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Auditing Report

In: Business and Management

Submitted By luukh26
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To From Subject Course Date

Mr. R. Nijland Luuk Harleman (2430113) Business case Auditing Report 26th of March 2013

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Executive Summary
In the following case a business process is described of a particular subject which is discussed during the lectures of the APM course. The choice was to write one from your own experience or from an existing company. I chose an existing company since you can keep an interview and it will be easier to identify the current situation and to draw up a “plan for the future” which will contain some adjustments and benefits the company. The company I chose is an advertisement agency which focuses on online graphical design and target group analysis to efficiently meet today’s customer demands.

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Table Of Contents
Executive Summary ................................................................................................................................ 3 1.Company Analysis ................................................................................................................................ 5 Organisation chart ............................................................................................................................... 5 Brief outline ......................................................................................................................................... 5 Products............................................................................................................................................... 6 Media Architecture: ............................................................................................................................ 6 Social Architecture: Develop and manage .......................................................................................... 6 2.Industry Analysis ................................................................................................................................. 7 Internet................................................................................................................................................ 7 Social Media ........................................................................................................................................ 7 Social Media photos ............................................................................................................................ 7 Mobile ................................................................................................................................................. 7 Video.................................................................................................................................................... 8 Growth................................................................................................................................................. 8 3.Problem Description ........................................................................................................................... 9 Why is this causing problems .............................................................................................................. 9 4.Overview ............................................................................................................................................ 10 5.Solutions ............................................................................................................................................ 12 Podio.................................................................................................................................................. 13 Protocols............................................................................................................................................ 13 6.Final Conclusion ................................................................................................................................ 18 7.References ......................................................................................................................................... 19 8.Appendix ............................................................................................................................................ 20 Assignment ........................................................................................................................................ 20

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1.Company Analysis
Organization chart

Fresh Apple is an advertisement agency which recently started and offers a mixture between products and services. Fresh Apple doesn´t necessarily just offer a product. If you buy a product from Fresh Apple you get a high level of tailor-made service all depending on the companies’

    

Internal and external environment Target group Industry Product offer Type of organization

The focus of the company as former owners of an internet website production company is offering online digital media solutions like: websites, web-shops, social media etc.

Brief outline
Company name Seats Industry Products/services Adress Website Fresh Apple Media Architects 9 Advertising Online and offline media solutions Asselsestraat 294 www.freshapple.nl

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Products
The agency is divided in media architecture and social architecture. Media architecture contains the production process of the company.

Media Architecture:
     Websites Applications Motion Graphics Identity “ready 2 go concepts”

Social architecture has got more to do with the psychological factors and strategy choice. Fresh Apple works with NLP tools (neuron linguistic programming) tools to develop the best suitable products to the customer

Social Architecture: Develop and manage
Services – Consult      Social media workshops Product management o Plan of approach Budget and Planning Scouting Monitoring and analysing

People who know exactly what they want usually choose for a direct product in the media architecture section. People that don’t know exactly what they want come through social architecture which focuses more on brand developing and coaching, the service part of the company.

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2.Industry Analysis
Internet1234
In 2010 a total of 107 000 billion emails were send, an average of 294 billion a day. 89.1% of that percentage emails is spam. Research has shown, that 4% of that spam is being opened and read. In 2011 there were 300 new websites to a total of 555 million websites in December 2011. 30.2% of the world population currently has access to the internet and in the Netherlands even 88.3%.

Social Media
The number of users of Facebook has risen worldwide with 200 million to a billion members at the moment. The number of twitter accounts has grown to a total of 225 million, 100 million of the members are daily active and together they send 250 million tweeds a day. Google+ is growing in popularity with 90 million users since January 2012. The number of Wordpress blogs is 70 million at the end of 2011. The average number of send messages a day through whatsapp is 1 billion.

Social Media photos
The number of Instagram users has grown 150% in 4 months from 40 million to 100 million in august 2012. Together they upload about 300 pictures per second. Flickr has 51 million registered users and there are 4.5 million uploads a day.

