Interactive Strategic Plan

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INTERACTIVE AUDITING DEPARTMENT STRATEGIC PLAN 1997-2000

CONFIDENTIAL

BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

TABLE OF CONTENTS

Page I.

INTRODUCTION............................................. .......................

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II. OBJECTIVES.............................................. ...........................

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III. STRATEGIES TO ACHIEVE ........................................... .......

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IV. STRENGTHS................................................................... .......

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V. WEAKNESSES..................................................................... ..

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VI. CONCLUSION......................................................... ...............

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

I.

INTRODUCTION

During the past several months, BPA International has been distracted as a whole. But this distraction has been a very positive one. The introduction of Interactive Auditing to BPA International’s established business of auditing print media has led to a boom in interest in our work and publicity surrounding our newfound successes. Likely no one could have predicted the explosion in this growth area, but with proper planning and sound management, Interactive Auditing could become a viable department of BPA International which challenges all others for prominence. The Interactive Auditing department is truly in its’ infancy. Because of this, a strong and well thought out Strategic Plan is as important as any in recent history. This plan will focus on the auditing of World Web Sites and interactive media. The Strategic Plan for the Marketing Department focuses more specifically on how to grow the business, and the Communications Department will address how to maximize publicity and exposure to our new venture into Interactive Auditing. Interactive Auditing is clearly the buzz in BPA International’s immediate future. However there are several challenges which need to be overcome for this new department to not just survive, but to succeed. I will outline where our organization is at present, and where we need to grow in order for us to remain a viable alternative in the marketplace.

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

II. OBJECTIVES 1

To improve on the audit plan and procedures presently used to conduct Interactive Audits.

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To continue to keep a high profile for the work that is being done, and to get our ideas on Interactive Auditing out to the industry.

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To grow the department through staff additions, further technology acquisitions, and more training and education for all those involved in Interactive Auditing.

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

III. STRATEGIES TO ACHIEVE FIRST OBJECTIVE: To improve on the audit plan and procedures presently used to conduct Interactive Audits. SITUATION ANALYSIS: The existing audit plan is one which is still evolving with every audit upon which we embark. In the near future, we hope to have enough established procedures, guidelines, and rules to put down onto paper and truly formalize not just the internal work being done for an audit, but the rules which future members need to abide by if they wish to have their web site audited. As we add staff, and staff become more fluent in the audit plan, we expect more ideas to surface about how to improve on what are doing at present. However, this is an entirely new arena, and while we can borrow many concepts and even some procedures, and open mind is critically important for the survival of the department and our perception as a leader in this new marketplace. Unlike print, where we are incorrectly labeled as auditors of trade only, Interactive is brand new. We have an opportunity to forge ahead into completely uncharted territories, and perhaps in the near future, our strong work in Interactive will even help to erase the stereotype which still haunts us in print. But for this to happen, we need to either embrace the Internet, even with its’ inherent flaws and do the best audits possible, or abandon it now, rather than risk recanting in our commitment and causing certain embarrassment in the marketplace. With this in mind, we also can automate the Interactive process to an extent unseen in print. As time marches forward, we hope to realize not only such automation, but economies of scale which will allow us to keep rates competitive within our competitors. As I will mention later, our audit is clearly still the most manual of all of our competition. This is strong for us, because we are clearly the most stringent in terms of methodology. But the amount of manual work makes it difficult for us to keep our prices in line with competition which uses far fewer man hours per audit. STRATEGY: Continue to increase intelligence within the department, especially as it grows. The more people who are intimate with the Internet, the more varied the ideas we will able to formulate towards the ultimate goal of bettering the audit integrity as well as the efficiency in which we conduct the audit. TIMETABLE: This strategy is on-going. STAFFING: BPA International Interactive Auditing Manager and staff, Senior Vice President, Auditing, Internal Auditing Manager.

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

SECOND OBJECTIVE: To continue to keep a high profile for the work that is being done, and to get our ideas on Interactive Auditing out to the industry. SITUATION ANALYSIS: The work we are doing in Interactive Auditing is being watched by the entire industry. We are not only forging on new ground, but the marketplace is taking sides. There are clearly people who want us to succeed and those who want us to fail. (Not to mention those who do not yet know of us, but will.) Our work is both scrutinized and praised as the entire medium continues to evolve in “dog years.” But, as we continue to refine our work, it is even more important to share our findings with the public. STRATEGY: It is our intention to appear at as many industry events, and there are more than an abundance to attend. Whether we are profiled, speaking, or just “showing our face,” our presence must be felt at all trade shows, expositions, and conferences. We do ourselves immeasurable harm when a panel at a prestigious or well attended shows includes all of our competition, but we are not in attendance. We need to add personnel, so there is a pool of people who can travel the Interactive Circuit to deliver our version of the Internet gospel. With the aid of the Communications Department, who is monitoring the Interactive calendar, we must achieve to attend or participate in every significant event. We are already considered a “player” in this brand new marketplace. But to remain in the high profile position which we are striving towards, we must focus on delivering our message, loudly, clearly, and often. TIMETABLE: This strategy is on-going. STAFFING: BPA International Interactive Auditing Manager and staff, President & CEO, Senior Vice President, Auditing, Senior Vice President, Marketing, Communications Manager.

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

THIRD OBJECTIVE: To grow the department through staff additions, further technology acquisitions, and more training and education for all those involved in Interactive Auditing.

