when they occur.

A company’s stakeholders can gain an instant and accurate insight into the organisation financial state at that moment in time. The job of the financial analyst is made almost redundant as investors are provided access to the same current information while the analytical procedure can also be partially conducted by the computer as it seeks out the appropriate labels, e.g. in evaluating the performance of a company a Net profit ratio may be applied, the constituents of the formula can then be entered into the computer where it then returns the information to allow the calculation. This also offers stakeholder greater scope to assess a company not only can the interrogation be repeated numerous times but the content can also be adapted to meet the particular requirements of the user, using criteria which they deem most important. The term “wake” accounts have emerged as investor can manipulate the figures to provide a representation of the company which is most useful to them.

“XBRL will likely lead to more knowledgeable and inquisitive shareholders and analysts who will pepper earnings calls with hard-hitting questions, said Greg Adams, chief operating officer and CFO of EDGAR Online.” [8]

Whilst RSS in its purest form is decidedly remote from these changes it has had a hand in revolutionising the business world as we know it.

In conclusion, I believe that RSS is a technology likely to cause significant disruption to the traditional newspaper industry. Consequently, it also has far-reaching implications for the existing advertising model currently deployed by organisations. Whilst some discrepancy lies in Dvorak’s definition of disruptive technology (accepting this would render the discussion futile), Christensen’s is more widely accepted and thus more relevant to scope of this discussion. As is the case with many disruptive technologies, RSS improves several customs inherent within contemporary society i.e. aggregators may ensure that a higher proportion of employees take notice of the traditional office memo. Lastly, this technology resulted in the inception of XBRL; adopting this, the traditional roles of financial reporting and analysis are significantly affected as accounts can potentially be updated on a real-time basis. Therefore, financial accountants will be more responsible for dictating the structure of the accounts and less so for interpretation of standards and subsequent calculations- perhaps diminishing the claim for professional status.




References;


[1] http://en.wikipedia.org/wiki/Xml
[2] http://www.computerweekly.com/Articles/2006/11/15/219910/why-web-developers-will-need-to-know-their-rss.htm
[3] http://www.pcmag.com/article2/0,1759,1628049,00.asp
[4] http://blogs.law.harvard.edu/tech/rssVersionHistory
[5] RSS Connects PR Shops With Journalist Desktops, Lisa Van Der Pool March 21, 2005 Ad week
[6] Feed the Need: The State of RSS Advertising, Geoff Daily. EContent. Wilton: Nov 2005.
[7] “Who killed the newspaper? - Who killed the newspaper?” The future of newspapers, The Economist U.S. Edition, August 26, 2006
[8] XBRL Will Keep Investors Wanting More; Sarah Johnson, CFO.com, Se

Case Study – Compound

As Compound UK is the selling division of a multinational pharmaceuticals company, sound communication technology is imperative to ensuring effective inter-firm collaboration. Justifiably, senior management felt that the company could become more competitive by facilitating the sharing of information. Hence, Lotus Notes was introduced in 1996- but was this installation successful in achieving management’s desired outcome? As is the case with most software implementation (ERP for example), there are ways in which this process could have been improved.



Firstly, to encourage the application of the strategic selling function, a league table based on the quantity of strategic selling sheets and contact records was introduced. The caveat of this is obvious- by focusing on the volume of different records generated, emphasis on quality is significantly diminished. Whilst this problem was later identified by strategic selling managers, blatant attempts to manipulate the current reward structure in the interests of personal gain were rarely punished. To avoid such a scenario, Compound should have installed an independent Quality Review Panel. The duties of the panel would include flagging records with insufficient amounts of data (i.e. “.”) and quantifying the quality of the records maintained by each sales representative. In doing so, this would allow Compound to form a hybrid league table which takes account of the volume of strategic selling records maintained and the quality of information contained within such records.



Evidently, review of every single entry would represent a waste of resources and is not recommended. However, the panel could identify a sample of files created by each employee and grade it accordingly. The one drawback associated with sampling is that some representatives may feel that extraordinary performance in some instances would go unrewarded; thus, employees will be encouraged to cite files they are particularly proud of and feel merit attention. The flip side also exists as entries lacking in such quality may be left unnoticed, although employees will likely realise that consistently insufficient entries will be identified eventually.



In addition, the e-mail component of Lotus Notes was also used as a political resource for some employees. Primarily, this was because many 'cut throat' employees wanted to increase exposure to their superiors and were happy to be considered 'yes men’ if this would have a positive effect on career progression. As many messages received by management were deemed to be pointless, I recommend that a filtering system be applied to the email facility which prioritises mail in terms of urgency/importance. When sending any piece of mail, the creator would be required to state the associated level of importance; consequently, these individuals would be encouraged to consider the relevance of their message prior to actually sending it. If they attach a misleading label e.g. “URGENT” to a trivial e-mail, the employee may be reprimanded for wasting precious managerial time.



