Recall, from Chapter 8, the Hammaker Manufacturing Company (HMC) is located in Burke, Virginia, and manufactures specialty parts for Corvettes. The company implemented a new AIS with the help of a consulting firm. At the time, Hammaker was especially interested in collecting data about inventories. Then, HMC decided to accept the consulting firm’s recommendation to reengineer some processes in the production departments, rather than outsource these processes. Generally speaking, the BPR project is considered a success, based on the results that have been achieved—increased profits and more satisfied customers. To Denise’s credit, she kept the employees informed throughout the study phase so that they understood the need for change. As a result of employee involvement, many useful changes were made and no employees were terminated. Now, with increased profits and a very optimistic view of future growth, Hammaker meets with Denise and Lloyd to discuss the advantages and disadvantages of a new, more powerful AIS. Lloyd’s area of expertise is implementing ERPs, and he is eager to inform HMC about the advantages of selecting an XBRL-enabled software solution for the firm.

1. What does it mean when software is ‘‘XBRL-enabled’’?

2. Identify at least five advantages that Lloyd might discuss with Dick and Denise regarding an XBRL-enabled software solution. Identify any disadvantages that might also be relevant for HMC.

3. Assume that you are Lloyd’s research assistant. Draft a memo for Lloyd to give to HMC that explains how XBRL works. Remember to keep in mind your audience. This should be an executive-level piece of correspondence.

4. Now, as the research assistant, develop a PowerPoint presentation for Lloyd to give to Dick and Denise explaining exactly what sorts of benefits they could realize with an XBRL-enabled software solution. Be creative, and use diagrams and examples where appropriate.