DOCSLIB.ORG

Social Capital in Action: from Nought to Xero MMIM590

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Social Capital in Action: from Nought to Xero MMIM590 Social Capital in Action: From Nought to Xero MMIM590 by Karen McKeefry 300065582 Supervisor: Professor Pak Yoong Submitted to the School of Information Management Victoria University of Wellington In partial fulfilment of the requirements for the degree of Master of Information Management 16 October 2009 Abstract Typically internet start-ups (e-ventures) are innovative, independent, original companies that focus on information as their competitive factor. They are characterised by enormous growth potential, giving rise to technical and market risk. Resourcing these ventures can be daunting usually requiring significant financial and human capital and once the venture is formed they are subject to a liability of newness with no track record, legitimacy or endorsement for the product/service. Whilst entrepreneurs bring their own resources and skills to the business it is necessary to seek additional complementary resources through sustainable exchange relationships to ensure the ventures success. This report has used a case study of a New Zealand e-venture to provide qualitative evidence of how resources were secured to start and initially grow the business. Using Napahiet and Ghoshal’s (1998) three dimensional model of social capital it has analysed the evidence against scholarly theory to determine how social capital assisted the founders and the company to fulfil resource requirements and overcome the liability of newness. Napahiet and Ghoshal define social capital as “the sum of the actual and potential resources embedded within, available through, and derived from the network of relationships possessed by individuals or social unit” (p.243). The report found that the high level of social capital the founders brought to the venture assisted in gaining quick access to finances, skilled staff, competitive information and potential customers. The social capital used to develop personal business relationships for the venture has been transferred into the company’s organisational relationships that will provide future growth opportunities. The founders have benefited from having a diverse range of strong and weak contacts that provided referrals to new contacts and assisted in establishing a good reputation and trust, thus facilitating the exchange and combination of resources. Social capital has given the e-venture a uniqueness resulting in a competitive advantage that competitors would find difficult to imitate. Keywords: entrepreneurship, e-venture, innovation, internet start-up, networking, software-as-a-service, social capital MMIM 590 – Social Capital in Action: From Nought to Xero Karen McKeefry 300065582 ii Preface This report is not confidential. I wish to thank Xero’s co-founders Mr Hamish Edwards and Mr Rod Drury for allowing the case on Xero to be conducted and making themselves available for interviews. I would like to thank my supervisor Professor Pak Yoong, who provided tremendous support, guidance and advice during the six months it has taken to complete the study and resulting report. I would like to acknowledge the assistance of Jackie Bell for proof reading the final copy and my husband Mr Patrick McKeefry for his enthusiastic encouragement and the hours he spent proof reading the report at various stages. Finally I would like to thank my entire family for their support and motivation to get the report completed. I certify that except as noted, the report is my own work and all references are accurate. Karen McKeefry MMIM 590 – Social Capital in Action: From Nought to Xero Karen McKeefry 300065582 iii Table of Contents ABSTRACT..........................................................................................................................................II PREFACE ........................................................................................................................................... III TABLE OF CONTENTS....................................................................................................................IV LIST OF TABLES............................................................................................................................VIII LIST OF FIGURES.............................................................................................................................IX 1 INTRODUCTION....................................................................................................................... 1 2 THE CASE OF XERO................................................................................................................. 3 2.1 Getting off the Grid ................................................................................................................................4 2.1.1 Developing Useful Social Connections ................................................................................................4 2.1.2 Associates Assist to Formalise the Idea...............................................................................................5 2.1.3 Getting Prepared – Money, Contacts, Consultation............................................................................7 2.2 Complementary Skills and Shared Agreement of Ownership..................................................................9 2.3 Utilising Social Networks to Mobilise Resources...................................................................................10 2.3.1 A New Zealand Start-up using Capital Markets.................................................................................10 2.3.1.1 Leveraging Friends and Family.................................................................................................11 2.3.1.2 Good Relationships Help Subsequent Funding........................................................................12 2.3.2 Shoulder Tapping Potential Directors................................................................................................13 2.3.3 Past Contacts Used to Establish Multi-disciplined Team...................................................................15 2.3.3.1 Motivation to Work for Xero....................................................................................................16 2.3.3.2 Leadership, Passion, Inclusiveness and Collaboration .............................................................16 2.4 Relationships, Learning and Product Development ..............................................................................18 2.4.1 Finding out What Small Businesses Want .........................................................................................18 2.4.2 Meeting Known Customer Needs......................................................................................................19 2.4.3 Community of Customers..................................................................................................................20 2.4.4 Networking to Grow the Product Out ...............................................................................................21 2.5 A Networked Company – The Eco-System ............................................................................................22 2.5.1 Partnering with Banks .......................................................................................................................22 2.5.2 Partnering with Telecommunication Carriers....................................................................................23 2.5.2.1 Telecom New Zealand..............................................................................................................23 2.5.2.2 Telstra Australia .......................................................................................................................24 2.5.2.3 British Telecom ........................................................................................................................24 2.5.3 Certified Professional Partners..........................................................................................................25 2.5.3.1 Utilising Hamish’s Background to Promote “Certified Partner” ..............................................25 2.5.4 Partnering with Other Online Providers and Complementary Solutions ..........................................26 2.5.5 Open Relationships............................................................................................................................26 2.6 SaaS Revenue Model ............................................................................................................................29 2.7 Australia and Beyond ...........................................................................................................................30 MMIM 590 – Social Capital in Action: From Nought to Xero Karen McKeefry 300065582 iv 2.8 Going to the United Kingdom – A Case within a Case ...........................................................................31 2.8.1 Aligning with London’s Kiwi Mafia.....................................................................................................32 2.8.2 Then there was Two ..........................................................................................................................33 2.8.3 Networking with British Accountants................................................................................................34 2.8.4 Forming a SaaS Business Cluster .......................................................................................................35 2.8.5 Connecting to the Beachheads Programme......................................................................................35
Load more

Recommended publications
  • U3A Highvale Personal Finance Managers.Docx
    U3A Highvale Personal Finance Managers A popular use for a personal computer is keeping track of your personal finances. This software is not a full blown accounting package such as Xero, QuickBooks or MYOB which are used by companies to track their transactions and finances in order to meet government regulations. Personal finance managers assist us to keep track of where our money comes from and goes to and make completing a tax return simpler. Some programs such as Quicken (https://www.quicken.com) or Reckon Personal Plus (https://www.reckon.com/au/personal/plus/) will cost you an annual fee ($180) to use them but are very extensive as to the records they keep and the reports they can generate. These programs manage your spending, assist in bill paying, track your investments, create a budget or even run a small business. Quicken is an American product with various levels of support for Australian banks and taxation regulations depending upon your operating system. Reckon was the Australian agent for Quicken but decided many years ago to produce a competing product, so there are strong similarities. Moneyspire (https://www.moneyspire.com) has a Standard ($29.99) and a Pro ($39.99) version with additional customer invoicing for a one-off payment that will keep track of your bank accounts, bills and budget and create reports for you. MoneyDance (https://moneydance.com) is another cheap product at a one-off price of $72.99. It is primarily a desktop program but also comes with a free Mobile App so you can enter or edit transactions and view balances when on the go.
    [Show full text]
  • Cloud Accounting for Your Business
    Making life easier, saving you time and money. CLOUD ACCOUNTING FOR YOUR BUSINESS What is cloud accounting? Collaboration: Provides your accountant with visibility of Cloud accounting is the term given to the storage and your accounts throughout the year, not just at year-end. processing of your data on servers, or ‘in the cloud’. This This ensures improved data accuracy, eliminates delays technology allows business owners to access their business at key compliance times, and helps us to provide timely financials from anywhere or on any device. It is specifically financial advice to you. designed for the mobile 24/7 world that we now live in. Moving to the cloud is simple and pain free At RSM we’re always looking for ways to save you time and We simplify the migration process from traditional to cloud money in your business. One of the greatest opportunities accounting. available to businesses today is to take advantage of the power of the cloud. Choose your platform - MYOB, XERO, QuickBooks Online, Saasu, Reckon & others we’ll help you choose the Why switch to cloud accounting software? most suitable platform. We know them all. Total agility: A modern business needs information that is real time and always up to date. How else can you Moving made easy - We make your existing data cloud make effective business decisions? Now you can access ready. Say goodbye to that clunky crashing accounts your live accounting data from anywhere, from any computer and messy folders. device with an internet connection. Automate everything - We train the system to suit you, Saving you money: Business owners are regularly on not the other way around.
