The Integrated Reporting Movement: Meaning, Momentum, Motives, and Materiality

Chapter 9Information Technology

Although the use of information technology (IT) is not a focal point of the integrated reporting movement's conversation today, it should be. IT, which involves the “development, maintenance, and use of computer systems, software, and networks for the processing and distribution of data,”¹ poses a major challenge for integrated reporting. Yet it is also an opportunity. Not only can IT dramatically improve the process and quality of integrated reporting to the benefit of both the company and its audience, it can also improve both parties' integrated thinking.

To understand how this can be accomplished, corporate reporting in general and integrated reporting in particular must be considered in the context of four technological trends sweeping the business world today: big data, analytics, cloud computing, and social media. Companies have rightly focused on how these technologies can support and transform their business model. Virtually no attention, however, has been given to their application in integrated reporting. We believe that should—and will—change. Until senior management gives proper consideration to how to leverage IT for corporate disclosure, the full promise of integrated reporting (<IR>) and integrated thinking (<IT>) will not be achieved. The previous two chapters' analysis supports this contention. As shown in Chapter 7, paper-based reports have severe inherent limitations and, as shown in Chapter 8, the corporate reporting websites ...