CIOs Think XBRL Impact Will Be Big (But It Is Not High On Their Priority List) December 1, 2009Posted by bernardlunn in Uncategorized.
Tags: capital markets, cio, compliance, governance, risk, transparency, xbrl
I have developed a journalistic habit – try to find THE STORY. It is valuable habit when sitting through long conferences. You can learn lots of detailed stuff at conferences but it is too easy to get lost in the trees and not see the forest.
The story at the XBRL Conference jumped out at me when I saw two slides from a presentation by John Van Decker of Gartner. This generated the headline:
“CIOs Think XBRL Impact Will Be Big (But It Is Not High On Their Priority List)”
Of course headlines and sound bites can suffer from a different problem – oversimplification. So take a look at the underlying data as shown in the presentation slides. Specifically look at: John Van Decker, Vice President – Corporate Performance Management and Financial Management Systems, Gartner in Beyond The Mandate. See slide marked: Technologies that will have major impact.
# 1 at 37.1% is no surprise: Web Oriented Software. Actually that’s a catch-all term that includes almost all the other categories
# 2 at 29% is the big surprise: XBRL!
Add in the related # 3 at 24.8%: Governance Risk & Compliance (GRC) and you can see what is keeping CIOs awake at night. Arguably, XBRL is a tool to enable GRC:
XBRL + GRC = 53.8%.
To put this in perspective, check out the % for some “hot” subjects:
- SAAS: 15.7%
- Enterprise Mashups: 6.2%
OK, so much for the first part of the headline:
“CIOs Think XBRL Impact Will Be Big”
What about the second part?
“But It Is Not High On Their Priority List”
Look on the next slide labeled: XRBL adoption is SLOW!
For those relatively new to XBRL, the 1,2 and 3 relates to the SEC Mandate, where 1 is the first wave of filers. My takeaways:
- There is a lot of work to educate the 3rd wave of filers. 72% cite “lack of knowledge” (and therefore, not surprisingly lack of budgets or technology).
- Nobody has provided a compelling use case beyond the mandate, so the 1st and 2nd wave filers are not doing more than they absolutely need to in order to meet SEC mandates.
For more basic intro to XBRL, see my recent post and links on ReadWriteWeb.