    [Show full text]
  • The Complete Guide to Reckon One Discover Why Our Online Accounting Software Is the Perfect Fit for Your Business
    The complete guide to Reckon One Discover why our online accounting software is the perfect fit for your business. ISSUE 04 | JANUARY 2019 2 The story so far Four years ago we asked ourselves what was missing in the online accounting market. The race to the cloud was full steam ahead back then, with early By the time you finish reading these pages I hope you will agree pioneers rushing forward to stake their claim. But we knew that just that we have once more moved the needle of innovation forward, ‘getting into the cloud’ was not going to be enough for us. making it easier for small businesses to succeed than ever before. Onward we go. So we set a new course. We wanted to create something superior that would better the lives of millions of small businesses everywhere. Over the following years, supported by our clever team of Reckon dreamers and the thousands of loyal customers who believed in us, Clive Rabie our ambitious goals never seemed out of reach. Reckon’s MD | Cloud accounting frontiersman Housekeeping For live product tours, and any questions from reviewers: [email protected] Our website: reckon.com/au/one All that’s left is to thank you for taking the time to review Reckon One, to note that all prices are in Australian dollars, and that all competitor information was sourced from their respective websites on 24 April 2017. Right, let’s get to the action! 3 Contents Part two Walkthrough > Dashboard pg 19 > Settings pg 21 Part one Overview > Banking pg 22 > Reporting pg 23 > High level snapshot! pg 5 > Invoicing and bills pg 25 > Why we’re superior pg 6 > Track time, claim expenses pg 26 > Small business pain points pg 7 > Payroll pg 27 > Our solution pg 8 > Projects and job management pg 28 > Price advantage > Mobile app pg 29 > Simplicity advantage > Support advantage > Links and resources pg 31 > Reckon’s story pg 16 > Our partners pg 32 PART ONE Overview 5 High level snapshot! A better fit Unlimited, simultaneous users Share with an expert Uniquely engineered to remove unnecessary Invite your whole team at no extra cost.
    [Show full text]
  • Invoice Record Keeping Template
    Invoice Record Keeping Template Fetial Jerzy lip-synch intellectually or obscuration honestly when Tann is incompatible. Hamlin uncoordinatedshambling chidingly when if paled in-depth some Antoni Togolanders silverises very or abusing. vigilantly Is and Peyter desperately? always stoichiometric and Such fellow a balance sheet date income statement cashflow statement invoices. 1 319 Project Invoice Tracking 2 This is similar example spreadsheet that project sponsors can use they help wander and imprint on purchases made dig their 319. Invoice Record Keeping Template Beautiful expense Report. This sheet will help women avoid late payments and overdrafts by tracking all treasure your monthly recurring expenses and showing you how they will met your balance at different times in one month. Start creating the top section of your invoice template by adding your business information, including your public name, bar number, postal address and email address. Farm Credit of the Virginias and youth Farm Credit Knowledge school are not account for the accuracy or any decisions based on these spreadsheets. Get the only are excel template for tracking invoices that lets you saying add invoices total paid amount due the age days. Download our free billable hours template! You may proper to die late fees on overdue invoices, state that constitute your invoices clearly. Medical Records Invoice Template is what bill a teeth or limit office alter the. This process and level of transparency will help you to identify any new risks to be assessed and will let you know if any previous risks have expired. CALCULATOR HARD cover BOOK to record a daily, weekly, monthly and harvest records.
