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Business downtownII

Extracting the Max: Australian Financial Content Online

Pat Matthews

Manager - client services, The Frank Lowy Library Australian Graduate School of Management University of New South Wales

They may seem to be the same, but are they really? Why are some more costly - and what really represents value to me and my users? This paper will give a comparative overview of Australian company financial content on a number of local and international online databases - the depth, range, scope and timeliness, and the ease of use for beginners and experts.

For the purposes of this paper, I am going to examine sources of Australian company financial data online. The sources I have selected are available on subscription, although I also indicate a free web source for comparison purposes. This paper will not be an exhaustive coverage of all available sources, but a selection of local and international resources.

Maximum value for money

Maximum value is something that is derived from a number of different elements when evaluating resources for purchase:

• User needs now and in the future
• Cost of product subscription
• contract period
• any incremental cost increases
• currency movements
• Key features of product
• Bonus features of product
• Availability of a speedy help desk
• Compatibility with existing systems
• Compatibility with user knowledge of software
• Special training programs for library staff and users - time and cost
• Marketing costs within the organisation
• Preparation of specific help guides for users

What I hope to achieve is to offer you a model checklist of some selected resources, their key features, timeliness, ease of use and coverage. From this comparison, an evaluation of the individual resources can be made, to which can be aligned your user profiles to determine which purchase will offer maximum value. I have not addressed the issue of price at all - this is a determinant of many inputs and subject to change at a moment's notice.

Information needs audit

At the very beginning, to determine the ultimate usefulness of any potential resource that is under consideration, a full survey of the user needs should be undertaken. Existing needs, and any future projected needs should be considered. Simple directory information may well be all that is required for the present, but are there any expansion plans, new courses, new departments coming online which may require more complex information in the near future? A reasonable 'wish list' question should also be included.

Compatibility and ease

Consider also the ease of access, interface, network systems compatibility and ease of use. Products which can readily be accessed over existing systems with minimal reconfiguration present a much more attractive deal than those which are incompatible or require extensive reworking.

Training

Given the propensity for direct end-user access, highly complex systems which require considerable training are in some cases almost self-defeating, irrespective of the special features, quality and timeliness of information offered. The quality of the product is irrelevant if the users avoid using it because of its complexity, and of course, that is a waste of money.

Take into account the cost of instituting special training programs, producing guides, and additional hours lost in the initial introductory stages when evaluating the costs.

Products may offer features with download compatibility with Excel for example, and if the end-users are already comfortable with that software, then additional training costs are obviated. Balancing the obvious advantages to be gained with the new products, over the upheaval of introducing completely new resources can eased by effective marketing, and having in place programs to assist users with training, online (or personalised) help and guides.

Helpdesk

We all need help sometimes, and it is so much easier if that assistance is available quickly. Online help buttons that offer simple trouble-shooting advice, or an e-mail link direct to the help-desk is an essential element to consider. Some international services offer globalised 24 hour help via e-mail or online. Local services do have the advantage of personalised contact via the telephone if necessary. Is there a charge attached to ongoing assistance?

The resources

This paper will look at products which offer some of the following characteristics:

• Directory style - with basic annual report information
• Directory style - with historical overview and basic financial data
• Company information - annual report data
• Company information - annual report data and analysis
• Complex financial markets databases with full analytic capabilities

Connect 4

http://www.connect4.com.au

Australian company information. The company presents an annual report collection of the top 500 publicly listed Australian companies, ranked by market capitalisation. There is a back file of Annual Reports dating from 1992 up to the present. The database format is CD-Rom or web based , and relatively simple and easy to use, and presents the annual report data as reported, and contains easy to search sections:

This product is very easy to use, and downloading the full reports in Microsoft Word is a very easy process - simply click on the Word icon. The reports are added to the databases at the end of the reporting period for each company. The web site allows viewing of a sample record, and has a Feedback button for general customer enquiries. My experience with e-mail and telephone enquiries has been a prompt efficient response.

Connect 4 also markets Company Prospectuses, Mergers and Acquisitions, Takeovers, New Issues, Company Announcements as part of a comprehensive suite of Australian company products. There are links directly to company web pages from within the products. A trial period can be obtained upon enquiry.

Dun & Bradstreet's Business Who's Who of Australia

http://bww.dnb.com.au/default.asp

This web-based database contains only a little of financial information, but I have included it because it pulls together a directory of Australian companies, both private and publicly listed that is unequalled in Australia. At the time of writing this paper, approximately 23,000 Australian companies have entries, and its value rests in the up to date nature of the information, the listings of principals, the subsidiary information, and the brand names. For many private companies, BWW is the only reliable source of information. The financial information is confined to an Annual Revenue figure, and the issued capital.