Mobile
The number of active mobile internet connections worldwide is 1.2 billion. 85% of worldwide shipped telephones have a web browser. The Dutch percentage is probably even higher. Forecasted is that the digital expenses in 2016 are a third of the Dutch entertainment and media turnover. In 2011 this was still one forth. This grow is mainly due to the fact of the explosive increase in the sales of smart phone devices and the mobile internet connection which are connected to those smart phones.

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Internet anno 2010 in cijfers | Marketingfacts. (2011, January 18). Marketingfacts | Platform voor interactieve marketing. Retrieved March 15, 2013, from http://www.marketingfacts.nl/berichten/20110118_internet_anno_2010_in_cijfers
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Internet anno 2011 in cijfers | Marketingfacts. (2012, January 18). Marketingfacts | Platform voor interactieve marketing. Retrieved March 15, 2013, from http://www.marketingfacts.nl/berichten/20120118_internet_anno_2011_in_cijfers
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Spam wordt gelezen door 4% van de internetters - Techzine - ICT Nieuws - Internet - De community voor ICT liefhebbers en professionals. (2003, October 4). Techzine - 223.187 reacties geplaatst - De community voor ICT liefhebbers en professionals. Retrieved March 15, 2013, from http://www.techzine.nl/nieuws/4215/spam-wordt-gelezen-door-4procent-van-deinternetters.html
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Hybride verdienmodellen hebben de toekomst" | Marketingfacts. (2012, October 4).Marketingfacts | Platform voor interactieve marketing. Retrieved March 15, 2013, from http://www.marketingfacts.nl/berichten/hybride-verdienmodellen-hebben-detoekomst/

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Video
On youtube there is a total of 100 000 billion viewed videos. That are approximately 140 viewed videos per head of the total population of the earth. Every minute, 24/7, 48 hour of video material is added on youtube. On Vimeo there are 4.2 million new users.

Growth
Due to the financial crises, companies have a smaller budget to spend. The turnover from digitally advertising and digital consumer spending has however grown recent year with 17.4% to 3.9 billion euro. This grow is forecasted to continue the coming years. PwC(international accountancy and tax consulting company) is expecting a grow of 8%. That would result in a turnover of 5.8 billion euro in 2016. Offline media also still grow 2.3% a year.

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3.Problem Description
After an interview with the owner of the company we discovered that there are some problems which could be handled a little better. As Fresh Apple offers a high quality service, internal marketing is very important. Sometimes there are some issues with internal communication within the company which causes improper data flow.

how this is causing problems
1. 2. 3. 4. An e-mail has been send and a reply is a little late (sometimes too late). No replies to telephone calls. Wrong people are addressed so no answer can be given. Part timers are harder to reach

So because of bad internal communication the data flow process within the organization is not efficient

Why is this causing problems
This is causing problems on multiple levels of the organization: operational, tactical and strategic. Because data is processed and transferred properly insufficient and inaccurate data lead to unsatisfied customers, employees and in the end the product which is produced. These are a few issues which are the result of bad internal communication within the company. After doing research I have come up with recommendations which can be a benefit to the company’s internal communication process if they are implemented and these will be presented in the following chapters.

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4.Overview

Strategic level : 1-9

Tactical level: 10-13

Operational: 14-15

Effects on strategic level 1.Quality of the service is lower 2.Quality of the products are lower 3.Time loss is costing money, less revenue 4.Fewer sales 5.Losing competitive advantage 6.Brand image becomes worse 7.Customer retention is declining 8.Losing market share 9.Word-of-mouth promotion declining/Less new customers

Effects on Tactical level 10. Responsible person doesn’t know exactly what to do 11. More hours spend on projects 12. Less total capacity 13. Less capable people perform the task

Effects Operational level 14. Data not transferred at the right time 15. Data not transferred to the right people

Table 1

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Effects on operational level (14-15):
These are the more obvious effects from the 4 causes mentioned in chapter 3. For example: When an e-mail is replied late the data will not reach the person at the right time or when wrong people are addressed data will not reach the right person.

