Archive for August, 2009
Put eight monkeys in a room. In the middle of the room is a ladder, leading to a bunch of bananas hanging from a hook on the ceiling.
Each time a monkey tries to climb the ladder, all the monkeys are sprayed with ice water, which makes them miserable. Soon enough, whenever a monkey attempts to climb the ladder, all of the other monkeys, not wanting to be sprayed, set upon him and beat him up. Soon, none of the eight monkeys ever attempts to climb the ladder.
One of the original monkeys is then removed, and a new monkey is put in the room. Seeing the bananas and the ladder, he wonders why none of the other monkeys are doing the obvious. But undaunted, he immediately begins to climb the ladder.
All the other monkeys fall upon him and beat him silly. He has no idea why.
However, he no longer attempts to climb the ladder.
A second original monkey is removed and replaced. The newcomer again attempts to climb the ladder, but all the other monkeys hammer the crap out of him.
This includes the previous new monkey, who, grateful that he’s not on the receiving end this time, participates in the beating because all the other monkeys are doing it. However, he has no idea why he’s attacking the new monkey.
One by one, all the original monkeys are replaced. Eight new monkeys are now in the room. None of them have ever been sprayed by ice water. None of them attempt to climb the ladder. All of them will enthusiastically beat up any new monkey who tries, without having any idea why.
And that is how most companies’ policies get established.
continued from here:
There are several issues that must be considered around agreement language that can impact how the revenue is reported.
- Gross versus Net Revenue reporting: Service provider costs, related party transactions and alliance agreements.
- Pricing structure and embedded leases
Compliance and control is important since it offers assurances to investors and more often than not, it is the law.
Points and Reminders:
• Clients and service providers need their accounting experts to sign off on any accounting treatments.
• Every contract can be different; slight nuances to contract language can alter accounting treatments.
• Recognizing and addressing these issues upfront, in the client’s sourcing strategy, improves their RFP and negotiation position.
• Everyone benefits from a clearly defined strategy.
And one last parting thought, “It’s an Accounting Issue. No, it’s a Contract Issue.”
One quick takeaway:
In nature, stability and resilience are opposed. A stable system lacks resilience and a resilient systems lacks stability. So it’s ok to stabilise things if you’ve got certainty of future; if you’ve got uncertainty you can’t afford stability you’ve actually got to introduce inefficiency.. if you don’t have a degree of inefficiency in the system it loses its evolutionary potential.
continued from here:
several issues that need to be considered around start-up & transition and asset ownership including:
- Asset ownership: Asset valuations, Lease Types
- Start-up, Transition, Transformation and One-Time Charges: Expensed vs Capitalization
- Restructuring costs
for Vendors. Pete Swabey on InformationAdvantage explains:
The number of IT projects that end in failure is staggering. According to a 2007 study by researcher Market Dynamics, 62% of all IT projects miss their deadlines, 49% go over budget and 41% fail to deliver the benefits that were expected. That is worrying enough for IT departments.
But for consultants and software vendors, keenly aware that project failure could well result in litigation, it is a constant concern. It is that concern that specialist insurer Hiscox addresses with its offering to IT vendors, insuring them against being sued by their customers. And it is a genuine danger. Stephen Wares, UK manager of Hiscox’s IT practice, tells of a small software development company with a turnover of £5 million that was sued for £18 million for the alleged failure of a project (the suit was eventually unsuccessful).
And the reasons he tells about are so well-know: bad specifications, overselling in the sales pitch, lax or non-existent change management.
Companies tapping into virtual infrastructure through cloud computing should take another look at their security plans, say experts at the Black Hat Security Conference. From legal protection to phishing, here are five cloud security issues to consider.
Here are they:
- Cloud offers less legal protection
- You don’t own the hardware
- Strong policies and user education required
- Don’t trust machine instances
- Rethink your assumptions
Interesting slides from the recent Black Hat conference here. Unfortunately the paper is missing, but probably need just a recheck next week here (or see for Haroon Meer under the speaker on the right side here.
I admit it, I am too curious to pass the opportunity to play with another gadget.
Some link for those that ask themselves “what the hell is an Arduino”.
The projects homepage: www.arduino.cc
Good books on Arduino from O´Reilly:
Ideas for dozens answers the question “Why the Arduino Matters“, and yes, this could be true.
An interesting project is TinkerKit, an Arduino-compatible physical computing prototyping toolkit aimed at design professionals. Still under development, but very interesting.
And finally, O´Reilly has also a book on Arduino in german:
John Klee from TPI starts a series of posts on Accounting Considerations in Sourcing Environments. This is going to be interesting:
What accounting issues can impact the Sourcing strategy and/or RFP structure?
- Asset ownership: asset valuations, embedded leases in service contracts, lease capitalization
- Start-up, transition and one time charges: expensed vs. capitalization
- Potential alliance agreements: Related party transactions, gross vs. net revenue recognition
- Regulatory compliance: Sarbanes-Oxley Act, SAS70, etc
- Pricing structure: service provider revenue recognition
- After collecting cash, recognizing the revenue streams related to those collections is often a Service providers management’s greatest concern