iPad: Next Generation corporate reporting
The much talked about launch of the iPad comes to a climax tomorrow when it makes its debut in the UK. Just another gadget you may think, but this piece of kit has the potential to seriously shake up the future of corporate reporting, says Tayburn's Richard Simpson.
The key advantage the iPad has is a large screen and it’s this crucial element that could well accelerate further the migration of reporting from print to web. Mobile phones have never really lent themselves to viewing information on the move, particularly that of the financial variety, and while Amazon’s Kindle and Sony’s eReader does allow some usability, they’re limited. Things may change with the imminent arrival of the second generation Kindle and Google’s version, but it’s the iPad that’s captured the imagination of industry.
With pretty much everything looking like it will eventually end up online, users need something that is portable and simple to navigate. The iPad promises both. Combine this with a browsing application that enables viewers to access the growing number of annual reports that are being produced in HTML format, and you can’t help but wonder if the iPad will be the catalyst for all companies to seriously address their online investor relations and stakeholder communications.
It’s fair to say that app development will drive the market for iPads, but it’s not unreasonable to envisage paid for applications that use programmes like XBRL to generate content and provide real time comparative corporate and annual reports. This evolving information could remove the traditional 'annual snapshot' from the equation, replacing it with more and more frequent updates.
Clearly, the prospect of having such current information is enough to whet the appetite of any analyst. Certainly, when the iPad was launched in the States the value of its potential was recognised immediately, sending Apple’s share price soaring. For analysts, having an iPad as standard issue could revolutionise commerce and for the companies producing annual reports, print costs - which can be substantial - could be negated.
Of course, it’s not a done deal yet, Apple has to get grips with the problems it has with the iPad’s battery life or run the risk of playing directly into the hands of the advocators of print and competitors. That said, battery technology is a problem facing the digital hardware sector as a whole and I’m sure, given a little more time, this glitch will be resolved.
But before we condemn print to the archives, it’s likely that it will always have a place with some stakeholders, albeit a slightly different role in the future. Personally, I believe report design will be led by the online requirement and print will support overall communications in the form of summary reports that supplement the full online version. I also think digital reports will become more sophisticated, focusing separately on the needs of different audiences - shareholders, investors, employees, customers, suppliers etc.
Whatever happens, those companies that are interested in real engagement with their stakeholders will seek out whatever means there are to get their message across and influence. My money’s on the iPad being the next new way of doing it.
Richard Simpson, Group Business
Development Director, Tayburn