8. Information
“Getting information off the Internet is like taking a drink from a fire
hydrant.”
Mitchell Kapor
9.
10. Information
“Information is a source of learning. But unless it is organized,
processed, and available to the right people in a format for decision
making, it is a burden, not a benefit.”
William Pollard
11. Procurement - What’s the job?
Genuine job descriptions...
• “Design and implementation of innovative procurement
processes, policies and solutions”
• “Identification of pertinent new suppliers to ensure
continued best-in-market service provision”
• “Ensuring departmental contribution to group savings
initiatives are realised (c.£2.4m commitment for delivery in
2012), whilst maintaining and improving quality of services
and goods”
13. What can data deliver?
Promoting best practice and improving efficiency
• Adhering to the rules
What % of a supplier’s revenue does our business represent?
Are we buying from low risk businesses? Financial / Compliance
• Leveraging existing relationships
Are our suppliers part of a larger group we already buy from?
Are my current suppliers able to service us in other areas?
14. What can data deliver?
Promoting best practice and improving efficiency
• Helping in tendering and negotiations
Identifying new alternative suppliers
Benchmarking suppliers for profitability
• ALERT me to strategic changes
Acquisitions
Negative financial trends / indicators
15. The data
A good understanding of data, its sources and the potential
strengths and weaknesses are essential
16. Company data
Quoted companies (shares available on open exchanges)
• Everybody should do these well
• Stock exchanges, annual reports posted on web sites
• Often market research available to provide company profiles
• Industry context
• SWOT
• Competitors
• Forecasts
17. Company data
Private company data
Official bodies
• UK - Companies House and the London and Edinburgh Gazettes
• Germany – Handelsregisters, Bundesanzeige
• France - greffe du tribunal de commerce
……etc
Primary research
• Direct requests to the companies
18. Companies house data rules
Companies Act 2006
Accounts Exemption Thresholds for companies with accounting periods starting on or after 6th April
2008
Total audit exemption
To qualify for total audit exemption, a company must:
• Qualify as small
• Have a turnover of not more than £6.5 million
• Have a balance sheet total of not more than £3.26 million
Small company
To be a small company, at least two of the following conditions must be met:
• Annual turnover must be £6.5 million or less
• The balance sheet total must be £3.26 million or less
• The average number of employees must be 50 or fewer
Small group
To qualify as small, a group of companies must meet at least two of the following conditions:
• Aggregate turnover must be £6.5 million net (or £7.8 million gross) or less
• The aggregate balance sheet total must be £3.26 million net (or £3.9 million gross) or less
• The aggregate average number of employees must be 50 or fewer
Medium companies etc…..
http://www.companieshouse.gov.uk/about/gbhtml/gp2.shtml#ch7
19. Company data
• US
- Most US private companies are not required to file financial data at all
- information providers will sometimes estimate a company’s revenue or sales
• Europe
- profit and loss
- balance sheet
- director details
20. China
•no centralised 'Companies House', instead there are thousands of registration bureaux
•Registration Bureaux do not provide any detailed information – in some cases only allow
name, legal representative and status to be viewed by public (check if a company is still
active – aim to prevent fake companies operating)
•you can’t take copies or notes of papers in a company's file, and it is necessary to visit
the relevant locations to view the files in the first place (and of course everything is in
Chinese)
•If companies don’t file they lose their registration – the extent to which this is enforced
varies regionally
21. Company data
• Asia
- Varies country to country
- Some official source and some has to be requested eg Japan
- Taiwan
• Africa, Middle East, South America
- Improving all the time
- Argentina
- Brazil
22. Company data
What's new on Orbis – September 2012
• There are now 101 million companies on Orbis
• In the last month:
• over 2.8 million company accounts have been updated
• over 3.8 million new companies have been added
• Brazil - nearly 2.8 million new companies
• Israel - over 356,000 new companies
• United States - over 133,000 new companies
23. Company data
Other primary research
• Verification process for contact data
- “can you confirm that...”
- Names, e-mails, turnover, employees
• Enriching descriptive content
-“other business services” (Companies House, SIC description)
- “This company is engaged in the electronic publishing of company information and
business intelligence. It was established in 1991 as a separate entity following a division of
activities within Bureau Marcel van Dijk. …specialises in adding value to data to create easy-
to-use, flexible and state-of-the-art solutions that allow users to manipulate information for
research, financial analysis and marketing intelligence… serves a client base of
approximately 5,000 businesses…” (Overview from BvD)
24. Matching internal to external data
The process of connecting records from an
internal system (such as a SRM) to a data
provider’s unique reference number
25. Cloud computing allows you to access everything you need, from anywhere, on any
computer. You can access this information without worrying if you have enough room for
all of it, or where it is stored.