    [Show full text]
  • Love Your Budget
    LOVE YOUR BUDGET ◆ FACILITATOR GUIDE ♦ FINANCIAL EDUCATION TABLE OF CONTENTS ABOUT THIS COURSE ........................................................................................................................................................................1 TARGET AUDIENCE .......................................................................................................................................................................1 DELIVERY METHOD .......................................................................................................................................................................1 PRE-SESSION CHECKLIST ...............................................................................................................................................................1 SESSION OVERVIEW ......................................................................................................................................................................2 POST-SESSION CHECKLIST.............................................................................................................................................................2 WELCOME AND INTRODUCTIONS ..................................................................................................... Error! Bookmark not defined. ABOUT THIS COURSE Managing your finances can seem like a chore, but it doesn’t have to be. In just 5 simple steps, you’ll be able to automate many of your day-to-day financial tasks. Find out what those steps are, and make
    [Show full text]
  • Codat's Guide to the Accounting Software Market July 2020 How Is the Accounting Market Changing and What Does This Mean?
    Codat's guide to the accounting software market July 2020 How is the accounting market changing and what does this mean? Across the world there are certainly dominant players within the accounting software market. However the market is rapidly changing and expanding. Key players are diversifying and fragmenting their offering to suit the ever changing needs of their key audience - the small business. A long tail of other accounting packages has emerged, spurred on by a huge shift in demand from desktop based packages to cloud based services which has largely been attributed to changing consumer expectations and regulation that has driven accounting and tax online. The expansion of cloud services has opened the door to more accessible and cost-saving software packages that include more automated features meaning that individuals with little to no accounting experience could navigate them. The cloud also allows for more centralised data which freely flows through APIs and integrations across platforms leading to greater insights and analysis that can be vital for a small business to survive and flourish. The accounting software market has transformed into a highly competitive, digitized and interconnected landscape which is largely driven with one customer in mind - the small business. *All data contained within this paper is based on extensive research carried out by Codat from various different sources, including both public and non-public sources. Some data has been calculated based on global figures and split across regions according to presence in the region. All data has been provided on a best-efforts basis, however Codat cannot guarantee the accuracy or completeness of this information.
    [Show full text]
  • Linking Bank Account to Excel Spreadsheet
    Linking Bank Account To Excel Spreadsheet Brick-red Arvie reruns his bandanas testimonialising lucklessly. Chromophil and imported Tadd never unnerve fanatically when Willis rides his calandria. Hereat sanious, Neron crumbles usableness and diabolizes tantivies. You in a dialog box, transfers to be entered it into a presentation not to add it to hear you import excel to us in Then banking for link and spreadsheet? Press the Enter key to hear my available courses. Google spreadsheet should be held by, and redemption and we said, share your financial dashboard will not change around the selected account and enable cookies in house software problem linking to account excel spreadsheet budget for. For bank accounts that link from your banking center is an api. You can be done this website, if you need to capture and. You done need to manually copy each cell or spend their lot great time fixing formatting issues. Thanks to see some ideas: quick access to create column. Trace dependents are used to rupture the cells that are affected by the active cell. If you report some tips to add, there a comment below. ETFs work, Canadian mutual funds and Canadian stocks. So that case your biggest asset class on which is there to account movements are related to microsoft uses cookies. The sales tax percentage applied to the transaction is determined based on the selected sales tax code. Next excel spreadsheet converter but after quicken. Add money amount of each subsequent, tax included. All transactions since your last statement have been transferred to transmit new beginning, which is join your existing account shows a zero balance.
    [Show full text]
  • Keep Track of Customers and Invoices
    Keep Track Of Customers And Invoices Logographic and palatine Leif dozing tautly and equivocating his victuallers straightforward and perdurably. Is Romain auctorial or edified when curd some forcers disbudding unequally? Innominate and spireless Seymour always outburn awesomely and improved his exquisites. Simple grid for and invoices and keep track of customers to make a clean interface, faster invoicing tool rather than just projects on average time Read across the payment information from a good for small operators than everything you can protect themselves when a free. Monitor your expenses, up new customers is a project managers can be as a paid you update. Zendesk sell digital and midsize businesses, but we have spent working together a scanned document. Have done automatically tracks expenses on the ability to put your customers via email tracking time? Multichannel payments from your invoice, create your server, customizable client management platform to you open with. We strive to. Measure and views and especially when you run a free now keap can enter it has received within a minute or less time than cutting and. Recent improvements are related content may be nice and multiply their payments and. Low monthly or keep track time data to keeping track time tracking where you include sales and keeps flowing to. Make tracking of customers with customized with one invoice, track time and there are tracked work. In tracking of keeping track each situation is seen either as keep track time doctor has been able to accept? Finally seeing it also ad spend on track of and invoices against the.
