How To Measure The Internet Essay

3443 words - 14 pages

Synopsis
Worldwide government, firms and project teams is facing a difficult situation to measure the value creation through information technology. This essay argue that the challenges of measure value creation through IT are occur in three different levels which are Macro-economic level, Micro-economic level, and project level. Some studies and cases have been used to demonstrate those challenges. Although, the problems on current evaluation system can be fixed as we can find the reasons and drive of those problems. There is couple reasons result those challenges. For Macro-economic level and Micro-economic level, there is a lack of well-established classification and identification. ...view middle of the document...

For many companies, their investment in such intangible assets exceeds the investment in physical assets (OCED 2013, p. 3). As the twenty-first century coming, more and more businesses conducted over the Internet, with rapidly growing recently (Amit & Zott 2001, p. 493). They have gained highly competitive characteristics through information technology (IT). For those organisations, their intangible assets are existed based on Internet, which associated with IT to store, retrieve, transmit and manipulate data. However, currently businesses lack evaluation system for measuring the value creation of intangible assets associated with IT. Although, the problems on current evaluation system can be fixed as we can find the reasons and drive of those problems.

The rest of this essay is structured into four sections which are: the challenges in measure value creation activities through information technology (for accountant), why challenges, the approaches for addressing the problem, and conclusion. The first section would address several challenges on current accounting evaluating system for measuring value creation through information technology. Secondly, this article would identify the cause of challenges mentioned in the first section. The next one is about the way and recommendations to solve the problems mentioned in the first section based on the analysis in second section. Finally, there is a conclusion.

The challenges of measuring value creation activities through information technology (IT)
IT expenditure has become a major component for both developed and developing countries. In 2008, the total spending on IT around world is 3.4 trillion. Also, spending on IT operation generated 1.5% of a company’s revenue (Gillon & Hodgkinson 2008, p. 9). IT typically represents a major area of capital expenditure in economics and businesses of all sizes. Much value of IT and activities through IT lines in what accountancy practice refers to as ‘intangible assets’. Web-technology, program, website and online networks are example of such assets. They are ‘intangible;’ meaning they cannot be ‘touched;’ they cannot be grasped like material assets; they cannot be easily costed, counted and quantified. Therefore there are difficulties in measuring the value creation through IT, which present challenges in Macro-economic level, firm level, and project level.

For Macro-economic level, one of the major challenges for current national accounting system is how to appropriately measure the contribution of intangible assets. As the E-commerce economy developed, estimating that contribution to national productivity and identify the role of IT investment as a driver for economic growth will be essential if governments are direct investment and resources in the most effective manner (Gillon & Hodgkinson 2008, p. 10). The OECD identified the most of reasons are inadequate government data to enable identification of IT investment, as a partial...

Other Essays Like How to Measure the Internet

Will Tv Succumb to the Internet

5958 words - 24 pages aimed to determine the Pb+2 adsorption capacities of hazelnut shell and activated carbon obtained from hazelnut shell. It also aimed to determine the effect of ZnCl2 in the activation process. The hazelnut was pyrolyzed at 250 and 700 °C. For determining the capture speed of the adsorbents, the pseudo-first- and second-order kinetic studies were performed. The Freundlich and Langmuir isotherm models were used to determine adsorption

How The Internet has Affected the Music Industry

407 words - 2 pages When Tim-Berners Lee dreamt up the, then, crazy idea, of an inter-global network, I'm sure very few people had the same optimism in believing that it could happen in the future.Over the last ten years, the Internet has evolved from just web pages to e-mail, to online gaming, to viewing sport and film previews, and to buying and downloading music online. The Internet has now become one of the music industry's greatest markets, estimated to reach

The Internet Is an Increasingly Multilingual Space: How Is Your First Language Used Together with Other Languages in Internet

2709 words - 11 pages ?) How do internet users communicate and process information in multilingual and multicultural context. What patterndo follow the language choice and the code switch during online communication. Methodology In order to research my question I searched my data from a local Moldovan social network (PEOPLE.MD). It follows the same framework as the international social platform Facebook. The participants of the data sample were having a

How The Internet Is A Black Hole That Sucks It's Victims Into Isolationism

1225 words - 5 pages anywhere on the Internet. But how did the Internet become the man-eating dragon that it is?Conceived to develop Allied battle strategies during World War II, the Net has had a detailed history (Diamond, Bates np). The Internet was further developed during the Cold War in the 1960's (Borden np). From 1961 to 1964, J.C.R Licklider, Leonard Kleinrock, and Lawrence Roberts of MIT worked to design a computer network that would allow several computers to