27. Matching
Accuracy of matching drives the benefits
• As accurate as possible
• BvD doesn’t get linked to Bureau van Dijk without human intervention
• Engaging in the process is a wise investment
28. Matching - data management
• Removing businesses that are no longer trading
• Identifying multiple records and consolidating
• Replacing old content with new
• Adding data points to existing records for richer content
• Adding new records that look like your current suppliers
29. Matching - profiling
Using third party software
Segmentation
– Size
– Activity
– Location
– Risk
“More like this”
30.
31. Matching - monitoring and alerts
• Changes in control (business ownership)
• Recently resigned, or new, directors
• New financial data
• Increase in financial risk - Liquidation
• Business critical news
– Jobs
– Contracts
– Restructuring
– Strategy
32. Using technology to deliver data
“The goal is to transform data into information,
and information into insight”
Carly Fiorina (Executive and president of Hewlett-Packard Co. in 1999.
Chairperson in 2000.
33. Using technology to deliver data
Introduce valuable external content into existing work flows
• process driven
• delivering content to the right people….
…at the right time
Notas do Editor
(using external company data to enhance capabilities and improve performance)
Historically, there are two schools of thought which affect financial reporting. For the Netherlands, Denmark, UK and Ireland, part of the “Anglo-Saxon” group of countries, the goal is to provide existing or potential shareholders with a true and fair view of the company. Continental Europe is more focused on providing information for taxation and statistics, and to offer protection to credit grantors. Other factors affecting a country’s filing regulations and disparate display of financial information include: Economics – Fiscal policies, accounting rules, taxation Cultural difference – Some cultures do not adhere to the importance of deadlines or regulation Legal form of the company - Sole proprietorship, partnership, limited liability etc. Company size – small and medium size companies may be required to file less information One example of how fiscal policy affects filing is the taxation on profit requirement. For most of Continental Europe, companies tend to lower their profit with overestimated depreciation or bad debt provisions. This calculation of the fiscal profit is based on accounting rules. Yet in Anglo-Saxon countries, the taxation on profit is calculated separately and is independent from accounting practices. The difference between both calculation methods is itemized in “deferred taxation”, which is considered a debt on the balance sheet. The view of the profit and loss account is considered to be fair, as accounting and taxation are separated.
Seems to be quite open that not everyone will be able to cope with regulations
Historically, there are two schools of thought which affect financial reporting. For the Netherlands, Denmark, UK and Ireland, part of the “Anglo-Saxon” group of countries, the goal is to provide existing or potential shareholders with a true and fair view of the company. Continental Europe is more focused on providing information for taxation and statistics, and to offer protection to credit grantors. Other factors affecting a country’s filing regulations and disparate display of financial information include: Economics – Fiscal policies, accounting rules, taxation Cultural difference – Some cultures do not adhere to the importance of deadlines or regulation Legal form of the company - Sole proprietorship, partnership, limited liability etc. Company size – small and medium size companies may be required to file less information One example of how fiscal policy affects filing is the taxation on profit requirement. For most of Continental Europe, companies tend to lower their profit with overestimated depreciation or bad debt provisions. This calculation of the fiscal profit is based on accounting rules. Yet in Anglo-Saxon countries, the taxation on profit is calculated separately and is independent from accounting practices. The difference between both calculation methods is itemized in “deferred taxation”, which is considered a debt on the balance sheet. The view of the profit and loss account is considered to be fair, as accounting and taxation are separated.
Historically, there are two schools of thought which affect financial reporting. For the Netherlands, Denmark, UK and Ireland, part of the “Anglo-Saxon” group of countries, the goal is to provide existing or potential shareholders with a true and fair view of the company. Continental Europe is more focused on providing information for taxation and statistics, and to offer protection to credit grantors. Other factors affecting a country’s filing regulations and disparate display of financial information include: Economics – Fiscal policies, accounting rules, taxation Cultural difference – Some cultures do not adhere to the importance of deadlines or regulation Legal form of the company - Sole proprietorship, partnership, limited liability etc. Company size – small and medium size companies may be required to file less information One example of how fiscal policy affects filing is the taxation on profit requirement. For most of Continental Europe, companies tend to lower their profit with overestimated depreciation or bad debt provisions. This calculation of the fiscal profit is based on accounting rules. Yet in Anglo-Saxon countries, the taxation on profit is calculated separately and is independent from accounting practices. The difference between both calculation methods is itemized in “deferred taxation”, which is considered a debt on the balance sheet. The view of the profit and loss account is considered to be fair, as accounting and taxation are separated.
There is nothing more frightening in the world of marketing then having to use data whose accuracy relies solely on sales people