Searching is easy and can be narrowed down by State, postcode, revenue, SIC code or a number of other criteria. Downloading a record from the web pages is difficult.

It is possible to access a free sample search from their web site for evaluation purposes.

Dun & Bradstreet's Jobson's Online

http://jobsons.dnb.com.au/default.asp

This database derives from the former Jobson's Yearbook of Public Companies and Jobson's Mining Yearbook. The company data is reasonably up-to-date and easily searched over a selection of fields including state, ASX code, SIC code or text. For a concise thumbnail sketch of a company it offers a ten-year time series of very basic financial and market data, and a corporate history and overview of operations. Capturing or downloading the data is not easy, as is the case with other Dun and Bradstreet products.

The website offers a sample record for evaluation purposes, and as with other Australian based companies, assistance if needed is readily available via telephone or e-mail.

Bloomberg Financial Markets

http://www.bloomberg.com/

This is a complex and extensive economic and financial markets database, and contains financial data for all listed Australian companies as well as listed companies worldwide. It is available as a web-based resource or via a direct line. In considering the financial content, considerable value is added by the ease of manipulation of the data. Data sets can be highlighted and downloaded into Microsoft Excel for further application. In any event, the extensive menu of analyses and calculations offered on the Bloomberg terminal presents considerable added value to users. Company data added to the Bloomberg system is standardised to allow for accurate comparisons across the whole system. In addition to company financials of ten years and more, historical market data for the stock and its index group is readily available. Complex company financial ratios and comparative data are available, and official ASX company announcements, news, brokers' reports and industry reports are also available, some of these at additional cost. The Bloomberg system is real time in operation, with constant rolling updates to the market data and news. It has its own news service and journalists, so it offers a valuable alternative source of company and industry news to the mainstream.

Given the complexity of the database, Bloomberg offers a range of free training programs in their offices or yours, extensive online help and definitions, printed guides and an excellent and responsive 24 hour help line accessible by e-mail.

Reuters 3000

http://www.reuters.com/

Reuters 3000 is one of a suite of Reuters financial markets products. The company is a world leader in the provision of equity, commodity, energy, futures, fixed income and government financial and economic information. Reuters 3000 contains company annual report data and analysis, and is available by dedicated line or over the web, and it has a relatively easy searching system to locate company data sets which are compatible with Microsoft Excel for further user defined analytics and modelling. All Australian listed companies are covered - and financial information is constantly updated in real time. As with Bloomberg, the depth and scope of the information is so vast that the companies have set up considerable training and helpdesk facilities for users. My experience is that the services offered are prompt, friendly and efficient.

Huntleys' DatAnalysis

http://www.huntleys.com.au/

This product supercedes the former Datadisc and Statex products previously published by the Australian Stock Exchange. It is available as a CD-Rom or web-based product, and contains comprehensive annual report information for all Australian publicly listed companies. The reports are searchable over a number of fields, and contain a very useful corporate history, financial details, shareholder information and Company Announcements. The reports can be easily downloaded into Microsoft Word documents.

Huntleys' FinAnalysis

This product offers time series data for more than 900 Australian listed companies. The reports contain up to ten years financial and market data, and can be exported into Microsoft Excel spreadsheets. There is an advanced search function which allows the compilation of specific data sets over the range of companies, according to user-selected criteria for further manipulation or modelling. The product is relatively easy to use, and the company states that it is increasing the number of companies covered.

The company offers a trial of its range of products, and has online FAQ and e-mail buttons for any enquiries.

Wright Investors' Service

http://profiles.wisi.com/profiles/Australia.htm

This web site offers access to an array of international company reports and analysis, including some 256 Australian companies. Searching is easy - by country or company name. This site is worth a good look - it is up to date, contains a company profile, there is value added in the form of research analysis reports, market data and sales, earning and price summaries. There is also the facility to convert prices to other currencies, thus allowing simple price comparisons. The side bar offers a 'printer friendly' button to allow the reports to be printed.

Conclusion

For each decision relating to the purchase of any electronic product, for maximum value to be had, the purchase must satisfy the basic requirement of customer needs now and into the future. For there to be additional value, a fair contract, special database features, ease of use , compatibility with existing systems, training needs, and the ready availability of assistance all contribute to the overall value picture.