Effects on tactical level (10-13):
The effects on tactical are still pretty obvious to see. When insufficient data transfer in the company is costing the company extra money. Pricing decisions are getting harder in a competitive environment.

Effects on strategic level (1-9):
The effects on strategic level are a little less obvious to see, because they cannot be felt right away. For example when data is not transferred to the right person. Time is lost, time is money and this needs to be paid for. If the customer has to pay for this “extra time” which has no added value, satisfaction may go down which directly results customer retention and therefore fewer sales in the future and you may lose numerous things like: competitive advantage, market share and several other things described in table 1 You can see that something what maybe in the first place doesn’t look very harmful to the business can have a huge impact on the business in a whole, especially in the advertising industry. In this industry efficient communication is a key, not only externally to your partners and customers, but also internally. When internal communication is not performing well this may have an effect to a number of things as described in the table above.

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5.Solutions
In this chapter the tools will be described which can help the company’s internal data flow process to be more efficient and effective. The cause of insufficient data flow is a result of 4 reasons which are described in chapter 3. Through an explanation of the strengths and the weaknesses of the tool and the use of protocols written and guided by flowcharts, the use of this tool will be strictly controlled for its proper use. The 4 reasons of improper data flow: 1.Late or no response at e-mails There is no need to send emails internally between employees, because of the Podio tool. For Customer inquiries which will be opened through e-mail a protocol is designed with a flowchart 2.Late or no response at phone calls After a phone call is received this will be mentioned in the Podio tool. 3.Wrong people are addressed so no answer can be given The Podio tool and the guidance of the protocol will make sure this does not happen anymore. 4.Part-timers are harder to reach With this problem the Podio tool can be used again if used properly to maximize efficiency.

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Podio
Podio is an online work platform. Users can create workspaces to collaborate with specific employees and an overall employee network(social network) lets employees from every department be able to communicate with each other. Podio enables you to download or make your own apps in order to structure any business process and make it possible to be connected for commenting and discussion purposes 5

Podio tool analysis:

Strengths
   Enhance efficient communication through online digital collaboration network Address specific people

Weaknesses
  Podio premium costs 9 dollars per employee per month If not used properly, communication will get worse instead of better Internet connection + computers needed for the software to work

Make workspaces so data is transferred  immediately to the right space with the responsible people  Everybody knows what’s happening in the company  General employee network for overall sharing of data  Download or develop apps within the tool, example: planning tools, idea generating, sales contracts, customer status etc. The 1st weakness is the highest weakness, because it has a direct effect on the company’s spending. It is an investment decision where the result is not directly tangible and some of the effects can only be seen in the long-term. The table on the previous page could make the decision a little easier looking at the risks and your own image building of the company which offers high quality. The 2nd weakness could be a problem and this weakness can be tackled through the use of protocols which will be described in the following chapter The 3rd weakness can be neglected for the type of industry Fresh Apple is in, but this could be a weakness to other industries, therefore it is mentioned in the table.

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About Podio - Podio. (n.d.). podio.com. Retrieved March 26, 2013, from https://company.podio.com/about

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Protocols
Protocols can be useful when implemented correctly. It will teach people to behave in a certain preferred way and contributes to correct data flow within the organization. The protocol tool can be implemented for the use of the internal social media software and general communication purposes within the company.

Strengths
   More efficient data flow Teaching tool how to behave Control procedure

Weaknesses
  Not used properly Not used at all, result is that it has no effect

For the protocol to work people have to know what is the content of the protocol. New employees have to read and memorize it. Employees can address each other when protocol is not followed. A manager should have full authority to check and control people and the protocol should be printed and readily available for employees to read it so it can be used.

Note: Emails received from customers are to be shared on Podio, so employees will have an account but just for the purpose to be reachable for external dataflow like communicating with: customers, suppliers, partners. An app is downloaded for scheduling, within seconds you know who is around and who is not. A parttimer could not be there for example on a Monday. You can see directly when the responsible person will be there and then he will read the message in the morning, because protocol describes to check Podio daily.

