Tuesday, March 04, 2008

Improving Transparency to Improve DNA (Umair's type)

The FT has an article today on Institute of Credit Management releasing tables on the payment performance of listed companies. This again follows the idea of using transparency to reform and improve the performance of businesses.

But it is not enough to have someone comb through annual reports to find this information. In the world of the web, this type of information should be provided in XML form on every companies website. Companies will scream that it is a bureaucratic hurdle but that isn't true. There will be an initial pain as companies adjust their systems to publish this information but then that only creates opportunities for new business to streamline the process.

Publishing information as XML is a trivial exercise and cannot be considered a viable argument. What most companies are really objecting to is the changes that this transparency will require them to make. To borrow Umair is terminology, the transparency will necesscitate a change to businesses DNA. Those that don't change will die.

tags: FT, Disruption, Business, Transparency