Why Disclosure is a Good Thing

Things have changed since the early days of the DQ Top 20 survey, when we

would spend months chasing up companies for bits of data.

It wasn’t easy for them either. In the early MIS days, few had detailed

sales data available. Nor were we an agency with a mandate to audit accounts.

But those who went through the process of collecting data and filling in our

forms said it did help them put it all together and in place. Over the years,

they have got better at it.

Of course, we recheck figures. Audited data, quarterly reports, et al, are

usually okay. Several software exporters fall in this category. For some, such

as MNC India development centers, we may estimate revenues. Figures and

estimates are discussed and cross-checked with Nasscom and others.

The domestic-market vendors are a bigger "data problem", including,

or especially, the MNCs. Many do not give data, pleading policy. Even where

fully-filled forms come in, two months of meticulous checking follows, adding up

totals from the channels to cross-check vendor figures (the two often do not

match), and so on.

Among the most data-rich of the Top 20 for years are distributors, especially

Tech Pacific and Redington. Extensive MIS helps generate detailed model-wise

sales data, including realized value, etc, very helpful in re-checking vendor

figures and industry totals.

Among the vendors, some of the most complete data has been coming from

Compaq, closely followed by Wipro. Far less ‘revealing’ has been HP India,

which gives only a topline revenue figure. Now we’re waiting to see how

revealing the merged entity turns out to be. But some others do not give any

data at all, citing global policy–Intel, Microsoft and Sun Microsystems. And

there are recent additions to that list–Ingram Micro and IBM. Often, though,

MNCs might help by pointing us to channel or other sources informally.

On average, the data has gotten better. While five of the Top 20 did not

submit forms this year; 80% of the DQ Top 100 did. Will this score improve? I

certainly hope so. For this is what helps us put together industry size and

segment information, which companies use for their own planning and market-share

tracking. On average, the better a company performs, the more inclined it gets

toward sharing information, formally or otherwise. And transparency and

disclosure are often linked to company performance, and to the perception and

respect they command–whether it is clear communication in a crisis (as Infosys

established recently after the lawsuit that cost its marketing chief his job) or

ongoing, factual sales and performance. Not just for shareholders, but for all

stakeholders. As they say, if you have nothing to hide, then don’t!

pkr@cmil.com