E-Services and Australian Accounting Practices

Delivering Services On The Internet

The power of information and communication technology in improving business performance is underpinned by the versatility of the Internet as an information medium. Through their websites, firms have effectively reached out to their customers in a variety of ways, achieving greater efficiencies and in some cases offering added value. In the late 1990's, Angehrn (1997) identified four Internet 'dimensions' that a business could employ when developing a strategy to engage customers via the Internet. These dimensions are information (dissemination), communication (with customers), distribution (of digital goods or services) and (online) transactions (ICDT). More recently, Jelassi and Enders (2005) have suggested that these dimensions could be used by a business to help them select which Internet features to employ when engaging with customers. They describe Angehrn’s dimensions as:

• •

  Virtual information space – this includes online advertising and posting business information.

• •

  Virtual communication space – is where the business engages in a two-way online communication with its customers, typically through email, chat facilities or bulletin boards.

• •

  Virtual distribution space – allows for the delivery of digital goods (such as online books, software) and services (such as financial advice). This is an area where innovation in services delivery could provide benefits both to businesses that offer professional services and their clients.

• •

  Virtual transaction space – allows for the acceptance of online orders and payments.

The four dimensions provide a useful framework from which to map out existing and potential value-adding activities and are particularly relevant to the subject of this study, accounting practices. In particular, the four dimensions will be used to classify the different e-service strategies of Australian accounting practices. Before this can be carried out, it is necessary to spend some time discussing e-services.

Stafford (2003) suggests that experts have not yet come upon a clear definition of what e-services actually are. One reason for this, as Stafford argues, could be attributed to the range of specialities involved in the delivery of e-services. From a marketing viewpoint, Bolton (2003) suggests that e-services are those services that can take place without buyer involvement. For instance, automatic collection of road tolls as a car passes through a tolling booth is an example of this. E-services can also be related to particular industries. For instance, Laffie (2005) discusses the US Internal Revenue Service (IRS) and describes their e-services as being a suite of online products that allow tax professionals and payers to conduct business electronically with the IRS. Another broad definition of e-services is offered by Hofacker,_Goldsmith, Bridges and_Swilley (2007:17), who define e-services as: