I see a range of emerging opportunity for Software and IT services companies to enhance their existing products, develop new ones or provide services around XBRL – eXtensible business reporting language. - Sanjay Mehta, CEO, MAIA Intelligence on NASSCOM's Emerge Blog. A unique opportunity is available for consulting executives who want to take part in shaping XBRL. By understanding and implementing XBRL today, participants provide valuable feedback to XBRL International for building the standards, as well as to software vendors for developing products that make implementation more efficient. Today we are on the verge of a new era in financial reporting with interactive data that will make the process more efficient. In end I would say that world will be moving towards a “Tagged Economy”

1. NASSCOM’s EMERGE Blog » Tagged Economy - XBRL - Emerging Opportunity Page 1 of 4
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Tagged Economy - XBRL - Emerging Opportunity
December 26, 2007
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I see a range of emerging opportunity for Software and IT services companies
Tagged Economy - XBRL - Emerging
to enhance their existing products, develop new ones or provide services
Opportunity
around XBRL – eXtensible business reporting language.
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What is XBRL?
Social Commerce continued
XBRL is a language for the electronic communication of business and financial
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data which is revolutionizing business reporting around the world. It provides
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major benefits in the preparation, analysis and communication of business
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information. It offers cost savings, greater efficiency and improved accuracy
Breaking the routine introductions
and reliability to all those involved in supplying or using financial data. In the
Apply ‘Kiruba Style’
next 5 years, all worldwide electronic business reporting and exchange of
financial information between machines, applications and people will be made Have a Second Line of Leadership
using XBRL. It is set to become the standard for business reporting. The idea Surviving to Scaling Up
behind XBRL, eXtensible Business Reporting Language, is simple. Instead of Social Commerce is the next big
treating financial information as a block of text - as in a standard internet opportunuity?
page or a printed document - it provides an identifying tag for each individual
Look for the TACID ones….
item of data. This is computer readable. Companies can use XBRL to save
costs and streamline their processes for collecting and reporting financial Contributors
information. Consumers of financial data, including investors, analysts,
financial institutions and regulators, can receive, find, compare and analyse Alok Mittal
data much more rapidly and efficiently if it is in XBRL format. Ankur Lal
Ganesh Natarajan
XBRL is NOT a proprietary technology. XBRL is freely licensed and available to
Gerard J Rego
the public. XBRL is XML-based and therefore is expected to be widely available
in software applications. Krishnakumar
Navyug Mohnot
XBRL and Business
Pradeep Chopra
All types of organizations can use XBRL to save costs and improve efficiency in Raja Choudhury
handling business and financial information. Because XBRL is extensible and Rajdeep Sehrawat
flexible, it can be adapted to a wide variety of different requirements. All
Sanjeev Aggarwal
participants in the financial information supply chain can benefit, whether they
Suresh Sambandam
are preparers, transmitters or users of business data.
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http://blog.nasscom.in/emerge/2007/12/26/tagged-economy-xbrl-emerging-opportunity/ 1/4/2008

2. NASSCOM’s EMERGE Blog » Tagged Economy - XBRL - Emerging Opportunity Page 2 of 4
Branding (9)
Data Collection and Reporting
Emerging Companies (35)
Entrepreneurship (32)
By using XBRL, companies and other producers of financial data and business
reports can automate the processes of data collection. For example, data from HR (8)
different company divisions with different accounting systems can be Indian IT Industry (11)
assembled quickly, cheaply and efficiently if the sources of information have
Innovation (30)
been upgraded to using XBRL. Once data is gathered in XBRL, different types
Leadership (10)
of reports using varying subsets of the data can be produced with minimum
Marketing (18)
effort. A company finance division, for example, could quickly and reliably
NASSCOM Activities (11)
generate internal management reports, financial statements for publication,
Organizational Development
tax and other regulatory filings, as well as credit reports for lenders. Not only
can data handling be automated, removing time-consuming, error-prone Podcasts (7)
processes, but the data can be checked by software for accuracy. Small Software Products Eco-system
businesses can benefit alongside large ones by standardizing and simplifying
Usability (1)
their assembly and filing of information to the authorities.
Archive
Data Consumption and Analysis
January 2008
Users of data which is received electronically in XBRL can automate its
December 2007
handling, cutting out timeconsuming and costly collation and re-entry of
information. Software can also immediately validate the data, highlighting November 2007
errors and gaps which can immediately be addressed. It can also help in October 2007
analyzing, selecting, and processing the data for re-use. Human effort can
September 2007
switch to higher, more value-added aspects of analysis, review, reporting and
August 2007
decision-making. In this way, investment analysts can save effort, greatly
simplify the selection and comparison of data, and deepen their company
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analysis. Lenders can save costs and speed up their dealings with borrowers.
Regulators and government departments can assemble, validate and review Top 15 Exciting Emerging Companies
data much more efficiently and usefully. To Work For.
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We really are on the threshold of a “Revolution in Corporate Reporting,” which
NASSCOM hosts India’s First Product
is why I strongly feel software companies should start looking at XBRL
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seriously for expaning their business with new revenue lines.
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Featured Emerging Companies.
NASSCOM & ICICI’s 100+ crore
Innovation fund for Indian startups
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An example of how XBRL can seamlessly incorporate the control system with announced
the financial system is when a particular control is over-ridden. An approval or
notification can be routed to the appropriate manager or executive. If a
control activity has deficiencies that need correction or additional controls to FEEDS FULL COMMENTS
mitigate risk, the tracking and linkage of the issue from identification through
resolution can be easily reported. Companies can also tightly link policies and Enter your email address:
procedures to their control activities.
With XBRL, software developers can build tools that can be installed into a
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wide variety of systems, without the need to customize the interface to the
company. Installation may require custom configuration based on how a
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3. NASSCOM’s EMERGE Blog » Tagged Economy - XBRL - Emerging Opportunity Page 3 of 4
company will want to deploy its internal control systems, however, that would
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likely be at a much lower cost. Additionally, because XBRL is an external
standard that supports financial reporting based on U.S. generally accepted
Build to scale
accounting principles (GAAP) and International Financial Reporting Standards
Building an Innovation Eco-
(IFRS), companies will have the ability to respond to rapid changes in
regulatory reporting requirements. Building an Organization -Early
stages.
The ability to consolidate acquisitions and integrate business systems has
Innovation – a must for Indian IT SME
historically been challenging due to differences in data and account
firms
structures. XBRL has the potential to significantly reduce the time and effort
Laying the Foundation
required to integrate new acquisitions if both companies are using the
NASSCOM hosts India’s First Product
standard. Integration would simply be a matter of consistently classifying the
Conclave
already tagged information. There would be little need for a large information
gathering and consolidation effort that exists with acquisitions today. On The Global Platform
Product Innovation ~ What is the key?
Culture!
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A unique opportunity is available for consulting executives who want to take
integration
part in shaping XBRL. By understanding and implementing XBRL today,
What makes up a good eco-
participants provide valuable feedback to XBRL International for building the
for startups to thrive?
standards, as well as to software vendors for developing products that make
implementation more efficient. Today we are on the verge of a new era in What will web 3.0 and beyond
financial reporting with interactive data that will make the process more possibly look like?
efficient.
In end I would say that world will be moving towards a “Tagged Economy
Tagged Economy”
Post contibuted by Sanjay Mehta, MAIA Intelligence
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