To reward effective collaboration, Compound attempted to motivate sales representatives by offering financial bonuses on top of their base salary. However, Kohn (1993) asserts that “rewards punish”. This belief stems for the idea that highly attractive rewards contingent on certain behaviours generates a feeling of control. If employees endeavour to succeed and subsequently do not receive a reward, this is indistinguishable from a punishment. Indeed:



“by using rewards, managers are creating a workplace where people feel controlled and this is not an environment conducive to exploration, learning and progress”[1].



Compound's staff were apprehensive towards the introduction of Notes; whilst it was promoted to more effectively pool the resources of the company, many cynics questioned the underlying intention. This concern was warranted by the big brotherly supervision which ensued.



The greatest advancement towards this collaborative objective did not come from the technology itself; it was the novel approach of James Black. He appreciated the intricacies which hinder the free flow of knowledge. Fundamentally that there must exist a trusting ethos where employees, expected to share their knowledge or experience, feel comfortable in doing so. Alexander Ardichvili conducted a study in to this area, using Caterpillar Inc as his subject. The most important barriers to sharing, identified by this study, were that participants are wary of publishing information, fearing reprisals if the data was flawed, a "fear to lose face". An element of this is apparent from the Compound case. Once the medical director began to participate in a previously fruitful forum of discussion, the contribution was seen to significantly drop off. This implies a lack of trust or cooperation throughout the company. I feel that this is the first aspect which needs to be rectified before the full benefits of the new technology can be realised.



“Research shows that there are numerous reasons individuals could have for sharing their knowledge with other members, ranging from self-esteem boosting to egoistic and conformist considerations” (McLure and Faraj, 2000)... Furthermore, Osterloh and Frey's (2000) research on intrinsic and extrinsic motivation for knowledge sharing suggests that intrinsic motives are much more powerful enablers of such sharing than are extrinsic (e.g., monetary or administrative) stimuli”[2]



The best results ensue where members actively want to pass on information, like the comprehensive and accurate filling of a Reps database, wholly for the good of the company. It is not effective to force this data from them through ill-defined incentives which only serve to skew the intentions of employees towards a more egoistic framework.



Compound does not exhibit such a proactive community nurturing the dispersal of knowledge. There is a distinct segregation within the Sales workforce, fatalists who have longs since given up their chances for progression and the career orientated who only aim to impress their superiors. There is fierce resentment towards group, who have instilled an air of competition in to the former’s job. This derogatory perspective is coupled with the Lotus Notes system which facilitated the comparability of performance.



I feel that increased monitoring is a by product of the software not deserving the attention it receives at Compound. The more functional aspects of Lotus Notes should remain at the fore, buttressing the companies market position. Perhaps the performance measurement could be shifted toward this facet, where each individuals contribution toward the corporate objective is rewarded, overruling the primitive quantitative achievements in place currently.


References;



[1] "Why Incentive Plans Cannot Work", Kohn, A.,Harvard Business Review, Sept-Oct 1993.

[2] "Motivation and barriers to participation in virtual knowledge-sharing communities of practice", Alexander Ardichvili, Vaughn Page, Tim Wentling. Journal of Knowledge Management, 2003.

Will offshoring affect UK accountants?

Virtually any knowledge work that can be carried out remotely, is geographically independent and distributable through a modem can be outsourced. [2]
There is now no effective distance between any two locations worldwide. Communications systems are so advanced that they are becoming useful in conducting more and more complex business procedures; casting a threatening shadow over the professional services of the developed world.

“A few years back outsourcing accounts work involved shipping over boxes of records and accounts with the very real possibility of them getting lost in transit. [1]
This is no longer a legitimate concern; technological evolution is a main facilitator of the offshoring phenomenon. Documents can be digitalized by scanners and then transported anywhere to be further scrutinised any number of collaborators. The communication network integral to the system is also perpetually becoming every cheaper and faster, creating a virtual presence where absolute proximity is not called for.
India is becoming a favoured destination for many UK firms toying with the concept. Its benefits include a highly educated workforce, average salaries at a tenth of the UK, widely-spoken English and an Anglo-centric culture. [2] Even the disparity in time between these two locations has been utilized. India functions approximately 5.5 hours ahead of the UK. This can be made favourable; if an urgent case arises it can be first dealt with by the Indian depot and if at the end of their day the work remains uncompleted the 2.5 hour overlap allows time to brief the staff in the UK so that the flow of work can be almost continuous, moving towards the provision of a 24hour service.

