Technology Matters in IR

06 March 2009

 

I can just imagine an IRO 25 years ago saying “Why would we need an IR website?  People can just call me if they need information.”  Today, of course, IR websites are not a luxury, they are a necessity.

That makes me look at what is happening with technology (more specifically social media technologies) today and wonder how IR departments will use them in the near future.

Last week, Microvision allowed the investment community to ask questions on their corporate blog.  These questions were then answered by management on the company’s quarterly earnings call.  One would think that this is common practice for IR departments in today’s progressive technological world, but it’s not common at all.

The fact is IR departments could be so much more effective, not to mention efficient, if they embraced social media tools as opposed to criticize or ignore the tools.  Remember, IROs used to criticize and ignore IR websites in the not so distant past.

I predict that in five to eight years from now that the majority of IR departments (that’s more than 50%) will extensively use social media technologies when communicating with the Street regardless of their market cap.

It’s inevitable.  Those IR departments who embrace social media today will be thought of as leaders.  The rest will merely follow.

2 Responses to “Technology Matters in IR”

  1. AGORACOM - George

    Hi, Anil. I would say that 5-8 years is a little long. I expect the majority to be using social media in 3-5 years.

    Second, those IR departments that embrace social media today will simply win. Investors don’t realize or care which companies are using SM, they’ll simply gravitate to those companies.

    I know because we’re dominating the small-cap space with IR web 2.0 and investors are attracted to companies that make themselves accessible.

    “Thought leader” titles will be saved for things like the IR awards.

    Regards,
    George

  2. Collective Conversation » Anil Dilawri » Blog Archive » Technology, the Flu, and Investors

    [...] In today’s IR world, technology matters. [...]

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