Experian 2014 Annual Report Download - page 27

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23 Strategic report • Protecting our business
PRODUCT, SERVICE OR TECHNOLOGY OBSOLESCENCE
The markets for our products and services are characterised by technological changes, frequent introduction of new services and
evolving industry standards.
Performance indicator
EBIT and ROCE
Strategic alignment
• Product innovation
Further information
• Our strategy section
Description of risk
• Advances in technology may result in rapidly changing
consumer preferences for products, services and
delivery formats.
Potential impact
• We might be unable to support changes in the way
our businesses and clients use and purchase
information, affecting our operating results.
How we manage this risk
• We carry out detailed competitive and market analyses.
• We use rigorous processes to identify and select our
investments in products and services, so we can effectively
introduce new products and services to the market.
Change from 2013
Stable
2014 update
We continue to invest heavily in new data
sources and analytical products, together
with the platforms that support their
worldwide delivery. We aim for over 10%
of our revenues to come from products
developed during the past five years. In
addition, 21% of our global costs are in
information technology and data.
INTERRUPTIONS IN BUSINESS PROCESSES OR SYSTEMS
Our ability to provide reliable services largely depends on the efficient and uninterrupted operation of our computer network systems
and data and call centres, as well as maintaining sufficient staffing levels.
Performance indicator
EBIT
Strategic alignment
• Geographic expansion
Description of risk
• Our systems, personnel and operations could be exposed
to damage, interruption and pandemic outbreaks.
Potential impact
• Any significant failure or interruption could have a
materially adverse effect on our business, financial
performance and financial condition.
How we manage this risk
• We maintain sufficient operational capacity to
rapidly cover a loss of personnel or system failure.
• We ensure strict standards, procedures and training
programmes for physical security.
• We have comprehensive business continuity plans
and incident management programmes.
• We fully duplicate all information in our databases
and run back-up data centres.
• We employ third-party vendor continuity standards,
procedures, training and support arrangements.
Change from 2013
Stable
2014 update
While we experienced limited disruptions
during the financial year, isolated events
including weather and power disruptions
provided real-time validation of our
plans and processes. We continue to
perform periodic exercises to ensure our
documented procedures are accurate and
suitable for each specific environment.
DEPENDENCE ON RECRUITMENT AND RETENTION OF HIGHLY SKILLED PERSONNEL
Demand is high for individuals with appropriate knowledge and experience in the information technology and business services market.
Performance indicator
Employee engagement
Strategic alignment
• Product innovation
• New customer segments
• Geographic expansion
Further information
• Our people section
• Our corporate
responsibilities
Description of risk
• We may be unable to attract, motivate or retain key
talent, or to hire and retain personnel at reasonable
compensation levels.
• Our competitors may offer more attractive employment
terms and seek to hire our high-talent personnel.
Potential impact
• Not having the right people could materially affect our
ability to service our clients and grow our business.
How we manage this risk
• We have ongoing recruitment, personal and
career development, and talent identification
and development programmes.
• We carry out our global people survey approximately
every 18 months and act on feedback received.
• We offer competitive compensation and benefits
and review them regularly.
Change from 2013
Stable
2014 update
The results of our 2013 global people
survey show an overall positive trend,
with our scores improving or staying
the same in 14 out of 15 categories.
However, our engagement score declined
by 1% to 74%, compared to 2011. In part,
we ascribe this to raised expectations
resulting from the high profile of the
Heart of Experian programme.
P14
P52