SITUATION ANALYSIS: We are suffering from a deficit of knowledge. It is a clear weakness of our organization that too much of the hard core knowledge of how our audits and the World Wide Web really work are ingrained in only one person right now. If this department is to compete and thrive, we need to spread the knowledge to others in the organization, both existing employees as well as new hires. STRATEGY: Schedule more Interactive Auditing training for the Internal Auditing department so reviews can be done by more than one person in the department. Schedule training for more officers of the company, so they can speak with more fluency about the work that we do. Clearly, any new hires will be expected to become fully versed in all the nuances of the Web, and more particularly how the audit might be affected. But it is important to “share the wealth,” but getting as many people educated about the Web and our auditing of it. Also, I would like to initiate a “Web Auditor Apprentice” program. By choosing those print auditors who have the most interest, and good computer aptitude, and teaching them on the job, in their spare time. Several auditors have expressed in our Interactive Auditing work, and considering our preference to hire from within, if we can get internal staff up to speed on how to perform the work, then we can increase our staff and know-how quickly and with people who understand the fundamentals of auditing. TIMETABLE: This strategy is on-going. STAFFING: Interactive Auditing Manager, Interactive Audit Staff, and staff at large.

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

IV. STRENGTHS A.

EXPERIENCED MANAGER

Benjamin Saitz, the Manager of the Interactive Department, has been working with the Internet for several years, and more specifically working on our Interactive Audits for over a year. Considering how young the medium is in general, this experience gives us a strong knowledge base. Ben has a strong grasp of not only existing and future technical issues, but of the bigger marketing issues which surround Interactive Auditing. Ben has given several speeches and sat on numerous panels to propagate BPA International’s ideas to others in the industry. B.

BUILT-IN PROSPECT BASE

As with any business, growth is dependent upon new business. We have a very strong existing base of membership to tap into as a prospect base. This should give us the leverage to “hit the ground running” in this brand new venture. C.

STATE OF THE ART EQUIPMENT

This new department cannot succeed on will and brains alone. The auditing of web sites depends on technology more than any other portion of business BPA International has pursued. Because of this, if our organization is serious about contending for a substantial portion of the market’s business, we need to have a serious commitment to investment and re-investment in computers, storage, and high speed Internet access. To this point, we have been up to the challenge. We have outfitted ourselves with good laptops, excellent servers for traffic analysis, and a recently ordered T1 (high speed Internet access) line rounds out the bill. This must continue however, a one-time investment is not nearly adequate to compete. At some point, outsourcing of this portion of our business may need to be evaluated in order to keep our capital expenses from exceeding our potential revenues.

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000

V. WEAKNESSES A.

BACKUP STAFF WITH EXPERIENCE

As I illustrated previously, it is critical to grow our installed base of intelligence within the company. Our competition has several to many employees who specialize in the Internet, especially considering all the many technical issues which present themselves from audit to audit. To adequately compete in the marketplace, we need to add staff, and have as many staff as possible able to speak intelligently about what a web audit entails. B.

VISIBILITY

Despite our progress to date, and our aggressive attempts to maintain as much “mindshare” as possible in the industry, still too often we are left of important panel groups, or not invited to functions where our attendance would further advance our business. We need to pursue panels even more pro-actively, rather than wait to find out that we were not invited beforehand. In order to reach our objective of increasing our visibility, we need to be thought of by all industry groups and conference organizers when they are preparing their guest/speaker lists. C.

STATE OF THE ART TECHNOLOGY

We must concede that technology is not a strong suit of our organization. Despite our recent investments in both our internal technology as well as in web auditing technology, it takes more than money to gain the kind of “know-how” possessed by our competition. In an effort to remain technological aware, it is a challenge to all involved in this department to constantly keep themselves on the “bleeding edge” of technology, particularly Web and Internet technology.

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BPA INTERNATIONAL STRATEGIC PLAN INTERACTIVE AUDITING DEPARTMENT JULY 1997- JUNE 2000 IV. CONCLUSION This years election slogan should be: “It’s the Internet, stupid.” That’s just how important the Internet has become. So much more than e-mail and “surfing the web,” The Internet has become a new commerce stream, in so many ways, that all those who are not prepared to participate in the Internet are doomed to miss out on the abundance of opportunity it presents. BPA International has clearly made it known, internally and in the industry, that it intends to not only compete, but to dominate in the field of Interactive Auditing. The marketplace is still without true leadership, a clear third-party leader to perform audits, and industry organization as a whole. Our status on the print side lends itself perfectly for the chance to step into the Interactive Arena and make an impact unlike any previously seen in BPA International’s Sixty-Six years. But, there are potholes on the road down the information superhighway. It present a technological challenge unlike any other in recent memory. Furthermore, this new medium has built in limitations which do not lend itself to auditing to the level we are accustomed to in print. The web is referred to as a “stateless medium.” This is so very accurate because transactions are one at a time, with no trail from first to the next. The web was not built to be audited, by BPA International or by our competition. However, if we apply the sound principles of auditing which we possess, coupled with an open mind to the unknown and this new marketplace, success will come as quickly as we allow it. The next three years that this strategic plan covers are on the lunar calendar. However, the calendar the Internet works on progresses much faster than this. The target changes weekly, and our feet to be swift and light, in order to keep ourselves progressive enough to compete and survive. From the time I write this plan, to the time it is reviewed by the BPA International management staff, no doubt, more changes and more players will have entered the arena. And if we properly prepare ourselves for the future, there is no reason we cannot realize all the potential which exists in our company. Interactive Auditing provides us with a chance to put ourselves on the map, greater than ever before in this organizations great history. From adding the most prestigious publishers to our roster, to becoming a beacon of integrity in the marketplace, the market is calling for us. We need only to hear the call and respond to the needs of the industry. Three years is almost too far off to plan for in Interactive Auditing. But it is foolish to proceed with no direction. This plan should serve as a guideline. But the flexibility in philosophy mentioned in this plan needs to be kept in mind not only when dealing with Interactive Auditing issues, but equally as well when planning our future for success.

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