Sunday 27 October 2013

Phonebloks

On Tuesday 29th October the Phonebloks video will ping across social networks 375 million times.

Phonebloks is a new concept for a mobile phone with a replaceable screen and easily moveable, changeable “bloks”, each containing a different element such as battery, chipset, gyroscope and so on that would give users a chance to choose from a range of components, and replace or upgrade them when necessary.

A phone only lasts a couple of years before it breaks or becomes obsolete. Although it’s often just one part that killed it, we throw everything away because it’s almost impossible to repair or upgrade.

The idea, by Dutch designer Dave Hakkens, came about when Hakkens realised that if a device could be taken apart and restructured more easily it would last much longer (and minimise electrical waste).

And so the idea of Phonebloks was born.

Phoneblok is made of detachable bloks. The bloks are connected to the base which locks everything together into a solid phone. If a blok breaks you can easily replace it; if it’s getting old just upgrade.

Bloks can be developed for specific needs. Solar powered batteries, sensitive screen for blind people, lightweight for travelers etc.

“Let’s say this is your phone and you do everything in the cloud - why not replace your storage blok with a bigger battery blok?” says Hakkens. “If you’re like this guy and love to take pictures, why not upgrade your camera?”

The bloks themselves would be available from a ‘Blokstore’, like an app store for hardware. In the store you buy your bloks, read reviews and sell old bloks. Small and big companies develop and sell their bloks. You can buy a pre-assembled phone or assemble it yourself by selecting the brands you want to support. The choice is yours.

And the platform can be adapted into other sizes to create new devices like tablets, cameras etc.

But at the moment, it’s just an idea.

For Phonebloks to happen, it totally depends on companies thinking there is a market for it, so the more people that are interested, the sooner companies start working on it.

New structures for corporate reporting

In 2010 the UK government ran a consultation to find out what improvements could be made to non-financial reporting, and in 2011 the Department of Business Innovation and Skills (BIS) published Future of narrative reporting where a new structure for annual reports was proposed.

Draft regulations were published in October 2012 and the changes became law on 30 September 2013.

The new format replaces the ‘business review’ with a ‘strategic report’ and UK quoted companies now have to report on:
  • their strategy
  • their business model
  • the number of women employed at different levels in the organisation

The main areas for change are:
  • The structure and content of the Strategic Report changes (and no longer forms part of the Director’s Report)
  • Changes to Directors’ Report, including Greenhouse Gas (GHG) reporting
  • Revised UK Corporate Governance Code disclosures
  • Changes to Going Concern statement
  • Revised Auditor’s Report
  • New remuneration disclosures and voting

The idea behind the changes is to;
  • improve the value of information contained within annual reports for investors and UK compliance authorities;
  • to make it easier to make comparisons between companies; and
  • to increase transparency.

Current best practice in annual report writing is to produce an integrated structure that brings together strategy, the business model, market analysis, governance, management remuneration, risk factors and key performance indicators (KPIs) in an overarching narrative.

But this method of dividing responsibility for the creation and supply of content will become more difficult, as the various elements of the document now need to knit together closer than ever before.

So whilst the new reporting framework from BIS splits the report into four parts (the Strategic Report, The Directors’ Report, the Remuneration Report and the Financial Statements and Notes), in practice, the new reporting structure might look something like this;

Strategy report
  • Highlights section
  • Mission statement
  • At a glance
  • Chairman’s statement
  • CEO’s statement
  • KPI’s
  • Risks
  • Market landscape
  • Sustainability statement

Director’s report
  • Governance section
  • Renumeration report
  • Any other statutory content
  • Accounts section

The regulations came into force in October 2013. This means that companies with reporting years ending after October are now expected to prepare their Annual Report in line with the new regulations.

The consequence of this is going to be more intensive work in the run up to publishing your Annual Report; gathering and verifying the content, identifying any gaps and managing your reporting team  in a more active and integrated manner. It may mean a minor tweak to your workflow, or a complete overhaul of your reporting structure, but if you haven’t got your plans in place, maybe now is a good time to get started.