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Podio Protocol Basic settings:
Every employee is expected to have the following profile settings: Go to: My Account Account settings Email & Notifications

Check the boxes of the following options Email notifications settings

 Daily Digest | Get an email every morning to catch up on activities you are involved in –
Including the last 24 hours and the upcoming day On screen notification settings

 Enable on screen notification | Enable web notifications

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Flowchart | Receiving e-mails from external party

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Flowchart | Data processing in Podio

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6.Final Conclusion
There are ways to improve the process of data flow within the organisation. It is just a matter of doing it, trial and error like the Japanese do a lot. Afterwards it is necessary to measure the effect it has on the business. This can be measured by a number of ways like customer satisfaction rates, customer retention, total number of sales, efficiency like the total number of hours which has been put in a certain project, but also statistics like profit margins etcetera. I think you have to look careful to the type of company, the industry and the strategy it follows to determine which tools are most suitable for the company. Because the main strategy of Fresh Apple is to differentiate themselves from the rest of the market you need to pursue the internal marketing strategy so the result is high quality products. As mentioned by the owner of the company a way to do this is to improve internal communication and my recommendations can be a benefit to the company’s performance which can eventually lead to a stronger position in the market.

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7.References
Internet anno 2010 in cijfers | Marketingfacts. (2011, January 18). Marketingfacts | Platform voor interactieve marketing. Retrieved March 15, 2013, from http://www.marketingfacts.nl/berichten/20110118_internet_anno_2010_in_cijfers Internet anno 2011 in cijfers | Marketingfacts. (2012, January 18). Marketingfacts | Platform voor interactieve marketing. Retrieved March 15, 2013, from http://www.marketingfacts.nl/berichten/20120118_internet_anno_2011_in_cijfers Spam wordt gelezen door 4% van de internetters - Techzine - ICT Nieuws - Internet - De community voor ICT liefhebbers en professionals. (2003, October 4). Techzine - 223.187 reacties geplaatst - De community voor ICT liefhebbers en professionals. Retrieved March 15, 2013, from http://www.techzine.nl/nieuws/4215/spam-wordt-gelezen-door-4procent-van-deinternetters.html Hybride verdienmodellen hebben de toekomst" | Marketingfacts. (2012, October 4).Marketingfacts | Platform voor interactieve marketing. Retrieved March 15, 2013, from http://www.marketingfacts.nl/berichten/hybride-verdienmodellen-hebbende-toekomst/ About Podio - Podio. (n.d.). podio.com. Retrieved March 26, 2013, from https://company.podio.com/about

Literature
Romney, M. B., & Steinbart, P. J. (2009). Accounting information systems (11th ed.). Upper Saddle River, N.J: Pearson Prentice Hall.

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8.Appendix
Assignment
Auditing and Process Management – Assignment Quarter 3, Theme 4 – Information Management APM – Part II Assignment description You have to write a business case, related to one of the subjects discussed during APM. This means you have a enormous choice of subjects. Usually a business case, describe a “plan for the future.” The business case can be written from your own experience or from an existing company. The first one is more difficult, since you have to cover / investigate several subjects in order to get a good business case.

Objective of the assignment To investigate a subject related to APM, report about that, and come up with alternative solutions (inc. all aspects named under End result).

End result You have to build up of your business case as followed:  Situational assessment and problem statement  Solution description  Cost and benefit analysis  Implementation advice  Critical assumptions and risk assessment  Conclusions and recommendations Judgement criteria Besides the (mandatory) given elements, in that order, elements of judgement are: English. Layout Realistic All solutions covered Is the problem solved, with your business case

“Literature” you can use for your business case. A gathering of links: http://itknowledgeexchange.techtarget.com/itanswers/cheat-sheet-how-to-write-a-business-case/ A “toolkit” on how to write a business case. http://www.prosci.com/tutorial-business-case-mod1.htm Literature on the subject of your business case, can be found in the library (wiki, google etc are not allowed). For every five articles you show the teacher, you will get one additional article in return. Deadline: The Friday in week 3.7, 12.00 – via email.

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