The offshoring notion is applicable to varying degrees within the range of Accountancy services. It is said to be more suited to repetitive and highly structures work – the tedium. Subjects such as tax and preparing financial statements can in this modern age be easily shipped from domestic soil. In fact it appears that many of the new location appear better equipped to tackle tasks at offer, JSA’s primary reason for moving part of its back office operation to Mumbai was because “even if we could find the quantity and quality of staff we needed in our home town of Watford we were unable to retain them long enough for them to become effective because of the routine nature of the work required.” [3]




The graph above displays the recent volume of US Tax returns completed in India, the exponential growth shown in the 3 years of empiric data has been linearly traced in 2009. On the face of it the trend depicts a worrying outlook for the future requisite of US and UK practitioners.

However this concern is qualified as Middleton believes that “the depth of the accountant-client relationship means the vast bulk of accountants' work is here to stay. If I look around our business and ask what kind of tasks might go to Bangalore, for example, the answer is probably not a great deal. A lot of what we do requires proximity to clients.” [2]

Instead of a threat to UK accountancy, many benefits may be realized through the changes. “Research by Cranfield School of Management has shown that outsourcing not only reduces measurable costs, but also heavily cuts indirect costs.” [3] Through streamlining the service provision enables the company to more effectively and efficiently direct the full attention of its available resources at the value adding services.
The role of the Accountant, in the UK at least, is evolving to encompass a more strategic and specialised approach, “helping their clients grow their businesses instead of just dealing with the often monotonous compliance work.” [3]

On global terms it appears that offshoring may be a good thing for everyone, helping to develop the economies of less fortunate regions of the world, whilst allowing UK firms to tailor their services towards the more rewarding aspects of the profession, presumably resulting in a cheaper and more comprehensive product for the client.
Whilst it is predominantly good that emerges from the process of offshoring; in order to retain the equilibrium; UK redundancies in the labour intensive, number crunching function are inevitable. To further illustrate the point the Abbey bank has plans to replace Four hundred of its UK positions with Indian equivalents. It is these factors which may cap the colossal growth recently evidenced. Political backlash is a major concern for multinationals. They maintain a fragile interdependency with national government and in many cases would be reluctant to upset this balance. The benefits will have to be substantial to embrace the risk, a risk which may deter many companies completely from embarking on an offshoring proposal; ensuring that a certain degree of the pure accountancy function is conducted domestically.


References;
[1] Special Reports: Outsourcing - Don't get left behind Michelle Perry. Accountancy. 2004
[2] Analysis: Offshoring - Offshore Accounting; Liz Loxton. Accountancy. 2004
[3] Analysis: Outsourcing - The Indian solution, Victor Stanton. Accountancy. 2006

Google Maps Mashups

The association between geography and the internet may at first seem unlikely, but their collaboratory efforts have given rise to many intriguing new applications.

A particularly useful selection from the plethora of these was;

• Starbucks Coffee Finder
• HeadlineMap
• Racetrackinginternational


Many of these innovations are inherently simple in nature, Starbucks Coffee Finder is little different. This site basically does exactly what it says on the tin, mapping the entirety of outlets across a region or city. While the product, coffee, may not hold global significance the concept may have far reaching effects regarding the way a company markets its service.

Linking information of a firms output to a designated position enhances its value for the casual browser. The potential relevance of a passing snippet can be assessed and therefore given more thought, etching the image of company firmly in the consumers mind. Were you interested in the product but found out that it was too far away to warrant further enquiry or it turned out to be just around the corner and thus worth checking out? Either way this tool offers a very cost effective way for businesses to both promote and observe their dominance within an area.

HeadlineMap “combines current stories from many world news sources with a mapping interface.” Contrary to the traditional news protocol the user first encounters a map where they can select the news items of specific locations. For businesses to react appropriately to emerging threats such as; natural disaster, new investment proposals, changes in legislation or even a local fair they must first be fully aware of their presence. Through the use of this site this monitoring process could be centralised for the entire organisation exploiting cost advantages. It may also be exercised by managers or investors who desire grounding in the external environment impacting upon the range of operations. Personally, it allowed me to research the on goings of an area where one of my friends was serving.

A more flippant map was found at racetrackinginternational.com which charted the progress of the Baja 1000, an off road race held in Mexico. For the avid fan, how else could they retrieve almost real time (maps are refreshed every five minutes) and continuous commentary which could be accessed at any point throughout the entire event? The relative standings of each competitor is portrayed by icons on the map displaying a comprehensive summary of the race.

The scope and diversity of mashups is immense with every additional creation re-asserting Google’s unrivalled power within the virtual world.

References;

http://googlemapsmania.blogspot.com/
http://www.findbyclick.com/coffee_s.html
http://www.headlinemap.com/
http://racetrackinginternational.com/tracking/

Community Walk - map

CommunityWalk Map - F1 - 2006