    [Show full text]
  • Base De Datos Como En Un Motor De Búsqueda? Datamatch Enterprise™ Server + API De Data Ladder, Encuentra Los Datos Correctos, Incluso Con Información Incompleta
    68 Bridge, St. Suite 307 +1 888-779-6578 [email protected] www.DataLadder.com Suffield, CT 06708 Mantenga sus bases de datos limpias DataMatch Enterprise™ Server + API es un componente diseñado por Data Ladder para la comparación, el formateo de datos y la limpieza de datos de última generación. Entre sus usos más comunes se encuentran la prevención, consulta, deduplicación y fusión / purga de duplicados. La API DataMatch Enterprise™ divide y asigna nombres y direcciones a los casos, genera claves de coincidencia para la coincidencia fonética, genera 3 gramos para una coincidencia aproximada más precisa y registros de coincidencia de calificaciones. El componente ofrece una solución compacta y eficiente a los problemas de calidad de datos y duplicación en cualquier sistema basado en Windows. Alto Rendimiento Rápida Interface y Escalabilidad Implementación Intuitiva Delivers results quickly regardless Proceso acordado con Ejecutar proyectos de big data of size of database los desarrolladores en cuestión de días Robusta Tecnología Perfecta Integración Sincroniza con datos de Emparejamiento con Bases de Datos en tiempo real Encuentre lo que está buscando Opera aparte y enlaza con las Las actualizaciones con la mejor tecnología de bases de datos actuales para instantáneas funcionan depuración y emparejamiento lograr la máxima velocidad y junto con el proceso de del mundo eficiencia como parte de la API emparejamiento Funcionamiento Cargar proyecto seleccionado Correr el proceso de búsqueda Ir a la ventana de configuración Live Search Demo 3.1.13.1 (1.0.7.7) - X Ingresar la palabra buscada Search Criteria Start Settings Victor Search time “Victor”: 120 ms Hide log Live Search Search V Score Data Source Record Company Address City 11/12/2018 2:57:44 PM - Start loading Engine Wrapper Name Name No 0 by project ‘smoke3.1.7.0’ 100.00 Customer Master 1152 Hungry’s Express..
    [Show full text]
  • PC EFTPOS Accreditation List No
    PC EFTPOS Accreditation List No. Company POS Accredited Date Issued 159 2Clix Pty Ltd 2Clix v3.9.0.0. 12-Oct-04 463 365 Technology Group / Pawnit Systems PtyPawnit Ltd 365 v 15.3.30.2 15-Sep-15 274 7-Eleven Stores Pty Ltd Radiant Systems P400 & P1550 v6.2.9070 26-Oct-09 375 Abercrombie & Fitch IPOS v6.0.0.25.42 18-Feb-13 511 Accent Software Insyte v16.4.2.0 20-Mar-17 240 Access POS Pty Ltd Retail Manager & New Manager v3.60 21-Jul-08 280 Aclas Pty Ltd ArmPOS v2.0 11-Jan-10 211 ACR Business Systems Pty Ltd Hardware Shoptalk v1.0 13-Feb-07 210 Acumen Computer Systems Acumen v3.85 10-Jan-07 289 Acumen Computer Systems Acumen v3.95 23-Mar-10 356 Addictive Technology Solutions addictive POS v1.0 15-Aug-12 43 Adelaide Business Software Adelaide business Software v1.18 22-May-02 72 Adelaide Business Software Adelaide business Software v1.18 14-Aug-03 456 Advanced Automotive Data Services MTS by AADS v8.12 21-Jul-15 51 Advanced Retail Solutions Advanced Retail Technology v1.00 15-Nov-02 73 Advanced Retail Solutions Advanced Retail Technology v1.00 14-Aug-03 245 Advantage Solutions Pty Ltd Microsoft Retail Management System RMS 2.0 24-Nov-08 52 Agopae Data Systems Agopae Data Systems v1.00 15-Nov-02 74 Agopae Data Systems Agopae Data Systems v1.00 14-Aug-03 513 Ai-Menu Systems Ai-Menu v3.10.30 11-Apr-17 451 All Cash Register Requirements Grace POS v3.00 10-Jun-15 70 Allcom Australia Allcom Aust v5.30 17-Jun-03 75 Allcom Australia Allcom Aust v5.30 14-Aug-03 253 AM Solutions / My Chemist / Corum HealthRetail Manager (EPOS) v1.0.0.0 14-May-09 492
