From print to digital – moving the Annual Report into the 21st century
Transcript of From print to digital – moving the Annual Report into the 21st century
Corporate reporting - From print to digital
Jonas Jonell, KWD
KWD
1. Information overflow
Can web technology make annual reports comprehensible and customisable to different stakeholders?
Things were easier before
Ericsson Annual Report 1901, 6 pages including cover
Cover Report of directors Income statement Balance sheets Proposed
appropriation of
earnings
Then came the avalanche
1970
Legal
document
1980
Adding of
Company-
presentation
1990
Environment, C
SR,
sustainability
sections added
2003
New legal
requirements
by IFRS
2005
Increased
demands on
Corporate
governance
reporting
2010
New regulations
after the
financial crisis?
Avalanche example: Electrolux 1950-2008
15 24
4856
60
7680
85
98
114122
138
158
178
0
50
100
150
200
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Number of pages
IFRS
Environmental
reporting
CSR
Corporate
governance
Why is this?
It is the most prestigious document from the company
Its usage has broadened, but the format remains
Professional readersNon-professional readers
EmployeesSociety Small
shareholders
Vendors
Partners
Customers Journalists Authorities Large shareholders,
Institutional
investors
Analysts
Is this really the best way to communicate the corporate story?
Can we use the web format to make annual reports comprehensible and customised, like Wikipedia?
Customised information
Different readers have different needs
What is the dividend?
I want to learn more about x
I want to know even more about x
What is the financial situation of your vendors?
What is the board’s payment?
I want to know more about your CEO
I don’t believe in this market figure!
I want a printed version!
EmployeesSociety
Small
shareholders
Vendors
Partners Customers Journalists Authorities
Large shareholders,
Institutional
investors Analysts
What are the main trends?
Customised information
Search
Quick questions are best answered with the web’s search capability
Besides quick answers, search also provides related information, like policies for dividend or remuneration, throughout the entire report
EmployeesSociety
Small
shareholders
Vendors
Partners Customers Journalists Authorities
Large shareholders,
Institutional
investors Analysts
What is the dividend?
I want to learn more about x
I want to know even more about x
What is the financial situation of your vendors?
What is the board’s payment?
I want to know more about your CEO
I don’t believe in this market figure!
I want a printed version!
What are the main trends?
Customised information
Drill down
Hyperlinking is the reason for the breakthrough of www in the 1990’s
Use it as internal shortcuts or to external parties, like industry press articles, to the company’s vendors, or to third party market surveys
This will help the reader to understand your company and its context
What is the dividend?
EmployeesSociety
Small
shareholders
Vendors
Partners Customers Journalists Authorities
Large shareholders,
Institutional
investors Analysts
I want to learn more about x
I want to know even more about x
What is the financial situation of your vendors?
What is the board’s payment?
I want to know more about your CEO
I don’t believe in this market figure!
I want a printed version!
What are the main trends?
Customised information
Rich media
There is an increased focus on the company’s management and the CEO as an individual
The CEO’s letter to the shareholders is an effective way to address the shareholders directly, but a video presentation makes it even more effective and personal.
EmployeesSociety
Small
shareholders
Vendors
Partners Customers Journalists Authorities
Large shareholders,
Institutional
investors Analysts
What is the dividend?
I want to learn more about x
I want to know even more about x
What is the financial situation of your vendors?
What is the board’s payment?
I want to know more about your CEO
I don’t believe in this market figure!
I want a printed version!
What are the main trends?
Customised information
Customised print
The print media will survive, not only because many authorities still require a physically signed document, but also because many readers prefer a hard copy.
However, an online report can provide tools for creating your own, customised PDF file.
EmployeesSociety
Small
shareholders
Vendors
Partners Customers Journalists Authorities
Large shareholders,
Institutional
investors Analysts
What is the dividend?
I want to learn more about x
I want to know even more about x
What is the financial situation of your vendors?
What is the board’s payment?
I want to know more about your CEO
I don’t believe in this market figure!
I want a printed version!
What are the main trends?
Customised information
Interactivity
Complex financial information is hard to grasp for a non-professional reader
The web medium has several interactivity features to enhance pedagogy
EmployeesSociety
Small
shareholders
Vendors
Partners Customers Journalists Authorities
Large shareholders,
Institutional
investors Analysts
What is the dividend?
I want to learn more about x
I want to know even more about x
What is the financial situation of your vendors?
What is the board’s payment?
I want to know more about your CEO
I don’t believe in this market figure!
I want a printed version!
What are the main trends?
Interactivity increases understanding
Can you see the trend? Can you see the trend?
Summary
The thirst for information will continue to grow, but the web medium is excellent to deal with this
Rich media Search
External hyperlinks
for drill down analysis
Internal hyperlinks for
additional page entries
Custom PDF creation
2. Production
How to add another step in an already complex production cycle
A new world for both web agencies and traditional annual report producers
From the web agency point of view
The buyer is not web native
“Let’s publish next week” is not an option
Top management have stronger opinions than usual
Content is horizontal rather than hierarchical in its structure
From the buyer’s point of view
Changes that appear easy might be very difficult to solve
Changes that appear hard might be very easy to solve
How do I keep track of interactivity and internal hyperlinking features?
External hyperlinks, official information from my company? Wikipedia?
But once your organisation get used to the online format, you will also find
production benefits with online annual reporting!
Why don’t wait until things settle down?
Because then the report is old news
To get best value for the investment, publish the online version simultaneously as the printed one
Number of visitors
Average day Day of report Increase
Company X 376 838 +123%
Company Y 3 152 4 649 +47%
Company Z 12 280 21 026 +71%
H&H statistics for three Swedish,
listed companies
Another example of publish timing
Nearly 600 visitors on publish day (simultaneously published)
Note that the online annual report does not die, it is revisited on various investor events
Number of daily visitors on an online annual report
for a large Swedish company
0
100
200
300
400
500
600
700
Launch
Q1 report
Investor dayQ3 report
Summer Christmas
Semi-parallel production process
Complete the graphical design and programming of all templates and special pages in good time before the print version is final and sent to the printer house
After content sign-off, make sure to have the right tools to fill the templates with final content
Include a launch phase in the time plan to ensure quality
Final sign-off print content
Design Programming Content migration Launch
2-4 weeks(synchronized with
print and distribution)3 weeks to 3 months
(depending on graphical complexity)
Despite all preparations, we still suffer from dual processes.
Isn’t there another way?
Opposite approach: Annual Report 2.0
Annual Report 2.0:
To create the annual report directly for the web medium, and get a printed version as a secondary product
The journey towards digital reporting
Draft in MS WordTypesetting in InDesign
Print ready PDFWeb version conversion
Draft in MS WordTypesetting in Word
Print ready PDF and web version
Draft and type-setting in Word
Print ready PDF and web version
phase
1
phase
3
phase
2
Benefits with Annual Report 2.0
Digitalizes your content automatically for multichannel purposes
One single process instead of two
Possible to use web writing style from the start
Sends a clear message that the web is the primary medium, motivating a reduced circulation of printed copies (if any)
A printed version is still available
But its graphical ambitions is reduced, because those who prefer the printed version do not appreciate heavy graphics anyway
This lets you reduce your budget, or target your budget to increase the quality of the web version