Response to "How to Save the News"

650 words - 3 pages After reading “How To Save The News,” by James Fallows, I have mixed feelings and reactions. I can agree with certain points made within the article, and I disagree with others. I think the general public can attest to the fact that the “survival of high-quality journalism is essential to the functioning of modern democracy.” The decline of the news industry has brought about a new issue to focus future journalism and business towards. The

How to Break the Bad Habit

2154 words - 9 pages other resources. Your not confined to the books they give you at school. Use encyclopedia, a dictionary or the internet. Google it man! Only your time and dedication will do the trick. Follow these steps and you'll never need to know "how to improve my grades". Read more: How to Improve Grades And Study Skills | eHow.com http://www.ehow.com/how_5320587_improve-grades-study-skills.html#ixzz1OqTKOzqJ How to Improve Your Grades by

How To Solve The Foreclosure Crisis

1189 words - 5 pages lease; to ensure that the buyer knows how to properly handle their new responsibilities as a homeowner. The curriculum of the class should teach how foreclosures work, and valid methods to prevent them, such as: negotiating a temporary delay in payments, keeping current on home payments, applying for government assistance, negotiating a permanent loan restructuring, and refinancing the home debt (National Consumer Law Center). With an effective plan

Senior Thesis - How to Improve the Environment

5946 words - 24 pages the positive aspects will ultimately improve the environment. In order to maintain a healthy environment, society must become aware of how day-to-day activities impact the environment and they also need to be ready to approach and change such lifestyles. So how can we, as individuals, improve the environment? Why When talking about environment related issues, most people just don’t care; they are only doing enough to get by for themselves. The

An Investigation on How to Overcome the

3331 words - 14 pages languages learning in general but scarcely are there any researches paying attention to the problems that arouse in real communication situations, such as in tourism environment, what strategies are used by the tour guides, and how they are achieved. This is the reason for me to carry out a study to investigate the most popular communication strategies used among the tour guides in Vietnam to overcome the language limitations and which strategies

How to Bring Apple Back to the Top

1931 words - 8 pages How to Bring Apple Back to the Top RES/351 September 26, 2013 How to Bring Apple Back to the Top On June 27, 2007 Apple released the first generation iPhone. Apple had revolutionized a number of their products prior to the iPhone. The iPod was the most popular electronic for personal entertainment for years. At the release of the original iPhone, Apple saw a similar effect on the cell phone industry. There was not another phone on the

How Was the Tsar Able to Survive the 1905 Revolution

805 words - 4 pages How was the Tsar able to survive the 1905 revolution? Despite the failure of Russia in the war against Japan, the Tsarist regime survived the revolution remarkable unscathed. There are a number of reasons for this. Although a large proportion of the Russian population expressed their opposition to the Tsarist regime during events of 1905 it was not organised protest. Each group had its own grievances and separate set of demands. The

Related Papers

How To Measure The Effectiveness Of A Business

2583 words - 11 pages a result of viewing “the same event through different lenses” (Bolman & Deal, 2013, p. 309). A manager operating from the structural frame is concerned with policies, rules, and the chain of command (2013). The human resource leader is concerned about the people in the organization and how decisions may affect them (2013). The leader who operates from the political frame will try to address the needs of those both inside and outside the

How To Surf The Internet Essay

1314 words - 6 pages How to Surf the Internet The term "Internet," or "The Net" as it is commonly in known in the computer business, is best described as an assortment of over one thousand computer networks with each using a common set of technical transfers to create a worldwide communications medium. The Internet is changing, most profoundly, the way people conduct research and will in the near future be the chief source of mass information

The Internet: A Gateway To Helpful Knowledge

1076 words - 5 pages not only how valuable the internet can be, but also shows how many people actually do have access to the internet. After all, these institutions are dedicating a large amount of time and money into creating these programs designed to reach a larger audience. The internet is a cornucopia of knowledge and a valuable resource for educational purposes and recreational use. With search engines, online libraries, and eBooks, information is becoming

What Has The Internet Come To

5012 words - 21 pages , nevertheless imagine how they would function in today’s world without it. Although many people use the Internet for business and personal reasons, a large number of people are also using this network community to commit crimes. The question raised by many is why the United States is the country having the biggest problem with online crime. Internet since the Beginning A large majority of people today have either used the Internet or has at