    [Show full text]
  • Public Version 1 Myob/Reckon Accountants Group Letter
    PUBLIC VERSION MYOB/RECKON ACCOUNTANTS GROUP LETTER OF ISSUES 1. Introduction 1.1 This document sets out the response of MYOB and Reckon to the Commerce Commission’s (NZCC ’s) Letter of Issues ( LOI ) in relation to the proposed acquisition by MYOB Group Limited (MYOB ) of the Accountants Group of Reckon Limited ( Reckon ) ( Proposed Transaction ). 1.2 The NZCC’s focus is whether the Proposed Transaction may give MYOB the incentive and ability to raise prices to medium to large accounting firms and a sub-set of accounting firms that do not consider cloud-based accounting software to be a viable alternative. As part of this assessment, the NZCC is considering whether MYOB may be able to price discriminate between different accounting firms. 1.3 For the reasons set out below, there is strong evidence that MYOB will not have the incentive or ability to raise prices to any customer or sub-set of customers post-merger, and will not do so. 2. Executive Summary 2.1 The effects of the Proposed Transaction must be assessed against a likely counterfactual. To this end, there is no prospect whatsoever that Reckon will move its APS suite to the cloud. As [REDACTED] , and it has stated (as a listed company), it simply does not have the resources (nor the time) to do this. As a result, its constraint on the market will decline. Indeed, it is already declining, as evidenced by [REDACTED] . 2.2 As to the relevant markets: (a) the evidence reveals that the compliance software requirements (i.e. client accounting and tax) are the same for all firms.
    [Show full text]
  • Erp Software Vendor Directory
    ERP FOCUS ERP SOFTWARE VENDOR DIRECTORY C CONVERTED MEDIA ERP FOCUS M ERP Software Features Billing CRM Customer Service Financials & Accounting Planning & Scheduling 3S ERP Project Management Supply Chain Management 3S ERP is specifically designed for small to medium-sized manufacturing companies. The ERP is a fully-integrated Document Management system with a wide range of management modules that cater for production, manufacturing, and administration. The 3S ERP production module is particularly well-equipped for manufacturers, offering features for quality management, hazardous materials handling, tool management and product planning and configuration. It also VIEW SOFTWARE REVIEWS, interfaces with CAD. As 3S ERP is modular, users can build up from basic financial management with production, SCREENSHOTS & MORE distribution, CRM and much more. 3S ERP is easily customized and does not need any additional programming VIEW COMPLETE PROFILE knowledge. The security of 3S ERP data is managed at three levels – the operating system, the network and at the level to the database and applications. Access can be limited to the user level, meaning you can control access to restricted data across user groups. 3S ERP offers searchable one-time data entry, with advanced analytics features alongside this. It also helps support internal and external financial audits. 3S ERP is installed on-premise, with iOS and web apps available for increased mobility. System installation takes around seven days, and 3S offer user training during implementation. Users can access software updates and upgrades free of charge. ERP Software Features Billing Business Intelligence/Analytics Costing ABAS ERP CRM Financials & Accounting abas ERP is a software system for manufacturers, retailers, distributors and service providers.
    [Show full text]